阳光电源: 2023年年度报告（英文简版）
来源：证券之星
2024-06-13 00:00:00
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow Power Supply Co., Ltd.
April 2024
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section I Important Notes, Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the Company hereby guarantee that
the information presented in this annual report is truthful, accurate and integrate, free of any false records, misleading
statements or material omissions, and assume individual and joint legal liabilities thereof.
Cao Renxian as the President of the Company, Tian Shuai as the Chief Accountant, and Li Pan as the head of accounting
department (accounting supervisor) hereby guarantee the truthfulness, integrity, and accuracy of financial statements in this
annual report.
All directors have attended the board meeting to review this report.
Contents in this report concerning future plans, performance forecasts, and etc., do not constitute any commitment made by
the Company to any investor or related party. Investors and related parties should maintain adequate risk awareness and
understand the possible difference between plans, forecasts, and commitments. Investors are kindly advised to pay attention to
investment risks.
(1) Policy-related risks
Although technologies related to renewable energy power generation are still evolving and grid parity has been achieved in
most regions around the world, there are still a few regions where the power generation cost or the on-grid electricity price is
higher than that of fossil energy, and the unit electricity cost per kilowatt-hour from wind-solar-storage integrated applications
remains relatively high. In addition, considering the various constraints including grid consumption, intermittent fluctuations
in new energy availability, as well as land and taxation, policy support and encouragement from governments are still necessary.
Since the supportive policies are formulated by the governments of various countries, despite of the constant global trend of
energy conservation and emission reduction, major changes in the macro economies of major markets or relevant supportive
policies will affect the growth pace of the industry and the Company’s profitability to a certain extent. To this end, the Company
actively makes global presence, and continually delves into the global market to minimize the impact of policy fluctuations
within a single country.
(2) Risk of gross margin reduction due to intensified competition
As the world's largest PV inverter manufacturer, the Company's core product, PV inverters, enjoys an obvious market
advantage. However, the huge potential of Chinese and foreign markets has also attracted fierce market competition. If the
Company fails to maintain the leading edge in technological innovation, new product development, and cost control, the
products will face the risk of gross margin declination. As such, the Company needs to further accelerate new product upgrade
and iteration through R&D innovation and increasing R&D investment, speed up the research and application of AI
technologies, so as to continually provide customers with value-added services, deliver better customer experience, and
consolidate product advantages in the market.
(3) Risk of collecting accounts receivables
As the Chinese market grows rapidly, the Company puts more efforts in product sales. On perusal of the huge project
investment and long payment term prevailing in China’s PV industry, fast business growth of the Company will lead to a quick
increase of receivables and certain risks in payment collection. To prevent credit risks and accelerate capital turnover, the
Company has formulated strict credit management systems and sale-on-credit policies, and actively reduce the risk of non-
performing loans and bad accounts through legal actions.
(4) Risk of international trade frictions
Currently, some countries restrict PV-related imports and exports, raise tariffs, or set other trade barriers in order to grow
their native PV industry, posing foreign trade risks on the PV industry where the Company operates in. The Company has
developed a series of defensive measures and lean production plans to actively respond to the complicated global situation and
expand the global market. By strengthening the global manufacturing and supply chain layout, improving supply chain
management, the Company strives to reduce trade frictions and other adverse impacts, ensuring that the annual tasks are
completed on time.
(5) Risk of exchange rate fluctuation
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
USD, AUD and EUR are the three major currencies used for the Company's overseas revenue settlement. The impact of
exchange rate fluctuations is mainly reflected in the following two aspects: a. Because of the CNY exchange rate fluctuation,
changes in operating income measured in local currency pose a direct impact on the gross margin of main products; b. From
the moment sales revenue is confirmed and accounts receivable is generated to the moment of foreign currency collection, the
Company is subject to exchange gains/losses from the fluctuations in the CNY exchange rate, hence the Company's
performance is also affected. On the foundation of normal operation and relying on specific businesses, the Company takes
various means, including hedging, continuous monitoring, and timely settling foreign currency sales to reduce exchange-related
loss and control operating risks.
(6) Risks in construction management of new energy investment and development projects
New energy projects feature large amount of investment and short project lead time. Such projects involve not only ground
resources but also commercial and residential roofs. For such projects, the investment decision-making is quite challenging,
and a lot of uncertainties exist in project engineering and implementation, which may lead to project delays and jeopardize
timely grid connection for power generation. While challenging the Company's project management, the projects also require
a huge amount of working capital. In response to such risks, the Company makes cautious considerations when selecting new
energy power generation projects to prioritize those with better grid connection conditions, controllable construction cost and
higher gross margin. Meanwhile, the Company enhances engineering management and improves project management. After
entering into sales contracts with customers, the Company reinforces project construction management in a timely manner,
adequately communicates with customers on project progress, and adjusts the work schedule according to the result of
communication, so that the impact of project delay on the Company's production and operation is eliminated or alleviated to
the most extent. By providing customers with safe, efficient and intelligent new energy power stations to their satisfaction, the
Company's brand reputation in new energy investment and development is improved.
The board meeting has reviewed and approved the following profit distribution proposal: Based on a base quantity of
share (tax inclusive) will be distributed, and 4 shares will be transferred from capital reserve to every 10 shares held by
shareholders.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Contents
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Documents for Future Reference
department of the Company.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Definitions
Term Definition
Sungrow, the Company Sungrow Power Supply Co., Ltd.
Sungrow Renewables Sungrow Renewables Development Co., Ltd., the Company's holding subsidiary
PV Solar photovoltaic effect, refers to the light-caused potential difference inside uneven
semiconductors or combinations of semiconductors and metals
Inverter, PV inverter One of the critical devices in a solar PV power generation system, which converts DC
power from solar cells into AC power that meets the grid power quality requirements
Centralized PV inverter Connecting a number of parallel PV modules to the DC input of a centralized inverter for
maximum power point tracking (MPPT), then connecting them into the grid after inversion.
With a relatively high power, it is mainly used in large-scale centralized ground PV power
stations with uniform lighting and other centralized PV power generation systems
String PV inverter Performing separate MPPT on several groups (in general 1 to 4 groups) of PV modules,
and connecting them into the AC grid after inversion. A string inverter may have multiple
MPPT modules. With a relatively low small power, it is mainly used in distributed power
generation systems, and sometimes also in centralized PV power generation systems
Energy storage converter Power conversion devices between the energy storage batteries and the AC power grid,
capable of charging and discharging the batteries. They are used in PV, power smoothing
for wind power generation, peak load shifting, micro-grid and other scenarios
Wind power converter Devices that convert the electric energy with unstable voltage frequency and amplitude
generated by wind turbine generators under the actions of natural wind into electric energy
with stable frequency and amplitude that meets the grid requirements, and connect it to the
grid
Distributed power supply Distributed power supply units, that is, small and modular standalone power supplies
ranging from several kilowatts to 50 MW that are environment-compatible
Energy storage Storage of electrical energy
One of the globally renowned testing and certification bodies and standard development
UL
bodies
A safety certification mark granted by the TüV Group to products, which is widely
TüV
recognized around the world
CE A certification that must be obtained by products entering the European market
A standard developed by the Italian State Power Board (Enel), which is widely recognized
Enel-GUIDA
in Italy
An Australian standard. PV modules and inverters must comply with this standard in order
AS4777
to be used in the design and installation of PV systems in Australia
Abbreviation of the California Energy Commission. External power supplies exported to
CEC
California must obtain this certification
Canadian Standards Association, the largest non-profit organization for defining industrial
CSA
standards in Canada
One of the most experienced certification bodies in Europe with a high reputation in the
VDE
world that is directly involved in developing the German national standards
IPD Integrated product development management process
Watt (W), Kilowatt (kW), The unit of measure for power of electricity, in specific, 1 GW = 1,000 MW = 1,000,000
Megawatt (MW), Gigawatt (GW) kW = 1,000,000,000 W
CNY, 10K CNY, 100 million Renminbi yuan, renminbi 10,000 yuan, renminbi 100 million yuan
CNY
Reporting period, current January 1, 2023 to December 31, 2023
reporting period, this period
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section II Company Profile & Key Financial Indicators
I. Company Profile
Stock abbreviation Sungrow Stock code 300274
Name of the Company in Chinese 阳光电源股份有限公司
Abbreviation of the Company in Chinese 阳光电源
Name of the Company in English (if any) Sungrow Power Supply Co., Ltd.
Abbreviation of the Company in English (if any) Sungrow Power Supply
Legal representative Cao Renxian
Registered address No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province
Zip code of registered address 230088
Changes in the Company's registered address The registered address has not changed since the Company went public in
Business address No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province
Zip code of business address 230088
Company website http://www.sungrowpower.com
E-mail dshms@sungrow.cn, kangml@sungrowpower.com
II. Contacts and Contact Information
Board Secretary Securities Affairs Representative
Name Lu Yang Kang Maolei
Address No. 1699 Xiyou Road, High-tech Zone, Hefei, No. 1699 Xiyou Road, High-tech Zone, Hefei,
Anhui Province Anhui Province
Phone 0551-65325617 0551-65325617
Fax 0551-65327800 0551-65327800
E-mail dshms@sungrow.cn kangml@sungrowpower.com
III. Information Disclosure and Place of the Report
Website of the stock exchange specified for disclosing the
http://www.cninfo.com.cn
Annual Report
Media and websites specified for disclosing the Annual Report China Securities Journal, Securities Times, Shanghai Securities
News, Securities Daily
Place where the Annual Report is available for Office of the Board of Directors
IV. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm RSM China (Special General Partnership)
Business address of the accounting firm 29/F, Block A, the Landmark, Shushan District, Hefei City,
Anhui Province
Name of the undersigning accountants Wan Yunlong, Jiang Wei, Pan Lili
Sponsor institution engaged by the Company for continuous supervision during the reporting period
Applicable □ Not Applicable
Name of sponsor Business address of Sponsor Period of continuous supervision
institution sponsor institution representative
China International Floors 27/28, China World Liu Chengli, Li October 22, 2021 to December 31, 2023 (The continuous
Capital Corporation Office 2, No. 1 Jizhe supervision and guidance period by China International
Limited Jianguomenwai Avenue, Capital Corporation Limited has ended on December 31,
Beijing 100004, P.R. 2023. However, the funds raised by the Company have
China not been fully utilized, therefore, continuous supervision
and guidance by China International Capital Corporation
Limited is required before the funds are fully utilized.)
Financial advisor engaged by the Company for continuous supervision during the reporting period
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
V. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of previous accounting data
Yes □ No
Reason for retroactive adjustment or restatement
Changes in Accounting Policies
YOY
Change
Before After After Before After
Adjustment Adjustment Adjustment Adjustment Adjustment
Operating income (CNY) 72,250,674,93 40,257,239,15 40,257,239,15 24,136,598,72 24,136,598,72
Net profit attributable to
shareholders of the 162.69%
.25 .26 .09 .76 .57
Company (CNY)
Net profit attributable to
shareholders of the
Company after deducting 172.18%
.77 .38 .21 .45 .26
non-recurring gains and
losses (CNY)
Net cash flows from - -
operating activities (CNY) 476.77% 1,638,632,122 1,638,632,122
.28 .89 .89
.77 .77
Basic earnings per share
(CNY/share)
Diluted earnings per share
(CNY/share)
Weighted average return on
equity
YOY
As at Dec. 31 2022 As at Dec. 31 2021
As at Dec. 31 Change
Adjustment Adjustment Adjustment Adjustment Adjustment
Total assets (CNY) 82,876,506,72 61,626,211,52 61,627,440,16 42,840,130,91 42,841,222,04
Net assets attributable to
shareholders of the 48.42%
Company (CNY)
Reasons for changes in accounting policies and correction of accounting errors
On November 30, 2022, the Ministry of Finance issued the No. 16 Interpretation of Accounting Standards for Business Enterprises
(hereinafter referred to as the Interpretation No. 16). The Company started implementing the “Accounting treatment for deferred
income tax related to assets and liabilities arising from individual transactions that is not subject to initial recognition exemption” as
of January 1, 2023, and adjusted applicable individual transactions throughout the period from the beginning of the earliest period in
financial statements where the provision was implemented for the first time to the first day of implementation. For lease liabilities and
right of use assets recognized at the beginning of the earliest period in financial statements where the provision was implemented for
the first time, and for estimated liabilities and corresponding assets related to abandonment obligations recognized, should there be
taxable temporary differences and deductible temporary differences, the cumulative impact should be adjusted in the initial retained
earnings and other related financial statement items of the earliest period in accordance with this provision and the provisions in
Accounting Standards for Business Enterprises No. 18—Income Tax.
The lower of the Company's net profit including extraordinary and net profit excluding extraordinary is negative in the last three fiscal
years, and the audit report for the last year shows that uncertainties exist in the Company's business continuity
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Yes No
The lower of net profit including extraordinary and net profit excluding extraordinary is negative
□ Yes No
VI. Key Financial Indicators by Quarter
(in CNY)
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating income 12,580,349,961.26 16,041,874,001.06 17,792,410,869.64 25,836,040,107.50
Net profit attributable to shareholders of
the Company
Net profit attributable to shareholders of
the Company after deducting non- 1,458,553,118.15 2,823,316,713.82 2,793,225,277.35 2,140,508,927.45
recurring gains and losses
Net cash flows from operating activities -793,931,336.59 5,563,441,170.68 -217,205,993.25 2,429,535,136.44
Whether there are significant differences between above financial indicators or their sums and the relevant financial indicators in the
quarterly and half-year reports disclosed by the Company
□ Yes No
VII. Differences in Accounting Data between Chinese and Overseas Accounting Standards
standards and China accounting standards
□ Applicable Not Applicable
There is no difference in the net profits and net assets disclosed in the financial statements as per the international accounting standards
and China accounting standards.
standards and China accounting standards
□ Applicable Not Applicable
There is no difference in the net profits and net assets disclosed in the financial statements as per the local (overseas) accounting
standards and China accounting standards.
VIII. Non-recurring Items and Their Gains/Losses
Applicable □ Not Applicable
(in CNY)
Item Amount in 2023 Amount in 2022 Amount in 2021 Remarks
Gains or losses from disposal of non-current assets -13,874,372.86 -3,361,515.27 198,734,481.06
(including the write-off accrued for impairment of assets)
Government grants accounted for, in the Gains or losses for 118,675,145.65 140,744,784.09 110,269,947.66
the current period (except for those closely related to the
Company’s normal business operation, compliant with
national policies and regulations, and granted to a certain
standard or at a fixed amount)
Gains or losses from changes in fair value arising from 162,726,489.74 114,038,405.73 12,598,837.40
holding trading financial assets and trading financial
liabilities, as well as investment gains from disposal of
trading financial assets, trading financial liabilities, and
salable financial assets, except for the effective hedging
business associated with the Company’s normal business
operation
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Reversal of impairment provisions for accounts receivable 5,822,834.44 5,784,209.13 2,883,005.14
which are separately tested for impairment
Gains entitled to the Company when the investment cost of 69,649.51 266,221.04
acquiring subsidiaries, associates or joint ventures is no more
than the fair value of identifiable net assets of invested unit
at the time of investment
Gains or losses from debt restructuring -154,355.00 8,019,908.32
Other non-operational income and expenditure in addition to 2,254,304.98 -6,748,079.29 -198,891.28
the items listed above
Less: Income tax impact 42,613,860.90 39,295,421.32 42,695,728.48
Minority shareholders' equity impact (after tax) 8,948,072.08 3,549,677.19 41,759,772.55
Total 223,957,763.48 207,612,705.88 248,118,008.31 --
Details of other gains or losses that fit in the definition of extraordinary items:
□ Applicable Not Applicable
There are no other gains or losses in the Company that fit in the definition of extraordinary items.
Explanation on defining the extraordinary items listed in the Explanatory Announcement No. 1 on Information Disclosure for
Companies Publicly Offering Securities - Extraordinary Items as recurring gains or losses
Applicable □ Not Applicable
Item Amount Involved (CNY) Reason
Equity gains from transfer of power Equity transfer of power station projects is
-1,004,622.00
station projects one of the Company's day-to-day businesses
Gains from changes in fair value of Equity transfer of power station projects is
-54,578,073.34
power station projects in possession one of the Company's day-to-day businesses
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section III Management’s Discussion and Analysis
I. Discussion and Analysis of Business Situation
In the reporting period, the PV industry grew sustainably and vigorously under the guidance of the global low-carbon goals thanks to
the joint efforts of policy guidance, economic growth, and technological advancement. According to data from the National Energy
Administration, China Photovoltaic Industry Association, and third-party institutions, installed capacity of PV increased by 390 GW
(ac) worldwide in 2023, a year-on-year increase of 69%. In addition to traditional markets such as China, Europe, and North America,
emerging markets such as the Asia Pacific, Latin America, the Middle East, and Africa benefited from the continuous reduction in PV
costs and the advantages of clean and flexible PV power generation, developed rapidly with huge potential ahead. In 2023, GW-level
markets increased from 26 to 32, and the diversification of the global PV installation market accelerated. Among them, China's PV
market application grew beyond expectation, with an annual installed capacity of 216.8 GW (ac) and a year-on-year increase of 148%
hitting a historic high. In addition, China's PV industry achieved remarkable results in various aspects. In terms of the industrial chain,
growth continued in the output of main components, including 1.43 million tons of polycrystalline silicon, 622 GW of silicon wafers,
export amount declined slightly due to the decrease in export prices, rapid growth was maintained in export volume. In terms of
technological innovation, the speed of technological iteration accelerated further, industrialization of TOPCon, HJT, and BC cell
technologies speeded up, the conversion efficiency of perovskite solar cells and stacked solar cells set world records repeatedly, hitting
a world-leading technological level.
In the reporting period, developing renewable energy was once again established as a global consensus on sustainable development.
At COP28, the installation targets for global solar power and wind power were increased. China and the United States released The
Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis, pursuing efforts to triple renewable energy capacity
globally by 2030 and intending to sufficiently accelerate renewable energy deployment in their respective economies through 2030
from 2020 levels. The Central Economic Work Conference of China further specified the widespread application of green technology,
the development of green consumption, the emphasis on supporting energy conservation, emission reduction, and carbon reduction,
thereby actively and steadily promoting carbon peaking and carbon neutrality, and accelerating the establishment of a new energy
system. Globally speaking, confidence in developing new energy became stronger. According to the International Energy Agency (IEA)
and third-party institutions, the cumulative installed capacity of PV worldwide will exceed that of hydropower in 2024, and PV will
become the largest non-fossil energy source for power generation. In 2026, the cumulative installed capacity of PV systems worldwide
will exceed that of natural gas. By 2027, the cumulative installed capacity of PV systems worldwide will exceed that of coal, and PV
will become the world's largest form of electricity with a broad prospect.
II. Business Scope in the Reporting Period
Sungrow Power Supply Co., Ltd. is a national key high-tech enterprise specializing in R&D, manufacturing, sales and service of solar
energy, wind energy, energy storage, electric vehicles, and other new energy power supply equipment. With a wide range of products
including PV inverters, wind energy converters, energy storage systems, electric drive system for new energy vehicles, floating PV
systems, and smart energy operation and maintenance service, the Company is committed to providing world-class solutions for the
full life cycle of clean energy.
Since the establishment in 1997, the Company has been concentrating on the R&D and manufacturing of PV system equipment, with
PV inverters being the core product. Adhering to the mission of “Clean power for all”, the Company provides cutting-edge PV system
solutions to users around the globe.
PV inverter is one of the main components in a PV power generation system, which connects PV arrays to the grid and plays a critical
role in ensuring the long-term and reliable operation of PV power stations and improving the project investment return. Sungrow’s PV
inverter family, consisting of residential inverters, string inverters, centralized inverters, and modular inverters, covers a power range
from 3 kW to 8,800 kW, and is widely used in residential, industrial and commercial, large ground power station, among other
application scenarios.
Residential PV inverters feature high power density, appealing exterior design, and simple installation and maintenance, which can
automatically adapt to complicated grid environment, prolong power generation, and effectively improve power generation revenue.
With built-in lightning protection and high-precision leakage current protection, as well as energy storage interfaces and various
communication modes, they can meet various application requirements indoor and outdoor, and are widely used in residential PV
power generation systems on residential roofs or in courtyards.
String PV inverters feature high power density and simple installation and maintenance, which are suitable for different indoor and
outdoor applications, hence are widely used in small and medium PV power generation systems in parking lots or on commercial roofs,
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
as well as in large-scale ground power stations on complex terrains.
Centralized PV inverters feature high conversion efficiency, safety and reliability, are highly grid-friendly and cost effective. They can
cope with various environments such as extremely low temperature and high altitude, and are widely used in large and medium-sized
PV power generation systems in deserts, plateaus, and on commercial roofs.
Modular inverters mark a new category in the industry. At a unit power of 1.1 MW, modules can be connected in parallel to form a
flexible subarray configuration of 1.1 MW to 8.8 MW. Integrating the advantages of centralized inverters and string inverters, each
module features an independent MPPT design and operates independently, is built with higher tracking accuracy and plug-and-play
operation and maintenance, capable of addressing the diverse needs and application scenarios of different markets around the world.
Sungrow Cloud: Capitalizing on the Internet of Things, artificial intelligence, big data, and blockchain technologies, Sungrow Cloud
enables group customers to collectively operate and manage solar energy, energy storage, charging poles and other energies, and creates
a smart energy brain. It comprehensively satisfies the management needs of customers at different levels throughout the entire energy
lifecycle, and delivers four core values: stabilizing investment returns, guaranteeing asset safety, standardizing operation and
management, and assisting the group’s decision-making.
Sungrow's PV inverters are exported to more than 170 countries around the world. For the second time, the Company topped the S&P
Global’s list of 2022 Global PV Inverter Shipment with a total shipment of 77 GW.
As one of the first companies involved in energy storage, Sungrow relies on the world-leading technology integration of power
electronics, electrochemistry, and grid support to build professional energy storage systems. With a focus on the R&D, production,
sales, and service of lithium battery ESS, the Company offers a range of ESS solutions for auxiliary new energy grid connection, power
frequency and peak regulation, demand side response, micro-grid, and residential scenarios, and is acknowledged a world-class supplier
of energy storage equipment and system solutions.
