SINOVOLTAICS ENERGY STORAGE MANUFACTURER RANKING

EDITION 3/2020
Niclas Weimar Dricus de Rooij
Welcome to this Edition 3 - 2020 version of the SINOVOLTAICS
Energy Storage Manufacturer Ranking Report.
The Altman-Z Scores in this report have been calculated from
June 2017 until June 2020, and provide detailed insight how
the financial strength of energy storage manufacturers has
evolved over the past 3 years.

2
What’s the value Altman-Z Scores are calculated to understand which energy storage
of Altman-Z manufacturers are financially stable, and which players are at risk
of going bankrupt.
Scores?
For any stakeholder involved in solar projects, the financial stability
of the manufacturer is of crucial importance.

Employing energy storage from financially stable manufacturers

provides for a better hedge against the potential risks of collapsing
return of investment (ROI) of any PV project.

Why is financial In this new emerging energy storage market, its grand variety of
stability existing and research-in-progress technologies, purchasers face a
grand and difficult choice of manufacturers, many of which only
important? recently ventured into this market. In such a new market with average
warranties that vary widely between 2 - 10 years, the financial stability
of an energy storage manufacturer is crucial as it is geared to the
validity and enforceability of the warranty policies on its products.
Most people realize that today’s energy storage manufacturers will
probably not be around in 5 years. However for the short to medium
term, you want to be sure that warranties are in place.

In many years to come, lots of solar PV & energy storage projects will
likely face this tough question: whom to contact with performance
complaints and replacement requests regarding a malfunctioning
battery after 2, 5 or 10 years?”
3
 In this report we present you the Altman Z-Scores of 40 energy
storage manufacturers. This report can be used to see how one
manufacturer matches up to the other, and can be an important
indicator when selecting your energy storage manufacturer.

The Altman Z-Scores show you which energy storage

manufacturers are financially strong, and which manufacturers
are in the risk zone of going bankrupt within the coming 2 years.

2017 - 2020: On the following pages you find the full table showing the
rating of Altman Z-Scores of the major, publicly listed Asian, European
energy storage and American manufacturers.
manufacturers The scores have been calculated by team Sinovoltaics with the
worldwide use of publicly available financial data.

