Another renewable energy giant has launched its Hong Kong listing process! On October 9, 2025, Sungrow Power Supply Co.,Ltd. (Sungrow Power, 300274.SZ) disclosed that the company submitted an application to the Hong Kong Stock Exchange on October 5 for the issuance of overseas-listed foreign shares (H shares) and listing on the Main Board of the Hong Kong Stock Exchange. The application materials were published on the Hong Kong Stock Exchange website on the same day.

Notably, Sungrow Power currently faces a "tale of two cities" situation. On one hand, the company's energy storage business is booming, overseas revenue accounts for over 50% for the first time, and both stock price and market value have risen. On the other hand, the company is burdened with over 70 billion yuan in debt, high accounts receivable, and increased impairment provisions.

**Energy Storage Business Explodes**

Founded in 1997, Sungrow Power started with photovoltaic inverter business and gradually expanded into five major sectors: solar, wind, energy storage, electric vehicle charging, and hydrogen energy. The company's main products include photovoltaic inverters, energy storage systems, wind power conversion and transmission products, new energy vehicle electrical control power sources and charging equipment, and hydrogen energy equipment.

Photovoltaic inverters are one of the main components of photovoltaic power generation systems, connecting photovoltaic arrays to the grid. As of June 30, 2025, the company's cumulative installed capacity of photovoltaic inverters exceeded 595GW. According to Frost & Sullivan analysis, Sungrow Power's photovoltaic inverter product shipments have maintained global leadership for ten consecutive years. Based on 2024 shipment volumes, the company's photovoltaic inverters held approximately 25.2% of the global market share.

In the first half of 2025, Sungrow Power's energy storage business became the biggest highlight. The company's energy storage system revenue reached 17.803 billion yuan, surging 127.78% year-over-year. Energy storage system revenue proportion increased to 40.89%, surpassing the revenue from photovoltaic inverters and other power conversion equipment for the first time. Shipment volume grew from 7.8GWh in the first half of 2024 to 19.5GWh.

The prospectus shows that as of June 30, 2025, the company's cumulative energy storage system shipments reached 70GWh. According to public reports, Sungrow Power executives stated during the interim results conference that global energy storage compound annual growth rate is conservatively estimated at 20% and optimistically at 30% for the coming years. The company's first-half shipments approached last year's full-year volume, and second-half shipments may exceed the first half. Given favorable market growth conditions, the company expects full-year energy storage shipments to maintain initial projections of approximately 40-50GWh.

Sungrow Power also anticipates that major energy storage markets will continue developing well, with commercial and industrial storage showing good returns in the coming years.

The prospectus reveals that Sungrow Power has production capacity in both China and overseas. As of June 30, 2025, the company's domestic design capacity for photovoltaic inverters and energy storage was 119GW and 28GWh respectively, with overseas photovoltaic inverter design capacity at 50GW.

**Overseas Revenue Exceeds Half**

The prospectus discloses that the company's gross margin increased from 20.4% in 2022 to 25.5% in 2023, and further improved to 29.0% in 2024. In the first half of this year, Sungrow Power's gross margin grew from 32.1% in the same period last year to 32.9%. However, the company's photovoltaic inverters and other power electronic conversion equipment gross margin was 35.7%, while energy storage systems gross margin was 39.9%, both showing declines.

Regarding performance, the prospectus shows that from 2022 to 2024 and January-June 2025, the company's operating revenue was 40.11 billion yuan, 72.16 billion yuan, 77.70 billion yuan, and 43.44 billion yuan respectively; net profit was 3.70 billion yuan, 9.61 billion yuan, 11.26 billion yuan, and 7.83 billion yuan respectively. The compound annual growth rates for revenue and net profit from 2022 to 2024 reached 39.2% and 74.6% respectively.

Notably, the company's overseas revenue proportion has increased significantly. In 2022, 2023, and 2024, revenue from other countries and regions (excluding mainland China) accounted for 47.5%, 46.2%, and 46.7% of total revenue respectively. In January-June 2025, the company's overseas revenue reached 25.4 billion yuan, accounting for 58.4% of total revenue, surpassing mainland China revenue for the first time.

The prospectus reveals that Sungrow Power intends to use the H-share proceeds for R&D purposes, including investment in next-generation photovoltaic and energy storage product development and construction/upgrade of R&D centers; overseas production base construction; accelerated digital transformation to empower business development; and working capital and other general corporate purposes.

Regarding overseas manufacturing production bases, the company indicated plans to build several production bases primarily manufacturing inverter equipment and energy storage products. The company plans total annual production capacity of approximately 18GWh for energy storage products and 30GW for inverter equipment. Upon completion, these bases will further ensure timely order supply and delivery, strengthening the company's competitiveness in overseas markets.

**High Accounts Receivable**

It should be noted that alongside business growth, Sungrow Power's accounts receivable has also increased substantially. Data shows that from 2022 to 2024 and the first half of 2025, the company's total trade receivables and bills receivable were 15.297 billion yuan, 22.165 billion yuan, 28.826 billion yuan, and 29.424 billion yuan respectively; the company made impairment provisions of 1.371 billion yuan, 2.009 billion yuan, 2.891 billion yuan, and 3.112 billion yuan respectively.

Additionally, as of the end of June this year, the company's asset-liability ratio was 61.33%, declining from year-end but total liabilities remained high at 72.612 billion yuan, with current liabilities at 58.517 billion yuan.

Notably, since entering the second half of the year, Sungrow Power has performed outstandingly in the secondary market with surging stock prices, particularly in August and September, with monthly cumulative gains of 38.71% and 62.19% respectively. The company's total market value broke through 300 billion yuan, ranking first in the photovoltaic sector.

However, attracting market attention was that on September 26, while the company's stock price and market value were surging, Sungrow Power issued an announcement about executives' early termination of share reduction plans. The announcement showed that Vice Chairman and Senior Vice President Gu Yilei, Director and Senior Vice President Wu Jiamao, Vice President Deng Dejun, and Vice President Wang Lei planned to reduce holdings of no more than 424,900 shares through centralized bidding or block trading within 3 months after 15 trading days from the share reduction pre-disclosure announcement (from August 4, 2025 to November 3, 2025), representing 0.0207% of total share capital. However, as of September 26, the relevant personnel had not implemented the reduction plan.

Sungrow Power stated that the company recently received notification letters from relevant personnel regarding early termination of share reduction plans. To avoid short-swing trading, all relevant personnel decided to terminate the reduction plans early and will submit new reduction plans when legally permitted, with reduction quantities not exceeding the aforementioned amounts.

Regarding this matter, renowned tax and audit expert and senior certified public accountant Liu Zhigeng noted that executives terminating share reductions might indicate they believe current stock prices haven't reached ideal reduction levels, or have other considerations for market value management before H-share listing. This behavior may reflect company executives' confidence in the "photovoltaic-storage integration" strategy, especially as the high growth of energy storage business provides valuation support amid short-term pressure in the photovoltaic industry.