Sungrow’s H1/2023 Net Profit Up By 300%+ YoY

• Sungrow's H1/2023 operating income grew 133.06% on an annual basis to RMB 28.62 billion  
• Solar inverter and energy storage businesses accounted for 65% and 30% of the total, respectively  
• It reports having signed more than 16 GW worth of orders for its 1+X solar inverters globally

One of the world's leading solar PV inverter manufacturers Sungrow Power Supply cites growth in inverters, energy storage business and new energy investment business as reasons for the 133.06% annual increase in its operating income of RMB 28.62 billion ($3.93 billion) during H1/2023.  

The solar segment contributed RMB 18.6 billion ($2.55 billion) with an annual jump of 111%. It represented around 65% of the total operating income for the period.  

The energy storage segment too is growing to be a significant revenue generator for the group, bringing in RMB 8.5 billion ($1.17 billion) to the total, accounting for 257% growth over the same period last year. It accounted for almost 30% of operating income.  

While operating costs of RMB 20.20 billion ($2.77 billion) went up by 121% YoY, the group's net profit of RMB 4.35 billion ($597 million) reflected a growth of 383%. Gross profit margin of 29.42% improved 3.88% for which the company attributes price premium for its products, economies of scale, innovative products and decline in freight costs.  

Sungrow has also increased its R&D spending, investing 45% more this year with RMB 1.05 billion ($144 million).  

It reports significant interest in the company's high-power string inverters SG320HX and 1+X modular inverters during H1/2023. Sungrow says the cumulative number of orders signed for 1+X modular inverters has exceeded 16 GW, including 2.1 GW it will supply to Al Shuaibah project in Saudi Arabia.   

The management counts 25 GW of overseas production capacity with its Indian and Thailand factories. At the end of June 2023, Sungrow says it had installed over 405 GW inverter capacity globally, having shipped 77 GW in 2022 alone (see 127% Annual Increase In Sungrow's 2022 Net Profit).