4
 MANUFACTURERS RANKING TREND SEP17 DEC17 MAR18 JUN18 SEP18 DEC18 MAR19 JUN19 SEP19 DEC19 MAR20 JUN20 LISTING

VARTA 1  4 6,51 5,72 6,48 7,98 5,72 6,04 8,3 12,4 15,09 7,74 6,09 XTER:VAR1

SINEXCEL 2  17,51 10,57 12,22 12,66 6,53 6,39 7,16 1,56 4,98 4,55 5,75 5,8 SZSE: 300693

DMEGC 3  5,87 5,15 5,6 5,37 4,29 4,69 5,87 5,22 SZSE:002056

CATL 4  1,28 1,43 5,44 4,59 3,61 3,48 2,86 2,9 3,65 4,02 5,1 SZSE: 300750

SANYO 5  5,08 4,8 4,89 4,99 4,96 4,67 4,65 5,21 5,06 5,34 6,46 5,04 TSE:3176

TESLA 6  1,55 1,25 1,07 1,31 1,23 1,79 1,64 1,46 1,58 2,32 2,77 4,56 NAS:TSLA

SIMPLO TECHNOLOGY 7  2,92 3,19 3,42 3,27 3,11 3,4 3,9 3,31 3,38 3,63 3,49 4,31 ROCO:6121

HITACHI CHEMICAL 8  3,63 3,5 3,25 3,19 3,18 2,95 3,31 3,41 3,69 4,12 4,01 4,19 TSE:4217

SACRED SUN 9  4 3,69 3,83 3,45 3,28 2,76 4,11 3,49 3,37 3,28 3,48 3,6 SZSE:002580

SAMSUNG SDI 10  2,89 3,06 2,87 2,91 2,84 2,44 2,39 2,53 2,48 2,55 2,71 3,21 XKRX:006400

TIANNENG POWER
11  2,92 2,86 2,79 2,81 2,79 3,17 HKSE:00819
INTERNATIONAL

ZHONGTIAN TECHNOLOGY 12  5,15 4,84 4,31 3,5 3,17 3,19 3,25 3 2,98 2,92 3,15 2,95 SHSE: 600522

ENERSYS 13  3,96 3,94 4 4,22 4,47 3,14 3,03 3,09 2,97 3,15 2,74 2,91 NYSE: ENS

SEBANG GLOBAL BATTERY 14  3,86 3,9 3,71 3,72 3,91 3,82 3,92 3,98 3,86 3,84 3,57 2,9 XKRX:004490

LG CHEM 15  4,87 4,52 4,09 3,75 3,73 3,39 3,05 2,85 2,72 2,70 2,5 2,79 XKRX:051910

EATON 16  2,34 2,85 2,49 2,46 2,57 2,64 2,79 2,79 2,7 2,95 2,69 2,66 NYSE: ETN

GS YUASA 17  2,45 2,39 2,43 2,41 2,5 2,34 2,43 2,39 2,32 2,46 2,09 2,24 TSE:6674

BASF 18  3,16 3,14 3,01 2,87 2,75 2,48 2,41 2,41 2,39 2,46 2,22 2,17 XTER:BAS

PANASONIC 19  2,25 2,28 2,33 2,32 2,26 2,23 2,31 2,05 2,04 2,12 2,04 2,1 TSE:6752

MAXELL 20  3,95 3,86 3,64 3,47 3,27 2,95 2,43 2,38 2,4 2,20 2,01 2,04 TSE:6810

TOSHIBA 21  1 1,09 1,57 2,13 2,34 2,3 2,23 1,9 1,9 1,95 1,83 1,96 TSE:6502

SK INNOVATION 22  3,1 3,16 3,22 3,17 3,08 3,07 2,77 2,72 2,76 2,59 2,17 1,92 XKRX:096770

NEC 23  1,82 1,88 1,76 1,82 1,8 1,86 1,76 1,77 1,8 1,85 1,78 1,92 TSE:6701

5
 MANUFACTURERS RANKING TREND SEP17 DEC17 MAR18 JUN18 SEP18 DEC18 MAR19 JUN19 SEP19 DEC19 MAR20 JUN20 LISTING

ALBEMARLE 24  3,82 3,36 2,98 3,14 3,18 2,73 2,68 2,35 2,27 2,39 1,84 1,9 NYSE:ALB

SONNEN (ROYAL DUTCH

25  2,23 2,4 2,43 2,59 2,08 2,7 2,6 2,5 2,41 2,46 1,95 1,88 NYSE:RDS.A
SHELL)

EAST GROUP 26  2,78 2,88 3,06 2,58 2,39 1,79 1,9 1,67 1,61 1,62 1,76 1,84 SZSE:300376

GREENSMITH ENERGY
27  3,75 3,82 3,24 3,43 3,07 3,26 2,57 2,98 2,7 2,07 2,3 1,78 OHEL:WRT1V
(WÄRTSILÄ)