In recent years, Sungrow Renewables, as the Company's new energy project development and investment platform, has upheld to the
development concept of "More Power Generation in a Friendlier Way" to comprehensively advance development efforts for residential
PV stations, industrial and commercial PV stations, energy storage stations, centralized PV and wind power stations, exploring a new
model of green and ecological development featuring multiple-energy complementation and industrial synergy. Under the dual
propulsion of technology and market, Sungrow has established a diversified and collaborative business landscape featuring a solid
foundation in China and rapid development overseas. As of end 2023, the Company has developed and built PV and wind power
stations with a cumulatively capacity of more than 40 million kilowatts.
Residential PV power stations: The annual installed capacity of Sungrow residential PV power stations has increased by 200%. By
implementing the "Rest-assured installation" service strategy and redefining residential PV, Sungrow provides users with assuring
services and leads the industry into a quality service era of higher values. With intelligence and digitalization as the foundation, the
Company upgrades products for various installation scenarios such as flat roofs, flat-to-slope roofs, slope roofs, courtyards, and
sunrooms. The proprietary iSolarRoof intelligent design software for residential PV is widely used by channel partners. Featuring
optimized component layout, system wiring, rack cutting, and quick design drawing, the software helps improve power station design
efficiency by 400%.
Industrial and commercial PV power stations: The Company capitalizes on its world-leading new energy technological strength as well
as innovative and efficient industrial and commercial PV power station products to provide enterprises with new energy full lifecycle
solutions covering consulting, development, investment, and delivery. In response to the surging demand for green energy across
various industries, Sungrow continually explores the channel ecosystem and implement the 2188 Galaxy Project, and establishes a
multi-win landscape for the brand, channel operators, partners, industrial and commercial enterprises based on the core advantages of
“technology + platform”. With in-depth insights on energy consumption scenarios and characteristics of industries, Sungrow has
developed innovative zero carbon solutions for automobiles, home appliances, cement, warehousing, logistics, among other industries
to address the green energy demand and accelerate the zero carbon transformation of various industries.
Centralized PV power stations: Covering various application scenarios, centralized PV power stations leverage advanced R&D
capabilities and extensive project experiences to largely improve the ROI of PV power stations, creating greater value for customers.
In the meanwhile, comprehensive development models such as PV desertification control, reclamation of saline and alkaline land, PV-
agriculture complement, and floating systems are adopted to enable efficient and composite utilization of wind, solar, and land
resources, providing integrated development examples for comprehensive environmental treatment and new energy industry
application.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Wind power station: Wind farms can fit in different operating environments such as high/low temperatures, high altitude, low wind
speed, coastal areas, and are intended for plain wind power, mountain wind power, decentralized wind power, wind-PV complementary
systems and other healthy ecosystems and development patterns to meet the diverse needs of customers and maximize value.
Multi-energy integration: Relying on the PowMart smart energy solution featuring independent intellectual property, Sungrow
incorporates advanced system integration technology into the wind-PV-storage integration, wind-PV-hydrogen production, PV-
storage-charging integration and other new energy integration application scenarios, establishes innovative examples in multi-energy
collaboration, intelligent scheduling, grid friendliness, safety and reliability, and provides support for building a new type of power
system running on new energies.
Sungrow’s Wind Energy Division is committed to promoting high-power and high-performance power electronic conversion
technology and its engineering applications. It specializes in high-power energy conversion, high-performance grid connection control,
and high-power motor drive and control technologies, with a business scope covering wind power converters, wind power pitch drives,
wind power aftermarkets, grid simulation power supplies, and drive frequency converters. The Company’s shipment of wind power
converters ranked first in the world. In the future, Sungrow Wind Energy Division will keep exploring high-power energy conversion
and control, and strive to become the leader in global wind power conversion and transmission technology.
Relying on the Company’s 20+ years of power electronic conversion technology and power station investment and development
practice, Sungrow Smart Operation adheres to the service concept of “Secure with technology, be reliable and trustworthy” to provide
one-stop asset management services for new energy assets, and continues to ensure customers' stable return and asset safety with
advanced technology.
In the reporting period, Sungrow Smart Operation was recognized as the National High-Tech Industry enterprise, the National SRDI
(Specialized, Refined, Differential and Innovative) Little Giant enterprise, the Anhui Provincial Enterprise Technology Center, and the
Anhui Provincial Big Data Enterprise, achieved a 60% increase in business size. As of end 2023, Sungrow Smart Operation had
contracted a cumulative operation and maintenance capacity of 31 GW, gained extensive experiences in PV power station, wind farm,
and energy storage operation and maintenance thanks to the One Strategy for One Station solution. The SolarEye smart energy
operation and maintenance platform developed independently by the Company experienced the fifth upgrade in the reporting period.
By focusing on four types of business scenarios and establishing a 1+3+N product ecosystem strategy, Sungrow Smart Operation
enabled 100% online treatment for core operations and maintenance tasks. By using drone inspection, expected power generation
assessment, and other intelligent tools, the team quickly identified and dealt with anomalies and defects in power stations, hence
ensuring the safety of owners’ assets and maximizing their returns.
With the profound accumulation of clean power conversion technology and R&D advantages, Sungrow has extended inverter
application into the electric vehicle industry, providing new energy vehicles with quality drive systems.
Sungrow Electric Power is a national key high-tech enterprise specializing in R&D, production, sales, and service of electronic control,
power supply, and other products for new energy vehicles. Based on more than a decade of R&D and manufacturing experience and
the robust global supply chain, Sungrow Electric Power brings together high-level automotive electronics professionals and is
committed to providing quality electric control and power supply products for energy-saving and new energy vehicles. Sungrow
Electric Power has been providing products and services for manufacturers of quality passenger vehicles, commercial vehicles, and
construction machineries since 2010. Having adopted a platform based design, the serialized products boast high efficiency, high
reliability, and flexible adaptation.
Sungrow Electric Power has obtained the IATF16949, ISO14001, ISO45001 and other system certifications, as well as the ISO 26262
Automotive Safety Integrity Level ASIL-D certification, and instituted a product development and management system to the highest
level of functional safety. With multiple electric control and power supply automation production lines built, the Company is capable
of producing 1.5 million units per annum. Thanks to professional technological competence, trustworthy product quality, and stable
delivery capability, the company has won a number of honors, such as the Red Dot: Best of the Best, the First Prize in Science and
Technology of the China Electrotechnical Society, the First Prize of Science and Technology Award of China Power Supply Society,
and Top 100 Excellent Automotive Parts Suppliers in China. Moreover, the company was recognized as the National SRDI Enterprise
as well as the Anhui Provincial Enterprise R&D Center and the Anhui Provincial Enterprise Technology Center.
Sungrow Floating Modules (Sungrow FM) is a national high-tech enterprise specializing in floating PV modules and system solutions.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
The company is committed to creating eco-friendly, reliable, and efficient floating PV systems, and delivering one-stop floating PV
system solutions suitable for different water bodies.
Specializing in R&D, design, and manufacturing of floating systems for water surface PV power stations, Sungrow Floating Modules
(Sungrow FM) has fostered an R&D team with extensive R&D experience and strong innovation capabilities. The team has mastered
key technologies of floating power stations, including system design, materials, product structure and arrays, anchoring system, made
more than 230 patent applications, led and participated in the formulation of multiple standards related to floating systems, and their
products have been certified and tested by a number of international certification bodies including TÜV, DNV, WARS, and CGC.
The production base for floating PV systems is built with a fully intelligent management system, advanced raw material R&D and
product mechanical performance testing laboratories, and intelligent production workshops. Its annual production capacity can meet
the requirements of building GW-level floating PV power stations.
Sungrow FM had received a wide range of honors, including 2023 China's Leading Enterprise in Floating PV Systems, 2022 Anhui
Province’s Small- and Medium-Sized SRDI (Specialized, Refined, Differential and Innovative) Enterprises, 2021 Asian Photovoltaic
Innovative Enterprise, 2019 China's Largest Floating Power Station Project Award, and 2017 China PV+ Floating Bodies Gold Award.
As of December 2023, the cumulative application of Sungrow’s floating PV systems worldwide exceeded 3 GW, accounting for the
largest market share globally for six consecutive years, and making Sungrow the world's first GW-level floating PV system supplier.
Rooted in Sungrow’s 20+ years of design and application experiences in outdoor high-power-rating power supply products as well as
the profound power electronics technology background, Sungrow Lechong builds EV charging equipment based on the core principles
of "Reliable, Efficient, and Intelligent", has introduced DC charging poles and AC charging poles series. The industry's first "integrated
DC charging pole" has adopted an innovative integrated design that delivers high reliability, maintenance free, and long service life,
leading technological transformation of the charging industry. The products were quickly applied in many benchmark projects after
the launch, such as the Shanghai urban road charging project and the Shenzhen freeway service area project, receiving wide praise
from operators and electric vehicle owners.
In the reporting period, Sungrow delivered 30 kW charging poles in batch in Europe, continually leading the charging technology
transformation. In the meanwhile, Sungrow Lechong’s 180 kW integrated charging poles were launched globally with batch deliveries
made. Sungrow charging poles can be connected to Sungrow’s PV and energy storage systems to provide charging stations with an
integrated PV-storage-charging solution, offering new energy to new energy vehicles and helping to deliver the dual carbon target
earlier.
As the very first new energy company that set foot in the hydrogen energy field in China, Sungrow Hydrogen is committed to offering
efficient, intelligent and safe hydrogen production systems and solutions based on renewable energy. The company is capable of
developing and delivering PWM hydrogen production power supply, ALK and PEM water electrolysis equipment, gas-liquid
separation and purification equipment, smart hydrogen energy management system, and other integrated system equipment. It has also
developed hydrogen production system solutions in off-grid, grid-connected, and micro-grid modes. Sungrow Hydrogen is the first to
build a nationally-leading 20 MW demonstration base for electrolyzed water hydrogen production system, a demonstration platform
for renewable energy variable-power hydrogen production and hydrogen storage power generation, a joint laboratory of PEM
electrolysis for hydrogen production technology, an electrolysis hydrogen production material research center, and a hydrogen research
institute in Germany.
In the reporting period, Sungrow Hydrogen passed a number of certifications including ISO9001/14001/45001, ASME, GC2, and TÜV,
implemented TPM/TQM in operations. The company optimized structure and key component materials for the 1,000 m 3/h ALK
electrolysis cell, with cell body energy consumption reaching an industry-leading level; developed the 300 m3/h PEM electrolysis cell
and the 500 m3/h container-based PEM hydrogen production system; upgraded the smart hydrogen energy management system that
won the iF Design Award for superior product capabilities and interactive experiences. With the construction of phase II automated and
intelligent manufacturing plants, production capacity of the campus will be increased to 3 GW by 2024. The concept of flexible
hydrogen production from renewable energy put forward by Sungrow Hydrogen has been introduced to the market, attracting high
attention from the industry.
In the reporting period, Sungrow Hydrogen Energy received a number of honors, including the 2023 Industry Leading Enterprise by
the Hydrogen Energy Observation, the 2023 Leading Enterprise in Alkaline Electrolyzed Water Hydrogen Production Equipment by
Solarbe, the Top 50 Companies in the Hydrogen Energy Industry in 2023 by GG-FC, the 2022 Hydrogen Energy Influence Enterprise
by the Hydrogen Energy Industry Committee of China Energy Conservation Association, and the 2022 Most Influential Enterprise in
China's Hydrogen Energy Industry by the Hydrogen Energy Industry Promotion Association. In terms of hydrogen production project
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
contracts entered in 2023, Sungrow Hydrogen Energy ranked top two in China, securing a leading position in the hydrogen production
industry.
Sungrow Hydrogen’s flexible hydrogen production system is applicable for various scenarios such as energy and power, industry, and
transportation, which has been widely used in wind-PV-water renewable energy hydrogen production projects across Jilin, Ningxia,
Inner Mongolia, Gansu, and Hubei provinces.
Division Product Picture Brief Introduction
Based on the profound insight into market
demands, the Company made significant
innovation to traditional inverters and
introduced the industry’s first 1+X modular
inverters with a cumulative global shipment
of more than 30 GW. Featuring a modular
design, multiple inverters at a unit power of
a flexible sub-array of 1.1 MW to 8.8 MW,
products
making station configuration more flexible
and operation and maintenance easier. A
number of innovative technologies, such as
the intelligent IV diagnosis for high-power
inverters and the DC parallel arc detection
and shutdown, further streamlined system
operation and maintenance and improved
power generation efficiency.
To cope with the widespread application of
high-power modules, Sungrow introduced
the 320HX high-power string inverter for
large-scale ground power stations. The
application of advanced technologies, such as
SG320HX string the AI-based air duct health management, the
inverter (overseas 24-hour insulation monitoring, and the
model: 350) HV/LV grid adaptation, contributed to the
PV inverters upgrade in intelligent operation and
maintenance, safety and reliability, and
support for the power grid, continuously
leading the market of 300kW+high-power
series inverters.
Based on precise market insights, Sungrow
introduced the 125 KW high-power industrial
and commercial inverters. Featuring high
SG30-125CX-P2 power, 1+II lightning protection, and
string inverter (for AFCI2.0, the products guaranteed the safety
industrial & of industrial and commercial power stations,
commercial and achieved large-scale application
scenarios) worldwide.
To cope with the widespread application of
high-power PV modules and the demand for
larger residential PV systems, Sungrow made
all-around upgrades to its RT series of
SG10-30T-CN products. The input current of a single string
residential inverter increased to 18A, allowing it to flexibly adapt
to high-power PV modules and double-sided
PV modules. At the same time, the power
range of products was expanded to address
diversified residential installation needs.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
As a high-power single-phase PV-storage
inverter for residential use recently
introduced by the Company, the product's
power is increased to 8-10 kW, which can be
used in combination with SBR/SBH large-
SH8.0-10RS capacity batteries to deliver green power for
residential inverter the entire house. Having integrated
convenience and multi-level safety design,
the product is built with AFCI2.0 and other
active safety technologies, allowing more
families around the world to enjoy more
convenient and safer green power.
As the new generation of energy storage
system built with the “3-in-1 integration”
concept, PowerTitan 2.0 is equipped with
embedded PCS to enable AC storage. The
product can support a configuration capacity
PowerTitan 2.0 of 2.5 MW/5 MWh in a standard 20-foot
large-scale ground container, greatly improving the energy
energy storage density of the system. Liquid cooling for the
system entire system, intelligent cluster-level
management, and the Stem Cell Tech
contribute to a product that is more efficient,
application friendlier, and safer for users,
helping new power systems operate steadily
in all scenarios.
Adhering to the “3-in-1 integration" concept
and the innovative combination of power
electronics, electrochemistry, and grid
support technologies, Sungrow introduced
the professionally integrated PowerTitan
PowerTitan 1.0 series energy storage systems with a capacity
large-scale ground of 3.44 MWh. Liquid-cooling temperature
energy storage control and intelligent cluster-level
Energy
system management helped to deliver the goals of
storage
longer service life, higher efficiency, and less
systems
loss. A combination of innovations in
electrical safety, cell safety, and grid safety
improved the overall safety of energy storage
systems.
Carrying forward Sungrow’s tradition of “3-
in-1 integration” and “Independent
development across all stacks”, PowerStack
electronics, electrochemistry, and grid
support technologies. Thanks to the
innovative use and integration of AI
PowerStack 200CS technology, it takes an “intelligence and
industrial and storage integrated" design to deliver EMS,
commercial energy PCS, and BMS functions, with a system
storage system capacity of up to 225 kWh. The product
demonstrates leading advantages in revenue,
low-maintenance use, and comprehensive
safety, which helps address three major pain
points of users, namely revenue, operation
and maintenance, and safety, and eliminating
the concerns in industrial and commercial
power distribution and storage.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
In response to the increased civil power
consumption and large power load in peak
hours, Sungrow introduced the PowerStack
industrial and commercial energy storage
system for industrial and commercial
scenarios with a capacity of 535 kWh. Based
PowerStack 500CP
on intelligent EMS energy management, the
industrial and
product can support multiple application
commercial energy
modes in on-grid or off-grid scenarios, and
storage system
coordinate energy scheduling among grids,
PV systems, charging poles, and loads.
Thanks to the liquid-cooling technology and
intelligent safety protection, it can improve
the reliability of energy storage systems in
multiple dimensions.
As the residential energy storage market
heats up, Sungrow quickly advances its PV-
storage integration business. In 2023, the
Company launched the new generation of
SBH series residential batteries, an all-
around upgrade on top of the advantageous
performances of SBR series batteries. The
module capacity was upgraded, with
maximum capacity reaching 40 kWh per unit.
The charging and discharging performance
residential battery
was upgraded, and batteries could be quickly
SBH100-400
charged to full state at an ultra-large charging
and discharging current of 50 A. Safety was
upgraded thanks to the pre-bundled design of
cells and module-level fire protection. When
used in combination with the brand-new SHT
and SHRS series high-power PV-storage
inverters, the product can support green
power supply and storage for the entire
house.
Capitalizing on the channel advantages,
Sungrow accelerates the residential PV-
storage business and has introduced the new
Residential battery
generation of SBR series residential battery
SBR096-256
solutions. The product features convenient
installation, flexible configuration, safety and
reliability, and outstanding performance.
Centralized PV power station solution covers
various application scenarios, and relies on
market-leading technologies to optimize
power station LCOE, hence significantly
improving the ROI of PV power stations and
New energy
creating greater value for customers.
investment Centralized PV
Following the national strategy of building
and power station
large wind-PV power generation bases,
development
Sungrow offers comprehensive utilization
models such as desertification control, land
reclamation, forestry-PV complement, salt-
PV complement, and floating systems to set
integrated development examples for
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
comprehensive environmental treatment and
new energy industry application.
Wind power station solution covers plain
wind power, mountain wind power, and
decentralized wind power applications.
Upholding the principle of "wind power
Wind power development and ecological protection in
station solution parallel", Sungrow develops and builds
ecologically friendly wind power stations in
various scenarios, and refines wind resource
assessment according to local situation for
value maximization.
iClean cleaning solution for distributed PV
system leverages AI to ensure all-around
powerful self-cleaning, which can
iClean cleaning
significantly reduce dirt coverage loss and
solution for
increase power generation by minimum 6%.
distributed PV
As a distributed PV system that enables
system
secondary power generation improvement, it
can drastically reduce power station overhead
and achieve long-term investment return.
iBlock flat-roof distributed solution is an
innovative application developed for flat-
roof distributed power stations. The module
brackets are integrated with cement bases for
iBlock flat-roof
support and stabilization. Standard modular
distributed solution
design and installation improves placement
rate of modules and increases installed
capacity, hence significantly shortening the
construction lead time.
iBuilding smart BIPV distributed solution is
an integrated system that combines modern
roof building materials and PV power
iBuilding smart generation. Built with a national patented
BIPV distributed waterproof technology, it requires no
solution consumable replacement in 30 years, enables
a worry-free and comfortable production
environment together with multiple benefits
brought by clean power.
The Yueyanglou The Yueyanglou Sunroom Solution is a high-
Sunroom Solution end residential PV power generation system
exclusively designed and developed by
Sungrow Residential PV. Featuring an
exclusive waterproof patent and triple
waterproof and leakage protection, the
product is resistant to wear, corrosion, and
earthquake, ensuring safety in all aspects.
The 5-degree reverse-V slope design looks
appealing and pleasing, which gives user a
larger space while delivering power
generation benefits.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
The Chaoyangge The Chaoyangge Flat-to-Slope Roof Solution
Flat-to-Slope Roof is exclusively designed by Sungrow
Solution Residential PV. By taking a low wind
resistance design, it is safer, more reliable,
and worry-free. The color steel packaging
allows the PV system to be effectively
integrated into buildings, which protects the
roof and keeps heat or cold away. This
solution enables users to gain a stable
revenue with an attractive design.
The The Shangyangyuan Courtyard Solution is
Shangyangyuan exclusively designed by Sungrow Residential
Courtyard Solution PV. While fully retaining and efficiently
utilizing the courtyard space, this solution
can expand PV installation capacity and bring
more revenue for users. It is available in a
number of customizable arrangements, and
the oriental aesthetic design can perfectly
blend in with the surroundings.
The Huiyangding The Huiyangding Flat Roof Solution is
Flat Roof Solution exclusively designed by Sungrow Residential
PV, which can be customized according to
user needs. The product protects the roof and
delays its aging, and its wind resistance,
pressure resistance, and corrosion resistance
performances are reliable and assuring. With
a standard working procedure developed, the
product can be easily and efficiently
installed.
The Canyangfang The Canyangfang Slope Roof Solution is
Slope Roof exclusively designed by Sungrow Residential
Solution PV. Featuring an integrated design for flat
and slope roofs, it can support higher
installed capacity. The product can protect
the tile surface and delay the aging of roof,
and can be quickly installed following a
standard working procedure. It tightly fits to
the roof and blend in with the entire building
seamlessly.
The product features an integrated heat
dissipation design that improves heat
dissipation efficiency and product stability, a
Double-fed 4.x high power density design and integrated
Wind power MW - 15 MW components for a compact structure, an
converters wind power integrated design of main control and
converter converters for larger load-carrying capacity,
and strong environmental adaptability for
customization in various application
scenarios.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
This product features the highest unit power
of wind power converters in China, and a
redundant design to ensure unit power
generation revenue. It can proactively adapt
Full power 5.x
to complex grid environments to ensure grid
MW - 26 MW
friendliness; it is built with enhanced anti-
wind power
corrosion and anti-condensation design to
converter
effectively cope with the marine
environment; cabin-mounted applications
and a special anti-vibration structure help to
meet the strict vibration requirements.
Wind power pitch The product is highly integrated, safe, and
drive reliable, featuring a quadruple safety chain
design to ensure the safety of wind turbines.
The pitch control system converts wind
energy into reasonable mechanical energy by
adjusting the blade angle of the fan. In safe
conditions, it adjusts the blade angle together
with the main control to enable power control
of the fan. In the event of malfunctions, it acts
as a brake to ensure the safety of the fan.
Drive frequency With low-voltage transmission models
converter covering 690 V/1140 V/1380V and medium-
to high-voltage transmission models
covering 3.3 kV/6 kV/10 kV/35 kV, the
product is widely used in industrial
transmission and new energy fields, suitable
for various load types such as fans, pumps,
constant torque, and soft start of motor.
