Inverters contributed 80% of revenue in the first half of the year, and Sineng Electric has more than 6GW of orders on hand

On August 27, Sungrow Electric released its performance report for the first half of 2020. During the reporting period, the company achieved operating income of 250 million yuan, a year-on-year decrease of 32.73%. The net profit attributable to shareholders of the listed company was 30.358 million yuan, a year-on-year decrease of 2.26%.

Sineng Electric pointed out that the COVID-19 outbreak in overseas markets such as India and Vietnam in the first half of this year caused the company's overseas photovoltaic business project delivery to be delayed until the second half of the year. In the first quarter, due to the impact of the COVID-19 outbreak, domestic project construction was delayed and overseas project shipments were suspended, causing the company's revenue in the first quarter to drop by 54.12% compared with the same period last year; in the second quarter, as the domestic epidemic was effectively controlled and the country issued a number of policies to vigorously support the construction of new energy, the company has fully resumed normal production in the second quarter, and its revenue in the second quarter increased by 1.35% compared with the same period last year.

The performance of Sineng Electric's inverters accounted for 85.91% of its operating income. Recently, the results of the 2020 centralized procurement of photovoltaic inverters by power generation groups such as State Power Investment Corporation, Datang, Huaneng, CNNC, CGN, and Huadian have been announced one after another. Sineng Electric continues to maintain its position as a core inverter supplier for major power generation groups. Relying on industry-leading R&D technology, it currently has more than 6GW of orders on hand.

In terms of photovoltaic product lines, Sineng Electric's new generation of 1500V 225KW string inverters have gone from research and development to the market, and have won TUV certification, China Electric Power Research Institute's high and low voltage ride-through certification, etc.; other high-power centralized and distributed inverters have been continuously optimized and upgraded; at the same time, preliminary research work on higher-power inverters has been carried out.

In addition, in terms of energy storage product lines, Sineng Electric further improved and optimized the overall solution of energy storage inverters and energy storage battery containers. In the first half of 2020, Sineng Electric's energy storage bidirectional inverters and energy storage system integration products achieved operating income of 19.4601 million yuan, a significant increase of 88.86% over the same period last year, and is expected to continue to contribute to revenue growth in the second half of the year.