Sungrow Power Hosts Research Visits from Three Securities Firms, Highlighting Growth in Renewable Energy Sector

Sunshine Power recently hosted a research meeting with three institutions, including Changjiang Securities, Caitong Securities, and Dongwu Securities. The meeting took place on April 25, 2025, as disclosed in their announcement. The company representatives present included Chairman Cao Renxian, Board Secretary Lu Yang, and Chief Financial Officer Tian Shuai. The meeting was conducted via telephone.

According to reports, the new energy sector experienced continued growth in 2024, although at a slower rate. In the photovoltaic sector, global installed capacity reached approximately 460 GW, marking a 27% year-on-year increase, with significant growth in the Americas, China, and the Asia-Pacific region. In terms of energy storage, global installations exceeded 180 GWh, showing a remarkable 72% year-on-year increase. The wind power sector also saw an increase in global grid-connected capacity, rising from 116 GW to 122 GW, with domestic capacity increasing from 76 GW to 79 GW.

Despite a complex environment in 2024, Sunshine Power continued to achieve growth, reporting operating revenue of 77.8 billion yuan, a 7.8% increase year-on-year, and a net profit attributable to the parent company of 11 billion yuan, up 16.9%. The primary revenue sources were photovoltaic inverters, energy storage, and new energy investment and development. In the first quarter of 2025, revenue reached 19 billion yuan, a 50% year-on-year increase, with net profit at 3.83 billion yuan, reflecting an 82% rise.

Looking ahead, the company believes that the carbon neutrality goal remains firm, and there is substantial room for growth in wind and solar energy. The decreasing cost per kilowatt-hour is expected to further accelerate rapid growth. During the Q&A session, discussions included the impact of tariffs on shipping and pricing, energy storage shipment targets, new industry layouts, the wind power and large-scale storage market landscape, the U.S. market, and photovoltaic market growth.

Industry Review

Under the global low-carbon goal, green development has become a worldwide consensus. Starting in 2023, upstream supply chain prices significantly decreased, leading to improved economics in the global new energy sector. The industry maintained a certain growth momentum into 2024. In the photovoltaic sector, the National Energy Administration, the Photovoltaic Industry Association, and third-party data indicate that global photovoltaic installed capacity was approximately 460 GW in 2024, a 27% increase from the previous year. The decrease in installation costs has driven better economics for photovoltaic systems worldwide, contributing to rapid growth in regions like the Americas and Asia-Pacific.

2024 Overview and Q1 2025 Performance

2024 Operating Performance

Amid a complex international situation and intensified industry competition, Sunshine Power has seized market opportunities, focusing on its core sectors, enhancing innovation and transformation, and emphasizing deep development. The company has also increased investment in R&D, implementing a full coverage strategy for its core business. These efforts have allowed it to leverage its global marketing service network effectively, reinforcing its competitive edge and expanding its brand influence.

For 2024, Sunshine Power reported sustained growth, achieving operating revenue of 77.8 billion yuan (up 7.8% year-on-year) and a net profit of 11 billion yuan (up 16.9%). Despite a slowing industry growth rate and increased competition leading to widespread losses, the company’s revenue and profit growth is commendable, thanks to its core competitive strengths and an expanding brand influence.

Financial Changes in 2024

• Accounts receivable stood at 27.6 billion yuan, an increase of approximately 6.5 billion yuan from the beginning of the year, primarily due to revenue growth.
• Inventory reached 29 billion yuan, up 7.6 billion yuan, with increases attributable to ongoing large wind power projects and storage projects scheduled for delivery in Q1 2025.
• Sales expenses were 3.76 billion yuan, a 31% increase, reflecting the company’s continuous expansion in overseas markets.
• R&D expenses totaled 3.16 billion yuan, a 29% increase, underscoring the company’s commitment to innovation.
• Asset impairment losses amounted to 780 million yuan, primarily for inventory write-downs.

Q1 2025 Operating Performance

In the first quarter of 2025, despite a complex external environment, Sunshine Power maintained rapid growth, reporting revenue of 19 billion yuan (up 50% year-on-year) and a net profit of 3.83 billion yuan (up 82%). The revenue structure indicates healthy growth in the inverter segment, rapid expansion in energy storage, and a decline in new energy investment development revenue, primarily due to the higher proportion of low-margin residential photovoltaic business.

Future Industry Outlook

Looking forward, the core logic of industry development remains unchanged. First, the goal of carbon neutrality stays constant, ensuring long-term stable development of clean energy. Second, the share of renewable energy in global primary energy consumption is still low, at approximately 14%, with wind and solar accounting for about 5%. Therefore, there is significant potential for growth. Third, the future of new energy will be characterized by scaling and technological advancements, leading to lower costs per kilowatt-hour and improved economics, making new energy the cheapest source of electricity.

Q&A Session Highlights

1. Impact of U.S. Tariffs on Shipping and Pricing? The company reports normal shipping for photovoltaic inverters. In the energy storage market, shipments to the U.S. have been paused but remain on schedule for other markets.
2. Energy Storage Shipment Targets for 2025? The target is set between 40 GWh and 50 GWh. Uncertainties due to tariffs may impact shipments but the overall effect is limited.
3. New Industry Layouts and Power Electronics? The company is diversifying in power electronics, focusing on areas like hydrogen energy and EV systems.
4. Wind Power Market Forecast? The company remains optimistic about the wind power inverter market, expecting significant growth.
5. Large-Scale Storage Market Dynamics? The company aims to define the necessary storage batteries and ensure collaboration with partners for high-quality products.
6. U.S. Market Revenue Contribution? The U.S. accounts for about 10%-20% of the company’s overall revenue, with significant shipments in Q1.
7. Photovoltaic Market Growth? Long-term demand remains strong, although growth may face pressures in 2024 due to tariffs and regulatory impacts.