Sungrow 2025 Annual Results: What the Numbers Mean for Energy Storage

Key takeaways

• Sungrow shipped 28 GWh of energy storage systems in FY2024, ranking #1 globally in cumulative installed capacity according to S&P Global, and #1 in BNEF’s Global Bankability Ranking for both ESS and PCS.
• ESS revenue reached CNY 25.0 billion, up 40.21 % year-on-year, now representing 32.06 % of total revenue — up from 24.6 % in FY2023.
• ESS gross margin expanded to 36.69 % (+4.07 ppt YoY), the highest margin among all of Sungrow’s product lines and significantly above the company average of 29.94 %.
• PowerTitan 2.0 launched as the world’s first 10 MWh AC-DC integrated fully liquid-cooled energy storage system, using 314 Ah cells with embedded PCS.
• Operating cash flow surged 72.85 % to CNY 12.1 billion, while total assets grew 38.85 % to CNY 115.1 billion.

1. Headline numbers

Sungrow reported total revenue of CNY 77.9 billion for the year ended December 31, 2024, up 7.76 % from CNY 72.3 billion in FY2023. Net profit attributable to shareholders reached CNY 11.0 billion, a 16.92 % increase. Basic earnings per share rose to CNY 5.32 from CNY 4.55.

The top-line growth was modest, but profitability improved at a faster rate. Gross margin expanded by 2.76 percentage points to 29.94 %. Net cash flow from operating activities rose 72.85 % to CNY 12.1 billion, a notable improvement in cash conversion. Total assets grew 38.85 % to CNY 115.1 billion.

R&D spending reached CNY 3.2 billion (+29.26 %), representing 4.06 % of operating revenue. R&D headcount grew 30.10 % to 6,989. The company employed 17,305 people at year-end, with overseas staff reaching 1,774 (+16.86 %).

Weighted average return on equity declined to 33.99 % from 40.96 %, a drop of 6.97 percentage points — still a high figure, but reflecting the rapid growth in the equity base.

2. Revenue by product line

Sungrow’s revenue mix shifted toward energy storage in FY2024. ESS grew 40 % while PV inverter revenue grew only 5 %, making ESS the fastest-growing segment by far.

Energy storage is now Sungrow’s second-largest revenue segment at 32.06 % of total revenue, up from 24.6 % in FY2023 (CNY 17.8 billion). The gap between ESS and PV inverters narrowed from CNY 9.9 billion in FY2023 to CNY 4.2 billion in FY2024.

PV inverter shipments grew to 147 GW from 130 GW (+13.08 %), with revenue up 5.33 % to CNY 29.1 billion. However, total PV sector revenue (including new energy investment and power station generation) declined 5.25 % to CNY 47.9 billion, dragged down by the -15.08 % drop in new energy investment and development.

3. ESS revenue and margins

ESS revenue grew 40.21 % to CNY 25.0 billion on 28 GWh of shipments. ESS operating costs (raw materials) rose 27.49 % to CNY 13.9 billion, slower than revenue growth — the margin benefit of falling input costs flowing through to profitability.

ESS gross margin reached 36.69 %, up 4.07 percentage points year-on-year. This is the highest margin of any Sungrow product line, exceeding PV inverters at 30.90 % and the company average of 29.94 %. The spread between ESS and PV inverter margins reached 5.79 percentage points.

The combination of rising ESS revenue share and superior ESS margins means energy storage is increasingly driving Sungrow’s overall profitability improvement. As ESS grows from 32 % to a larger share of the mix, the blended margin should continue to benefit.

4. Geographic breakdown

Sungrow’s revenue split between domestic and overseas markets was nearly even in FY2024, with a pronounced margin difference between the two.

Overseas gross margin of 40.29 % was nearly double the domestic margin of 20.91 % — a 19.38 percentage point gap. This is one of the largest domestic-overseas margin spreads in the BESS industry and reflects the premium pricing available in international markets, particularly in Europe, the Middle East, and the Americas.

The filing does not break out ESS revenue by geography, but Sungrow’s reference projects span Europe, the Middle East, Asia-Pacific, and Latin America.

5. ESS product developments

Sungrow expanded its ESS product portfolio across utility-scale and C&I segments during FY2024.

PowerTitan 2.0

Described as the world’s first 10 MWh AC-DC integrated fully liquid-cooled energy storage system. Uses 314 Ah cells with embedded PCS, delivering 2.5 MW / 5 MWh per standard 20-foot container. A domestic variant with 7.5 MWh per container (15 MWh per sub-array for 2-hour, 30 MWh for 4-hour configurations) completed development and was awaiting mass production at the reporting date. A grid-forming upgrade was in the validation phase.

PowerTitan 1.0

The prior-generation utility-scale product, rated at 3.44 MWh per container, remained in the lineup alongside the PowerTitan 2.0 rollout.

