Sungrow Power Supply Seeks Hong Kong IPO with Revenue Surpassing 43.4 Billion Yuan in First Half of 2025

SunGrow Power Supply Co., Ltd. (hereinafter referred to as “SunGrow”) has submitted its initial public offering (IPO) application to the Hong Kong Stock Exchange on October 5, 2025, aiming for a listing on the main board. This marks the company’s first attempt at going public, with CITIC Securities acting as the exclusive sponsor.

As a leading global clean energy technology firm, SunGrow has focused on the clean electricity sector since its inception in 1997, starting with photovoltaic (PV) inverter production and gradually expanding into five key areas: solar energy, wind energy, energy storage, electric vehicles and charging, and hydrogen energy (collectively referred to as “solar, wind, storage, electricity, and hydrogen”). The company offers a range of products, including PV inverters, energy storage systems, wind power conversion and drive products, electric vehicle power control and charging equipment, and hydrogen equipment, all while striving to deliver world-class full lifecycle solutions in clean energy.

According to analysis by Frost & Sullivan, SunGrow has maintained a leading position in global PV inverter shipments for ten consecutive years. In 2024, the company held approximately 25.2% of the global market share based on shipment volume. As of June 30, 2025, the cumulative shipment of its energy storage systems reached 70 GWh, further establishing its leadership in the sector. SunGrow has developed a robust global network, with products and services sold in over 100 countries and regions, underscoring its prominent position in the global clean electricity conversion market.

During the reporting period, the majority of SunGrow’s revenue was derived from (i) power electronic conversion devices such as PV inverters; (ii) energy storage systems; and (iii) new energy investment and development. The following table outlines the company’s revenue details segmented by product line (presented in absolute amounts and as a percentage of total revenue):

As of December 31 for the years 2024 and 2025, the company’s revenue was approximately RMB 401.09 billion, RMB 721.59 billion, RMB 777.04 billion, RMB 309.61 billion, and RMB 434.37 billion, reflecting a compound annual growth rate (CAGR) of 39.19%. The gross profit was approximately RMB 81.95 billion, RMB 183.69 billion, RMB 225.01 billion, RMB 99.29 billion, and RMB 142.89 billion, with a CAGR of 65.70%. The net profit was approximately RMB 36.96 billion, RMB 96.09 billion, RMB 112.64 billion, RMB 50.47 billion, and RMB 78.3 billion, showing a CAGR of 74.59%. The gross profit margin was 20.43%, 25.46%, 28.96%, 32.07%, and 32.89%, while the net profit margin was 9.21%, 13.32%, 14.50%, 16.30%, and 18.03%.

As of the first half of 2025, the company reported inventory of approximately RMB 297.06 billion, trade receivables of about RMB 291.55 billion, and trade payables of roughly RMB 358.62 billion. Short-term loans were around RMB 57.73 billion, while long-term loans amounted to approximately RMB 64.21 billion. The operational cash flow stood at about RMB 34.34 billion, with cash at period-end totaling RMB 179.11 billion.

According to Frost & Sullivan, the global PV inverter shipment volume has surged from 177.0 GWac in 2020 to 584.2 GWac in 2024, achieving a CAGR of 34.8%. In 2024, the shipment volume percentages by region were 52.7% for China, 16.9% for the Asia-Pacific (excluding China), 13.8% for the Americas, and 12.4% for Europe. By 2030, global PV inverter shipments are projected to reach 1,324.8 GWac, with a CAGR of 14.6% from 2024 to 2030. The ongoing growth of the PV inverter market is driven by both new installations and replacement demands for existing PV power plants, with replacement demand expected to account for about 11% of total shipment volume by 2030.

The PV inverter market is characterized by high concentration, with the top five companies capturing 63.9% of the market share as of 2024, according to Frost & Sullivan. Leading firms continue to strengthen their advantages through technological innovation, supply chain integration, and global customer networks. SunGrow’s global PV inverter shipment share reached 25.2% in 2024, maintaining its leading position in the industry for a decade.

As of September 30, 2025, there were a total of 14 A-share companies that successfully listed in Hong Kong over the past year, with an average issuance discount rate of approximately 31.56%.

As of the latest practical date, Mr. Cao and Ms. Su collectively controlled approximately 30.63% of the company’s total equity.

The company’s board consists of five executive directors and four independent non-executive directors, with Mr. Cao Renxian serving as both the Chairman and President, primarily responsible for the overall strategic planning and development of the company.

SunGrow’s intermediary team comprises eight firms, including one sponsor with a strong track record in nearly ten sponsored projects. The company has two legal advisors, with performance data showing a mix of results across projects. Overall, the historical data performance of the intermediary team is considered average.