news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Zhang Lu, reporter of Yangtze Business Daily Pentium News

With its performance growing steadily, Sungrow Power Supply (300274.SZ), the leader in solar energy storage, has decided to launch a repurchase plan.

On July 14, Sungrow Power Supply announced that it plans to repurchase shares through centralized bidding transactions, with the total amount of funds to be repurchased not less than 500 million yuan and not more than 1 billion yuan, and the repurchase price not exceeding 97 yuan per share. According to the upper and lower limits of the repurchase amount, it is estimated that the number of shares repurchased by Sungrow Power Supply this time is about 5.15 million shares to 10.31 million shares, accounting for about 0.25% to 0.50% of the company's current total share capital.

Regarding the purpose of this repurchase, Sungrow Power Supply stated that based on its confidence in the company's future development and recognition of the company's value, in order to establish and improve the company's long-term incentive mechanism, the company plans to use its own funds to repurchase part of the shares through centralized bidding transactions, which will be used for the subsequent implementation of employee stock ownership plans or equity incentive plans for some of the company's core and backbone employees.

It is reported that Sungrow was founded in 1997 and listed on the Shenzhen Stock Exchange's Growth Enterprise Market in November 2011. The company started with photovoltaic inverters and gradually formed three major business segments: photovoltaic inverters, energy storage systems, and new energy investment and development. At the same time, it also deployed products such as wind power converters and hydrogen production electrolyzers.

With the rapid development of multiple businesses, Sungrow's profitability has been greatly improved. In 2023, the company achieved revenue of 72.2 billion yuan, a year-on-year increase of 79%; net profit of 9.44 billion yuan, a year-on-year increase of 163%; gross profit margin increased from 24.5% in 2022 to 30.4%, and net profit margin increased from 9.18% in 2022 to 13.3%.

In terms of classification, in terms of inverters, in 2023, Sungrow's photovoltaic inverters and power electronic conversion equipment achieved revenue of 27.65 billion yuan, a year-on-year increase of 61.0%; among them, the sales volume of photovoltaic inverters was 130GW, a year-on-year increase of 68.8%, and the global market share remained at around 30%, and its leading position in inverters remained stable.

In terms of energy storage business, in 2023, Sungrow will deliver 10.5GWh of energy storage, a year-on-year increase of 36%; energy storage system revenue will reach 17.8 billion yuan, a year-on-year increase of 78%. The company said that this is mainly due to the strong demand in overseas markets, coupled with the company's deep cultivation of the energy storage market, long-term shipments to the United States, Europe and other regions, and has formed a good reputation and brand image.

In addition to the above two businesses, new energy investment and development is also a business segment that Sungrow focuses on cultivating. The financial report shows that in 2023, the company will accelerate its transformation to distributed household business, and its new energy investment and development business will grow rapidly, from 11.6 billion yuan in 2022 to 24.7 billion yuan in 2023.

It is reported that as a new energy project development and investment platform under Sungrow Power Supply, the company has developed and constructed more than 40 million kilowatts of photovoltaic and wind power stations worldwide by the end of 2023. In December 2023, Sungrow Power Supply announced plans to spin off and list Sungrow New Energy.

The Pentium News reporter of the Yangtze Business Daily noticed that with the rapid expansion of the revenue of the above three businesses, the scale effect continued to emerge. In 2023, Sungrow's manufacturing costs, procurement costs, and period expenses all decreased to a certain extent. The period expense rates of sales, management, and R&D dropped from 13.6% in 2022 to 11.7%.

In terms of R&D, Sungrow is guided by market demand and promotes the R&D of major key core technologies. At present, the company has established six R&D centers in Hefei, Shanghai, Nanjing, Shenzhen, Germany and the Netherlands. From 2021 to 2023, the company's R&D investment will be 1.161 billion yuan, 1.692 billion yuan and 2.447 billion yuan respectively, with a cumulative investment of 5.3 billion yuan in three years.

In the first quarter of this year, Sungrow's profitability continued to improve, with revenue of 12.61 billion yuan, a year-on-year increase of 0.26%, basically the same as the same period last year; net profit increased by 39.05% year-on-year to 2.096 billion yuan, and the company's gross profit margin increased to 36.67%, an increase of 8.7 percentage points year-on-year.