Available in cabinet or container
configuration, and supporting two-quadrant
or four-quadrant circuit topology, it can adapt
to various voltage levels, with the power of
medium- to high-voltage transmission
models reaching 60 MW.
Grid simulator The brand-new virtual impedance function
allows users to set short-circuit ratio or
impedance value to simulate weak current
grid environment and test the operation of
new energy equipment in distributed and
other weak current grid conditions. The
advanced impedance sweep frequency
function helps the stability analysis of new
energy systems connected to grid by scanning
the impedance characteristics of such
systems across a wide frequency range. The
upgraded high- and low-voltage ride through
function enables continuous ride-throughs
and supports phase steps in the meantime of
amplitude steps, which can realistically
simulate fault conditions caused by
commutation failures. The equipment can
reach a standalone capacity of 1 MVA to 15
MVA and or a capacity of up to 130 MVA
when connected in parallel.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Relying on the Company’s 20+ years of
power electronic conversion technology and
power station integration practice, Sungrow
Zhiwei adheres to the service concept of
Smart Smart OP&M
“Secure with technology, be reliable and
OP&M service
trustworthy” to provide standard all-around
services for new energy assets, and continues
to ensure customers' stable return and asset
safety with advanced technology.
HEM3 series The product is suitable for Class A and Class
hybrid dual electric B hybrid passenger vehicles, and can work
control for with various drive motors with a rated power
passenger vehicles of 45 to 80 kW. Built with the brand-new
discrete device parallel connection
technology, it features high reliability and
power scalability.
EC60 series SiC The product is suitable for Class B and Class
motor controller C high-end new energy passenger vehicles,
and can work with various drive motors with
a rated power of 100 to 140 kW. Built with
the full silicon carbide discrete device
parallel connection technology, it features
ultra-high efficiency and meets functional
safety standards.
EE30 series 4-in-1 With main motor controller, DCDC, OBC,
controller and PDU integrated, the product is suitable
for N1 vehicles such as minivans and
minitrucks. It features high integration, high
reliability, and flexible adaptation.
New energy
vehicle
electric
EC53 series motor The product is suitable for new energy buses,
drive system
controller heavy-duty trucks, and construction
machineries. Built with single- and dual-
motor control functions to flexibly cope with
various scenarios, it supports power
expansion and is reliable and compliant with
functional safety standards.
EC11 series motor The product is suitable for Class A00 pure
controller electric passenger vehicles, and can work
with various drive motors with a rated power
of 10 to 15 kW. It features high reliability,
high power density, and platform design.
EP34 series in- With OBC, DCDC, and PDU functions
vehicle power integrated on a platform design, the product
supply is suitable for Class A00 and Class A0 new
energy passenger vehicles. It features high
reliability, high power density, and flexible
grid adaptation.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
EP32 series in- With OBC, DCDC, and PDU functions
vehicle power integrated, the product supports external
supply power discharge and is suitable for Class A
and Class B new energy passenger vehicles.
It features high power density, flexible grid
adaptation, and a safety rating of ASIL-C.
EM33 series With electric control, motor, and reducer
electric drive axle integrated, the product is suitable for Class
A0 and Class A passenger vehicles.
Sophisticated single pipe parallel connection
integrates motor control module to the motor
end cover, shared enclosure for motor and
electric control as well as the direct
connection design of cooling water channels
contribute to a compact assembly structure,
allowing the vehicle layout to be more
flexible.
Floating PV power station is a new type of
PV power generation system that integrates a
PV module floating platform, an electrical
equipment floating platform, and anchoring
equipment. 1. It can reduce water evaporation
and minimize waste of water resources; 2. It
Floating PV
Floating bodies inhibits the growth of blue-green algae and
system
improves water environment; 3. It effectively
cools down the floating modules and can
increase power generation; 4. It can be used
in various water environments such as coal
mining subsidence areas, reservoirs, and
offshore areas.
Chinese standard The industry-leading 120 kW integrated DC
DC charging pole power conversion, system control, and
thermal management systems. The dual-
chamber isolated design of power electronics
and heat dissipation parts enables IP65
protection rating and a service life of more
than 10 years, which effectively reduces the
total cost across the entire life cycle and
ensures ROI for charging station operators.
Charging European standard This European standard charging pole is
equipment 30 kW integrated compatible with all vehicles with a European
DC charging pole CCS2 interface, and is mainly used in
destination charging scenarios. Being a
reliable, efficient, and friendly product, it
delivers industry-leading technological
advantages, including IP65 protection rating,
efficiency up to 96.5%, noise below 50 dB,
and residential level EMC Class B
performance. The product has a minimum
service life of 10 years, is reliable and
maintenance free, hence can bring
continuous benefits to customers.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
DC charging pole technology, the power unit features an
independent air channel design, with all
electronic devices completely sealed to avoid
contamination, thereby assuring maintenance
free, high reliability, and long service life.
PWM rectifier The product leverages the IGBT full-control
power supply power devices and PWM control technology
to rectify and convert AC into DC required
for the electrolytic cell, which is suitable for
large-scale renewable energy AC-coupling
hydrogen production scenarios.
PWM DC The product leverages the IGBT full-control
converter power power devices and PWM control technology
supply to convert unstable wind or solar power
supply into DC required for the electrolytic
cell, which is suitable for direct hydrogen
production scenarios using off-grid wind
and/or solar power.
Hydrogen
production
systems Alkaline The product uses direct current to electrolyze
based on electrolyzed water alkaline solution into hydrogen and oxygen,
renewable hydrogen and obtains high-purity finished hydrogen
energy production after gas-liquid separation and purification. It
equipment consists of an alkaline electrolysis cell, gas-
liquid separation and purification equipment,
and utilities equipment.
PEM electrolyzed The product uses direct current to electrolyze
water hydrogen pure water into hydrogen and oxygen, and
production obtains high-purity finished hydrogen after
equipment gas-liquid separation and purification. It
consists of a PEM electrolysis cell, gas-liquid
separation and purification equipment, and
utilities equipment.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Intelligent The product is the "brain" of green power
hydrogen energy hydrogen production systems, which enables
management coordinated control between multiple
system hydrogen production systems as well as
between hydrogen production systems and
multiple energy sources. It is built with four
major functions: operation monitoring,
analysis and diagnosis, coordinated control,
and operation management, which can ensure
system efficiency, intelligence, and safety.
The Company needs to comply with the requirements on the disclosure of PV industry chain related business specified in the Shenzhen
Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed Companies.
The indicator “conversion efficiency” refers to the ratio of inverters converting input DC power to AC power, which is inverter’s output
power / inverter’s DC input power × 100%.
By utilizing new semiconductor materials and highly efficient magnetic devices, optimizing circuit design, improving MPPT algorithm,
and optimizing the heat dissipation system, the Company continuously drives inverters’ efficiency to go up. The maximum efficiency
of Sungrow's full range of inverters has reached 99% at the moment.
The indicator “cost of energy per kilowatt-hour” refers to the ratio of the PV system’s total investment cost versus the power generated
throughout the system’s life cycle. The total investment cost includes the initial investment and the operation and maintenance
investment throughout the life cycle. The cost of energy per kilowatt-hour directly reflects the power generation cost of the PV system,
that is, the lower the cost of energy per kilowatt-hour, the higher revenue the PV system generates.
Through constant technological innovation and system optimization, the Company reduces investment cost and increases system power
generation, thereby reducing the cost of energy per kilowatt-hour and improving customers' return on investment. By increasing the
unit power of inverters, less inverters are required for power stations to reach the same capacity, and the cable cost is also reduced. By
forming inverters into power units of larger capacity, a maximum sub-array of 12.5 MW can be supported, which further saves the cost
of transformers and reduces the initial investment. Highly integrated inverters and solutions will be widely used. For example, the box-
type medium-voltage inverter not only has the inverter, transformer, power distribution, communication, and smoke detection functions
integrated, but also is built with a PID control box and communication power supply interfaces for the tracking system. By improving
the level of integration, the system cost across its life cycle, including cable cost, construction cost, project management cost, post-
operation and maintenance cost, can be reduced; systems are strongly coupled, which improves reliability and increases power
generation of the power station. The modular design from "device level" to "system level" reduces system operation and maintenance
costs, and higher equipment uptime rate increases the power generation of PV power stations. Intelligent medium-voltage shutdown
solutions feature intelligent algorithm control between inverters, collector circuit breakers, and step-up transformers, achieving zero
loss standby for step-up transformers and further improving ROI for customers. The world’s first 2000 V high voltage system pushes
the boundary of cost reduction and efficiency increase further, enabling a significant improvement in the economics of power stations.
As PV systems are being utilized at large scale, the penetration rate of PV increases year by year. Inverters are directly connected to
the grid as a link for energy transfer, and the requirements for inverters’ grid friendliness are getting increasingly higher.
Sungrow inverters are built with low-voltage ride-through, zero-voltage ride-through, and high-voltage ride-through capabilities, which
can cope with the voltage changes of power grid in the case of power grid problems, hence to ensure that PV systems will not be
disconnected from the grid on a large scale and result in the escalation of incident. Moreover, inverters are built-in with fast power
control modules to enable quick scheduling in less than 20 ms for active/reactive power response. The application of grid construction
technologies allows inverters to behave like synchronous generators, which can quickly suppress voltage and frequency fluctuations
in the power grid, and improve the stability of PV or PV-storage power stations, contributing to a higher new energy penetration rate.
The integrated DC energy storage interface eliminates the need for modification, and the inverter supports reverse charging and
connection of energy storage equipment. The power generation side is a multi-energy complementary platform that allows PV power
station peak regulation, smooth PV power station output, and grid stability; the power consumption side is an intelligent PV-storage
micro-grid platform, which enables peak-trough balance through energy storage, improves PV consumption, and achieves precise
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
energy supply. As new energy application increases year by year, the SCR (short-circuit ratio) of power grid decreases, which can easily
cause frequent disconnection of inverters. Sungrow has developed the adaptive control algorithm to precisely perceive the strength of
power grid. The algorithm has passed the SCR=1.02 weak current grid certification, which positively promotes an ear of "grid
friendliness" and achieves the dual carbon target.
As the installed capacity of PV systems increase year by year, safety hazards in PV power stations become an increasingly large concern.
The Company takes the safety of power stations a priority at work and further improves the safety of system design.
Sungrow’s inverter systems are capable of detecting DC series and parallel arc pulling in real time. They have passed relevant protection
certifications, can quickly identify arc pulling based on the intelligent arc pulling detection algorithm, and cut off in milliseconds to
block the damage of arc pulling. Inverters are built with AC/DC insulation monitoring systems to cope with various application
environments, quickly locate insulation faults, enable self-protection in case of cable faults, avoid electric shock and fire risks, and
safeguard the power station round-the-clock. Thanks to the intelligent protection and control algorithms, integrated isolation switches,
and big data-based operations, inverters can precisely identify reverse connections, short circuits, and other faults, cut off in down to
Due to wide range of the Company's PV inverters and different power ratings, the unit production cost varies from CNY 0.07 to CNY
III. Analysis of Core Competitiveness
In the nearly two decades of rapid development, the Company has been committed to the independent innovation of power electronics
and electric energy conversion technology in the new energy field, with a number of technologies reaching the world-leading level. In
recent years, the Company successively deployed a range of new businesses, such as key components of new energy vehicles, micro-
grid energy storage, smart energy, and new energy hydrogen production, and gained considerable growth.
Since the establishment in 1997, Sungrow has been concentrated on the R&D, production, sales, and services of solar power, wind
power, energy storage, hydrogen energy, electric vehicles, and other new energy power supply equipment. PV inverters, as the
Company’s core product, are sold to more than 170 countries and regions worldwide. In 2023, the Company shipped 130 GW of PV
inverters worldwide, securing a globally leading position. With a total global shipment of 10.5 GWh of energy storage systems, the
Company ranked first among Chinese companies for eight consecutive years. Sungrow’s brand and reputation are highly acknowledged
in the industry and continually improving. The Company has successively received the honors of China Industry Awards,
Demonstration Enterprise of National Individual Champion in Manufacturing, Forbes Top 50 Most Innovative Chinese Companies,
Forbes China 2023 Best Employer in ESG Practice, National Intellectual Property Demonstration Enterprise, Fortune China 500,
Fortune Future 50, Best Companies to Work For in Asia, and etc. Boasting a state-level post-doctoral research workstation, a national
high-tech industrialization demonstration base, a national recognized enterprise technology center, a national industrial design center,
and a national green plant, the Company holds a leading position in the global new energy power generation industry in terms of
comprehensive strength. In the 2023 list of China's 500 Most Valuable Brands released by the World Brand Lab, the Company ranked
No. 117 with a brand value of CNY 80,270 million.
Since its establishment in 1997, the Company has been focusing on the new energy power generation sector to advance the research
and development of core technologies while maintaining market oriented and innovation based. To transform technological advantages
into product advantages, benefits advantages, and competitive advantages, the Company has fostered a professional R&D team with
solid R&D experiences and strong innovation capabilities. The Company has set up six R&D centers in Hefei, Shanghai, Nanjing,
Shenzhen, Germany, and the Netherlands, providing leading technological support for building globally competitive new energy
equipment. In order to explore cutting-edge technologies, the Company has set up the Central Research Institute that is responsible for
making high-value intellectual property plans in advance and addressing critical technical challenges, hence to provide efficient
platform services and innovation management for the Company's product and technology development, and foster R&D and
management professionals to build core technological competitiveness. In the meantime, each division has set up an independent R&D
task-force for close interaction with the market and customers. In 2023, the Company invested CNY 2,447 million in research and
development, an increase of 45% year-on-year. As of the end of the reporting period, the Company boasted an R&D headcount of
Company has successively undertaken more than 20 national key science and technology programs, and led the drafting of multiple
national standards, making it one of the few enterprises in the industry that boast multiple independent core technologies. The Company
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
also attaches great importance to the accumulation of intellectual properties in technological innovation achievements and closely
follows the evolution of various new technical standards. As of the end of the reporting period, the Company has cumulatively obtained
research and development innovation, the Company plays a leading role in promoting new quality productive forces in the industry
with advanced technologies and innovation capabilities.
The Company has introduced the IPD (Integrated Product Development) process to guide the technological reserve and product
development efforts according to customer demand analysis, technology development analysis, and competitive strategy analysis. From
concept, planning, development, verification, trial production to mass production, staged quality indicators are set for each step of new
product development to ensure the quality of products. The Company has invested in a world-leading electromagnetic compatibility
laboratory that is equipped with high-performance large-capacity low-voltage ride-through facilities as well as a variety of power
supplies and power grid simulators, which is capable of providing the most demanding test condition. The Company continues to
establish and optimize the ISO9001:2015, ISO14001, OHSAS18001 management systems, and strictly promote the integrated quality,
environment, occupational health and safety management system. The Company's products have passed a number of authoritative
international certifications including UL, TÜV, CE, Enel-GUIDA, AS4777, CEC, CSA, and VDE.
At the very beginning, the Company has identified a global development strategy, and established by now an oversea production
capacity of 25 GW with the India production base and the Thailand plant. As of today, the Company has set up 20+ oversea subsidiaries,
than 170 countries. At the end of the reporting period, the Company boasted 1,423 employees overseas, an increase of 58.1% year-on-
year. In the future, the Company will continue to explore the global market, orderly promote the global deployment of inverters, energy
storage, charging, power stations, and floating system businesses, prioritize the improvement of global marketing, service, financing,
and other key capabilities, thereby reinforcing the global support capability system and strengthen the global influence.
IV. Core Business Analysis
A. Overview of core business analysis
As the global new energy market expanded rapidly in 2023, the Company strengthened innovation and transformation with a focus on
its core business, and made great efforts in marketing and R&D. By continually advancing the comprehensive strategy of products and
services, the Company implemented digital transformation and reinforced lean operation to enable the rapid growth of core business.
As a result, the Company further consolidated its leading position in the industry and expanded its brand influence, and the Company’s
profitability improved significantly.
In the reporting period, the Company achieved a total revenue of CNY 72,251 million, an increase of 79.47% year-on-year; an operating
cost of CNY 50,318 million, a year-on-year increase of 65.65%. The increase in both revenue and operating cost mainly benefited from
the Company's continuous expansion in the market and the subsequent expansion of sales scale. The Company achieved a gross profit
rate of 30.36%, a year-on-year increase of 5.81%, which was mainly contributed by the Company’s brand premium, product innovation,
economies of scale, shipping cost reduction, and exchange earnings. The Company realized a net profit attributable to shareholders of
CNY 9,440 million, an increase of 162.69% year-on-year; selling expenses amounted to CNY 5,167 million, a year-on-year increase
of 63.03%, which mainly came from the significant increase in the remuneration of sales staff and the post-sales service fee accrued
for the increased sales revenue in the current period. The Company realized an R&D expense amounting to CNY 2,447 million, a year-
on-year increase of 44.63%, which was mainly due to the large increase in the remuneration of R&D staff and the use of raw materials
for the expanded R&D investment in the current period. The Company realized a financial expense of CNY 21 million, a year-on-year
increase of 104.32%, mainly due to the large reduction in exchange earnings from foreign exchange rate fluctuations in the current
period. The net cash flow from operating activities was CNY 6,982 million, a year-on-year increase of 476.77%, which was mainly
contributed by the increase in cash collection.
B. Overview of core business in the reporting period
In the reporting period, the Company made the following attempts related to the core business:
(1) Business development
a. PV inverters
In the reporting period, the Company continued to strengthen R&D innovation, vigorously pushed forward the global brand strategy,
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
and deeply explore key segmented markets, in order to capitalize on the global marketing, service, and supply chain advantages. With
increasing global competitiveness and influence, the Company shipped 130 GW of inverter equipment worldwide in 2023.
In the reporting period, the Company expanded its presence in the European, American, Australian, and Chinese channel markets, and
set up 490+ service outlets worldwide to accelerate the channel business. Sungrow Global Sales & Marketing Center opened in
Shanghai, aiming to leverage the geographical and cultural advantages of this international metropolitan to interface Sungrow’s Hefei
headquarters, industrial bases, as well as subsidiaries and service outlets around the world, so as to shorten the distance to global
customers, improve responsiveness, attract high-end human resources, and energize business connections.
In the reporting period, Sungrow’s SG320HX high-power string inverters and 1+X modular inverters were widely applied in various
scenarios worldwide. By the end of December 2023, a cumulative order volume of 45 GW+ was entered for 1+X modular inverters.
The Company was the 2.1 GW inverter solution provider for the AI Shuaibah project in Saudi Arabia, entered into a supply agreement
for the 814 MW AC PV project in Qatar, and assisted in the successful grid connection of the Alxa League Desert Ecological
Governance PV-Storage Project in Inner Mongolia and the world's largest salt-PV complementary project, Huadian Tianjin Haijing
Power Station.
Sungrow released the 5A Fusion—Ground Power Station Solution White Paper and introduced the 5A fusion solution featuring All-
Scenario Application, All-Day Efficiency, All-Link Safety, All-Life Smart O&M, and All-Grid Support to support the quick and quality
development of ground PV power stations at a large scale.
The 2,000 VDC high-voltage inverters recently developed by the Company were successfully connected to the grid for power
generation at the Mengjiawan PV Project in Yulin of Shaanxi Province. Being the first demonstration of grid-connected 2,000 V
systems worldwide, it marked the successful evolvement of PV systems from 1,500 V to 2,000 V, setting a critical milestone in the
process of reducing costs and increasing efficiency of PV systems.
In response to the growing global demand for residential storage, Sungrow introduced the “1+∞ House-Wide Green power Solution.
Centered around inverter technologies, Sungrow was the first in the industry to deliver an independently developed system-level
product portfolio of PV, Storage, Charging, Optimization, and Cloud. By creating one-stop system solutions and services, Sungrow
provided consumers with seamless, efficient, and flexible experience. The new generation of residential storage system adopted a
modular design to improve configuration flexibility and facilitate operation and maintenance. The upgraded combination of ultra-large
battery capacity, ultra-high inverter power, and ultra-large charging and discharging current helped meet the large load demand of
families and deliver truly green power for the entire house. In addition, the new generation of iSolarCloud brought refreshed visual and
operational experiences of users, and supported the fusion of multiple energies to optimize the use of green power. The Company
entered into a 2 GW distribution agreement with Menlo in Europe and a 500 MW distribution agreement with SOL+Distribuidora in
Brazil.
b. Energy storage
In the reporting period, Sungrow released the Sungrow Stem Cell Grid White Paper and introduced the innovative Stem Cell Tech that
could be applied in energy bases, flexible transmission, island power supply, terminal energy consumption and other scenarios. The
Company also introduced the “customizable” grid technology solutions that could be tailored to address different grid conditions,
assisting in the stable operation of the new power systems in all scenarios.
In the reporting period, Sungrow introduced the world's first 10 MWh liquid-cooled energy storage system, and started to offer
industrial and commercial liquid-cooled energy storage systems worldwide. For large-scale ground application overseas, Sungrow
introduced the PowerTitan 2.0 liquid-cooled energy storage system built with the “3-in-1 integration” concept. Featuring a large cell
capacity of 314 Ah and embedded, the product can support a capacity of 2.5 MW/5 MWh in a standard 20-foot container, effectively
enabling AC and DC integration. In addition, the Stem Cell Tech built into the product makes it more efficient, friendlier, and safer. In
consecutive years.
For the industrial and commercial energy storage market in China, Sungrow introduced the PowerStack energy storage system solution
featuring “3-in-1 integration” and an “intelligence and storage integrated" design. By placing advertisements online and offline and
recruiting quality distributors, Sungrow established a "one-stop information resource platform" as well as a solid sales and marketing
service layout that contributed to the sustainable and quality development of industrial and commercial energy storage.
