April 22, 2024, Sungrow Power released its annual report, revealing that in 2023, it achieved a revenue of 72.251 billion yuan, a year-on-year increase of 79.5%; its net profit attributable to shareholders was 9.44 billion yuan, a year-on-year increase of 162.7%.
Meantime, Sungrow Inverter Power released its first-quarter report for 2024. In the first quarter, it achieved a revenue of 12.614 billion yuan, a slight year-on-year increase of 0.3%; its net profit attributable to shareholders was 2.096 billion yuan, a year-on-year increase of 39.05%, surpassing market expectations, indicating the company’s excellent profitability and optimized cost control.
The surge in core business drives the explosive performance in 2023:
In 2023, the supply-demand situation in the industry underwent rapid changes, with prices in the upstream supply chain rapidly declining, especially for components and lithium carbonate. The global economic viability of new energy improved significantly, maintaining a strong momentum of development in the new energy industry. Global photovoltaic AC side installations increased from 230 GW in 2022 to 390 GW, a year-on-year increase of 69%. Energy storage increased from 46 GWh to 98 GWh, a year-on-year increase of 113%. Domestic wind power grid-connected capacity also increased from 38 GW to 76 GW, a year-on-year increase of 100%. Various tracks in new energy continued to maintain rapid growth.
Against this backdrop, Sungrow Power’s core businesses in inverters, energy storage, and new energy investment and development continued to expand in 2023, leading to excellent performance for the company.
In 2023, Sungrow Power achieved an operating income of 72 billion yuan, a year-on-year increase of 79%, and a net profit attributable to shareholders of 9.44 billion yuan, a year-on-year increase of 163%. Profitability significantly improved, with a gross profit margin increasing from 24.5% in 2022 to 30.4%, and a net profit margin increasing from 9.2% to 13.3%. The company’s return on equity increased from 21% in 2022 to 41%, and earnings per share increased from 2.4 yuan in 2022 to 6.4 yuan.
Looking at specific business segments, the inverter business experienced synchronized growth, especially in high-power inverters. In 2023, Sungrow Power’s inverter revenue reached 27.65 billion yuan, a year-on-year increase of 61%, with a gross profit margin of 37.93%, an increase of 5.51 percentage points year-on-year. The annual shipment volume of inverters reached 130 GW, a year-on-year increase of 68.8%. Sungrow’s “1+X” modular inverters, known for their flexible design and higher efficiency, were widely recognized, with cumulative shipments exceeding 30 GW and cumulative orders exceeding 45 GW.
The profitability of energy storage systems improved, with multiple breakthroughs in overseas markets
According to the financial report, Sungrow Power’s revenue from energy storage systems in 2023 was 17.8 billion yuan, a year-on-year increase of 75.8%, with a gross profit margin of 37.47%, an increase of 14.23 percentage points year-on-year. The shipment volume reached 10.5 GWh, a year-on-year increase of 35%. The company’s energy storage systems are widely used in mature electricity markets such as the United States, the United Kingdom, and Germany, and all participating energy storage projects have had no safety incidents.
Sungrow Power stated that “the strong demand in overseas markets, combined with the company’s deep cultivation of the energy storage market and long-term shipments to high-demand regions such as the United States and Europe, has established a good reputation and brand image.”
