Sungrow's net profit increased by more than 70% in the first half of the year and plans to double the production of photovoltaic inverters

Since the first half of 2015, the photovoltaic market has been recovering due to favorable policies, and the profitability of photovoltaic companies has also improved significantly, with most companies turning losses into profits. Among them, the performance of inverter giant Sungrow is particularly eye-catching.

On the evening of July 20, Sungrow Power Supply released its performance report for the first half of 2015. The report showed that the company achieved operating income of 1.784 billion yuan, a year-on-year increase of 91.53%; and achieved a net profit attributable to ordinary shareholders of the listed company of 166.3065 million yuan, a year-on-year increase of 73.90%.

The report also showed that the annual output of PV inverters totaled about 1.98GW in the first half of 2015. However, in its financial report, Sungrow pointed out that the order backlog has increased significantly in the second half of this year, and the annual output value is expected to be about RMB 4-5 billion (US$800 million). Its PV power station system integration business revenue has also improved, surging 267% in the first half of 2015 compared with the same period last year. Sales of this business segment reached RMB 680.8 million (US$109.6 million).

Starting from the end of May, within a month, Sungrow signed strategic cooperation agreements with four photovoltaic power station developers, namely, Risen Energy, Linyang New Energy, CSR Zhuzhou Institute, and Jiangsu Kuangda. The agreements stipulate that Sungrow's inverter products will be used preferentially.

It is reported that Sungrow plans to further increase its annual output to 5GW to meet the strong demand expected in 2016 and beyond. A relevant person in charge of Sungrow said that the order reserve has increased significantly in the second half of this year and it is confident that it will complete its full-year operating plan.