At present, the Company's energy storage systems are widely used in mature electricity markets such as US, UK, and Germany to
enhance the deep integration of wind power, solar power, and energy storage. No safety incident was reported in any of the energy
storage projects the Company was involved in, extensive application experiences were gained in frequency regulation and peak shaving,
auxiliary renewable energy grid connection, micro-grid, industrial and commercial energy storage, residential energy storage and other
fields. In the reporting period, the Company received the GPS grid connection license in Australia and was awarded the largest
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
independent energy storage contract of 138 MW/330 MWh in South Australia. The Company also entered into a 500 MWh distribution
agreement with Solar Juice Group in Australia, an 825 MWh energy storage contract in the UK, a 264 MWh liquid-cooled energy
storage system contract for South Africa's first wind-PV-energy storage integrated virtual power station project. The Company signed
a strategic agreement with Hive, an independent energy storage project in Australia, to provide a 3 GWh large-scale liquid-cooled
energy storage system in the next three years. In addition, Sungrow assisted in the largest PV-storage integration project in Southeast
Asia, and contributed to the successful phase I grid connection and commissioning of the largest energy storage power station of China
Southern Power Grid, the Banchong 200 MW/400 MWh Energy Storage Project in Chongzuo City of Guangxi Province. Sungrow
delivered the world's first offshore grid-type energy storage project, the Weizhou 5 MW/10 MWh Energy Storage Project, and provided
comprehensive solutions for a number of projects worldwide.
c. New energy investment and development
In the reporting period, Sungrow RE, a holding subsidiary of the Company, made a number of new energy investment and development
attempts. Centered around the vision of “To be the global leader of new energy power generation technology” and the value proposition
of “More Power Generation in a Friendlier Way”, Sungrow RE continued to strengthen research and development of new energy
system technology, innovate and optimize power station products, accelerate channel ecosystem layout, and upgrade service capability.
As of the end of the reporting period, Sungrow RE's business footprint had covered 30 provinces, autonomous regions and
municipalities in China, as well as countries along the Belt and Road, with cumulative volume of global development and construction
of PV/wind power stations exceeding 40 million kilowatts.
Leveraging system technology innovation to secure the differentiated competitiveness, Sungrow RE continually expanded
technological innovation and industrial application of new energy systems. In the reporting period, Sungrow RE increased R&D
investment targeting at three core technology systems (high-efficiency power generation, system integration, and power station life
cycle optimization); upgraded the PowMart smart energy solution portfolio to cover more application scenarios and cope with
diversified industries. The latest version of iSolarBP, iSolarTool, iSolarRoof software assisted industrial, commercial, and residential
PV power stations in quick design, efficient revenue evaluation, intelligent optimization, cost reduction and efficiency improvement,
and efficient power generation, which accelerated the quality development of the distributed PV industry.
Focusing on new energy development and guided by the value proposition of "More Power Generation in a Friendlier Way”, Sungrow
RE openly embraced major national energy strategies such as the large-scale wind power and PV base, and the county-wide PV/wind
power development, continuously enhanced project reserves and resource conversion. In China, Sungrow RE built the largest grid-side
energy storage power station in Anhui, the 240 MW salt-PV complementary project in Laizhou of Shandong, the 115 MW agriculture-
PV complementary project in Binyang of Guangxi, the 150 MW fishery-PV complementary project in Huagang, Feixi of Hefei, and
the 100 MW fishery-PV complementary project in Wenchang of Hainan. Overseas, Sungrow RE made parallel breakthroughs in PV
and wind power sectors, and was awarded the 200 MW large-scale wind power project in Kazakhstan, with the contract capacity
ranking first among all bidders. Mr. Roman Sklyar, interim prime minister of Kazakhstan, visited Sungrow RE to understand the global
business and operation of the company. Sungrow RE's international brand image and global development capabilities were further
demonstrated.
In the field of industrial and commercial PV systems, Sungrow released and actively advanced the 2188 Galaxy Project, and fully
leveraged the advantages of “technology + platform" dual drive to incubate products that can generate more power and intelligent
software, hence assisting channel partners’ rapid growth. The Company introduced a series of platforms, including the technology
service platform, the partner platform, the financial platform, the supply chain platform, and the information management platform,
offering all-around platform-based services across the entire lifecycle to channel partners. In the reporting period, the Company was
awarded the 256 MW zero carbon campus project in Lu'an and commenced construction. In addition, the Company entered into project
contracts with a number of well-known brands such as Mengniu, NIO, Laoxiangji, Baosteel, Dongfeng Nissan, Selis, Dasheng Textile,
and Great Power, with market position improved further.
In the residential PV market, Sungrow Residential PV strengthened brand building, product innovation, and service upgrading, enabled
a year-on-year increase of over 200% in newly installed capacity in 2023. The “Rest-assured installation" service strategy promised to
offer rest-assured installation and use with transparent processes, guaranteed safety and revenue, and worry-free post-sales response.
The company made the commitment to grow channel partners through one-on-one assistance and point-to-point operational support as
well as guaranteed settlement in time. By expanding channel models, Sungrow Residential PV achieved coordinated development of
multiple business models in the market, including full payment, financing, cooperative operation, and operational leasing. The company
built a community of shared interests among manufacturers, and offered comprehensive market support to businesses through technical
guidance, financial support, training, and market promotion. The company introduced a number of full-scenario installation solutions
through independent R&D efforts, including the Yueyanglou Sunroom Solution, the Chaoyangge Flat-to-Slope Roof Solution, the
Shangyangyuan Courtyard Solution, the Huiyangding Flat Roof Solution, the Canyangfang Slope Roof Solution, with product and
technological advantages continually expanded. In the reporting period, Sungrow Residential PV’s market share steadily increased,
ranking top in the residential PV market.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
While business ramped up rapidly, Sungrow RE received a plenty of honors, including the MIIT’s fourth batch of intelligent PV
demonstration projects (Feixi Huagang 150 MW Fishery-PV Complementary Power Generation Project), the PVBL Global Top
Photovoltaic Solar Brand Award 2023, the 2023 China Distributed PV Outstanding Contribution Enterprise Award, the 2023 China
Energy Storage Industry Large Ground Power Station Energy Storage Technology Innovation Enterprise, the 2023 Most Influential
Distributed Photovoltaic Enterprise, the 2023 Most Influential PV and Power Construction Enterprise, the 2023 Most Influential
Photovoltaic Development Enterprise, the 2023 Industry Digitalization Golden Shovel Award, and China Social Welfare Foundation’s
Most Socially Responsible Award. Being a corporate citizen assuming social responsibilities, Sungrow RE actively engaged in the
rural revitalization strategy, and implemented a number of public welfare projects in the areas of enriching villages, supporting farmers,
benefiting children, and helping the elderly. Sungrow Smart Classrooms and Sungrow Elderly Care were built to practice social public
welfare.
Sungrow RE proactively embraced changes in policies and market environment while adhering to the strategic positioning of being a
proven player in new energy system technologies. With compressive efforts made in brand, products, channels, and service, Sungrow
RE developed and built power station products featuring "More Power Generation in a Friendlier Way”, helping achieve higher power
generation efficiency and lower unit electricity cost, and leading the quality development of the new energy industry.
d. Wind power converter
In the reporting period, the Company shipped 32 GW of wind power converters globally, accounting for the highest market share in
the world and a year-on-year increase of 40%. The Company also shipped 4.6 GW of offshore wind power converters, a year-on-year
increase of 190%. In the reporting period, Sungrow released the industry's first Blue Book of Converters, and Sungrow’s grid-type
converters passed the industry's first empirical test. Sungrow was the first to introduce ultra-high protection level air-cooled converters
and high-power wind power solutions. In 2023, Sungrow increased strategic investment in wind energy business, and insisted on R&D
innovation to secure a leading position in wind power conversion technology. The Company accelerated exploration in businesses
related to wind power conversion, electric control and transmission synergy, aiming to enhance Sungrow’s brand influence in the wind
power sector, promote the quality development of the wind power sector, practice green and low-carbon development, and contribute
to the delivery of the Dual Carbon target.
e. Hydrogen energy
In the reporting period, Sungrow Hydrogen ranked second in terms of project contracts awarded and market share. Being the first in
China to propose the concept of flexible hydrogen production, Sungrow Hydrogen released a flexible hydrogen production system
solution. On the foundation of six core technologies including flexible networking, power electronics, and energy management, it built
an agile, efficient, and friendly flexible hydrogen production system from renewable energy with three core equipment, the PWM
hydrogen production power supply, the electrolyzed water hydrogen production equipment, and the smart hydrogen management
system. Such a system could adapt to the rapid fluctuations and intermittent characteristics of new energy power, and enable “adapted
load to source fluctuations”, which was more grid friendly and able to operate stably at 30% of power. Sungrow Hydrogen’s flexible
hydrogen production system had been widely used in a number of large-scale demonstration projects in China, and the outstanding
features including “one press to start/stop” and "cluster control" were highly rated by users. Flexible hydrogen production technology
plays a significant role in the large-scale development of hydrogen production from wind and solar energies in the future. Sungrow
Hydrogen will continue to make innovative breakthroughs, highlight the value proposition of "Making electricity-hydrogen conversion
more efficient", and lead product and technological advancement, contributing to the quality development of the hydrogen energy
industry.
(2) Operational management and others
a. Corporate culture
Year 2023 marked the official release of the Sungrow Guidelines. In order to capture successful experiences and lessons learned from
failures, on perusal of the essential laws of competition and development, Sungrow made a top-level design for the future, reviewed
business philosophy, strategy, organization/human resource, and lean operation, and officially released the Sungrow Guidelines to
guide the rapid and sustainable development of Sungrow Group. According to the Sungrow Guidelines, all employees should uphold
the green mission of “Clean power for all”, and practice the core values of being "Honest & Reliable, Excellent & Open-minded,
Innovative & Respectful, Customer First”, to shape the Sungrow Style. To reflect employees’ day-to-day practices of corporate values
and tell true stories, Sungrow released the employer brand video Greener World Greater Us. Sungrow’s reputation as an employer
brand continued to rise as the Company won a number of awards including the Most Caring Company Awards, the MostIn Global
Talent Magnet Employer, the Great Place To Work Certification, the Top Company 2023, and the Best ESG Practice Employer. A
number of themed activities were launched worldwide: the Sungrow Trailwalk attracted nearly 5,000 participants, highlighting
Sungrow’s determination in environmental protection and public welfare; the Global Skills Competition across six regions intended to
foster craftsmanship and identify skilled employees; the Sungrow Family Day created a “sunny paradise” for employees and their
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
families. On the Chinese New Year’s Day, Chinese and overseas employees gathered together to celebrate, promoting cross-cultural
exchange and fusion. In the reporting period, Sungrow released the Year of Service badge, hosted the Sungrow Building Opening and
New Year Concert to create a sense of ceremony exclusive to Sungrow employees. Moreover, the Company upgraded the employee
activity center, employee dormitories, and the campus, diversified outdoor team building to improve employee experience.
b. Digital transformation
To improve the Company’s operational efficiency, secure leading advantages in competition, and enable quality sustainable
development, Sungrow invested extensively in digital transformation in the reporting period. Lead by the business strategy and driven
by data, Sungrow leveraged digital technology and artificial intelligence to create an agile and efficient organization with online and
shared processes, thereby empowering the business. In 2023, the Company accelerated its digital transformation and implemented 65
projects throughout the year. In the process aspect, Sungrow initiated process transformation and established a unified process system
that linked the value chain business processes, consolidated organizational capabilities, and improved the overall operational efficiency
of the Company. In the aspect of digital technology and tools, Sungrow introduced AI and low-code distributed applications to quickly
empower business, optimized and reconstructed a number of digital system platforms, such as the global digital marketing platform,
the digital R&D platform, and the intelligent manufacturing platform, to underpin end-to-end business transparency and intelligence,
and support cost reduction and efficiency improvement. In the data aspect, Sungrow unified data platforms and data governance, and
built various intelligent big data applications one the foundation of data and business scenarios, such as PV-storage operation
visualization, financial budget versus actual analysis, and supplier profiling, to assist in digital operation and informed decision-making.
c. Social responsibilities and sustainability
Assuming the mission of “Clean power for all”, the Company makes in-depth explorations in the field of clean power, and is committed
to addressing the challenges in producing, converting, storing, and using clean power with technological progress. We strive to lower
energy cost, raise the proportion of green energy worldwide, offer more efficient and convenient ways to use energy, and allow more
people to get involved, ultimately enabling affordable, safe, and smart low-carbon energy to be accessible for all, and making
unremitting contributions to a greener planet. In 2023, the Company was awarded the BCG Global-Challenger Climate Pioneers and
the Forbes China Top 50 Sustainable Development Industrial Enterprises, and was included in S&P Global’s Sustainability Yearbook
In the reporting period, Sungrow expanded its Strategy Committee to the Strategy and Sustainability Committee to optimize the
sustainability governance structure. With a focus on the solar power, wind power, energy storage, electric drive, and hydrogen sectors,
the Company insisted on investing in R&D intensively and delved into the energy-saving and emission reduction scenarios in various
industries, in order to offer extraordinary products and services that help customers to achieve long-term sustainability. In joint efforts
with customers, Sungrow reduced approximately 330 million tons of carbon dioxide emissions globally every year.
Sungrow cared about the ecological environment and actively responded to climate change to promote the harmonious coexistence
between the enterprise and nature. To set an example in green and low-carbon operation, Sungrow made the commitment to achieve
carbon neutrality in operations by 2028 and in supply chain by 2038, as well as net zero supply chain emissions by 2048. The Company
actively implemented carbon inventory to provide basic data support for the Company to address climate-related risks, reduce carbon
emissions, enhance competitiveness and stability. In 2023, the Company's Scope 1 emissions were 3,594 tons of CO2 equivalent, Scope
the Company speeded up towards the RE100 target and realized 55% of green power use during the year. Sungrow kept on improving
energy productivity, carried out various energy-saving and emission reduction activities, and gradually advanced the technology and
management dual drive mechanism for refined energy management. With the green concept embedded in the entire product lifecycle,
the SG350HX series obtained EPD certification, making it the world's first PV inverter with the EPD certification in Italy. In addition,
Sungrow maintained a constant focus on the sustainability of partners and the industry, and made joint efforts to build a green and low-
carbon supply chain.
Sungrow valued the demands of relevant stakeholders, and established a globalized team by creating an inclusive, innovative, and
respectful organizational atmosphere. Sungrow and partners practiced high accountability standards to safeguard the rights and interests
of supply chain workers, jointly building an integrate, sustainable, and win-win value chain ecosystem. Sungrow continued its public
welfare undertakings in ecological protection, education support, and community growth, carried out the "Go For Nature" volunteer
activity, striving to create broader and more long-term values for society. The Company’s total donation expenditure for 2023 amounted
to CNY 5.88 million.
d. R&D, intellectual property
In the reporting period, the Company continued to increase R&D investment and actively advanced the consolidation of independent
intellectual properties and patent application. In 2023, the Company was granted 1,135 new patents, all of which were original ones,
including 123 patents overseas, 195 inventions, 701 utility models, and 18 exterior design patents in China. A total of 2,673 new patent
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
applications were filed, including 314 patents in foreign countries, 1,176 invention patents, 1,015 utility model patents and 168
appearance patents in China. Such efforts further enhanced the Company's independent innovation capabilities and strengthened the
core competitiveness.
As of the end of the reporting period, the Company had cumulatively acquired a total of 4,123 patents, including 1,417 inventions,
the formulation and optimization of relevant standards in the industry, organized and contributed to a number of Chinese national
standards.
e. The 2023 Restricted Stock Incentive Plan
To further optimize the long-term incentive mechanism of the Company, attract and retain outstanding talents, and motivate employees
at work, by effectively considering the interests of shareholders, the Company, and employees so that all parties jointly contribute to
the Company’s long-term development, and following the principle of equal benefits and contributions, a total of 10,375,000 Class II
restricted shares were granted to 518 incentive objects at the price of CNY 43.22 per share in the reporting period. This equity incentive
plan helped to grow endogenic force for the sustainable and healthy development of the Company, which integrated the interests of
core personnel with the Company's future performance growth and shareholder return capability. It helped to continuously improve
the Company's operating performance and value creation capability, and set a guidance for attracting and retaining more outstanding
employees in the future and effectively implementing long-term strategic plans.
f. Share buyback for equity incentive
Based on the positive prospect of the Company's growth and the recognition of corporate values, Sungrow initiated the share buyback
plan again in 2023 to effectively integrate the interests of shareholders, employees, and the Company, improve the Company's long-
term incentive mechanism, and motivate employees, thereby promoting the sustainable and healthy development of the Company in
the long term. On perusal of the Company's operating performance, financial performance, profitability, and development prospects,
the Company bought back some of the Company's shares with self-supplied funds via collective bidding, and intended to use them for
employee stock ownership plans or equity incentive plans for key employees in the future. As of the end of the reporting period, the
Company had bought back approximately 11,316,000 shares through collective bidding in the Shenzhen Stock Exchange’s trading
system, with the total payment amounting to CNY 980 million.
g. Honors and awards received in the reporting period
Honors and Awards Awarded by
Top Chinese Listed Companies 2022 (Most Progressive Listed National Business Daily
Companies in New Energy and New Materials Industries)
Federation
Federation
Association
PVBL Top Global Photovoltaic Brand Award Photovoltaic Brand Lab (PVBL), Century New Energy
Network
Top 100 Global Photovoltaic Brands Century New Energy Network, Photovoltaic Brand Lab
Photovoltaic Industry Summit Forum
Hongwei International Exhibition Co., Ltd.
Hongwei International Exhibition Co., Ltd.
China Distributed PV Conference - Top Ten Most Influential Inverter Organizing Committee of the 5th China Distributed PV
Brands Conference
Integration Solution Award
The Solar Energy Cup Evaluation - 2022 Most Influential PV Inverter Solarbe Global, The Solar Energy Cup Evaluation
Companies Committee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Honors and Awards Awarded by
The Solar Energy Cup Evaluation - 2022 Most Influential PV Storage Solarbe Global, The Solar Energy Cup Evaluation
Solution Providers Committee
The 11th North Star Cup 2022 Most Influential PV-Storage Integration North Star Solar Photovoltaic Network, Beijing Huonet
Solution Providers Power Technology Co., Ltd.
The 11th North Star Cup 2022 Most Influential PV Inverter Brands North Star Solar Photovoltaic Network, Beijing Huonet
Power Technology Co., Ltd.
GGII Energy Storage 2022 Energy Storage Industry Chain GGII Energy Storage, GGII
Nominee for the Paulson Prize for Sustainability Paulson Institute
Contributor to the Carbon Neutrality Green Brand Influence Initiative China Energy News, China Institute of Energy Economics
Demonstration Enterprise of Green Design for Industrial Products Ministry of Industry and Information Technology
The 11th North Star Cup 2022 Most Influential Low Carbon Action North Star Solar Photovoltaic Network, Beijing Huonet
Brands Power Technology Co., Ltd.
First Prize in the Science and Technology Progress Award (Dispatching China Electrotechnical Society
and Control Technology and its Application for Multiple New
Resources Involved in Secondary Frequency Regulation of Power
Systems)
Science and Technology Award of China Power Supply Society (First China Power Supply Society
Prize - Technological Invention) (Key Technologies and Application of
a Large Scale Energy Storage System Based on Power Electronics
Battery Units)
Anhui Province Patent Gold Award (a method for exiting and switching Anhui Provincial Market Supervision and Administration
the MPPT centralized mode and its application)
China's 500 Most Valuable Brands World Brand Lab
Enterprise of Best Practices in Achieving the Sustainable Development Global Compact China Network
Goals (Carbon Peaking and Carbon Neutrality)
Top Company 2022 Kununu
(1) Composition of operating income
The Company needs to comply with the requirements on the disclosure of “PV industry chain related business” specified in the
Shenzhen Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed Companies:
Overview of operating income
(in CNY)
% of % of YoY
Amount Operating Amount Operating Change
Income Income
Total operating income 72,250,674,939.46 100% 40,257,239,155.34 100% 79.47%
By sector
PV 50,555,989,064.88 69.97% 27,245,555,359.81 67.68% 85.56%
Energy storage 17,801,524,369.61 24.64% 10,126,474,666.35 25.15% 75.79%
Other 3,893,161,504.97 5.39% 2,885,209,129.18 7.17% 34.94%
By product
PV inverters and other power
conversion devices
New energy investment and
development
Energy storage systems 17,801,524,369.61 24.64% 10,126,474,666.35 25.15% 75.79%
By geography 567,193,487.90 0.79% 625,483,634.25 1.55% -9.32%
Mainland China (not including 1,494,902,496.56 2.07% 722,798,978.99 1.80% 106.82%
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Hong Kong, Macau and Taiwan)
Overseas (including Hong Kong, Macao and Taiwan)
Total operating income 38,881,345,230.41 53.81% 21,194,893,809.26 52.65% 83.45%
By sector 33,369,329,709.05 46.19% 19,062,345,346.08 47.35% 75.05%
Sales to major revenue-contributing countries
(in CNY)
Significant adverse changes in local PV
industrial policies or trade policies and their
Major revenue-contributing countries Sales volume Sales revenue
impacts on the Company's current and future
operating results
Mainland China (not including Hong
Not Applicable 38,881,345,230.41 Not Applicable
Kong, Macau and Taiwan)
Basic situation of PV power stations
a. Basic situation of centralized PV power stations
Since there are a large number of centralized PV power station projects in the reporting period, the basic information of top ten
centralized PV power stations by revenue is disclosed here item by item, and the rest is listed as a whole by business pattern.
Project Source of PV
Capacity
No. Project Name Type Status inverters/wind
(MW)
BT/EPC power converters
Qinghai Mangai Wind Power Project Construction in
Hubei Honghu Zhuoyang PV Power Station Construction in
Project 156.20 progress
Hainan Wenchang PV Power Generation Construction in
Project 96.04 progress
Guangxi Binyang PV Power Generation
Project 100.68
Other centralized projects in total 659.09 - -
The construction contract between the Company and the
customer included the performance obligation for power
station construction. Since customer had control over the
construction-in-progress during the contract performance,
the Company considered it a performance obligation within
a certain period of time, and recognized revenue according
to the progress of performance, unless the progress of
performance could not be reasonably determined. The
Accounting treatment for BT and EPC models
Company determined the performance progress of service
provision according to the percentage of investment. The
performance progress was the ratio of the actual cost
incurred for the performance of the contract versus the
estimated cost of the contract. The Company re-estimated
the progress of completion or the labor service provided on
the date of the balance sheet, so that it could reflect changes
in the contract performance.
b. Basic situation of distributed PV power stations
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Since there are a large number of distributed PV power station projects in the reporting period, the basic information of top ten
distributed PV power stations by revenue is disclosed here item by item, and the rest is listed as a whole by business pattern.
