Sungrow's net profit from market development doubled for two consecutive years, and the new energy subsidiary earned 1.1 billion yuan and received a capital increase of 1.8 billion yuan in half a year

Yangtze River Business Daily News ● Yangtze River Business Daily reporter Xu Jia

Sungrow Power Supply (300274. SZ) continued to grow rapidly.

On the evening of April 22, Sungrow disclosed its performance report that in 2023, the company will achieve operating income of 72.251 billion yuan, a year-on-year increase of 79.47%, net profit attributable to shareholders of listed companies (net profit, the same below) of 9.44 billion yuan, a year-on-year increase of 162.69%, and net profit after deducting non-recurring gains and losses (net profit after deducting non-net profit, the same below) of 9.216 billion yuan, a year-on-year increase of 172.18%, doubling net profit and non-net profit for two consecutive years.

The Yangtze River Business Daily reporter noticed that Sungrow's core product, photovoltaic inverter, has obvious market advantages, and in recent years, the company has successively laid out new businesses such as key components of new energy vehicles, microgrid energy storage, smart energy, and new energy hydrogen production.

In 2023, among Sungrow's new businesses, the new energy investment and development business and the energy storage system business will achieve operating income of 24.734 billion yuan and 17.802 billion yuan respectively, a year-on-year increase of 113.15% and 75.79%.

It is worth noting that as a new energy project development and investment platform under Sungrow, Sungrow New Energy, a holding subsidiary, has developed rapidly. By the end of 2023, Sunshine New Energy has developed and built more than 40 million kilowatts of photovoltaic and wind power stations worldwide. In 2023, Sunshine New Energy's operating income and net profit will be 26.575 billion yuan and 1.148 billion yuan, respectively.

In the past six months, Sunshine New Energy has carried out a total of three capital increases and share expansions, and introduced investors such as Gongrong Financial Investment (Beijing) Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and CCB Financial Assets Investment Co., Ltd., with a total capital increase of 1.847 billion yuan.

Net profit and deduction doubled for two consecutive years

Guided by the global low-carbon goals, the PV industry will continue to flourish in 2023.

According to data from the National Energy Administration, photovoltaic industry associations and third-party institutions, 390GW (ac) of new PV capacity will be added globally in 2023, a year-on-year increase of 69%. Among them, the application of the mainland photovoltaic market exceeded expectations, with 216.8GW (ac) of new photovoltaic capacity added throughout the year, a year-on-year increase of 148%, a record high.

In addition, in terms of the industrial chain, the output of the main links of the mainland photovoltaic industry continued to grow, with the output of polysilicon reaching 1.43 million tons, wafer output of 622GW, cell output of 545GW, and module output of 499GW, all of which increased by more than 60% year-on-year.

Benefiting from the vigorous development of the photovoltaic industry, Sungrow continues to open up the market and expand its sales scale rapidly. According to the annual report, in 2023, the company will achieve operating income of 72.251 billion yuan, a year-on-year increase of 79.47%, a net profit of 9.44 billion yuan, a year-on-year increase of 162.69%, and non-net profit of 9.216 billion yuan, a year-on-year increase of 172.18%.

The Yangtze River Business Daily reporter noticed that this is the second consecutive year that Sungrow's net profit and non-net profit have doubled. Previously, in 2021, Sungrow achieved operating income of 24.137 billion yuan, a year-on-year increase of 25.15%, and net profit and non-net profit were 1.583 billion yuan and 1.335 billion yuan respectively, a year-on-year decrease of 19.01% and 27.72%.

With the improvement of the market-leading position of the core business, as well as the scale effect, channel expansion and operation capability, Sungrow's profitability has been improved. In 2022, the company achieved operating income of 40.257 billion yuan, a year-on-year increase of 66.79%, and net profit and non-net profit of 3.593 billion yuan and 3.386 billion yuan, respectively, a year-on-year increase of 127.04% and 153.7%.

In terms of quarters, in the four quarters of 2023, Sungrow will achieve operating income of 12.58 billion yuan, 16.942 billion yuan, 17.792 billion yuan and 25.836 billion yuan respectively, a year-on-year increase of 175.42%, 107.97%, 78.95% and 43.27%, and net profit of 1.508 billion yuan, 2.846 billion yuan, 2.869 billion yuan and 2.217 billion yuan, a year-on-year increase of 266.9%, 481.46%, 147.29% and 44.6%.

Continuing this trend, the quarterly report disclosed by Sungrow Power Supply shows that the company achieved operating income of 12.614 billion yuan, a year-on-year increase of 0.26%, and net profit and non-net profit were 2.096 billion yuan and 2.083 billion yuan respectively, a year-on-year increase of 39.05% and 42.84%. However, compared with the past few quarters, Sungrow's performance growth in the first quarter has slowed down significantly.

Revenue from new energy investment and development increased by 113%

According to the data, Sungrow was established in 1997, and its core product photovoltaic inverters are sold in batches to more than 170 countries and regions around the world, with a global shipment volume of 130GW of photovoltaic inverters in 2023, leading the world in terms of shipments, and a global shipment of 10.5GWh of energy storage systems, ranking first among Chinese enterprises for eight consecutive years.

The Yangtze River Business Daily reporter noted that in 2023, Sungrow's photovoltaic inverters and other power electronic conversion equipment will achieve a total operating income of 27.653 billion yuan, a year-on-year increase of 60.97%, accounting for 38.27% of the current operating income, and a gross profit margin of 37.93%, an increase of 5.51 percentage points year-on-year.

In recent years, on the basis of its advantageous main business of photovoltaic inverters, Sungrow has also successively laid out new businesses such as key components of new energy vehicles, microgrid energy storage, smart energy, and new energy hydrogen production.

According to the annual report, among the new businesses, in 2023, Sungrow's new energy investment and development business and energy storage system business will achieve operating income of 24.734 billion yuan and 17.802 billion yuan respectively, a year-on-year increase of 113.15% and 75.79%, and gross profit margin will be 16.36% and 37.47%, an increase of 4.6 and 14.23 percentage points year-on-year.

It is worth noting that Sungrow's new energy project development and investment platform is Sunshine New Energy, and by the end of 2023, Sungrow New Energy has developed and built more than 40 million kilowatts of photovoltaic and wind power stations worldwide.

In the past six months, Sunshine New Energy has received several capital increases. Among them, in December 2023, Sungrow will increase its capital by 1 billion yuan to Sungrow New Energy. In February this year, Sunshine New Energy introduced investors Anhui Tieji New Energy Equity Investment Partnership (Limited Partnership) and Zhejiang Fuzhe Fuchuang Equity Investment Partnership (Limited Partnership) through capital increase and share expansion.

In March this year, Sunshine New Energy once again implemented a capital increase and share expansion, introducing investors to Gongrong Financial Investment (Beijing) Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and CCB Financial Assets Investment Co., Ltd. to increase its capital by a total of 500 million yuan.

Roughly calculated, in the past six months, Sunshine New Energy has increased its capital and shares three times, with a total capital increase of 1.847 billion yuan. In the latest round of capital increase, the pre-investment valuation of Sunshine New Energy has reached 19.347 billion yuan.

After the completion of the above-mentioned capital increase, Sungrow's shareholding in Sungrow New Energy decreased from 81.4559% to 79.4036%, and Sungrow New Energy is still a holding subsidiary within the scope of the company's consolidated statements.

According to the annual report, in 2023, Sunshine New Energy's operating income and net profit will be 26.575 billion yuan and 1.148 billion yuan respectively.