GoodWe 2024 Annual Results: ESS Revenue Down 62% as Pricing Pressure Bites

Key takeaways

• GoodWe swung to a net loss of CNY 61.8 million in FY2024, down from a CNY 852 million profit the prior year, as European destocking and price competition compressed margins.
• Combined ESS revenue (inverters + batteries) fell to roughly CNY 935 million, down ~62 % year-on-year, falling from one-third to just 14 % of total revenue.
• Residential systems grew 85 % to CNY 3.06 billion, becoming the company’s largest segment at 45.8 % of main business revenue — but at lower margins than the overseas ESS business it replaced.
• The geographic mix flipped: domestic revenue rose to 70 % (from ~41 %), while overseas revenue declined 54 % to CNY 2.0 billion, compressing blended margins.
• GoodWe maintained its #1 global ranking in small-power PCS shipments (under 30 kW) according to EESA, even as storage inverter unit sales fell 67 %.

1. Headline numbers

GoodWe reported total revenue of CNY 6.74 billion for the year ended December 31, 2024, down 8.36 % from CNY 7.36 billion in 2023. Net profit attributable to shareholders turned to a loss of CNY 61.8 million, compared with a profit of CNY 852 million in the prior year.

The headline revenue decline understates the structural shift underneath. Overall gross margin fell sharply from 30.71 % to 20.92 %, a 9.79 percentage point contraction driven by the decline of high-margin overseas ESS revenue and its replacement by lower-margin domestic residential systems. Operating cash flow swung to negative CNY 793 million from positive CNY 1.03 billion, and the company declared no dividend.

R&D spending was CNY 551.3 million, representing 8.18 % of revenue — a high ratio that reflects GoodWe’s continued investment in product development despite the downturn.

2. The ESS revenue decline

The most significant story in GoodWe’s FY2024 results is the sharp contraction in energy storage revenue across both product lines.

ESS segment	FY2024 Revenue	FY2023 Revenue (implied)	YoY Change
ESS inverters	CNY 461.7 M	~CNY 1.57 B	-70.53 %
ESS batteries	CNY 472.9 M	~CNY 869 M	-45.57 %
Combined ESS	~CNY 935 M	~CNY 2.43 B	~-62 %

ESS inverter revenue fell 70.53 % to CNY 461.7 million, with unit sales dropping from ~154,200 to 51,240 — a 66.76 % decline. The margin on ESS inverters remained strong at 49.72 %, but on a much smaller revenue base.

ESS battery revenue fell 45.57 % to CNY 472.9 million, with gross margin of 31.78 %. Battery production was 180.6 MWh and sales totalled 217.1 MWh during the year.

The combined ESS business fell from roughly one-third of total revenue to approximately 14 %. For a company that positioned itself as an integrated energy storage player, this decline was driven primarily by the European destocking cycle and intensifying price competition in storage inverters.

3. The residential systems surge

While ESS contracted, GoodWe’s residential systems business expanded rapidly.

Residential systems revenue reached CNY 3.06 billion, up 84.96 % year-on-year, making it the company’s largest segment at 45.8 % of main business revenue. Grid-tied inverter revenue, by contrast, fell 22.50 % to CNY 2.22 billion.

The residential systems growth reflects GoodWe’s push into bundled solar-plus-storage offerings for the domestic Chinese market. However, this segment comes with significantly lower margins than the overseas ESS business it replaced in the revenue mix — a key factor in the overall margin compression.

4. Margin pressure — the mix shift story

GoodWe’s margin structure tells a clear story about the cost of geographic and product mix shifts.

Metric	FY2024	FY2023	Change
Overall gross margin	20.92 %	30.71 %	-9.79 ppt
ESS inverter margin	49.72 %	—	—
ESS battery margin	31.78 %	—	—
Overseas margin	36.75 %	—	—
Domestic margin	14.17 %	—	—

The 22.58 percentage point gap between overseas margin (36.75 %) and domestic margin (14.17 %) is the core of GoodWe’s profitability problem. As the revenue mix shifted from ~59 % overseas / ~41 % domestic in FY2023 to ~30 % overseas / ~70 % domestic in FY2024, the blended margin was dragged down mechanically — even before accounting for pricing pressure within each market.

ESS inverters still carry an attractive 49.72 % gross margin, but on 70 % less revenue, the profit contribution has shrunk dramatically. The high-margin overseas ESS business that underpinned GoodWe’s profitability in FY2023 has not been replaced by anything comparably profitable.

5. Geographic reversal — domestic vs overseas

The geographic mix flipped completely in FY2024.

Region	FY2024 Revenue	% of Total	YoY Change	Gross Margin
Domestic (China)	CNY 4.69 B	~70 %	+57.96 %	14.17 %
Overseas	CNY 2.00 B	~30 %	-53.83 %	36.75 %

In FY2023, overseas revenue represented approximately 59 % of total revenue. In FY2024, it fell to roughly 30 %. The CNY 2.0 billion in overseas revenue is less than half the prior-year level.

Europe, historically GoodWe’s strongest export market, contributed CNY 937 million in inverter and battery revenue at a 42.13 % gross margin — a healthy margin, but on substantially reduced volumes as European channel partners worked through excess inventory built up during the 2022-2023 buying surge.

