The market value evaporated by 5 billion this morning! Inverter companies responded to the rumors of "fraud"

On July 10, there was the latest news about the rumors of Deye Co., Ltd.'s inverter fraud. According to media reports, on July 9, Deye Co., Ltd. held an investor exchange meeting and made an official response to the exposure of the inverter "fraud".

Deye shares stressed that the reason why the Hongfa relay was not installed was not because of the cost. The cost of the Hongfa relay is no more than 4 yuan, which accounts for a very low proportion of the total cost of the micro-inverter.

Deye Co., Ltd. disclosed that the company will complete the optimization and upgrade plan of hongfa relays within one month, and make the hongfa relays external, so as to achieve the same effect as the built-in hongfa relays and facilitate after-sales maintenance.

Deye Co., Ltd. also stated that customers who have already purchased and used the product in Germany will receive free upgrades and can be replaced by themselves without the need for professionals. The warranty period will also be extended by five years free of charge, from the original 10 years to 15 years.

It is also worth noting that in the secondary market, the rumors of "fraud" of micro-inverters still had a significant impact on Deye Shares' share price, especially this morning (July 10).

As of the close of the market at 11:30 a.m. on July 10, the total market value of Deye shares was approximately 61.3 billion yuan.

On July 9, the total market value of Deye shares was about 66 billion yuan. After the latest response to the rumored "fraud" incident broke out on July 10, the market value of Deye shares evaporated by about 5 billion yuan in a single day.

A review of the rumors about Deye Co., Ltd.'s inverter "fraud":

Recently, some foreign media reported that the micro inverters produced and sold by Deye Co., Ltd., a Chinese inverter manufacturer, encountered a certification fraud crisis. Some media directly wrote "Wir wurden betrogen: Deye Fake Wechselrichter?"

It is reported that the source of the continued fermentation of this news was a video posted by a German evaluation blogger. The video showed that the rumored fraud incident was related to relays.

At present, Deye Co., Ltd. has not made a public response to this incident. The editor still does not know the specific truth. However, there are reports that Dr. Watt, one of the raisers of the problem, revealed in the latest video that Deye has given a solution, which is to replace the microinverter with one that meets the German certification standards.

According to the company's official website, Deye shares is the full name of Ningbo Deye Technology Co., Ltd., and its chairman is Zhang Hejun. At present, the company has four core industrial chains, including a full range of photovoltaic inverters, energy storage battery packs, dehumidifiers, environmental appliances and heat exchangers. It is a global new energy technology company integrating R&D, design, production, sales and services. In April 2021, the company was listed on the main board of the Shanghai Stock Exchange, with the stock abbreviation "Deye Shares".

After checking the information, the editor found that compared with peer companies represented by Sungrow Power Supply, Deye Co., Ltd. started later but developed faster, and is a veritable "dark horse" in the inverter industry.

The company was established in 2000. From 2000 to 2006, the company produced environmental electrical products such as dehumidifiers in small batches; in 2007, the company began to involve in the field of circuit control; in 2010, the company became a dominant supplier in the home air-conditioning industry chain; in 2016, the company began to layout the photovoltaic inverter industry; in 2017, the company launched the first generation of energy storage inverters; in 2018, Deye inverter business revenue accounted for 1.91% of Deye's total revenue.

By 2022, the annual report showed that in the company's main business that year, inverter revenue was 3.957 billion yuan, a year-on-year increase of 230.41%, accounting for 66.44% of operating income. At present, Deye shares have become the three major domestic micro inverters together with Yuneng Technology and Hemai shares. In April this year, Deye shares responded to investors' questions and revealed that the company's inverter products have been exported to more than 100 countries and regions including Europe and the United States.

On May 16 this year, "New Fortune" magazine released the "2023 New Fortune 500 Rich List". Zhang Hejun, the actual controller and chairman of Deye Co., Ltd., ranked 57th on the list with a wealth of 51.11 billion yuan, and became the first in the 2023 Ningbo Richest Man List.

Deye shares are not satisfied with the current achievements, but seize the opportunity of the surge in demand for photovoltaic inverters to actively expand production. On June 9 this year, Deye shares announced that the proposed increase in capital of no more than 3.55 billion yuan was approved by the Shanghai Stock Exchange. The estimated funds raised this time are no more than 3.55 billion yuan, which will be used for the construction of a 25.5GW annual production line of string and energy storage inverters, a 3GW annual production line of micro inverters, an inverter R&D center, and to supplement working capital. As of the close of July 7 this year, the total market value of Deye shares was 66.404 billion.

In addition, it is worth mentioning that public information shows that the sales of German micro-inverters only accounted for 2% of Deye’s total turnover in 2022. Some analysts believe that one of the reasons for Deye’s strong stock price is that South Africa has power outages for more than ten hours a day due to power shortages, and photovoltaic installations have exploded. Deye occupies 30-40% of the inverter market share in South Africa.