NARADA 28  3,72 3,25 2,79 2,21 2,15 2,1 2,15 1,69 1,77 1,72 1,8 1,78 SZSE: 300068

FIAMM (HITACHI) 29  1,92 1,98 1,99 2,07 2,07 1,94 2,08 2,08 2,09 2,14 1,72 1,78 TSE:6501

BYD 30  1,86 1,66 1,48 1,29 1,5 1,5 1,46 1,53 1,5 1,51 1,58 1,71 HKSE:01211

GUOXUAN HIGH-TECH
31  3,09 2,56 2,59 1,86 1,74 1,46 1,83 1,36 1,32 1,39 1,58 1,65 SZSE:002074
POWER ENERGY

JOHNSON CONTROLS 32  1,66 1,69 1,6 1,56 1,81 1,7 1,81 2,35 2,23 1,82 1,53 1,52 NYSE: JCI

LEOCH BATTERY 33  1,66 1,54 1,54 1,54 1,53 1,39 HKSE: 00842

ENERGIZER HOLDINGS 34  2,96 3,06 3,24 3,27 1,75 1,16 1,14 1,12 1,12 1,32 1,21 1,33 NYSE:ENR

NISSAN 35 — 1,62 1,61 1,64 1,6 1,56 1,53 1,47 1,44 1,42 1,39 1,28 1,28 TSE:7201

MITSUBISHI 36 — 1,62 1,53 1,41 1,41 1,47 1,43 1,57 1,53 1,5 1,51 1,15 1,15 TSE:7011

AVIC 37  1,1 1,12 1,04 1,02 0,99 1,15 HKSE:02357

MERCEDES BENZ ENERGY 38  1,41 1,42 1,4 1,29 1,26 1,21 1,17 1,05 1,04 1,07 0,99 1 XTER:DAI

HYUNDAI ELECTRIC 39  1,52 1,36 1,13 0,92 1,02 0,59 0,53 0,70 0,66 0,35 XKRX:267260

CBAK ENERGY 40  -1,83 -1,66 -1,82 -2,12 -1,79 -1,95 -1,93 -2,05 -2,1 -2,23 -2,47 -2,74 NAS:CBAT

* The trend column in the table reflects a comparison of the current quarter score to the previous one.

6
Graph overview

Graph #1 - The latest energy storage manufacturers ranking, recorded June 2020

Graph #2 - Energy storage manufacturers that are currently in the Safe Zone

Graph #3 - Energy storage manufacturers that are currently in the Grey Zone

Graph #4 - Energy storage manufacturers that are currently in the Distress Zone

7
 8
Distress zone

CBAK Energy
Hyundai Electric
Mercedes Benz Energy
Graph #1 - Full ranking overview of energy storage manufacturers

AVIC
Mitsubishi
Nissan
Energizer Holdings
Leoch Battery
Johnson Controls
Sinovoltaics energy storage manufacturer ranking - Edition #3 - 2020

Guoxuan High-tech Power Energy

Grey zone

BYD
Fiamm (Hitachi)
Narada
Greensmith Energy (Wärtsilä)
East Group
Sonnen (Royal Dutch Shell)
Albemarle
NEC
Safe zone

SK Innovation
Toshiba
Maxell
Panasonic
Basf
GS Yuasa
Eaton
LG Chem
Sebang Global Battery
EnerSys
Zhongtian Technology
Tianneng Power International
Samsung SDI
Sacred Sun
Hitachi Chemical
Simplo Technology
Tesla
Sanyo
CATL
DMEGC
Sinexcel
Varta

-1
6

-2
1
2
7

-3
3
Graph #2 - Energy storage manufacturers – Safety Zone
Sinovoltaics energy storage manufacturer ranking - Edition #3 - 2020 - Safety Zone

20
Varta

18 Sinexcel

DMEGC
16
CATL

Sanyo
14
Tesla

12 Simplo Technology

Hitachi Chemical
10
Sacred Sun

8 Samsung SDI

Tianneng Power International

6
Zhongtian Technology

EnerSys
4
Sebang Global Battery

2 LG Chem

Eaton
0
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec 19 Mar 20 Jun 20

9
Graph #3 - Energy storage manufacturers – Grey Zone
Sinovoltaics energy storage manufacturer ranking - Edition #3 - 2020 - Grey Zone

7
GS Yuasa
Basf
Panasonic
6
Maxell
Toshiba
SK Innovation
5
NEC
Albemarle
Sonnen (Royal Dutch Shell)
4
East Group
Greensmith Energy (Wärtsilä)
Narada
3
Fiamm (Hitachi)
BYD
Guoxuan High-tech Power Energy
2
Johnson Controls
Leoch Battery
Energizer Holdings
1
Nissan
Mitsubishi
AVIC
0
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec 19 Mar 20 Jun 20

10
Graph #4 - Energy storage manufacturers – Distress Zone
Sinovoltaics energy storage manufacturer ranking - Edition #3 - 2020 - Distress Zone

1,5

0,5

0
Mercedes Benz Energy

-0,5 Hyundai Electric

-1 CBAK Energy

-1,5

-2

-2,5

-3
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec 19 Mar 20 Jun 20

11
How is the The Sinovoltaics Energy Storage Manufacturer Ranking
Sinovoltaics
Score is based on the Altman Z-Score
Ranking Score
calculated? Altman Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

The original formula is broken down as following:

Working Capital/Total Assets: measures liquid assets in relation to the size

A of the company.

Retained Earnings/Total Assets: measures profitability that reflects the

B company’s age and earning power

Earnings Before Interest & Tax/Total Assets: measures operating efficiency

C apart from tax and leveraging factors. It recognizes operative earnings as
being important to long-term viability.

