Sineng Electric 2024 Annual Results: Storage PCS Margins Up 7 Points, Overseas Revenue Surges

Key takeaways

• Revenue dipped 3.23 % to CNY 4.77 billion, but net profit surged 46.49 % to CNY 419 million as Sineng Electric deliberately reduced lower-margin domestic ESS system integration work in favor of higher-margin overseas PV and storage equipment sales.
• Energy storage PCS and system integration revenue reached CNY 1.93 billion (40.40 % of total), with gross margin jumping 7.12 percentage points to 21.98 % — the largest margin improvement across all segments.
• Overseas revenue grew 68.74 % to CNY 1.16 billion, reaching 24.38 % of total revenue, with an overseas gross margin of 32.74 % — nearly 13 percentage points above the domestic margin of 19.76 %.
• A 5 GW storage PCS and system integration factory was completed at the end of 2024, expanding manufacturing capacity for the company’s growing order book.
• Sineng Electric ranked in the top two in China for storage PCS shipments from 2021 to 2024, according to the China Energy Storage Alliance (CNESA).

1. Headline numbers

Sineng Electric reported total revenue of CNY 4.77 billion for the year ended December 31, 2024, down 3.23 % from the prior year. The top-line decline, however, masks a story of deliberate portfolio reshaping: the company chose to step back from lower-margin domestic ESS system integration projects, which depressed revenue but drove a sharp improvement in profitability.

Net profit attributable to shareholders reached CNY 419 million, up 46.49 % year-on-year. The profit increase came from two sources — margin expansion across both core segments and the fast-growing overseas business, which carries significantly higher margins than the domestic market.

Operating cash flow turned sharply positive at CNY 122 million, a 435.81 % improvement from the prior year when cash flow from operations was negative. While the absolute figure remains small relative to revenue, the swing from cash-burning to cash-generating is a meaningful signal for a company in growth mode.

R&D spending was CNY 290 million, representing 6.07 % of revenue. The company employed 1,609 people at year-end, of whom 490 (30.45 %) were in R&D — one of the higher R&D staff ratios in the BESS equipment sector.

2. Revenue by segment: PV inverters vs energy storage

Sineng Electric’s revenue splits almost evenly between its two core product lines, with PV inverters still holding the larger share.

PV inverter shipments totaled 25,109 MW during the year, up 7 % year-on-year. Despite the shipment growth, the segment’s revenue share tells a story of two businesses approaching parity — energy storage now accounts for over 40 % of total revenue and is closing the gap with PV inverters.

The near-flat revenue growth in the storage segment (+0.08 %) reflects the deliberate pullback from domestic system integration. The company shifted its domestic storage focus toward standalone PCS equipment while pursuing system-level projects overseas where margins are more favorable.

3. The margin improvement story

The standout metric in Sineng Electric’s FY2024 results is the margin expansion in energy storage. Gross margin on storage PCS and system integration rose 7.12 percentage points to 21.98 %, while PV inverter margins rose 5.05 percentage points to 22.55 %.

The margin improvement in storage is significant for two reasons. First, 7.12 percentage points of margin expansion in a single year is substantial by industry standards — it reflects a genuine change in the revenue mix, not just incremental efficiency gains. Second, the storage margin is converging with the PV inverter margin, closing what was previously a wider gap. As the two segments approach similar profitability, the commercial case for aggressively growing the storage business strengthens.

The geographic margin split provides further context. Overseas revenue carried a gross margin of 32.74 %, compared to 19.76 % for domestic revenue — a gap of nearly 13 percentage points. As overseas revenue grows from its current 24 % share, the overall margin profile should continue improving, assuming the international pricing premium holds.

4. Geographic shift: overseas surge

The geographic revenue breakdown reveals the transformation underway at Sineng Electric.

Domestic revenue fell nearly 15 %, reflecting the strategic withdrawal from lower-margin system integration projects. Overseas revenue, by contrast, surged 68.74 % to CNY 1.16 billion.

The company has established offices in nine countries: India, Brazil, Spain, Dubai (UAE), Singapore, Germany, the United States, Greece, and South Africa. This geographic spread is notably broad for a company of Sineng Electric’s size and positions it to capture PV-plus-storage project demand across multiple high-growth markets.

Key international customers named in the annual report include TATA, ACWA Power, Adani, AVAADA, and L&T — major infrastructure and energy groups with large-scale renewable and storage project pipelines.

5. 5 GW PCS factory completed

Sineng Electric completed a 5 GW storage PCS and system integration manufacturing facility at the end of 2024. The new factory expands the company’s production capacity to meet growing demand, particularly from overseas markets where lead times and local delivery capability are competitive factors.

The investment in dedicated storage PCS manufacturing capacity reflects management’s expectation that the storage segment will continue growing as a share of total revenue. For a company generating CNY 1.93 billion in storage revenue today, a 5 GW annual capacity facility suggests room for substantial volume growth without further capital expenditure on production lines.

