On February 27 of this year, Dr. Zhang Chaoyang conducted a live physics class on “Black Technology in Energy Storage” at Sungrow Power Supply (300274.SZ), a leading company in the solar and storage sector. Alongside Dr. Zhang were Vice Chairman Gu Yilei and Senior Vice President Wu Jiamao. As Sungrow Power Supply has established itself as the leader in the solar and storage industry, it has also highlighted the achievements of these two outstanding executives.
According to Sungrow’s 2024 annual report, the disclosed executive compensation shows that Vice Chairman Gu Yilei and Senior Vice President Wu Jiamao received salaries of 17.5 million yuan and 12.94 million yuan respectively. These amounts are significantly higher than the average executive salary of 5.853 million yuan, making Gu’s salary 4.5 times and Wu’s 3.3 times that of Chairman and President Cao Renxian. These two executives are currently the only ones in the company with salaries exceeding ten million yuan.
The announcement also revealed that under the proposal for granting reserved restricted stock under the 2023 incentive plan, Gu Yilei was awarded 218,400 shares and Wu Jiamao 119,000 shares in 2024, with a grant price of 30.18 yuan per share. When combined with their existing shares, Gu Yilei’s total compensation and the value of his shares at the end of the period amount to approximately 64.01 million yuan, while for Wu Jiamao, it is about 51.70 million yuan. This marks them as the fastest-growing executives in terms of compensation within the company.
An analysis of Sungrow’s executive compensation over the past six years reveals that Gu Yilei and Wu Jiamao have consistently been the top earners among executives from 2020 to 2024. At just 48 years old, Gu represents a younger generation in management and has previously worked at various companies including Delta Group and Eaton (China). He joined Sungrow in September 2015 and has held several significant positions, currently serving as Vice Chairman and Senior Vice President as well as President of the Solar and Storage Group.
Wu Jiamao, now 53 years old, has a background at Ningguo Shuangjin Group and joined Sungrow in March 2005, progressing from Sales Manager to General Manager of the Shanghai branch. He is currently a board member, Senior Vice President, and Global Marketing President of the Solar and Storage Group.
Looking back to 2019, both Gu and Wu had salaries of 1.5 million yuan, placing them in the middle tier among executives. By 2024, their salaries had surged by 1100% and 860% respectively. In comparison, Sungrow’s overall employee count grew from 4,492 at the end of 2020 to 17,305 by the end of 2024, a fourfold increase. Simultaneously, the average employee salary rose from 303,200 yuan to 379,300 yuan, peaking at 397,400 yuan at the end of 2022. This clearly indicates a strong satisfaction and high expectations from the company regarding the performance of the businesses overseen by these two executives.
Despite being recognized as the leader in solar and storage solutions, Gu and Wu face increasing challenges. The Solar and Storage Group has been the primary source of Sungrow’s performance in recent years, achieving rapid growth. According to the 2024 annual report, even amidst rising pressures in the photovoltaic industry, Sungrow’s performance continues to improve, with revenue reaching 77.8 billion yuan, a 7.8% year-on-year increase, and a net profit attributable to shareholders of 11 billion yuan, up 16.9%.
The revenue structure indicates that while inverter sales maintained healthy growth, the storage sector saw rapid expansion, and revenue from new energy investment and development declined, primarily due to an increase in the proportion of lower-margin residential photovoltaic business revenues. In 2024, Sungrow shipped 147 GW of photovoltaic inverters, reflecting a 13% increase year-on-year. The first quarter of 2025 is expected to benefit from a surge in domestic installations.
The storage business stands out as the most significant contributor to Sungrow’s revenue growth in 2024, becoming the second-largest source of revenue and profit after photovoltaic inverters, with a revenue increase exceeding 40% year-on-year and shipment volume reaching 28 GWh, a remarkable 167% increase. With operations primarily in mature electricity markets across Europe, the Americas, the Middle East, and Asia-Pacific, Sungrow boasts a gross margin of 36.69%, which is significantly higher than its competitors. Notably, the company secured a contract for a 7.8 GWh benchmark energy storage project in the Middle East, marking it as the largest storage order to date and further solidifying its position in the non-U.S. market.
According to a report by S&P Global in 2024, Sungrow ranked first in global cumulative installed capacity for energy storage systems. Additionally, in Bloomberg New Energy Finance’s 2024 rankings, the company’s energy storage systems and PCS were also ranked first globally. However, despite its leading position, external fluctuations are intensifying the challenges faced by the two top executives. During an investor relations event following the annual report release, over 500 investors attended, with a primary focus on how changes in the U.S. market might impact the company’s operations.
Management addressed the effects of the U.S. market on the storage business, stating, “Recently, there has been a pause in energy storage shipments, but the market remains; it has just been delayed. Shipment rates in other markets are generally meeting expectations, with overall prices stable but slightly declining.” It is estimated that the U.S. market accounts for about 10% to 20% of the company’s total revenue. Although there was a significant volume of shipments in the first quarter, the revenue recognition for storage has a lag between shipment and actual income confirmation. Management acknowledged that the global shipping target for energy storage set for 2025 is between 40 GWh and 50 GWh. However, uncertainty around the “countervailing duties” in the U.S. complicates predictions for shipments from that market. “If high tariff policies in the U.S. persist, it could limit shipments by 4 to 5 GWh compared to our initial targets, but the overall impact on shipments is limited,” they revealed.
Regarding the photovoltaic market, management expressed that long-term demand remains strong, with a projected compound annual growth rate of over 10% from 2024 to 2030, primarily due to a large base and the impact of U.S. tariffs that are likely to delay market activities. Given the large base, the pressure on domestic photovoltaic growth is significant this year, but the outlook for the coming years appears optimistic. Management assessed that while the European photovoltaic market remains relatively stable, growth in the U.S. may face challenges, though markets in Southeast Asia, the Middle East, and South America continue to expand. “Overall, while this year may be relatively challenging, adjustments will be made in the following year, and we remain confident in the long-term prospects,” they concluded.
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