Sungrow's revenue is projected to grow by 15% in 2025, net profit by 22%, with the global market share of energy storage and inverter businesses continuously expanding.

Ask AI · How does the construction network technology become a global competitive advantage for Sungrow’s energy storage business?

Sungrow aims to achieve double-digit revenue and profit growth by 2025, with a continuous expansion of its global market share in energy storage and inverters. The company has also simultaneously initiated plans for listing in Hong Kong to accelerate its internationalization.

By 2025, the company expects to reach an operating revenue of 89.18B yuan, a year-on-year increase of 14.55%; net profit attributable to shareholders of the listed company is projected at 13.46B yuan, up 21.97% year-on-year.

Global shipments of energy storage systems will reach 43 GWh, and global shipments of photovoltaic inverters will hit 143 GW. Net cash flow from operating activities is 16.92B yuan, a significant increase of 40.18% year-on-year, indicating a clear improvement in receivables collection quality.

The company’s board of directors also announced a profit distribution plan, proposing a cash dividend of 6.9 yuan (including tax) for every 10 shares, based on approximately 2.05B shares after share repurchase. The plan is subject to approval at the shareholders’ meeting.

Meanwhile, the company has officially launched preparations for issuing H-shares and listing on the Hong Kong Stock Exchange. The raised funds will be used for global localization, R&D investment, digital capabilities enhancement, and other initiatives.

Profitability Quality Improvement, Gross Margin and Cash Flow Simultaneously Improve

By 2025, Sungrow’s gross margin will rise to 31.83%, an increase of 1.89 percentage points year-on-year. The company attributes this to a combination of brand premium, product innovation, and scale effects.

Quarterly analysis shows steady profit growth in the first three quarters, with net profits attributable to the parent company of 3.83B yuan, 3.91B yuan, and 4.15B yuan, respectively. However, in the fourth quarter, it sharply declined to 1.58 billion yuan, showing obvious seasonal fluctuations.

On the expense side, sales expenses are 4.83B yuan, up 28.49% year-on-year; R&D expenses are 4.18B yuan, up 31.97%. Both expense growth rates significantly outpace revenue growth, reflecting increased global market investment and technological reserves. Financial expenses have narrowed significantly, mainly benefiting from increased interest income and exchange gains from euro appreciation.

Net cash flow from operating activities reached 16.92B yuan, an increase of 40.18%, far exceeding the net profit growth rate, indicating improved collection efficiency of accounts receivable.

Energy Storage Business: Global Shipments of 43 GWh, Network Construction Technology as a Differentiator

Energy storage has become one of the company’s core growth engines. In 2025, global shipments of energy storage systems will reach 43 GWh. The flagship product PowerTitan 2.0 has been applied at scale in several large projects, including Uzbekistan’s Central Asia’s largest energy storage station and the UK Bramley energy storage project.

The company announced the release of the world’s largest capacity energy storage platform, PowerTitan 3.0, during the reporting period, introducing three different sizes. The 30-foot version has an energy density exceeding 500 kWh/㎡, claiming to be the highest globally.

Technologically, the company is focusing on promoting “network construction technology” to build a competitive barrier. It completed the full capacity grid connection of the world’s largest networked energy storage project—Saudi Arabia’s 7.8 GWh project—and extended the network construction technology to high-altitude off-grid scenarios in Tibet, Sichuan, and other regions.

The company released the “Stem Cell Network Construction Technology 2.0 White Paper,” pioneering a three-level collaborative architecture of “battery-inverter-plant,” claiming to reach global leading levels in system tolerance, safety, and 13 other key performance indicators.

For the industrial and commercial market, the company launched the PowerStack series, covering all voltage levels from 400V to 35kV, and for the first time introduced network construction technology into industrial and commercial energy storage scenarios.

Inverters: Global Shipments of 143 GW, Leading in Financing Value

In the photovoltaic inverter sector, the company’s global shipments will reach 143 GW in 2025. According to Bloomberg New Energy Finance’s 2026 inverter financing value ranking, Sungrow ranks first with 100% financing capability, making it the only renewable energy brand to top the list six times.

During the reporting period, the company launched two strategic new products: the world’s first string inverter with a power exceeding 400 kW, SG465HX, and the world’s first modular split inverter, 1+X2.0.

The company is advancing delivery of a 165 MW photovoltaic inverter system for the ultra-luxury Amaala resort complex in Saudi Arabia, and has participated in the ±800 kV ultra-high-voltage direct current transmission project from Ningxia to Hunan, achieving stable grid connection of GW-level photovoltaic under weak grid conditions.

The company has established over 20 overseas branches and 520 service outlets worldwide, with products covering more than 100 countries and regions.

Wind Power Conversion and Hydrogen Energy: Leading Market Positions

The wind power converter business continues to lead. According to data from consulting firm Brinckmann, in 2025, global shipments of wind power converters will reach 63 GW, ranking first in global installed capacity.

During the period, the company completed large-scale application of 1800V-10MW doubly-fed wind converters and launched new products including 1800V-30MW full-power and 25MW networked wind converters, further expanding the high-power product series.

In hydrogen equipment, Sungrow Hydrogen Energy maintains the top domestic market share. The company’s participation in China Energy Construction’s Songyuan “Qing Hydrogen No. 1” green hydrogen ammonia project set four world records, including the largest scale and hydrogen storage capacity, and was selected as one of the first batch of green low-carbon advanced technology demonstration projects by the National Development and Reform Commission.

Overseas, the company won the largest alkaline electrolysis hydrogen production share for the 320 MW green ammonia project in Oman, and secured PEM hydrogen projects in Italy and Brazil.

H-Share Listing Launch, Equity Incentives and Buybacks in Parallel

To support its globalization strategy, the company officially launched the H-share issuance and listing on the Hong Kong Stock Exchange during the reporting period.

The company stated that funds raised from the H-share listing will be used for global localization, R&D investment enhancement, digital capability building, and operational capital supplementation to consolidate its leading position in the global photovoltaic and energy storage fields.

Meanwhile, during the reporting period, the company implemented the 2025 restricted stock incentive plan, granting 9.11M second-class restricted stocks at an award price of 35.27 yuan per share to 874 incentive objects.

As of the end of the reporting period, the company had repurchased approximately 5.26 million shares through centralized bidding, involving about 300 million yuan.

By the end of 2025, the company’s total assets reached 118.68B yuan, with net assets attributable to shareholders of the listed company at 46.61B yuan, a year-on-year increase of 26.30%. The weighted average return on net assets was 31.26%, slightly lower than 33.99% the previous year.