Market Value of Equity/Total Liabilities: adds market dimension that can

D show up security price fluctuation as a possible red flag

E Sales/Total Assets: a standard measure for total asset turnover

12
How are the The scores are categorized into 3 zones called the Safe Zone, Grey Zone
and Distress Zone:
Altman Z-Scores
interpreted?
Z > 2.6 Safe Zone

1.1 < Z < 2.6 Grey Zone

Z < 1.1 Distress Zone

How to interpret With a large number of companies in the ‘Grey

Zone’, how to interpret these scores when
companies in selecting a manufacturer?
1.71 on Q1-2017
the ‘GREY ZONE’?
1.86 on Q4-2018
While ideally a manufacturer is in the ‘Green
Zone’, some companies have been consistently 1.85 on Q4 2019
in the Grey Zone for years.
1.92 on Q2 2020
Take for instance NEC. Here a number of Altman
Z-Scores over the years:

13
Currently stands at 1.92 (June ‘20)

These numbers show that NEC has been stable for years. Add the fact
that NEC AZ score has seen a gradual improvement since early 2018 and
they may just as well be one of the most solid companies on the list.

You could argue the same for known players such as Nissan and GS
Yuasa. As you can see each of these companies show a rather stable
score since early 2017:

Nissan GS Yuasa

1.28 (Q2 2020) 2.24 (Q2 2020)

1.39 (Q4 2019) 2.46 (Q4 2019)

1.53 (Q4 2018) 2.34 (Q4 2018)

1.62 (Q3 2017) 2.45 (Q3 2017)

1.62 (Q1 2017) 2.31 (Q1 2017)

14
SINOVOLTAICS ENERGY STORAGE MANUFACTURER RANKING

CONTACT US: contact@sinovoltaics.com

 Discover our ZERO RISK SOLARTM SERVICES
QUALITY ASSURANCE
PV QUALITY INSPECTIONS
Hire our PV specialized
quality engineers to inspect
your PV components on-site
at the factories in Asia.
TEST ALL PV COMPONENTS, INCLUDING:
yy Solar modules
yy Inverters
yy BOS components
yy Solar cells
yy Storage
FACTORY AUDITS
Make a fully informed decision
on the factories you’re procuring
from. Our accredited auditors
provide you with full insights in the
manufacturing capabilities of any
PV factory worldwide. Use our audit
scoring card system to manage
and compare your factory selection.
FACTORY AUDITS INCLUDE:
yy Pre-manufacturing audit
yy General qualification audit
yy Factory benchmark
yy Factory background check
yy Financial audit
www.sinovoltaics.com
LABORATORY TESTING
Thoroughly test your solar
PVcomponents at our
accredited PV lab. Inform about
country and climate specific test
procedures for your region.
A SELECTION OF LAB TESTS:
yy Potential Induced Degradation (PID) test
yy Light Induced Degradation (LID) test
yy EVA gel content test
yy Damp heat testing
yy Thermal cycling testing
SOLAR FARM
INSPECTIONS
On-site solar farm inspections
and troubleshooting
worldwide. Assess your existing
solar farms and optimize
performance.
SOLAR FARM INSPECTIONS INCLUDE:
yy Drone infrared thermography
yy I-V measurement
yy Electroluminescence imaging
yy Electrical safety tests
yy Commissioning checks
contact@sinovoltaics.com
PV INSURANCE
Have your solar farm projects insured by
the leading insurance companies in the
solar energy industry. Solar farm developers
that have their solar modules inspected by
Sinovoltaics can become eligible to have
their new and existing solar energy project
insured.
INSURANCE PRODUCTS INCLUDE:
yy Construction all risk
yy Operational all risk
yy Inherent defect coverage
yy PV Performance Warranty insurance
yy PV Performance Guarantee insurance
CUSTOM SOLAR MODULES
Sinovoltaics offers a worldwide service of
Custom Engineeringand Manufacturing of
Solar Modules.
CUSTOM SOLAR MODULES INCLUDE:
yy Solar tiles / Roof slates
yy Building Integrated Photovoltaics (BIPV)
yy Custom materials, including 100% polymer solar
modules to achieve semi-flexible and light weight
properties.
yy Latest cell technologies, including N-type, NWT and
Mono PERC.
yy Any size, any shape.
10+ YEARS 6.4 GW+ 12,000+ 150+
at the PV Zero Risk Community Factories
factories in Asia Solar projects audited