Sungrow's photovoltaic business continues to grow rapidly

The leading position of inverters is solid, and the scale expansion contributes to the stable growth of performance. The company is a leading domestic inverter enterprise, with a domestic market share of more than 30%. In 2015, it is expected that the domestic photovoltaic installed capacity will be 18-20GW, and the company's inverter shipments are expected to exceed 6GW, driving the stable growth of inverter business revenue. At the same time, the company actively promotes cost reduction. Against the background of continued downward trend in inverter prices, the gross profit margin remains at around 30%, ensuring the profitable growth of the company's inverter business. In addition, the company actively expands overseas photovoltaic markets, and overseas inverter sales continue to increase, becoming another incremental part of the company's traditional business.

The power station business is advancing rapidly, and the BT+operation dual strategy drives performance expansion. Since 2013, the company has been involved in the photovoltaic power station business, using its own photovoltaic industry resources and leading advantages to rapidly expand the power station EPC market and achieve rapid expansion of the EPC scale. According to the mid-year report, in 2015, the company had 622MW of registered and grid-connected projects, of which 290MW was self-owned and 312MW was BT projects. It is expected that the BT scale will exceed 300MW in 2015, contributing more than 200 million yuan in profits. At the same time, in order to cooperate with the power system reform and the company's energy Internet strategy, the company further entered the field of photovoltaic power station operations in 2015, and the scale will continue to grow steadily in the future.

The energy storage market is about to explode, and the business is expected to grow in volume. With the continuous decline in energy storage costs and the continuous development of renewable energy, the power system's demand for energy storage is increasing. Overseas countries such as the United States, Canada, Japan, Germany, and Australia have all introduced relevant policies to support the development of energy storage, and the energy storage market is about to explode. In 2015, the company actively explored the energy storage market through cooperation with Samsung SDI, taking advantage of Samsung's battery advantages and the company's system integration advantages. In the future, with the release of production capacity and product promotion, the company's energy storage business is expected to grow in volume.

The non-public additional issuance was successfully approved, and the company will increase its investment in power station operations, deploy new energy vehicle electronic control, and build a closed-loop platform-type energy Internet enterprise. At the end of last year, the company's 3.3 billion yuan non-public additional issuance plan was officially approved by the CSRC's Issuance Examination Committee. The funds raised will be mainly used for the construction of 220MW power stations, 5GW inverter projects, new energy vehicle motor control product projects and replenishment of working capital. This additional issuance marks that the company has officially increased its investment in power station operations and accelerated the layout of new energy vehicle electronic control. Combined with the previous inverter, EPC, energy storage business, and the company's business cooperation with Alibaba Cloud in smart power stations, the company will realize the creation of a closed-loop platform-type energy Internet enterprise of "inverter + power station development and operation + energy storage + new energy vehicles". In the future, it is expected to further explore the power sales business and accelerate the development of the energy Internet business.