Sungrow Power Supply (300274) H2 2023 earnings summary

Executive summary

• Achieved record revenue of CNY 72.25 billion in 2023, up 79.47% year-over-year, with net profit attributable to shareholders rising 162.69% to CNY 9.44 billion.

• PV inverters, energy storage, and new energy investment were key growth drivers, with global shipments of 130 GW in PV inverters and 10.5 GWh in energy storage systems.

• Significant expansion in overseas markets, with 53.81% of revenue from outside mainland China.

• Maintained industry leadership in PV inverters and wind power converters, with global market share gains.

Financial highlights

• Operating income: CNY 72.25 billion, up 79.47% year-over-year.

• Net profit attributable to shareholders: CNY 9.44 billion, up 162.69% year-over-year.

• Gross profit margin: 30.36%, up 5.81 percentage points year-over-year.

• Net cash flow from operating activities: CNY 6.98 billion, up 476.77% year-over-year.

• R&D expenses: CNY 2.45 billion, up 44.63% year-over-year.

• Total assets: CNY 82.88 billion, up 34.48% from prior year.

• Basic EPS: CNY 6.36, up from CNY 2.42 in 2022.

Outlook and guidance

• Expects continued global green energy industry growth in 2024, driven by lower supply chain prices and improved project economics.

• Plans to reinforce innovation, maintain high R&D investment, and accelerate digitalization and global expansion.

• Focus on integrated solutions across solar, wind, energy storage, electric drive, and hydrogen.