The latest development of Sungrow
The following is the content of the telephone communication with Sungrow
Changes in important financial items
The balance of accounts receivable is 24 billion, an increase of 2.9 billion from the beginning of the year, mainly due to the increase in the scale of accounts receivable caused by the increase in revenue; at the same time, the proportion of domestic revenue increased in the first half of the year, and the payment cycle of domestic customers is generally longer than that of overseas customers, which also led to an increase in accounts receivable in this period.
01
Sales expenses are 1.773 billion, an increase of 41.3% year-on-year: mainly due to the company's vigorous expansion of overseas business, increased global marketing layout, expanded sales team size, and increased personnel, which brought about an increase in employee salaries, equity incentives, and corresponding office and travel expenses.
02
R&D expenses are 1.49 billion, an increase of 41.7% year-on-year: mainly due to the company's continued increase in R&D investment to maintain its leading position in products and technologies.
03
Asset impairment loss of 120 million, a decrease of 120 million from the same period last year: the new impairment loss in this period was mainly due to the change in the aging structure of inventory and contract assets, which was 190 million yuan. At the same time, the new energy projects that were overdue and not started last year were started in this period, and the impairment provision was reversed by 70 million yuan. So overall, the impairment provision in this period decreased year-on-year.
04
Question And Answer Session
1. The company has a high share of large storage bids in the Middle East. What are the reasons and prospects for sustainability?
Answer: On the one hand, the Middle East has good economics, good resource conditions, long sunshine time, low cost per kilowatt-hour, and large demand for energy storage. On the other hand, the company has a long-term layout in the Middle East, maintains long-term strategic cooperation with major customers, and has advantages in technology, products, and brands. Under these comprehensive factors, the market demand and company share in the Middle East are increasing rapidly.
2. What does the company think of hydrogen energy ALK, PEM, AEM and other technical routes? Can it achieve a profit breakthrough in the next few years?
Answer: At present, the company has deployed PEM and ALK, and is also paying attention to the AEM technical route. AEM technology is still in the early stage, with short membrane life and high cost. It is currently difficult to achieve marketization. In small-power systems, AEM has stronger flexibility than ALK and PEM. The hydrogen energy market has broad prospects in the future. The company's hydrogen energy business will continue to cultivate technical internal strength, target key markets, and ensure its industry position. At present, the investment in hydrogen energy business matches the overall scale of the company. The loss is at a reasonable level and will not bring risks. It is expected to gradually turn to profitability in 4-5 years.
What are the key demands in the energy storage application field that drive its rapid growth? Is there a ceiling for the energy storage market size?
Answer: There are many energy storage demand scenarios. For example, the coupling effect of photovoltaic, wind power and energy storage is significant. With the increase in the installed capacity of new energy, the proportion of storage is increasing, and the storage time is also increasing. At the same time, the peak-shaving demand of the power grid and the requirements for network construction capabilities are increasing, which will also increase the demand for energy storage. There are more and more user-side scenarios. Traditionally high-electricity-price regions, such as Europe and the United States, can use energy storage for arbitrage. The demand for energy storage is also reflected in independently operated scenarios such as industry, commerce and household use. In addition, in areas without electricity, such as mines and islands, solar storage has gradually become more economical, so there is no ceiling for energy storage yet.