No. Project Name Project Capacity Progress Source of PV
Type (MW/MWH) inverters/wind
BT/EPC power converters
Project
Project
Project
Project
Distributed PV Project
Park Distributed PV Project
and Commercial Project
Project
Distributed PV Project
PV Project
Other distributed projects in total 4982.73 - -
Accounting treatment The construction contract between the Company and the customer included the
performance obligation for power station construction. Since customer had control
over the construction-in-progress during the contract performance, the Company
considered it a performance obligation within a certain period of time, and
recognized revenue according to the progress of performance, unless the progress
of performance could not be reasonably determined. The Company determined
the performance progress of service provision according to the percentage of
investment. The performance progress was the ratio of the actual cost incurred for
the performance of the contract versus the estimated cost of the contract. The
Company re-estimated the progress of completion or the labor service provided
on the date of the balance sheet, so that it could reflect changes in the contract
performance.
For distributed residential power station construction services provided to
customers, the Company recognized power station construction revenue based on
the actual installed capacity of grid-connected assemblies of the residential power
station and the unit price specified in relevant agreements.
Power station projects sold In the reporting period, the Company sold approximately 5.1 GW of distributed
power stations at an average price (tax-exclusive) of approximately CNY 3.3 per
watt. The operation and maintenance of distributed power stations sold were
carried out by the customer or the party entrusted by the customer. The warranty
of distributed BT projects was executed according to equipment or engineering
industry standards, and the Company provided no financing guarantee for BT
projects.
Power station projects held In the reporting period, power generated by distributed power stations held by the
Company increased by approximately 4.19 million kWh, with a recognized power
generation revenue of approximately CNY 2.2 million. All power generation
revenue was entitled to the Company.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(2) Industries, products, geographies, and sales models that account for more than 10% of the Company's operating income
or operating profit
Applicable □ Not Applicable
(in CNY)
YoY changes YoY changes YoY changes
Gross
Operating income Operating cost in operating in operating in gross
margin
income cost margin
By sector
PV 50,555,989,064.88 36,307,102,620.52 28.18% 85.56% 78.08% 3.01%
Energy storage 17,801,524,369.61 11,131,619,017.64 37.47% 75.79% 43.20% 14.23%
By product
PV inverters and other
power conversion 27,653,073,535.51 17,163,270,423.44 37.93% 60.97% 47.86% 5.51%
devices
New energy investment
and development
Energy storage systems 17,801,524,369.61 11,131,619,017.64 37.47% 75.79% 43.20% 14.23%
By geography
Mainland China (not
including Hong Kong, 38,881,345,230.41 30,820,445,529.68 20.73% 83.45% 86.52% -1.31%
Macau and Taiwan)
Overseas (including
Hong Kong, Macao 33,369,329,709.05 19,497,127,983.49 41.57% 75.05% 40.75% 14.24%
and Taiwan)
Where the statistical caliber for the Company's core business data was adjusted in the reporting period, the adjusted core business
data in the last year at the end of the reporting period
□ Applicable Not Applicable
(3) Whether the Company's physical sales revenue is greater than the labor revenue
Yes □ No
Sector Item UoM 2023 2022 YoY Change
Sales GW 130 77 68.83%
PV inverters Production GW 151 82 84.15%
Inventory GW 44 23 91.30%
Reasons for year-on-year changes greater than 30%
Applicable □ Not Applicable
Sales volume increased by 68.83% year-on-year, production volume increased by 84.15% year-on-year, and inventory increased by
(4) Performance of major sales contracts and purchase contracts entered by the Company up to the reporting period
□ Applicable Not Applicable
(5) Composition of operating cost
By sector
(in CNY)
Sector Item % of Operating % of Operating YoY Change
Amount Amount
Income Income
PV Raw materials 26,429,538,227.85 72.79% 16,582,269,527.82 81.13% 59.38%
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(6) Whether the scope of consolidation changed in the reporting period
Yes □ No
For details, please refer to part IX. Changes in the Scope of Consolidation in Section X Financial Reports.
(7) Significant changes or adjustments to the Company's business, products or services in the reporting period
□ Applicable Not Applicable
(8) Major Customers and Major Suppliers Major customers
Sales to major customers
Total amount of sales to top five customers (CNY) 24,840,056,894.85
Proportion of total sales amount to top five customers in the annual total sales 34.39%
Proportion of related party sales to top five customers in the annual total sales 0.00%
Top 5 customers
No. Customer Name Sales (CNY) % of Total Annual Sales
Total -- 24,840,056,894.85 34.39%
Other information about major customers
□ Applicable Not Applicable
Major suppliers
Total amount of purchase from top five suppliers (CNY) 8,462,311,100.81
Proportion of total purchase amount from top five suppliers in the annual purchase amount 16.80%
Proportion of related party purchase from top five suppliers in the annual purchase amount 0.00%
Purchase from top 5 suppliers
Purchase Amount % of Total Annual Purchase
No. Supplier Name
(CNY) Amount
Total -- 8,462,311,100.81 16.80%
Other information about major suppliers
□ Applicable Not Applicable
(in CNY)
Sales 5,166,844,506.28 3,169,263,472.82 63.03% Mainly due to the significant increase in the remuneration
expenses of sales staff and the post-sales service fee accrued for the
increased sales revenue in the current period
Management 873,167,416.41 612,314,748.77 42.60% Mainly due to the significant increase in the remuneration
expenses of employees
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Financial 20,595,018.70 -477,244,161.25 104.32% Mainly due to the large reduction in exchange earnings
expenses from foreign exchange rate fluctuations in the current
period
R&D 2,447,389,317.47 1,692,156,198.42 44.63% Mainly due to the large increase in the remuneration of
expenses R&D staff and the use of raw materials for the expanded
R&D investment in the current period
Applicable □ Not Applicable
Major R&D Impacts Expected on the
Purpose Progress Planned Objective
Projects Company’s Growth
product resilience of shipment coastal areas, and high after failures is minimized;
optimization equipment, increase temperatures, improve high- customer’s initial investment
project power generation, voltage operation capability, is reduced, power generation
reduce costs, and increase power generation, and is increased, and the leading
reduce equipment reduce LCOE of power stations. position in the global market
maintenance. is secured.
SG320HX-20 Increase power In volume Work with the 182, 210, and Customer’s investment and
project generation, enhance shipment rectangular battery modules to product costs are reduced.
grid friendliness, and improve power response and Power generation, customer
reduce costs. support the grid. revenue, and market share
are increased.
Powertitan 2.0 Respond to regional In volume Design a fully liquid-cooled 5 MW The problem of large
large-scale value propositions, shipment battery system within a 20 foot footprint and low energy
energy storage address differentiated container that supports long-term density in the previous
product project needs of regions, system operation and off-grid generation of products is
introduce platform- running. Increase system RTE by solved. Costs are
based products, and 2%, reduce average auxiliary significantly lowered. This
enhance product power consumption by 40%, and upgraded product was the
competitiveness. improve station-wide response by first in the industry to
of 1.3 times and fast grid will gradually replace the
scheduling response in 20 ms. Powertitan1.0 series.
ST200CS Optimize the industrial In volume The outdoor cabinet features an The dilemma of no products
industrial and and commercial shipment integrated system design of EMS, for industrial and
commercial product portfolio, and PCS, and BMS, which can be commercial application is
energy storage expand product flexibly configured and broken. The product can lead
project applications to address conveniently installed, operated, the market trend, and gain
market demands. and maintained. Leverage market share.
intelligent near- and far-end
wireless operation and EMS
system to increase scheduling
revenue. Assist customers in
participating in various power
services, reduce electricity costs
and increase revenue for
customers.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Major R&D Impacts Expected on the
Purpose Progress Planned Objective
Projects Company’s Growth
SC5000UD- Respond to the In project Work with the 5 MWh energy The product solves the
MV-P3 PCS separated supply verification storage system to reduce the problem of the previous
separated supply demand of PCS, and number of energy storage units generation for being unable
project match the various and footprint. The system can be to provide single channel
types of battery flexibly configured with the DC output of battery box and
systems in the market. side detachable. Support 2 h/4 h low voltage limit on the DC
systems as well as multiple side voltage. Once launched,
transformer types and voltage this new product can fill up
levels ranging from 10 to 37 kV. the blank in the business
layout, add a revenue growth
point, and secure PCS’
leading position in the
industry.
ST800CS Cover large industrial In project Use a lightweight container-based The product stays ahead of
optimization use scenarios, provide development design to satisfy customer. the industrial energy storage
project an integrated 690 V Incorporate new customer curve. Product
small capacity outdoor demands into product competitiveness is enhanced,
cabinet together with development, create values for and product market share is
flexible customers, and contribute to increased.
configuration/add-on customer success.
options.
Statement of R&D staff
Total R&D Staff 5,372 3,647 47.30%
R&D Staff in Total HC 39.22% 39.47% -0.25%
Educational Background of R&D Staff
Bachelor 2,646 1,807 46.43%
Master 2,004 1,336 50.00%
Doctor 65 51 27.45%
College Graduate and below 657 453 45.03%
Age Structure of R&D Staff
Below 30 2,295 1,463 56.87%
Above 40 285 239 19.25%
R&D investment size and percentage in operating proceeds in the past three years
R&D investment (CNY) 2,447,389,317.47 1,692,156,198.42 1,161,389,788.60
Percentage of R&D investment in operating proceeds 3.39% 4.20% 4.81%
Capitalized R&D expenditure (CNY) 0.00 0.00 0.00
Capitalized R&D expenditure as a percentage of R&D
investment
Capitalized R&D expenditure as a percentage of net profit in
the period
Reasons for substantial changes in R&D staff and their impacts
□ Applicable Not Applicable
Reasons for substantial change in percentage of total R&D investment in operating income as compared with the previous year
□ Applicable Not Applicable
Reasons for substantial changes in the capitalization rate of R&D investment and the justifications
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(in CNY)
Item 2023 2022 YoY Change (%)
Cash inflow from operating activities 64,909,783,214.55 40,759,815,988.81 59.25%
Cash outflow from operating activities 57,927,944,237.27 39,549,317,502.92 46.47%
Net cash flow from operating activities 6,981,838,977.28 1,210,498,485.89 476.77%
Cash inflow from investment activities 23,544,136,099.56 14,684,990,549.50 60.33%
Cash outflow from investment activities 27,365,292,970.63 14,339,435,233.12 90.84%
Net cash flow from investment activities -3,821,156,871.07 345,555,316.38 -1,205.80%
Cash inflow from financing activities 9,972,994,616.16 9,949,974,901.15 0.23%
Cash outflow from financing activities 6,693,485,685.31 8,203,257,437.80 -18.40%
Net cash flow from financing activities 3,279,508,930.85 1,746,717,463.35 87.75%
Net increase in cash and cash equivalents 6,464,929,644.69 3,242,092,864.04 99.41%
Explanation on main contributors to the significant YoY change in relevant data
Applicable □ Not Applicable
Cash inflow from operating activities increased by 59.25% YoY, mainly contributed by the increase in cash collection from sales in
the current period;
Cash outflow from operating activities increased by 46.47% YoY, mainly contributed by the increase in cash payment for purchasing
in the current period;
Cash inflow from investment activities increased by 60.33% YoY, mainly contributed by the termination of wealth management
products;
Cash outflow from investment activities increased by 90.84% YoY, mainly contributed by the increased subscription of wealth
management products;
Explanation on reasons for the significant difference between the net cash flow from operating activities and the net profit of the year
during the reporting period
□ Applicable Not Applicable
V. Status of Non-Core Business
□ Applicable Not Applicable
VI. Analysis of Assets and Liabilities
(in CNY)
End of Year 2023 Beginning of Year 2023
Notes on
% of % of
Change Major
Amount Total Amount Total
Variations
Assets Assets
Money funds 18,030,617,790.74 21.76% 11,666,601,491.42 18.93% 2.83%
Accounts receivable 21,097,509,472.32 25.46% 13,804,040,262.60 22.40% 3.06%
Contract assets 2,008,704,215.79 2.42% 1,291,527,303.40 2.10% 0.32%
Inventory 21,441,505,396.60 25.87% 19,060,142,584.88 30.93% -5.06%
Long-term equity investment 440,042,074.75 0.53% 228,278,242.43 0.37% 0.16%
Fixed assets 6,438,183,727.36 7.77% 4,543,555,993.02 7.37% 0.40%
Construction-in-progress 1,685,757,860.53 2.03% 1,188,671,605.49 1.93% 0.10%
Right-of-use asset 397,537,305.84 0.48% 559,699,600.83 0.91% -0.43%
Short-term loan 2,793,019,025.13 3.37% 1,422,187,421.05 2.31% 1.06%
Contract liabilities 6,564,810,202.26 7.92% 3,788,439,560.39 6.15% 1.77%
Long-term loan 4,179,703,100.00 5.04% 4,161,650,000.00 6.75% -1.71%
Lease liability 323,824,924.50 0.39% 430,999,112.05 0.70% -0.31%
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
High percentage of overseas assets
□ Applicable Not Applicable
Applicable □ Not Applicable
(in CNY)
Cumulative
Gains/losses Amount of
changes at Impairment Amount of
Beginning from changes procureme Other Closing
Item fair value accrued for sales in the
Amount at fair value in nt in the changes amount
included in the period period
the period period
equity
Financial Assets
financial assets 1,481,039, 24,045,000, 23,396,500, 35,588,724 2,062,654
(excl. derivative 651.37 000.00 001.00 .13 ,466.36
financial assets)
-62,900.85 3,215.06
financial assets 61 .82
current financial 572,043.80
assets
investments in
debts
other equity
instruments
Sum - Financial -
Assets 15,727,760.
Accounts
receivable
financing
Sub-total -
Financial Liabilities
financial -
liabilities (excl. 51,919,973.
.63
derivative 63
financial assets)
financial
liabilities
current
.00 0.00
liabilities
Sum - Financial -
Liabilities 51,919,973.
.40 77 0.00
Other changes are resulted from exchange rate fluctuations.
Significant changes in the measurement attributes of the Company's main assets in the reporting period
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Yes No
(in CNY)
Item Book Balance Book Value Reasons for Restriction
Monetary funds Freeze, bank acceptance, letter of guarantee, letter of
credit and PV loan deposit, refundable deposits
Fixed assets 1,016,197,005.05 984,850,815.92 Long-term loan collateral
Accounts receivable 990,867,681.31 855,594,447.60 Long-term loan pledge
Accounts receivable Short-term loan pledge, notes payable pledge
financing
Notes receivable 16,240,927.13 16,240,927.13 Short-term loan pledge, notes payable pledge
Total 3,858,306,504.49 3,691,687,081.65
VII. Investment Analysis
Applicable □ Not Applicable
Investment in the reporting period (CNY) Investment in the same period last year (CNY) Change
□ Applicable Not Applicable
□ Applicable Not Applicable
(1) Securities investment
□ Applicable Not Applicable
The Company made no securities investment in the reporting period.
(2) Derivatives investment
Applicable □ Not Applicable
a. Derivatives investment for hedging purpose in the reporting period
Applicable □ Not Applicable
For details, please refer to VII. Notes to Consolidated Financial Statement, 2. Trading Financial Assets in Section X.
b. Derivatives investment for speculative purpose in the reporting period
□ Applicable Not Applicable
The Company made no derivatives investment for speculative purpose in the reporting period.
Applicable □ Not Applicable
(1) General use of raised funds
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(in 10K CNY)
Total Total amount Cumulative Percentage of Amount of
amount of Cumulative of raised funds amount of cumulative raised funds
Year of Fund- Net amount Total funds Purpose and
Total raised raised amount of with changed raised amount of that have
fund- raising of raised raised but whereabouts of
funds funds used raised use in the funds with raised funds been idle for
raising mode funds not used unused raised funds
in this funds used reporting changed with changed more than
period period use use two years
CNY 369,095,300
in the special
account for raised
Non-public funds, CNY
offering 600,000,000 in
premature wealth
management
products
Total -- 363,758.52 362,314.61 113,424.08 269,182.04 96,909.53 --
Description of the general use of raised funds
At the 12th meeting of the Fourth Board of Directors, the Proposal on Replacing Self-Raised Funds Previously Used in Fund-Raising Projects was reviewed and approved, which agreed that
the Company should replace CNY 243,141,600 of self-raised funds previously used in fund-raising projects with the raised funds. RSM China (Special General Partnership) verified the
advanced investment in the above-mentioned fundraising projects, and issued the Assurance Report on the Advance Input in Fund-Raising Projects made by Sungrow Power Supply Co., Ltd.
with Self-Raised Funds (RSM [2021] No. 230Z2674) on October 12, 2021.
Raising Investment Projects with Bank Acceptances and Replacing Them Equally with Raised Funds was reviewed and approved. It was agreed that during the implementation of the fund-
raising investment project, the Company could use bank acceptances for payments involved in the project, and regularly transfer the same amount from the special account of raised funds to
the Company's general settlement account. The Board of Supervisors, independent directors and sponsors expressed their consent. As of December 31, 2023, the Company had accumulatively
made investment project-related payments with CNY 376,767,000 of bank acceptances, and the same amount had been replaced with raised funds.
(2) Projects commitments of raised funds
Applicable □ Not Applicable
(in 10K CNY)
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Total Cumulative Cumulative
Changes in Total Amount Investment Date of Benefit
investment amount of benefit Substantial
Investment projects projects investment invested in progress by projects realized Expected
amount investment realized by changes in
committed and target (including after the the end of reaching in the benefits
committed by the end the end of the project
of over-raised funds partial adjustment reporting the period scheduled reporting achieved
by raised of the the reporting feasibility
changes) (1) period (3)=(2)/(1) availability period
funds period (2) period
Investment Project Commitments
The New Energy
Power Generation
Equipment Jun. 30, Not
No 241,787 240,343.09 88,232.97 153,701.2 63.95% No
Manufacturing Base 2025 Applicable
Project with an annual
output of 100 GW
The R&D Innovation
Mar. 31, Not
Center Expansion No 63,970 63,970 23,021.59 65,512.03 102.41% No
Project
The Global Marketing Mar. 31, Not
No 49,835 41,124.91 2,169.52 41,802.29 101.65% No
Service System Project 2023 Applicable
The Supplementary
Not
Working Capital No 8,166.52 8,166.52 8,166.52 100.00% No
Applicable
Project
Subtotal of committed
-- 363,758.52 353,604.52 113,424.08 269,182.04 -- -- -- --
investment projects
Target of over-raised funds
Total -- 363,758.52 353,604.52 113,424.08 269,182.04 -- -- -- --
Description of projects
Since the funds raised for the New Energy Power Generation Equipment Manufacturing Base with an Annual Capacity of 100 GW Project were received, the
behind planned
Company advanced project construction and implementation actively. As of December 31, 2023, the investment schedule was delivered by 63.95%, workshop
schedule or failing to
construction and layout of most production lines were completed. Because of adjustments in project planning and design layout, as well as impacts from the
gain expected returns
surrounding environment of the project site, equipment commissioning schedule, and status of relevant government permits during actual construction, some works
and the reasons
remained uncompleted, resulting in certain differences between the actual construction progress and the expected availability originally planned for the fundraising
(including those
project. In order to ensure the steady implementation of the Company's fundraising project, minimize the risks in using raised funds, and ensure the safe and rational
identified as “Not
use of funds, the Company decided to extend the completion date of the fundraising project from April 30, 2024 to June 30, 2025 based on the principles of being
Applicable” in the
responsible to investors and being prudent in investment. This proposal was reviewed and approved at the 7th meeting of the fifth Board of Directors and the 6th
column “Achieved the
meeting of the fifth Board of Supervisors.
expected benefits”)
Description of material
changes in project Not Applicable
feasibility
Amount, purpose, and Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Total Cumulative Cumulative
Changes in Total Amount Investment Date of Benefit
investment amount of benefit Substantial
Investment projects projects investment invested in progress by projects realized Expected
amount investment realized by changes in
committed and target (including after the the end of reaching in the benefits
committed by the end the end of the project
of over-raised funds partial adjustment reporting the period scheduled reporting achieved
by raised of the the reporting feasibility
changes) (1) period (3)=(2)/(1) availability period
funds period (2) period
progress of use of over-
raised funds
Changes in
implementation
locations of projects Not Applicable
invested with raised
funds
Changes in
implementation modes
Not Applicable
of projects invested
with raised funds
Applicable
As of October 11, 2021, the Company had invested CNY 243,141,600 in fund-raising projects with self-raised funds, of which CNY 143,827,900 was for the
Preliminary investment new energy power generation equipment manufacturing base with an annual output of 100 GW, CNY 94,743,100 for the expansion of R&D Innovation Center,
and replacement in and CNY 4,570,600 for the global marketing service system project. At the 12th meeting of the Fourth Board of Directors, the Proposal on Replacing Self-
projects invested with Raised Funds Previously Used in Fund-Raising Projects was reviewed and approved, which agreed that the Company should replace CNY 243,141,600 of self-
raised funds raised funds previously used in fund-raising projects with the raised funds. RSM China (Special General Partnership) verified the advanced investment in the
above-mentioned fundraising projects, and issued the Assurance Report on the Advance Input in Fund-Raising Projects made by Sungrow Power Supply Co.,
Ltd. with Self-Raised Funds (RSM [2021] No. 230Z2674) on October 12, 2021.
Description of
temporarily
replenishing working Not Applicable
capital with idle raised
funds
Amount of surplus Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Total Cumulative Cumulative
Changes in Total Amount Investment Date of Benefit
investment amount of benefit Substantial
Investment projects projects investment invested in progress by projects realized Expected
amount investment realized by changes in
committed and target (including after the the end of reaching in the benefits
committed by the end the end of the project
of over-raised funds partial adjustment reporting the period scheduled reporting achieved
by raised of the the reporting feasibility
changes) (1) period (3)=(2)/(1) availability period
funds period (2) period
raised fund in project There was a surplus in the funds raised for the Global Marketing Service System Project. It was mainly because the Company strictly followed relevant regulations
implementation and on managing raised funds during project implementation, strengthened project cost control, supervision, and management while ensuring the overall goals and
reasons behind quality of the fundraising project in the context of actual market situation, and reduced project spending, thus saving the actual investment amount of the fundraising
project.