C&I portfolio

Sungrow introduced three commercial and industrial systems during the year:

• PowerStack 835CS — described as the industry’s first 10/20 kV-ready liquid-cooled C&I ESS, with 836 kWh capacity
• PowerStack 500CP — 535 kWh capacity C&I system
• PowerStack 200CS — liquid-cooled system up to 225 kWh with integrated EMS, PCS, and BMS

PCS development

The SC5000UD-MV-P3 standalone PCS & MV skid entered mass production. It is optimized for 5 MWh systems with flexible DC-side configurations and supports 10-37 kV voltage levels. Sungrow also advanced the ST800CS, a 690 V compact outdoor C&I PCS cabinet, into mass production.

Grid-forming certification

Sungrow’s Stem Cell Grid Technology obtained the worldwide first grid-forming certification from CQC (China Quality Certification Center).

6. Manufacturing capacity

Sungrow does not report a standalone ESS manufacturing capacity figure. The filing references a “New Energy Power Generation Equipment Manufacturing Base with an Annual Capacity of 100 GW” covering both inverters and ESS. As of December 31, 2024, the project was 83.77 % delivered, with completion extended to June 30, 2025.

The company’s GDR (Global Depositary Receipts) issuance proceeds were allocated to energy storage equipment manufacturing projects, overseas expansion of inverter and ESS product capacities, digital transformation, and a Nanjing R&D Center.

7. Key ESS contracts

The annual report highlighted several large-scale energy storage contracts secured or under execution during FY2024:

The Fidra Energy contract was described as Europe’s largest storage contract. The Atlas project was described as Latin America’s largest independent storage station. Sungrow stated that all projects have maintained a zero-safety-incident record.

8. Market context

Sungrow’s management commentary included several observations about the broader energy storage market:

• Global lithium battery energy storage installations reached 182 GWh in 2024, reflecting a 72 % year-on-year increase (third-party data cited in the filing)
• Key demand drivers: increasing renewable energy penetration and declining storage costs
• Management expects sustained growth in the green energy industry, citing declining renewable generation costs, falling interest rates in European and American markets, diversification of emerging markets, and the integration of generation, grid, load, and storage systems

Sungrow’s 28 GWh of ESS shipments against a 182 GWh global market implies a shipment share of roughly 15 % — consistent with its #1 ranking by cumulative installed capacity as reported by S&P Global.

9. Cost structure

All operating expense categories grew faster than revenue (+7.76 %), reflecting the investment required for international expansion and product development. Financial expenses saw the largest percentage increase — from CNY 20.6 million to CNY 290.4 million — driven by borrowing costs associated with the company’s rapid asset growth (total assets +38.85 %).

Sales expenses grew 30.95 % to CNY 3.8 billion, consistent with the expansion of overseas operations and the increase in overseas headcount (+16.86 %). R&D headcount growth of 30.10 % outpaced total employee growth, indicating continued prioritization of engineering talent.

10. What to watch

Several points from the annual report are worth monitoring:

ESS is becoming the margin engine. At 36.69 %, ESS gross margin is nearly 6 percentage points above PV inverters (30.90 %) and 7 points above the company average. As ESS grows from 32 % of revenue toward parity with PV, it will increasingly determine Sungrow’s overall profitability trajectory. The question is whether this margin level is sustainable as competition intensifies and prices decline.

Overseas margins subsidize the business. The 19.38 percentage point gap between overseas (40.29 %) and domestic (20.91 %) gross margin is striking. Any shift in trade policy, tariffs, or competitive dynamics in international markets would disproportionately affect profitability. The filing specifically flags international trade frictions and increased tariffs as risks.

Revenue growth decelerated. Total revenue grew just 7.76 % in FY2024, down from what the PV-driven growth rates of prior years would suggest. PV inverter revenue declined 5.25 % despite higher shipments. The company is relying on ESS growth (+40.21 %) to offset the maturing PV business.

Financial expenses escalated. The jump from CNY 20.6 million to CNY 290.4 million in financial expenses signals increased leverage to fund the 38.85 % growth in total assets. While operating cash flow improved significantly (+72.85 %), the cost of financing this expansion bears watching.

Accounts receivable risk in ESS. The filing flags large project values and extended payment cycles in energy storage operations as a collection risk. As ESS revenue scales to CNY 25 billion and contract sizes reach multi-GWh levels (Algihaz 7.8 GWh, Fidra 4.4 GWh), the working capital intensity of the ESS business will grow.

11. Sources

All data in this article is sourced from Sungrow Power Supply Co., Ltd.’s official Annual Report (Full Copy) for the year ended December 31, 2024, filed on the Shenzhen Stock Exchange (SZSE).

• Sungrow Manufacturer Profile — BESS Manufacturers directory page
• Industry data attributed to S&P Global and BNEF as cited in Sungrow’s report
• Global ESS installation data (182 GWh in 2024) as cited by Sungrow from third-party sources