Southeast Network Structure Expands New Energy Landscape with Growth in Solar Business

Southeast Network Framework is making significant strides in the new energy sector, with its solar photovoltaic (PV) business emerging as a crucial growth engine. The company has recently expanded its solar PV projects beyond Zhejiang province, successfully securing contracts in regions such as Guangzhou Panyu, Guangxi Baise, and Jiangsu Suzhou.

In 2024, Southeast Network Framework achieved a remarkable revenue of 72.2 million yuan from its solar PV operations, boasting a gross profit margin of 43.92%. Furthermore, the company excelled in its solar power station operations, generating a total output of 42 million kWh and realizing electricity sales of 42 million kWh, leading to revenue of 27.3 million yuan from electricity sales.

The company plans to invest approximately 500 million yuan in the construction of the Xiaoshan (Puyang) Zero Carbon Peach Source project, which has a capacity of 110 MW. This investment is expected to enhance its solar power generation capacity significantly. Southeast Network Framework aims to leverage new opportunities in the energy transition and low-carbon economy by expanding its integrated energy business, including BIPV, BAPV, centralized solar power, and energy storage solutions.

During a recent performance briefing, the company highlighted its strategic move into new solar markets. Southeast Network Framework has adopted a construction model that combines modular construction, EPC, and BIPV, along with an integrated investment, construction, and operation model. This strategy has yielded impressive results, as the company successfully expanded its solar PV projects from its home base in Zhejiang to various regions across the country, marking a significant breakthrough in reaching a national market.

Regions like Guangzhou Panyu and Guangxi Baise are ideal for solar energy development due to their abundant sunlight and favorable climatic conditions. Meanwhile, Jiangsu Suzhou, being one of the economically advanced areas, has a growing demand for green energy. Southeast Network Framework has effectively capitalized on these opportunities by leveraging its technical expertise and extensive experience to secure solar construction projects in these regions.

In addition to domestic projects, Southeast Network Framework has established a global network through its wholly-owned subsidiary, Zhejiang Southeast Carbon Neutral Technology Co., Ltd., and various steel structure manufacturing bases and offices. This enables the company to simultaneously explore and develop the global solar market.

As the PV project landscape expands, Southeast Network Framework has also seen substantial success in its solar power station operations. In 2024, the company reported stable operating conditions with a total generation of 42 million kWh, providing a consistent cash flow that supports profitability. The company also announced its intent to invest in the Xiaoshan (Puyang) Zero Carbon Peach Source project, which is expected to enhance its solar generation capacity and create new profit growth points.

According to recent operational data, from January to March 2025, Southeast Network Framework (including its subsidiaries) signed 36 new contracts totaling 2.468 billion yuan, reflecting a year-on-year increase of 1.48%. The company continues to actively respond to national carbon neutrality goals by pursuing green and low-carbon development strategies and significantly advancing its renewable energy business.

Experts from Tianfeng Securities believe that Southeast Network Framework’s continuous expansion into the integrated solar building market using the modular construction, EPC, and BIPV model will contribute to future performance growth.

It is important to note that the new energy direction Southeast Network Framework has focused on aligns with national priorities, as supportive policies are continuously being introduced to promote rapid growth in solar and energy storage sectors. In the integrated solar building sector, policies such as the 14th Five-Year Plan for Building Energy Efficiency and Green Building Development and the Implementation Plan for Carbon Peak in Urban and Rural Construction emphasize the integration of solar PV in new public buildings and factories, aiming for a 50% coverage rate by 2025.

In the energy storage domain, the goal of developing new energy storage has been included in the 2024 government work report. The Energy Law of the People’s Republic of China mandates the promotion of high-quality development of new energy storage and highlights the role of various energy storage types in regulating the power system. According to forecasts by CNESA, new energy storage installations are expected to reach between 40.8 GW and 51.9 GW by 2025, with cumulative installations surpassing 100 million kW.

Southeast Network Framework remains confident in the growth of the new energy sector. The company has indicated that market acceptance of distributed solar products is increasing, and commercial users show heightened enthusiasm for distributed solar installations. Moving forward, the company will actively seize opportunities in the energy transition and low-carbon economy, continuously expanding its integrated energy business, including BIPV, BAPV, centralized solar, and supporting energy storage, while also maintaining growth in new business areas.