On December 6, 2023, the Company held the fifth meeting of the fifth Board of Directors and the fourth meeting of the fifth Board of Supervisors, at which the
Proposal on Closing Some Raised Funds Investment Projects and Permanently Replenishing Working Capital with Surplus Raised Funds was reviewed and
approved. Whereas the Global Marketing Service System Project based on funds raised by issuing A-shares to specific objects in 2021 had basically reached the
expected availability, the project could be closed according to the implementation plan. In order to fully utilize the funds raised and maximize the effects of
fundraising, It was agreed that the Company would permanently replenish working capital with the surplus raised funds of CNY 87.0644 million (including bank
interest, subject to the final bank settlement amount on the day of transfer), and use them for day-to-day production and operation activities. The special account
for this fundraising should be cancelled accordingly. The actual surplus in the funds raised for the Global Marketing Service System Project on December 25, 2023
was CNY 87.109 million, all of which was used for permanently replenishing working capital.
Purpose and
As of December 31, 2023, the unused raised funds amounted to CNY 969,095,300, of which CNY 369,095,300 was in the special account for raised funds, CNY
whereabouts of unused
raised funds
On April 16, 2021, the Company held the first extraordinary general meeting in 2021, at which the Proposal on Requesting the Shareholders’ Meeting to Authorize
the Board of Directors to Proceed with the Issuance to Specific Objects was reviewed and approved. The Board of Directors was authorized to handle all matters
related to the issuance of shares to specific objects in 2021, including but not limited to determining the specific arrangements for the use of the raised funds for
this issuance to specific objects.
On October 21, 2021, Company held the 12th meeting of the fourth Board of Directors and the 11th meeting of the fourth Board of Supervisors, at which the
Proposal on Paying the Fund-Raising Investment Projects with Bank Acceptances and Replacing Them Equally with Raised funds was reviewed and approved. It
Problems or other
was agreed that during the implementation of the fund-raising investment project, the Company could use bank acceptances for payments involved in the project,
situations in the use
and regularly transfer the same amount from the special account of raised funds to the Company's general settlement account. The Board of Supervisors, independent
and disclosure of raised
directors and sponsors expressed their consent. As of December 31, 2022, the Company had accumulatively made investment project-related payments with CNY
funds
On August 24, 2023, the Company held the second meeting of the fifth Board of Directors and the second meeting of the fifth Board of Supervisors, at which the
Proposal on Continuously Using Idle Raised Funds for Wealth Management Products was reviewed and approved. It was agreed that the Company could use no
greater than CNY 1,300 million of idle raised funds for wealth management products, and the funds within the above-mentioned limit could be used in a rolling
manner. The Board of Supervisors, independent directors and sponsors expressed their consent. As of December 31, 2023, the Company’s total balance of wealth
management products purchased with idle raised funds amounted CNY 600 million.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(3) Projects with changes in raised funds
□ Applicable Not Applicable
There were no projects with changes in raised funds in the reporting period.
VIII. Sale of Major Assets or Equity
□ Applicable Not Applicable
The Company did not sell any major assets in the reporting period.
□ Applicable Not Applicable
IX. Analysis of Major Controlling and Holding Companies
Applicable □ Not Applicable
Major subsidiaries and holding companies that contribute to a net profit by 10% and above
(in CNY)
Company Type Main Registered Total Net Operating Operating Net Profit
Name Business Capital Assets Assets Income Profit
Sungrow Subsidiary New energy 1,499,460,9 28,138,05 7,826,61 26,574,546, 1,637,977,5 1,148,409,6
Renewables investment 59 0,679.29 8,212.16 338.58 43.38 94.90
Development and
Co., Ltd. development
Subsidiaries acquired or disposed in the reporting period
Applicable □ Not Applicable
For details, please refer to IX. Changes in the Scope of Consolidation 1. Changes in the scope of consolidation due to other reasons
in Section X Financial Reports.
X. Structured Entities Controlled by the Company
□ Applicable Not Applicable
XI. Prospects of the Company’s Future Development
(1) Planned Prospects
Focus on the field of clean power, make in-depth explorations in the core sectors of solar power, wind power, energy storage, electric
drive, and hydrogen production, and enhance innovation to make breakthroughs in power electronics, grid support, and AI technology,
and create integrated solutions, so as to pursue extraordinary customer experience, upgrade brand image, expand worldwide leading
advantages, and enable quality and sustainable development.
(2) Operating Plan
In 2024, the global green energy industry will benefit from the significant reduction in supply chain prices. As a result, the economic
viability of downstream projects will improve and the industry will maintain growth momentum. Taking “Collaborate and innovate in
verticals, contribute to customer success with digitalization” as the annual guideline, the Company will seize market opportunities to
deliver better products, expand channels, optimize services, strengthen brands, and accelerate digitalization to secure global leading
advantages in businesses and achieve rapid and sustainable growth.
To deliver the annual business objectives, the Company plans to take the following key measures:
a. Reinforce innovation efforts and promote comprehensive and in-depth development in all domains. Advocate intensive and
continuous innovation in all dimensions, and incorporate innovation to all processes of the Company. Integrate cutting-edge
technologies and commercial resources to maintain a leading advantage in products, services, business models and management.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
b. Maintain high level of investment in research and development to secure technological leadership. Enhance R&D and forward
design capabilities, accelerate breakthroughs in key technologies and reserve of future-proof technologies, and prioritize
explorations in power electronics, grid support, and grid construction technologies to address the needs of new power systems.
Improve the interactivity of product software and hardware, advance deep fusion and application of AI in the key aspects of R&D,
products, and solutions, hence to offer competitive products on the long run.
c. Uphold the quality product strategy and advance all-around product upgrades. Insist on low-cost innovation, promote rapid
product iteration and upgrade to provide customers with safe, reliable, and stable products, hence to attract more customers with
continuously leading products. Fully leverage the Company's existing advantages in solar power, wind power, energy storage,
electric drive, and hydrogen production, create integrated solutions based on new energy application scenarios, and create values
for customers with integrated solar-wind-energy storage-electric drive-hydrogen solutions.
d. Optimize the global market layout and upgrade the integration of sales and service. Consolidate the national-level operation
systems and speed up global deployment. of globalization strategies. Promote the integration of sales and service, build a
digitalized service platform to improve service standard, quality, and responsiveness, and continuously enhance customer service
experience.
e. Upgrade global supply and manufacturing systems, and improve localization capabilities. Closely interact with top suppliers to
advance local warehouses of suppliers. Accelerate the construction of global digital plants, expand manufacturing capacity in
Thailand and other regions, and build a global supply system with quick response, competitive cost, reliable quality, and timely
delivery.
f. Upgrade the brand philosophy and continue to advance ESG efforts. Build a global leading brand in clean power around core
businesses, and shape the brand image of an “agile and innovative clean energy expert". Actively practice ESG concepts and
optimize the ESG management system, promote sustainability of the Company and the planet with technological innovation and
continuous investment.
g. Accelerate digitalization and improve quality and efficiency with digitalized and intelligent operation. Leverage big data, AI, and
other digital technologies to create an agile and efficient organization with online and shared processes, improve the efficiency of
all business activities, and respond quickly to environmental changes, so as to secure a leading position in competitions and
achieve quality and sustainable development.
h. Strengthen organizational capacity building. Build a resilient organization capable of surviving the ups and downs to deliver the
objectives in market innovation, customer demand, and operational efficiency. Shape an inclusive, open, respectful, and
empathetic cultural atmosphere, continuously strengthen the roles of corporate culture in supporting and promoting business
development.
XII. Events Register for Research Visits, Communication, and Interviews in the Period
Applicable □ Not Applicable
Date Venue Type of Visit Type of Visitors Main Contents Index of Basic
Visitors of the Research Data
Discussion and
Information
Provided
Apr. 24, On the phone Phone Institution 1,000+ investors 2022 financial www.cninfo.com.cn
Securities, industry Activity Register
Changjiang situation, and No. 20230428
Securities, China outlook of the
Securities, Company's
Goldman Sachs, main products
and Huafu
Securities
Jun. 27, An investor Online Other Investors Operational www.cninfo.com.cn
interaction platform activity via the the Company Activity Register
(https://ir.p5 w.net) investor relations in 2022 and No. 20230627
platform of the like
https://ir.p5w.net
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Date Venue Type of Visit Type of Visitors Main Contents Index of Basic
Visitors of the Research Data
Discussion and
Information
Provided
Aug. 24, On the phone Phone Institution 1,000+ investors Industry www.cninfo.com.cn
Securities, Company’s Activity Register
Changjiang operational No. 20230825
Securities, Caitong and financial
Securities, Huafu performance
Securities, and for the first
Haitong Securities half of 2023
Sep. 21, Tencent Meeting Online Other Wellington The www.cninfo.com.cn
Nguyen, Simon domestic and Activity Register
Henry, T Rowe overseas No. 20230921
Price HK Limited, markets,
Zhao Yiqiang, product
CICC, Ma Yan, Shi markets, and
Yuqi, Liu Qihui, Yu status of
Yangqing overseas plants
Oct. 25, Cloud Interview Online Other Investors Basic situation www.cninfo.com.cn
http://irm.cninfo.co activity via Company, Activity Register
m.cn of Shenzhen http://irm.cninfo.co measures to No. 20231025
Stock Exchange m.cn of Shenzhen secure the
Stock Exchange leading
position in PV
and energy
storage
business, and
the impact of
global
situation on
the Company's
product
shipment
Oct. 27, On the phone Phone Institution About 800 investors The www.cninfo.com.cn
Securities, operational Activity Register
Changjiang and financial No. 20231027
Securities, Caitong performance
Securities, and for the first
Huafu Securities three quarters
of 2023,
industrial
prospect
XIII. Implementation Status of the Quality and Return Dual Enhancement Action Plan
Whether the Company disclosed the Quality and Return Dual Enhancement Action Plan.
Yes □ No
To implement the guidelines on “revitalizing the capital market and boosting investors’ confidence" put forward at the Central Political
Bureau conference and "vigorously improving the quality and investment value of public companies, and “taking robust and effective
measures to stabilize the market and investors’ confidence" at the State Council executive meeting, the Company developed the Quality
and Return Dual Enhancement Action Plan and disclosed it in Announcement on the Quality and Return Dual Enhancement Action
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Plan on February 26, 2024 on www.cninfo.com.cn (Announcement No. 2024-015).
The Company seized opportunities as the global new energy market grew rapidly, and achieved an increase of operating revenue from
CNY 10,370 million in 2018 to CNY 72,250 million in 2023, accounting for a compound growth rate of 47%. The net profit attributable
to shareholders of the Company increased from CNY 810 million in 2018 to CNY 9,440 million in 2023, accounting for a compound
growth rate of 63%. In 2023, the Company made significant efforts in marketing and R&D, continually advanced the full coverage
strategy of products and services, and leveraged digitalization and lean operation to achieve rapid growth in core businesses including
PV inverters, energy storage systems, and new energy investment and development. As a result, the net profit attributable to
shareholders of the Company increased by 163% year-on-year.
The Company attached great importance to investor returns and continuously offered stock dividends and cash dividends since going
public, with a cumulative cash dividends implemented no less than 10% of the cumulative net profit attributable to the parent company.
In 2023, the Company enabled a dynamic balance between corporate development, performance growth, and shareholder return, and
implemented a "long-term, stable, and sustainable" shareholder value return mechanism to improve the sense of gain for investors. The
Company made an equity distribution plan to distribute a cash dividend of CNY 9.65 (tax inclusive) per 10 shares to all shareholders,
with the total cash dividends amounting to approximately CNY 1,420 million (tax inclusive). In addition, 4 shares were transferred
from the capital reserve for every 10 shares to all shareholders.
Based on confidence in the future development of the Company and recognition of corporate values, and to establish and improve a
long-term incentive mechanism, adequately motivate all employees and effectively integrate the interests of shareholders, the Company,
and employees, as well as to promote the healthy, stable, and sustainable development of the Company, on September 12, 2023, the
Company held the third meeting of the fifth Board of Directors, at which the Proposal on the Buyback of Company Shares was reviewed
and approved. It was agreed that the Company would buy back some of the Company's shares via collective bidding with a self-supplied
fund of no less than CNY 500 million (inclusive) and no greater than CNY 1,000 million (inclusive), and use them for equity incentive
plans or employee stock ownership plans at an appropriate time in the future. As of March 31, 2024, the Company had cumulatively
bought back 11,512,334 shares via collective bidding in the Shenzhen Stock Exchange’s trading system, accounting for 0.7752% of
the Company's total share capital. The highest buyback price was CNY 90.72 per share, and the lowest was CNY 78.46 per share. The
total funds paid amounted CNY 996,648,688.03 (excluding transaction fees).
The Company highly prioritized investor relationship management, and constantly optimized the working mechanism and content of
investor relationship management, in order to achieve the goals of respecting, rewarding, and protecting investors. As the Company
attracted wider attention, the communication with investors was further enhanced, the frequency, profundity, and relevance of
communication were increased. The Company maintained sound interaction with investors through performance briefing, online
exchange, phone communication, among other channels. The Company established an investor relations platform on the official
website to update periodical reports, sustainability reports, and stock information on a timely basis, so that investors could access such
information conveniently. In the future, the Company will continue to actively convey its long-term investment values to the market,
improve the efficiency and transparency of information, promote mutual understanding, and advance healthy communication with
investors.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section IV Corporate Governance
I. Basic Situation of Corporate Governance
During the reporting period, the Company strictly followed the Company Law, the Securities Law, the Governance Guidelines for
Listed Companies, the Rules for GEM Stock Listing at Shenzhen Stock Exchange, Shenzhen Stock Exchange’s No. 2 Regulatory
Guidelines for Listed Companies — Standardized Operation of GEM-Listed Companies as well as other laws and regulations to
constantly optimize the corporate governance structure, improve the internal control system, and achieve standardized operation.
The Company's overall operation in the reporting period was standardized and highly independent, the information disclosure was
compliant, and the actual situation was basically in line with the requirements in the CSRC normative documents on the governance
of listed companies.
a. About shareholders and the shareholders’ meeting
Shareholders of the Company hold equal status based on the shares they possess and assume corresponding obligations following the
provisions in the Articles of Association. The Company convenes and holds shareholders’ meetings in strict accordance with the
regulations and requirements of the Rules for the Shareholders’ Meeting of Listed Companies and the Rules of Procedure for the
Shareholder’s Meeting, making sure shareholders exercise their rights and interests legitimately, treating all shareholders equally, and
providing as much convenience as possible for shareholders to participate in the shareholders’ meetings, so that they can fully exercise
their rights as shareholders.
b. About the Company and the controlling shareholder
The Company’s controlling shareholder, Mr. Cao Renxian, strictly abides by the Governance Guidelines for Listed Companies, the
Rules for GEM Stock Listing at Shenzhen Stock Exchange, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed
Companies — Standardized Operation of GEM-Listed Companies, and the Articles of Association to regulate his behavior. He makes
no actions that directly or indirectly interfere with the Company's decision-making and business activities beyond the shareholders’
meeting, nor jeopardizes the interests of the Company and other shareholders. There is no occurrence of the controlling shareholder
taking up the Company's funds or the Company providing guarantees for the controlling shareholder. The Company owns independent
and complete business and is capable of operating independently. The Company is independent from the controlling shareholder in
terms of business, assets, personnel, organization and finance; the Company's Board of directors, Board of Supervisors, and internal
organizations operate independently.
c. About directors and the Board of Directors
The Board of Directors is composed of 8 directors, including 3 independent directors. The number of directors and the composition of
the Board of Directors are in line with the relevant laws, regulations and the Articles of Association. Directors perform their duties in
accordance with the Rules for Independent Directors at Listed Companies, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines
for Listed Companies — Standardized Operation of GEM-Listed Companies, and the Rules of Procedure for the Board of Directors,
attend board meetings and shareholders' meetings, diligently assume their job responsibilities and obligations, and actively participate
in relevant training to get familiar with the relevant laws and regulations.
d. About supervisors and the Board of Supervisors
The Board of Supervisors is composed of 3 supervisors, including 2 employee supervisors. The number of supervisors and the
composition of the Board of Supervisors are in line with the requirements of laws and regulations. Supervisors perform their duties in
accordance with the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized Operation of
GEM-Listed Companies and the Rules of Procedure for the Board of Supervisors, and supervise the Company’s major transactions,
related-party transactions, financial status, and the legitimacy and compliance of directors’ and executives’ job performance.
e. About performance evaluation and the incentive and restraint mechanism
The Remuneration and Evaluation Committee is set up under the Board of Directors, which has formulated the Working Rules of the
Remuneration and Evaluation Committee, established and implemented the performance evaluation system, and defined a scientific
system of indicators. The various centers, product lines, and departments make full use of the performance management tools to ensure
objectives and performance plans are under control. The manager-in-charge holds the primary accountability for realizing annual
objectives and performance plans of the respective department. Each department further breaks down the work plan into monthly and
weekly tasks, and strives to achieve performance indicators on time, in quality and quantity, hence to ensure the delivery of the
Company's annual objectives. All accountable organizations and all employees are subject to regular performance evaluation and
objective assessment, and the evaluation results are used as the grounds for determining employees’ remuneration, promotion/demotion,
appraisal and job transfer.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
f. About information disclosure and transparency
In strict accordance with the Administrative Measures on Information Disclosure by Listed Companies, the Rules for GEM Stock Listing
at Shenzhen Stock Exchange, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized
Operation of GEM-Listed Companies, the Shenzhen Stock Exchange’s No. 5 Regulatory Guidelines for Listed Companies —
Information Disclosure, as well as the requirements in the Information Disclosure Management Procedures and the Investor Relations
Management Procedures, the Company fairly discloses the relevant information in a truthful, accurate, timely, and complete manner.
The Company's Board Secretary is responsible for organizing and coordinating information disclosure and investor relations, receiving
investors’ visits, and replying investors' inquiries. The Company has designated www.cninfo.com.cn as the website for disclosing
company information, China Securities Journal, Securities Times, Securities Daily and Shanghai Securities News as the newspapers
for disclosing the Company’s periodical reports, hence to ensure that all shareholders of the Company are informed of with equal
opportunities.
g. About stakeholders
The Company fully values and safeguards the legitimate rights and interests of relevant stakeholders, attaches great importance to the
Company's social responsibilities, actively collaborates with relevant stakeholders, and enhances communication and exchange with
all parties, in order to coordinate and balance the interests of shareholders, employees, society and other parties, so that they jointly
promote the sustainable and healthy development of the Company.
Whether there is a material difference between the actual situation of corporate governance and laws, administrative regulations and
the CSRC regulations on the governance of listed companies
□ Yes No
There is no material difference between the actual situation of corporate governance and laws, administrative regulations and the
CSRC regulations on the governance of listed companies.
II. Specific Measures Taken by the Controlling Shareholders and Actual Controllers to Ensure the Independence of the
Company's Assets, Personnel, Finance, Organization and Business
The Company is capable of operating its business independently and has set up a complete operation and management system that is
independent from the controlling shareholder in terms of business, personnel, assets, organization, and finance.
III. Horizontal Competition
□ Applicable Not Applicable
IV. Information on the Annual Shareholders’ Meeting and the Extraordinary General Meeting(s) Held in the Reporting
Period
Session Type Investor Date of Date of Resolution(s)
Participation % Meeting Disclosure
Shareholders’ Shareholders’ the Resolutions of the 2022 Annual
Meeting Meeting Shareholders’ Meeting on
http://www.cninfo.com.cn
The First Extraordinary Dec. 22, 2023 Dec. 22, 2023 No. 2022-124 Announcement on
Extraordinary General the Resolutions of the First
General Meeting Meeting Extraordinary General Meeting in
in 2023 2023 on http://www.cninfo.com.cn
□ Applicable Not Applicable
V. The Company’s Voting Rights Difference Arrangement
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
VI. Corporate Governance with the Red-Chip Architecture
□ Applicable Not Applicable
VII. Directors, Supervisors and Executives
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Name Gender Age Title Status Office Office Shares held Shares Shares Other Shares held Reason for
starts on ends on at the increased decreased changes at the end of changes in
beginning of during the during the (shares) the period shares
the period period period
Cao Renxian Male 55 Chairman and Incumbent Dec. 8, May 19, 451,008,000 451,008,000
President 2016 2026
Gu Yilei Male 45 Vice Chairman Incumbent May 18, May 19, 450,000 450,000
SVP Incumbent Dec. 11, May 19,
Zhang Xucheng Male 51 Director Incumbent May 19, May 19, 112,500 112,500
Zhao Wei Male 50 Director, SVP Incumbent Dec. 8, May 19, 7,076,000 7,076,000
Wu Jiamao Male 51 Director, SVP Incumbent May 19, May 19, 375,000 375,000
Gu Guang Female 60 Independent director Incumbent May 19, May 19,
Li Mingfa Male 61 Independent director Incumbent May 19, May 19,
Zhang Lei Male 43 Independent director Incumbent May 19, May 19,
Tao Gaozhou Male 52 Chairman of the Incumbent Dec. 8, May 19,
Board of Supervisors 2016 2026
He Wei Male 48 Employee Supervisor Incumbent Dec. 8, May 19,
Zhang Hui Male 49 Employee Supervisor Incumbent Apr. 21, May 19,
Li Shun Male 46 SVP Incumbent Oct. 29, May 19, 25,000 25,000
Chen Zhiqiang Male 43 VP Incumbent Dec. 8, May 19, 375,000 375,000
Peng Chaocai Male 46 VP Incumbent Oct. 29, May 19, 78,750 78,750
Deng Dejun Male 47 VP Incumbent Dec. 11, May 19, 369,679 369,679
Lu Yang Male 41 VP, Board Secretary Incumbent Oct. 21, May 19,
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Name Gender Age Title Status Office Office Shares held Shares Shares Other Shares held Reason for
starts on ends on at the increased decreased changes at the end of changes in
beginning of during the during the (shares) the period shares
the period period period
Tian Shuai Male 40 Finance Director, VP Incumbent Jun. 27, May 19,
Wang Lei Female 44 VP Incumbent May 19, May 19, 22,000 22,000
Zheng Guibiao Male 55 Director, SVP Departed Dec. 8, May 19, 11,976,360 5,000 11,971,360 Sell
Li Baoshan Male 71 Independent director Departed Dec. 8, May 19,
Li Xiaomei Female 55 Employee Supervisor Departed Dec. 8, May 19,
Zhang Youquan Male 56 VP Departed Dec. 8, May 19, 225,000 225,000
Xie Xiaoyong Male 47 VP Departed Aug. 14, Dec. 6, 300,000 300,000
Total -- -- -- -- -- -- 472,393,289 5,000 472,388,289 --
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Resignation of directors/supervisors or dismissal of executives within the term of office during the reporting period
□ Yes No
Changes in directors, supervisors and executives of the Company
Applicable □ Not Applicable
Name Position Type Date Reason
Wu Jiamao Director Election May 19, 2023 Elected as a non-independent director of the fifth
Board of Directors at the 2022 Annual
Shareholders’ Meeting
Zhang Lei Ind. Director Election May 19, 2023 Elected as an independent director of the fifth
Board of Directors at the 2022 Annual
Shareholders’ Meeting
Zhang Hui Employee Election Apr. 21, 2023 Elected as an employee supervisor of the fifth
Supervisor Board of Supervisors at the Workers Congress
Wu Jiamao SVP Appointment May 19, 2023 Appointed SVP at the first meeting of the fifth
Board of Directors
Li Shun SVP Appointment May 19, 2023 Appointed SVP at the first meeting of the fifth
Board of Directors
Wang Lei VP Appointment May 19, 2023 Appointed VP at the first meeting of the fifth Board
of Directors
Tian Shuai VP Appointment May 19, 2023 Appointed VP at the first meeting of the fifth Board
of Directors
Zheng Guibiao Director, SVP Departure May 19, 2023 Departed upon office expiration, still holding other
position(s) in the Company
Li Baoshan Ind. Director Departure May 19, 2023 Departed upon office expiration
Li Xiaomei Employee Departure May 19, 2023 Departed upon office expiration
Supervisor
Zhang Youquan VP Departure May 19, 2023 Departed upon office expiration, still holding other
position(s) in the Company
Xie Xiaoyong VP Departure Dec. 6, 2023 Resigned from the position of VP due to job
adjustment, still holding other position(s) in the
Company
The professional background, main work experience and job responsibilities of current directors, supervisors and executives of the
Company
(1) Directors
Mr. Cao Renxian, Chinese national with no permanent residency overseas, born in July 1968, master degree, and researcher, is currently
a delegate of the 14th National People's Congress and the chairman of the China Photovoltaic Industry Association. Mr. Cao Renxian
was one of the faculty of Hefei University of Technology from June 1993 to 1998, and worked in Sungrow Power Supply Co., Ltd.
from July 1998 to July 2001. He served the role of Executive Director and General Manager of Sungrow Power Supply Co., Ltd. from
July 2001 to August 2007, followed by the role of Chairman and President from August 2007 to date.
