Tianpeng Power Supply's inventory remains high, and its price reduction strategy may lead to a decline in gross profit margin

Tianpeng Power's sales in 2023 will fall back to the level of 2020, and its inventory will be as high as 86 million units, close to 40% of its annual sales. With many product lines and at least 20 battery cells, it leads to production uncertainty and inventory backlogs. In order to reduce inventory, the company may take price cuts, which will affect its gross profit margin.