The domestic growth, while impressive at 58 %, came almost entirely from the residential systems segment and carried a 14.17 % gross margin — well below the company’s historical blended rate.

6. ESS product portfolio

GoodWe’s energy storage product line spans residential, commercial, and utility-scale applications.

Residential and C&I PCS

GoodWe ranked #1 globally in small-power PCS shipments (under 30 kW) according to EESA, maintaining its leadership position in the residential and small C&I inverter segment. The ET Plus and HT series remain core products for hybrid storage applications.

Grid-tied inverters

Grid-tied inverter revenue was CNY 2.22 billion, down 22.50 %. While this segment is not strictly energy storage, GoodWe’s grid-tied portfolio provides the installed base from which storage retrofit and expansion opportunities arise.

Storage inverter units

Storage inverter unit sales fell from ~154,200 in FY2023 to 51,240 in FY2024 — a 66.76 % decline. This drop in unit volumes, more than pricing, drove the ESS inverter revenue decline.

7. Manufacturing capacity and utilization

GoodWe’s manufacturing footprint includes its Guangde factory with 3.1 GWh of battery production capacity. However, actual battery production during FY2024 was just 180.6 MWh, implying a capacity utilization rate of 11.65 %.

That utilization figure is strikingly low. A 3.1 GWh factory running at under 12 % capacity represents significant fixed-cost drag. It suggests GoodWe built battery manufacturing capacity for a demand trajectory that has not materialized, and raises questions about the near-term economics of the battery business.

The company produced 661,350 inverter units during the year, serving both its grid-tied and storage inverter lines. Inverter utilization is likely much higher given GoodWe’s continued leadership in residential PCS shipments, though the company does not break out inverter-specific utilization figures.

8. Market context

GoodWe’s FY2024 results reflect several industry-wide dynamics.

European destocking. The European residential storage market experienced a prolonged inventory correction in 2024 as distributors worked through excess stock accumulated during the 2022-2023 supply-constrained period. GoodWe, with its historically strong European exposure, was disproportionately affected. The 54 % decline in overseas revenue is substantially a European story.

Price competition. The Chinese domestic market saw intense price competition across inverter and storage categories. GoodWe’s 14.17 % domestic margin suggests the company is pricing aggressively to gain share in a crowded market, particularly in residential systems.

Category shift. GoodWe’s traditional strength is in PCS and inverters, where it has scale advantages and brand recognition. The move into battery manufacturing (via the Guangde factory) is a diversification play, but at 180.6 MWh of actual production, the battery business has yet to reach meaningful scale. The 11.65 % utilization rate highlights the gap between ambition and current demand.

Peer comparison. While GoodWe’s ESS revenue fell ~62 %, peers with utility-scale focus such as Sungrow (ESS revenue +40 %) and CATL (ESS shipments +29 %) continued to grow. The divergence reflects GoodWe’s concentration in residential and small C&I storage, which was more exposed to the European destocking cycle than the utility-scale segment.

9. What to watch

The most important question for GoodWe is when — and whether — the high-margin overseas ESS business recovers. European channel inventory was the proximate cause of the FY2024 decline, and there are signs that destocking is nearing completion. But even when European demand normalizes, GoodWe will be re-entering a more competitive market than the one it left. The pricing environment for residential storage inverters has shifted permanently downward.

The 3.1 GWh battery factory running at 11.65 % utilization is an asset that is currently underperforming. GoodWe needs either a substantial ramp in battery demand or a credible plan to redeploy or restructure the capacity. At current volumes, the fixed costs of maintaining the Guangde facility weigh on the entire business.

The cash flow reversal from positive CNY 1.03 billion to negative CNY 793 million deserves attention. A single year of negative operating cash flow is manageable, but if FY2025 also burns cash, the balance sheet conversation changes. GoodWe has no dividend to cut, but sustained cash outflows would constrain the R&D and capacity investment needed to compete.

The residential systems surge is strategically important but carries a margin problem. At 14.17 % domestic gross margin, the residential business contributes revenue growth but limited profit. If GoodWe’s long-term mix settles at 70 % domestic and 30 % overseas, the company’s margin profile will look permanently different from its pre-2024 structure.

Finally, the overseas destocking cycle appears to be bottoming across the industry, but the pace of recovery in Europe remains uncertain. Regulatory tailwinds from the EU’s energy storage push are supportive, but the European residential market faces headwinds from electricity price normalization and the expiry of crisis-era subsidies. GoodWe’s FY2025 overseas trajectory will indicate whether the company can recapture its traditional margin structure or whether the mix shift is structural.

10. Related reading

• CATL 2025 Annual Results: What the Numbers Mean for Energy Storage
• Sungrow 2024 Annual Results: What the Numbers Mean for Energy Storage
• EVE Energy 2025 Annual Results: What the Numbers Mean for Energy Storage
• Samsung SDI 2025 Annual Results: What the Numbers Mean for Energy Storage
• Gotion High-Tech 2025 Annual Results: What the Numbers Mean for Energy Storage

11. Sources

All data in this article is sourced from GoodWe’s official 2024 Annual Report, published on the Shanghai Stock Exchange.

• GoodWe 2024 Annual Report (PDF) — Filed on SSE, full financial statements and MD&A
• GoodWe Manufacturer Profile — BESS Manufacturers directory page
• EESA market data as cited in GoodWe’s report