Mr. Gu Yilei, Chinese national with no permanent residency overseas, born in February 1978, Ph.D. He has successively worked in
Zhongda Simike Electronics Co., Ltd. (Delta Group), Shenzhen Kangdawei Electronic Technology Co., Ltd., Santak Electronics
(Shenzhen) Co., Ltd., and Eaton (China) Investment Co., Ltd. He joined Sungrow in September 2015, and successively served the roles
of Vice Director of the Sungrow Research Institute, Director of the Central Research Institute. He is currently Vice Chairman and
Senior Vice President of Sungrow and President of the Solar Storage Division.
Mr. Zhang Xucheng, Chinese national with no permanent residency overseas, born in June 1972, master degree. He served the roles of
Vice Procurement Manager, Logistics Manager, Human Resources Manager and Senior Vice President of Sungrow. He is currently a
director in the Sungrow Board, Chairman and President of Sungrow Renewables Development Co., Ltd.
Mr. Zhao Wei, Chinese national with no permanent residency overseas, born in December 1973, Ph.D., senior engineer. He served the
roles of Vice Director and Vice General Manager of Sungrow R&D Center, and is currently Director and Senior Vice President of
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow and Director of the Sungrow Research Institute.
Mr. Wu Jiamao, Chinese national with no permanent residency overseas, born in September 1972, master degree. He worked for Anhui
Ningguo Shuangjin Group previously and joined Sungrow in March 2005. He successively served the roles of Sales Manager of
Sungrow and General Manager of Sungrow Shanghai Company, is currently Director and Senior Vice President of Sungrow and
Director, Global Sales and Marketing of the Solar Storage Division.
Ms. Gu Guang, Chinese national with no permanent residency overseas, born in July 1963, master degree, certified public accountant
of China (non-practicing member). She graduated from the Department of Economics of Anhui University in 1986, and has been
teaching at the university ever since, having served the roles of Vice Director and Director of the Accounting Department of the School
of Business, Anhui University, Director of the MPAcc Education Center, Associate Professor and Master's Supervisor in accounting at
the School of Business, Anhui University. Currently, she is an independent director of Anhui Shanhe Pharmaceutical Excipients Co.,
Ltd., Atech Automotive Co., Ltd., and Sungrow Power Supply Co., Ltd.
Mr. Li Mingfa, Chinese national with no permanent residency overseas, born in February 1963, Ph.D., Level 2 professor and doctoral
supervisor of Anhui University. He was Director of the Law School of Anhui University and Executive Vice Director of the Graduate
School of Anhui University. He is currently Executive Director of the Civil Law Research Association of the China Law Society, Vice
Director-General of the Anhui Civil and Commercial Law Research Association, and an independent director of Wuhu Sanlian Forging
Co., Ltd., Anhui Estone Materials Technology Co., Ltd., and Sungrow Power Supply Co., Ltd.
Mr. Zhang Lei, Chinese national with no permanent residency overseas, born in December 1980, bachelor degree. He started service
and research in the power supply industry at the China Power Supply Society since 2005, and served the roles of Director of the
Exhibition Department, Director of the General Office, and Deputy Secretary General. He is currently the Secretary General of the
China Power Supply Society and an independent director of Sungrow.
(2) Supervisors
Mr. Tao Gaozhou, Chinese national with no permanent residency overseas, born in March 1971, master degree, senior engineer. He
was Manager of Structure Department and a Supervisor of Sungrow, and is currently the Chairman of Sungrow’s Board of Supervisors
and Director of the Institute of New Materials and Advanced Manufacturing.
Mr. He Wei, Chinese national with no permanent residency overseas, born in October 1975, master degree. He was Business Planning
Manager and Logistics Assurance Manager of Sungrow, and is currently an Employee Representative Supervisor of Sungrow and
General Manager of the Administrative Service Center.
Mr. Zhang Hui, Chinese national with no permanent residency overseas, born in October 1974, bachelor degree. He served the roles of
Supervisor of Technical Support Department, Manager of Engineering Technology Department, and Manager of Equipment and Power
Department of Sungrow. He is currently an Employee Representative Supervisor of Sungrow and Director of Equipment and Power
Department.
(3) Executives
Mr. Cao Renxian, President. Refer to the introduction in “(1) Directors” for details.
Mr. Gu Yilei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.
Mr. Zhao Wei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.
Mr. Wu Jiamao, Senior Vice President. Refer to the introduction in “(1) Directors” for details.
Mr. Li Shun, Chinese national with no permanent residency overseas, born in January 1977, master degree. He worked for China
Academy of Engineering Physics, Santak Electronics (Shenzhen) Co., Ltd., and Samil Power Co., Ltd. After joining Sungrow, he
successively served the roles of Director of Small-to-Medium Power Products, Director of String Products, and Vice President of the
Solar Storage Division. He is currently Senior Vice President of Sungrow.
Mr. Chen Zhiqiang, Chinese national with no permanent residency overseas, born in April 1980, graduated from the University of
Science and Technology of China in 2020 with a master degree, and a certified quality engineer of China. He served the roles of Quality
Control Supervisor, Quality Control Manager, Management Representative, Quality Director, Employee Supervisor, and Chairman of
the Board of Supervisors of Sungrow. He is currently Vice President of Sungrow.
Mr. Peng Chaocai, Chinese national with no permanent residency overseas, born in December 1977, master degree. He worked for
Shangqiu Experimental Middle School, Sinoma Technology Wind Power Blade Co., Ltd., and Delta Electronics (Shanghai) Co., Ltd.
before joining Sungrow as President of the Wind Energy Division. He is currently Vice President of Sungrow and President of the
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Wind Energy Division.
Mr. Deng Dejun, Chinese national with no permanent residency overseas, born in September 1976, bachelor degree. He worked for
Maanshan Iron and Steel Co., Ltd., Foxconn Technology Group, Philips Electronics, and Great Wall Development Technology Co.,
Ltd. previously. After joining Sungrow in January 2011, he successively served the role of Production Planning Manager, Production
Planning Manager and Vice General Manager of the Gansu Division, Manufacturing Director of the Production Center and Production
Planning Manager, Vice General Manager of the Production Center, and General Manager of the Production Center. He is currently
Vice President of Sungrow and General Manager of the Production Center.
Mr. Lu Yang, Chinese national with no permanent residency overseas, born in October 1982, master degree. He worked previously for
State Nuclear Power Technology Corporation, Beijing Zhenglue Junce Management Consulting Co., Ltd., and ENN Group Co., Ltd.
He joined Sungrow in August 2016 and successively served the roles of Strategic Planning Manager, Strategic Planning Director, and
General Manager of the Strategy Center. He is currently Vice President and Board Secretary of Sungrow.
Mr. Tian Shuai, Chinese national with no permanent residency overseas, born in November 1983, bachelor degree and MBA candidate
of Peking University, CMA (Certified Management Accountant). He worked previously for Sany Heavy Industry Co., Ltd., Huawei
Technologies Co., Ltd., Hunan Huinong Technology Co., Ltd., and Honor Device Co., Ltd. He joined Sungrow in September 2021 and
successively served the roles of Vice General Manager of the Finance Center and General Manager of the Finance Center. He is
currently Vice President and Finance Director of Sungrow.
Ms. Wang Lei, Chinese national with no permanent residency overseas, born in December 1979, master degree, Senior Human
Resources Manager and Economist. She joined Sungrow in June 2003 and served the roles of Manager of the Human Resources Center,
General Manager of the Human Resources Center, and Vice President of the Solar Storage Division. She is currently Vice President of
Sungrow.
Positions in organizations as a shareholder
□ Applicable Not Applicable
Positions in other organizations
Applicable □ Not Applicable
Name Organization Position Office Office Paid by the
Starts on Ends on Organization
Cao Renxian Hefei Renshang Enterprise Management Co., Ltd. Supervisor No
Li Mingfa Anhui Estone Material Technology Co., Ltd. Ind. Director Yes
Li Mingfa Wuhu Sanlian Forging Co., Ltd. Ind. Director Yes
Gu Guang Anhui Shanhe Pharmaceutical Excipients Co., Ltd. Ind. Director Yes
Gu Guang Atech Automotive Co., Ltd. Ind. Director Yes
Lu Yang Jiangyin Wanzai Trading Co., Ltd. Supervisor No
Wang Lei Hefei Shangneng Enterprise Management Co., Ltd. Supervisor No
Penalties imposed by securities regulators in the past three years on incumbent directors, supervisors, executives and those departed
in the reporting period
□ Applicable Not Applicable
The procedure for determining remuneration for directors, supervisors and executives, the ground for determination, and the actual
payment
Procedure for determination: Remuneration of the Company's directors and supervisors is determined by the shareholders' meeting;
remuneration of executives is determined by the Board of Directors. Directors, supervisors and executives who hold offices in the
Company receive remuneration according to their specific positions.
Grounds for determination: Remuneration of directors, supervisors and executives is determined and paid in accordance with the
provisions in the Working Rules of the Remuneration and Evaluation Committee stipulated by the Board of Directors, taking into
consideration of their respective business performance, professional competency, job ranking and other evaluation results.
Actual payment: Remuneration of directors, supervisors and executives has been paid in full according to the predefined standard.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Remuneration of Directors, Supervisors and Executives of the Company during the reporting period
(in 10K CNY)
Total Paid by related-
Name Gender Age Position Status remuneration party of the
before tax Company
Cao Renxian Male 55 Chairman, President Incumbent 351.00 No
Gu Yilei Male 45 Vice Chairman, SVP Incumbent 1,440.00 No
Zhang Director
Male 51 Incumbent 406.00 No
Xucheng
Zhao Wei Male 50 Director, SVP Incumbent 373.00 No
Wu Jiamao Male 51 Director, SVP Incumbent 994.00 No
Gu Guang Female 60 Ind. Director Incumbent 8.00 No
Li Mingfa Male 61 Ind. Director Incumbent 8.00 No
Zhang Lei Male 43 Ind. Director Incumbent 5.33 No
Tao Gaozhou Chairman of the Board of
Male 52 Incumbent 107.38 No
Supervisors
He Wei Male 48 Employee Supervisor Incumbent 129.00 No
Zhang Hui Male 49 Employee Supervisor Incumbent 58.82 No
Li Shun Male 46 SVP Incumbent 400.00 No
Chen Zhiqiang Male 43 VP Incumbent 343.00 No
Peng Chaocai Male 46 VP Incumbent 357.00 No
Deng Dejun Male 47 VP Incumbent 283.00 No
Lu Yang Male 41 VP, Board Secretary Incumbent 251.00 No
Tian Shuai Male 40 VP, Finance Director Incumbent 249.00 No
Wang Lei Female 44 VP Incumbent 194.97 No
Zheng Guibiao Male 55 Director, SVP Departed 41.67 No
Li Baoshan Male 71 Ind. Director Departed 3.34 No
Li Xiaomei Female 55 Employee Supervisor Departed 13.74 No
Zhang VP
Male 56 Departed 39.14 No
Youquan
Xie Xiaoyong Male 47 VP Departed 301.00 No
Total -- -- -- -- 6,357.39 --
Note: Director and Senior Vice President Mr. Zheng Guibiao, Independent Director Mr. Li Baoshan, Employee Supervisor Ms. Li
Xiaomei, and Vice President Mr. Zhang Youquan resigned upon the expiration of their term of office during the reporting period. The
remuneration listed above indicated the total remuneration before tax they received from the Company from January to May 2023. Mr.
Zhang Lei, Mr. Zhang Hui, and Ms. Wang Lei were elected or appointed Independent Director, Employee Supervisor, and Vice
President of the Company during the reporting period. The remuneration listed above indicated the total remuneration before tax they
received from the Company from May to December 2023. The remuneration of other incumbent or departed directors, supervisors, and
executives indicated the total remuneration before tax they received from the Company from January to December 2023.
Notes on other facts
□ Applicable Not Applicable
VIII. Directors' Performance of Duties During the Reporting Period
Session Date of Meeting Date of Disclosure Resolution(s)
The 22nd meeting of the fourth January 18, 2023 January 18, 2023 No. 2023-005 Announcement on
Board of Directors Resolutions of the Twenty-Second Meeting
of the Fourth Board of Directors on
http://www.cninfo.com.cn
The 23rd meeting of the fourth April 24, 2023 April 25, 2023 No. 2023-016 Announcement on
Board of Directors Resolutions of the Twenty-Third Meeting of
the Fourth Board of Directors on
http://www.cninfo.com.cn
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Session Date of Meeting Date of Disclosure Resolution(s)
The 1st meeting of the fifth Board May 19, 2023 May 19, 2022 No. 2023-053 Announcement on
of Directors Resolutions of the First Meeting of the Fifth
Board of Directors on
http://www.cninfo.com.cn
The 2nd meeting of the fifth August 24, 2023 August 25, 2023 No. 2023-077 Announcement on
Board of Directors Resolutions of the Second Meeting of the
Fifth Board of Directors on
http://www.cninfo.com.cn
The 3rd meeting of the fifth September 12, 2023 September 13, 2023 No. 2023-085 Announcement on
Board of Directors Resolutions of the Third Meeting of the
Fifth Board of Directors on
http://www.cninfo.com.cn
The 4th meeting of the fifth October 27, 2023 October 28, 2023 No. 2023-094 Announcement on
Board of Directors Resolutions of the Fourth Meeting of the
Fifth Board of Directors on
http://www.cninfo.com.cn
The 5th meeting of the fifth December 6th, 2023 December 7, 2023 No. 2023-107 Announcement on
Board of Directors Resolutions of the Fifth Meeting of the Fifth
Board of Directors on
http://www.cninfo.com.cn
The 6th meeting of the fifth December 22, 2023 December 22, 2023 No. 2023-126 Announcement on
Board of Directors Resolutions of the Sixth Meeting of the Fifth
Board of Directors on
http://www.cninfo.com.cn
Directors’ presence at Board Meetings and Shareholders’ Meetings
Board In-person Audio/Video Delegate Absence Failing in-person
Presence at
meetings to presence at presence at presence at from presence at two
Director shareholders’
be attended board board board board consecutive
meetings
in the period meetings meetings meetings meeting board meetings
Cao Renxian 8 3 5 0 0 No 2
Gu Yilei 8 3 5 0 0 No 2
Zhang
Xucheng
Zhao Wei 8 3 5 0 0 No 2
Wu Jiamao 6 2 4 0 0 No 2
Gu Guang 8 3 5 0 0 No 2
Li Mingfa 8 3 5 0 0 No 2
Zhang Lei 6 2 4 0 0 No 1
Zheng Guibiao 2 1 1 0 0 No 1
Li Baoshan 2 1 1 0 0 No 1
Whether there were objections raised by directors to matters related to the Company
□ Yes No
No directors raised any objection to matters related to the Company during the reporting period.
Whether suggestions made by directors were accepted
Yes □ No
Explanation on accepting or rejecting suggestions made by directors
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
During the reporting period, all directors of the Company strictly followed the Company Law, the Securities Law, the Governance
Guidelines for Listed Companies, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized
Operation of GEM-Listed Companies, as well as other relevant regulations and requirements in the Articles of Association and the
Rules of Procedure for the Board of Directors. All directors attended board meetings and shareholders’ meetings proactively, performed
their duties in a diligent and conscientious way, and put forward relevant opinions on the Company's major governance and business
decisions based on the actual situation, to ensure adequate discussion and science-based decision-making in a timely and efficient way,
and safeguard the legitimate rights and interests of the Company and all shareholders.
IX. Operation of Special Committees under the Board of Directors During the Reporting Period
Specific
Important
No. of Date of Performance circumstances
Committee Members Content of Meeting comments and
Meetings Meeting of other duties of objection (if
suggestions made
any)
The Audit Gu 1 Apr. 22, 2023 Deliberation of the Approved the No No
Committee Guang, Li Proposal on Re- proposals, and
Baoshan, engaging the agreed to submit
Zheng Company's Auditing the proposals for
Guibiao Firm for 2023, the deliberation by
Proposal on the the Board of
Company's 2022 Directors
Annual Report and
the Report Summary
The Audit Gu Apr. 22, 2023 Deliberation of the Approved the
Committee Guang, Li Proposal on the proposal, and
Baoshan, Company's 2023 agreed to submit
Zheng 1 First Quarter Report the proposal for No No
Guibiao deliberation by
the Board of
Directors
The Audit Gu Aug. 17, Deliberation of the Approved the
Committee Guang, Li 2023 Proposal on the proposal, and
Mingfa, Company's 2023 agreed to submit
Zhang 1 Half Year Report the proposal for No No
Lei and the Report deliberation by
Summary the Board of
Directors
The Audit Gu Oct. 26, 2023 Deliberation of the Approved the
Committee Guang, Li Proposal on the proposal, and
Mingfa, Company's 2023 agreed to submit
Zhang 1 Third Quarter the proposal for No No
Lei Report deliberation by
the Board of
Directors
The Cao Apr. 22, 2023 Deliberation of the Approved the
Nomination Renxian, Proposal on the proposal, and
Committee Li Election of the agreed to submit
Mingfa, Board of Directors the proposal for
Gu and Nomination of deliberation by
Guang Candidates for the the Board of
Fifth Board of Directors
Directors
The Li Apr. 22, 2023 Deliberation of the Approved the
Remuneration Baoshan, Proposal on the proposals, and
and Evaluation Li 2023 Remuneration agreed to submit
Committee Mingfa, of Directors, the proposals for
Zhang Supervisors and deliberation by
Xucheng Executives, the the Board of
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Proposal on the Directors
Achievement of
Vesting Conditions
for the First Vesting
Schedule of the First
Grant in the 2022
Restricted Stock
Incentive Plan and
Relevant Matters,
the Proposal on
Granting the
Reserved Part of
Restricted Shares to
Incentive Objects of
the 2022 Restricted
Stock Incentive Plan,
the Proposal on the
Buyback and
Cancellation of
Some Restricted
Shares
The Cao Nov. 29, 2023 Deliberation of the Approved the
Remuneration Renxian, Proposal on the proposals, and
and Evaluation Li Company's 2023 agreed to submit
Committee Mingfa, Restricted Stock the proposals for
Zhang Incentive Plan deliberation by
Lei (Draft) and its the Board of
Summary, the Directors
Proposal on the
Assessment
Measures for the
Implementation of
Stock Incentive Plan,
and the Proposal on
Requesting the
Shareholders’
Meeting to Authorize
the Board of
Directors to Proceed
with the 2023
Restricted Stock
Incentive Plan
Related Initiatives
The Cao Dec. 15, 2023 Deliberation of the Approved the
Remuneration Renxian, Proposal on the proposal, and
and Evaluation Li First Grant of agreed to submit
Committee Mingfa, 1 Restricted Shares to the proposal for No No
Zhang Incentive Objects deliberation by
Lei the Board of
Directors
The Strategy Cao Dec. 5, 2023 Discussion on the
and Renxian, Company's medium-
Approved the
Sustainability Gu Yilei, 1 and long-term No No
relevant content
Committee Zhang planning
Xucheng
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
X. Operation of the Board of Supervisors
Whether the Board of Supervisors identified any risks during the monitoring activities in the reporting period
□ Yes No
The Board of Supervisors had no objections to matters subject to supervision in the reporting period.