6. Product developments

Sineng Electric’s product portfolio spans string-level to utility-scale PCS and MV skid solutions, with storage PCS products covering 100 kW to 2,000 kW and integrated system capacity up to 12,500 kW. The company’s grid-forming capability and broad power range allow it to address both C&I and utility-scale storage applications.

A notable project milestone during FY2024 was the Hubei 100 MW / 200 MWh sodium-ion energy storage project, marking Sineng Electric’s entry into sodium-ion battery storage — a chemistry that several Chinese manufacturers are developing as an alternative to lithium iron phosphate for stationary applications. The sodium-ion project demonstrates the company’s ability to work across battery chemistries, which is relevant as the storage market diversifies beyond LFP.

PV inverter shipments of 25,109 MW (+7 %) confirmed the company’s position among the top global PV inverter suppliers, a market position that provides cross-selling opportunities for storage PCS into existing solar customer relationships.

7. Key customers and reference projects

The annual report names several major customers and project partners:

• SPI (State Power Investment Corporation) — one of China’s five major power generation groups
• China Energy (China Energy Investment Corporation) — the world’s largest power company by installed capacity
• Datang (China Datang Corporation) — one of China’s “Big Five” power generators
• TATA — Indian conglomerate with major renewable energy investments
• ACWA Power — Saudi-headquartered developer of power generation and water desalination plants, active across the Middle East, Africa, and Central Asia
• Adani — Indian infrastructure group with a rapidly growing renewable energy portfolio
• AVAADA — Indian renewable energy company focused on solar and energy storage projects
• L&T (Larsen & Toubro) — Indian multinational engineering and construction company

This customer list spans Chinese state-owned utilities and major international infrastructure groups, providing revenue diversification and positioning Sineng Electric on large-scale projects where PCS reliability and bankability are selection criteria.

From 2021 to 2024, Sineng Electric ranked in the top two in China for storage PCS shipments, according to CNESA (China Energy Storage Alliance).

8. Market context

Sineng Electric’s FY2024 results sit within a broader context of rapid but margin-pressured growth in the Chinese storage PCS market. The domestic market has seen intense price competition, particularly in system integration, where smaller players have undercut on price to win market share.

Sineng Electric’s response — deliberately reducing domestic system integration volume in favor of higher-margin overseas equipment sales — mirrors a pattern seen among other leading Chinese manufacturers. Companies with established international distribution are increasingly treating the domestic market as a volume base while targeting international markets for margin.

The overseas PCS market, particularly in India, the Middle East, and Latin America, is growing rapidly as large-scale solar-plus-storage projects proliferate. Sineng Electric’s relationships with TATA, ACWA Power, Adani, AVAADA, and L&T position it well in these regions. The 32.74 % overseas gross margin suggests the company is successfully avoiding the pricing pressure that characterizes the domestic market.

9. What to watch

The top-line decline was deliberate, not distressed. Sineng Electric chose to walk away from domestic system integration projects that were diluting margins, and the 46 % profit increase confirms the strategy is working in the short term. The question is whether the company can sustain this discipline if competitors use those domestic projects to build scale advantages.

Overseas revenue nearly doubled but still represents just a quarter of total sales. The 32.74 % overseas margin is attractive, but maintaining that premium as Sineng Electric scales internationally is not guaranteed — competition from Sungrow, Kehua, and other Chinese PCS exporters is increasing in every target market. Whether the company can hold pricing as it grows from CNY 1.16 billion to multiples of that figure will shape the next several years.

The gap between PCS equipment and system integration margins is worth watching. By pulling back from system integration domestically, Sineng Electric is implicitly conceding that market segment to competitors. If the industry consolidates around vertically integrated system suppliers — companies that offer cells, PCS, and integration as a package — a PCS-focused player may find itself squeezed. Conversely, if the market values best-in-class PCS from independent suppliers, the strategy pays off.

Energy storage is approaching parity with PV inverters. At 40 % of revenue and closing, storage will likely become Sineng Electric’s largest segment within the next one to two years. This is a structural shift that will change how the market perceives the company — from a PV inverter maker with a storage sideline to a dual-platform energy electronics business.

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
• Kehua vs Sineng Electric: BESS PCS Manufacturer Deep-Dive
• EVE Energy 2025 Annual Results: What the Numbers Mean for Energy Storage
• Samsung SDI 2025 Annual Results: What the Numbers Mean for Energy Storage

11. Sources

All data in this article is sourced from Sineng Electric’s 2024 Annual Report, filed on the Shenzhen Stock Exchange (SZSE) via CNINFO.

• Sineng Electric 2024 Annual Report (PDF, Chinese) — Filed on CNINFO (SZSE), full financial statements and MD&A
• Sineng Electric Manufacturer Profile — BESS Manufacturers directory page