XI. Employees
Incumbent employees of the parent company at the end of the period 5,926
Incumbent employees of major subsidiaries at the end of the period 7,771
Total incumbent employees at the end of the period 13,697
Total number of employees receiving remuneration in the current period 13,697
Retirees to be financially supported by the parent company and major subsidiaries 0
Professional Background
Profession Split Head Count
Production 4,261
Sales 2,076
Technical 5,372
Financial 215
Administration 1,773
Total 13,697
Educational Background
Education Level Head Count
Doctor 89
Master 3,024
Bachelor 6,025
College Graduate and below 4,559
Total 13,697
Competitive remuneration stimulates employees’ enthusiasm and creativity, and promotes the sustainable growth of the Company. On
perusal of the Company’s strategic development needs and based on the different stages of business development (mature business for
profit contribution and seeding business for rapid growth), the Company designed targeted incentive plans incorporating the medium-
and long-term objectives, thereby promoting the sustainable development of the various businesses. The Company also made
remuneration adjustments according to the relevant national laws and regulations on human resources management, the market status,
and employees' individual job performance, so as to allow employees to receive reasonable returns, and establish a remuneration and
performance management system that takes into account of internal fairness and external competitiveness.
Adhering to the value proposition of “accelerate employees’ growth and fulfill employees’ dreams", the Company empowers
employees in a continuous, systematic, and science-based manner. By establishing a three-tier training architecture consisting of
leadership/induction/general competency training at the group level, professional capacity training at division level, and job skills
training at department level, the Company improves employees' professional skills and competencies through the accumulation, sharing,
application, and innovation of knowledge, experience, and abilities, so that employees’ growth is aligned with the Company's strategic
goals. On the foundation of the Regulations on Training Management, the Company has established and optimized a management
mechanism for key groups including internal trainers, induction mentors, and learning committee members, in order to accelerate
empowerment, standardize and promote human resources development, and enhance organizational capabilities. In addition, the
Company has launched a number of strategic training programs along its development, such as the internationalization and
digitalization enhancement programs, to continuously reinforce the Company's global competitiveness and promote digital
transformation. The Company received a number of honors related to human resources and learning development in 2023, such as the
Silver Award in the 8th CSTD National Enterprise Learning Design Competition, the 2023 SHL Best Practice in Talent Driven Award,
and the 2023-2024 Best Practices for Offshore HR Management.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
XII. Profit Distribution and Conversion of Capital Reserve into Share Capital
The formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy, during the
reporting period
Applicable □ Not Applicable
The 2022 profit distribution plan was reviewed and approved at the 23rd meeting of the fourth Board of Directors held on April 24,
(the existing total share capital of 1,485,190,984 shares minus 6,485,049 shares that have been bought back in the special account for
buyback), the Company planned to distribute a cash dividend of CNY 2.20 (tax inclusive) for every 10 shares to all shareholders, with
the total cash dividend amounting to CNY 325,315,305.70 (tax inclusive). The remaining undistributed profit carried forward next
year. No share capital was increased, and no bonus shares was issued this year. This profit distribution plan was implemented on June
The Company strictly implemented the profit distribution policy in accordance with the Articles of Association. The formulation and
implementation of the Company's cash dividend policy were aligned with the provisions in the Articles of Association and the
requirements in the resolution of the shareholders' meeting. The dividend standard and proportion were clearly specified; the relevant
decision-making procedures and mechanisms were in place. Independent directors fulfilled their responsibilities and played their roles,
the minority shareholders fully expressed their opinions and demands, and the legitimate rights and interests of the minority
shareholders were adequately safeguarded.
Special Explanation on the Cash Dividend Policy
Whether it complied with the provisions in the Articles of Association or the Yes
requirements in the resolution(s) of the shareholders' meeting:
Whether the dividend standard and proportion were clearly specified: Yes
Whether the relevant decision-making procedures and mechanisms were in Yes
place:
Whether independent directors performed their duties and played their roles: Yes
Where no cash dividend was distributed, explain the reason(s) in detail as well
Not Applicable
as the follow-up measures to enhance investor returns:
Whether minority shareholders had the opportunity to fully express their
views and demands, and whether their legitimate rights and interests were Yes
adequately safeguarded:
In the case of cash dividend policy modification or change, whether the
Not Applicable
conditions and procedures were compliant and transparent:
The Company's profit distribution plan and capital reserve conversion plan for the reporting period were consistent with the relevant
provisions in the Articles of Association and the dividend management policy
Yes □ No □ Not Applicable
The Company's profit distribution plan and capital reserve conversion plan for the reporting period were in line with the relevant
provisions in the Articles of Association.
Profit distribution and conversion of capital reserve into share capital for the year
Number of bonus shares for every 10 shares 0
Dividend (in CNY) per 10 shares (tax inclusive) 9.65
Number of shares transferred per 10 shares 4
Equity base of the distribution plan (in shares) 1,468,642,351
Cash dividend (in CNY) (tax inclusive) 1,417,239,868.72
Cash dividend in other ways (such as share buyback) (in CNY) 980,071,383.03
Total cash dividend (including those distributed in other ways) (in CNY) 2,397,311,251.75
Distributable profit (in CNY) 17,918,678,752.33
Total cash dividend (including those distributed in other ways) in total
profit distribution
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Overview of this Cash Dividend
Other
Detailed description of the profit distribution or the capital reserve conversion plan
As audited and confirmed by RSM China (Special General Partnership), the net profit realized by the parent company in 2023
was CNY 9,606,878,894.04, and the accrual for statutory reserves exceeded 50% of the total share capital, hence requiring no
further accrual. As of December 31, 2023, the distributable profit of the parent company was CNY 17,918,678,752.33, which was
composed of CNY 9,606,878,894.04 of remaining undistributed profit and CNY 8,637,115,163.99 of undistributed profit from
previous periods, deducted by a cash dividend of CNY 325,315,305.70 distributed in 2022.
According to CSRC’s guidelines on encouraging listed companies to distribute cash dividends and providing investors with stable
and reasonable returns, as well as relevant provisions in the Company Law and the Articles of Association, while considering the
Company's financial status, share capital, profitability, and future business growth and for the purposes of improving returns for
shareholders, sharing operating results with shareholders, and enhancing stock liquidity, the Company plans to appropriately
increase the cash dividend ratio for this year and transfer certain capital reserve to share capital. The plan for profit distribution
and share capital increase from capital reserve for 2023 is as follows:
Based on a share capital of 1,468,642,351 shares (the existing total share capital of 1,485,190,984 shares minus 16,508,633 shares
that have been bought back in the special account for buyback), the Company plans to distribute a cash dividend of CNY 9.65
(tax inclusive) for every 10 shares to all shareholders, with the total cash dividend amounting to CNY 1,417,239,868.72 (tax
inclusive). The remaining undistributed profit will carry forward next year. In addition, 4 shares from the capital reserve will be
transferred for every 10 shares to all shareholders. After the increase, the total share capital goes up to 2,072,607,924 shares. No
bonus shares will be issued this year. In the event that the total share capital and the number of buyback shares change in the
period from the date of disclosure of this plan and the date of record for equity distribution, the total amount of cash dividend will
be adjusted following the principle of “fixed ratio for cash dividend distribution” based on a share capital of total shares on the
date of record minus shares that have been bought back in the special account for buyback, and the total amount of share capital
increase will be adjusted following the principle of "fixed ratio for transferring capital reserve to share capital".
The Company was profitable during the reporting period, the parent company made positive profits distributable to shareholders, but
no cash dividend distribution plan was proposed
□ Applicable Not Applicable
XIII. Progress of the Company's Equity Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentive
Measures
Applicable □ Not Applicable
a. Equity incentives
The 2022 Restricted Stock Incentive Plan
Stock Incentive Plan (Draft) and its Summary, the Proposal on the Assessment Measures for the Implementation of the 2022 Restricted
Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with
the 2022 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. Independent directors expressed independent
views on whether the plan contributed to the sustainable development of the Company and whether there were any signs of
compromising the benefits of the Company and all shareholders. On the same day, the Company held the 14th meeting of the fourth
Board of Supervisors, at which the Proposal on the 2022 Restricted Stock Incentive Plan (Draft) and its Summary, the Proposal on
Verifying the List of Incentive Objects in the Company’s 2022 Restricted Stock Incentive Plan, and the Proposal on Assessment
Measures for the Implementation of the 2022 Restricted Stock Incentive Plan were reviewed and approved. The Board of Supervisors
verified the relevant matters of this incentive plan and issued verification opinions.
www.cninfo.com.cn. Subject to the entrust from other independent directors of the Company, independent director Li Mingfa, as the
solicitor, solicited voting rights from all shareholders of the Company for the 2022 Restricted Stock Incentive Plan to be reviewed at
the first extraordinary general meeting in 2022.
The Board of Supervisors did not receive any objections to the list during the announcement period. On May 24, 2022, the Company
announced the Explanation and Verification Opinions of the Board of Supervisors on the List of Incentive Objects in the Company's
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Stock Incentive Plan (Draft) and its Summary, the Proposal on Assessment Measures for the Implementation of the 2022 Restricted
Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with
the 2022 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, the Company disclosed
the Self-Examination Report on the 2022 Restricted Stock Incentive Plan Insiders’ Trading of the Company’s Stock on
www.cninfo.com.cn.
Supervisors, at which the Proposal on Adjusting the List of Incentive Objects, the Number of Objects and the Number of Shares to be
Granted for the First Grant of the 2022 Restricted Stock Incentive Plan and the Proposal on Granting Restricted Shares to Incentive
Objects for the First Time were reviewed and approved. Independent directors expressed independent views on the matters, reckoning
that the granting conditions were met, the qualifications of the Company and the incentive objects were legitimate and valid, and the
grant date identified complied with relevant regulations. The Board of Supervisors verified the relevant matters of this incentive plan
and issued verification opinions.
Supervisors, at which the Proposal on the Achievement of Vesting Conditions for the First Vesting Schedule of the First Grant in the
Incentive Objects of the 2022 Restricted Stock Incentive Plan were reviewed and approved. Independent directors expressed
independent views on the matters, the Board of Supervisors verified the list of incentive objects for the grant and issued verification
opinions.
circulation. A total of 1,488,750 shares from 449 holders vested this time. According to the 2022 Restricted Stock Incentive Plan (Draft)
and its Summary, due to the equity distribution of the Company before the equity incentives, the granting price of the 2022 Restricted
Stock Incentive Plan should be adjusted from CNY 35.43 per share to 35.21 per share.
The 2023 Restricted Stock Incentive Plan
Stock Incentive Plan (Draft) and its Summary, the Proposal on the Assessment Measures for the Implementation of the 2023 Restricted
Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with
the 2023 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, the Company held the 4th
meeting of the fifth Board of Supervisors, at which the Proposal on the 2022 Restricted Stock Incentive Plan (Draft) and its Summary,
the Proposal on the Assessment Measures for the Implementation of the 2023 Restricted Stock Incentive Plan, and the Proposal on
Verifying the List of Incentive Objects in the Company’s 2023 Restricted Stock Incentive Plan were reviewed and approved. The Board
of Supervisors verified the relevant matters of this incentive plan and issued verification opinions.
www.cninfo.com.cn. Subject to the entrust from other independent directors of the Company, independent director Gu Guang, as the
solicitor, solicited voting rights from all shareholders of the Company for the 2023 Restricted Stock Incentive Plan to be reviewed at
the first extraordinary general meeting in 2023.
recipients for the first grant. The Board of Supervisors did not receive any objections to the list during the announcement period. On
December 15, 2023, the Company announced the Explanation and Verification Opinions of the Board of Supervisors on the List of
Incentive Objects in the Company's 2023 Restricted Stock Incentive Plan on www.cninfo.com.cn.
Restricted Stock Incentive Plan (Draft) and its Summary, the Proposal on Assessment Measures for the Implementation of the 2023
Restricted Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to
Proceed with the 2023 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, the Company
disclosed the Self-Examination Report on the 2023 Restricted Stock Incentive Plan Insiders’ and First Grant Incentive Objects’ Trading
of the Company’s Stock on www.cninfo.com.cn.
Supervisors, at which the Proposal on Granting Restricted Shares to Incentive Objects for the First Time was reviewed and approved.
The Board of Directors reckoned that the granting conditions were met, the qualifications of the Company and the incentive objects
were legitimate and valid, and the grant date identified complied with relevant regulations. The Board of Supervisors verified the list
of incentive objects for the grant and issued verification opinions.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity incentives granted to directors and executives
Applicable □ Not Applicable
(in shares)
Name Title Stock Stock Shares Shares Exercise price Stock Market price Restricted Restricted Restricted Granting price Restricted
options options exercisable exercised of shares options at the end of shares shares shares of restricted shares
held at the granted in the period in the exercised in held at the period held at unlocked newly shares held at
beginning in the period the period the end (CNY/share) the in the granted in (CNY/share) the end of
of the period (CNY/share) of the beginning period the period the period
period period of the
period
Gu Yilei Vice 200,000 43.22
Chairman,
SVP
Wu Jiamao Director, 150,000 43.22
SVP
Li Shun SVP 120,000 43.22
Chen Zhiqiang VP 120,000 43.22
Deng Dejun VP 120,000 43.22
Lu Yang VP 120,000 43.22
Tian Shuai VP 120,000 43.22
Wang Lei VP 120,000 43.22
Total -- -- -- 1,070,000 --
Evaluation mechanism and incentives for executives
The Company has established a complete performance evaluation system and remuneration system for executives. Based on the delivery status of the Company's annual business objectives and
the job performance of executives, the Remuneration and Evaluation Committee of the Board of Directors carries out annual performance evaluation of executives and supervises the
implementation of the remuneration system. Rewards and punishments will be applied correspondingly according to the performance evaluation results.
b. Implementation of the Employee Stock Ownership Plan
□ Applicable Not Applicable
c. Other Employee Incentive Measures
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
XIV. Establishment and Implementation of the Internal Control System during the Reporting Period
In strict accordance with the Company Law, the Securities Law, the Governance Guidelines for Listed Companies as well as other
requirements in normative documents on the governance of listed companies issued by the China Securities Regulatory Commission,
the Company continued to improve the corporate governance structure and systems, such as the shareholders’ meeting, the Board of
Directors, and the Board of Supervisors. In addition, the Company followed the latest requirements of laws and regulations to
standardize the behavior of controlling shareholders, actual controllers, directors, supervisors, executives and related parties, thereby
improving the level of internal governance. The Company organized directors, supervisors and executives to regulatory compliance
training on a timely basis, hence to improve the corporate governance standard of the management team. For middle-level managers
and ordinary employees, the Company conducted targeted compliance training to improve their risk prevention awareness, strengthen
operational compliance, and ensure the effective implementation of internal control policies, so that the Company’s standard operation
level could be effectively raised, and the healthy and sustainable development could be promoted.
Subject to the Basic Internal Control Standards and the supporting guidelines as well as other internal control regulations, the Company
established internal control systems and evaluation mechanisms. Following the principle of risk orientation, such systems and
mechanisms were constantly optimized on the basis of routine supervision and special supervision of internal control, so as to cope
with the ever-changing external environment and internal management requirements. During the reporting period, the development
and implementation of the Company's internal control system complied with the Basic Internal Control Standards and the relevant
laws and regulations, and ensured effective internal control in all major aspects related to the business operation and management of
the Company. There were no critical internal control deficiencies in financial reporting or non-financial reporting.
□ Yes No
XV. Management and Control of the Company's Subsidiaries during the Reporting Period
Problems
Company Integration Resolutions Resolution
Integration Plan during Action Plan
Name Progress Taken Progress
Integration
Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
XVI. Internal Control Self-Assessment Report or Internal Control Audit Report
The full text of the internal control assessment report was disclosed on April 23, 2024
The full text of the internal control assessment report was disclosed at www.cninfo.com.cn
The ratio of the total assets of organizations included in the assessment to
the total assets of the Company's consolidated financial statements
The ratio of the operating income of organizations included in the
assessment to the Company’s total operating income in the consolidated 100.00%
financial statements
Criteria of Deficiencies
Category Financial Reports Non-Financial Reports
Qualitative Criteria Each of the following is considered a critical Deficiencies with the following characteristics are
deficiency of the Company: Fraudulence of the considered as critical deficiencies in the internal
Company's directors, supervisors and control of non-financial reports:
executives; corrections to financial statements 1) No scientific basis for the decision-making
disclosed; mistakes or omissions of major data procedures, resulting in major mistakes;
in the current financial statements discovered by 2) High turnover of key positions, professionals
certified public accountant but ignored by the and technical personnel;
internal audit department during the control 3) Internal control assessment results, especially
operation. critical deficiencies, are not rectified;
negative impact on the Company.
Other situations are categorized as major
deficiencies or minor deficiencies according to the
level of impact.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Quantitative Criteria The quantitative criteria for determining the The quantitative criteria for determining internal
significance of mistakes (including omissions) control deficiencies in non-financial reports shall
in the Company's consolidated financial refer to the quantitative criteria for determining
statements by benchmarking the data from internal control deficiencies in financial reports.
previous annual financial statements:
Critical deficiency: mistakes ≥ 5% of total profit
Major deficiency: 2% of total profits ≤ mistakes
≤ 5% of total profit
Minor deficiency: mistakes ≤ 2% of total profit
Number of critical deficiencies in financial reports 0
Number of critical deficiencies in non-financial reports 0
Number of major deficiencies in financial reports 0
Number of major deficiencies in non-financial reports 0
Not Applicable
XVII. Rectification of Problems Found in Dedicated Self-Examination Initiatives on Corporate Governance
According to the relevant requirements, the Company carried out dedicated self-examination initiatives on corporate governance in
strict accordance with the Company Law, the Securities Law and relevant laws and administrative regulations following a truth-based
principle. The dedicated self-examination on corporate governance of listed companies identified that the Company had established a
supporting corporate governance structure and internal control system in accordance with the provisions of the Company Law, the
Securities Law, and the Governance Guidelines for Listed Companies, and there were no critical issues that need to be rectified. As the
Company develops and the internal and external environment changes, it shall further improve the internal control system, strengthen
the learning and training of directors, supervisors, executives and relevant personnel, optimize the management details of the internal
control system and standardized operation of listed companies, hence to continuously improve the governance quality as a listed
company.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section V Environment and Social Responsibilities
I. Major Environmental Issues
Whether the Company and its subsidiaries are included in the list of key pollutant discharge organizations identified by the
environmental authority
□ Yes No
Administrative penalties for environmental issues during the reporting period
The Company was subject to no environment-related administrative penalties during the reporting period.
Other environmental information disclosed as a key pollutant discharge unit
The Company was subject to no environment-related administrative penalties during the reporting period.
Measures taken to reduce carbon emissions during the reporting period and their effects
Applicable □ Not Applicable
Sungrow actively implements carbon inventory and carbon footprint standards, and started company-wide carbon inventory in 2020 to
provide basic data support for the Company to address climate-related risks, reduce carbon emissions, enhance competitiveness and
stability. The Company joined the RE100 and EP100 initiatives, insisted on supporting the Dual Carbon goals with its operation, and
constantly grew a sustainable low-carbon industrial chain to promote harmonious coexistence between the Company and nature. The
Company developed emission reduction measures and comprehensively rolled out the Net Zero strategy. The Company's greenhouse
gas emissions (Scope 1 + Scope 2) in 2023 were 41,755 tons of CO2 equivalent, a decrease of 1,502 tons year-on-year. In 2023, the
Company’s use of green power accounted for 55% of total use of electricity. For details of the Company’s carbon emission results,
please refer to the Sungrow Power Supply Co., Ltd. 2023 Sustainability Report disclosed on www.cninfo.com.cn.
Reasons for not disclosing other environmental information
The Company and its subsidiaries are not included in the list of key pollutant discharge units identified by the environmental authority.
The Company actively responds to the requirements of the national and local governments, strictly regulates noise, effluent, waste gas,
and hazardous waste generated within the Company, formulates corresponding environmental protection rules and regulations, and
monitors noise, effluent, waste gas, and hazardous waste in strict accordance with the pollution discharge permit management
requirements.
II. Social Responsibilities
For details, please refer to the Sungrow Power Supply Co., Ltd. 2023 Sustainability Report disclosed on www.cninfo.com.cn.
III. Efforts on Consolidating and Expand the Achievements of Poverty Alleviation and Rural Revitalization
Sungrow practices sustainability in operation and leverages its business advantages and resources to improve the lives of residents in
the surrounding, and contribute to local communities. The Company collaborates with governments, customers, enterprises, and non-
profit organizations in various countries to launch a number of activities, including rural revitalization, disaster assistance, and public
welfare donations, so as to benefit the communities along the Company's operations. In order to progress the public welfare volunteer
service effectively, ensure the rational and efficient use of public welfare funds, and practically fulfill corporate social responsibilities,
the Company formulated the Regulations on Managing External Donations, developed implementation plans for public welfare
products, and empowered public welfare volunteer service in the aspects of system, process, and resources, hence to reward the society
with practical actions. The Company made the following efforts in 2023:
In 2023, Sungrow organized a number of volunteer service activities in the theme of "Go For Nature” in Hefei, Beijing, Shanghai,
Munich, Dubai, and Sydney, including the Clean Mountains Action, the Get Close to Nature and Understand Bees, and the Garbage
Cleaning and Classification. By the end 2023, there were 1,352 registered volunteers in the Company contributing to a cumulative
volunteer service of 3,442 hours. In the future, Sungrow will further optimize the volunteer management system and plan diverse global
activities.
In October 2023, Sungrow, in joint efforts with The Nature Conservancy (TNC) and the Deyang Administration Branch of the Giant
Panda National Park, planted 6.67 hectares of Sungrow Forest and built 10 breeding caves for wild animals in Deyang Giant Panda
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
National Park of Sichuan. The Sungrow Forest program plans to plant 33.33 hectares of suitable trees and edible bamboo over a period
of 5 years, rebuild wildlife corridors and the ecosystem, in order to accelerate the habitat restoration for giant pandas. Currently, 13.33
hectares of trees and bamboo have been planted. In June 2023, Sungrow kicked off the Sungrow Trailwalk globally, and worked with
the China Green Foundation in the Wetland Conservation Program which protected and restored approximately 3,500 square meters
of wetland to maintain the habitats of Baer′s pochard, red-crowned cranes, among other rare species.
With a focus on the rural revitalization strategy, Sungrow actively responded to national policies such as green development, energy
conservation and emission reduction, and contributed to the sustainable development of villages and towns by donating PV power
stations. Located in the central part of Gansu Province, Jinchang City boasted abundant solar energy resources. Sungrow built a 100.8
kW PV power station on the roofs of Xinliangdi Village Committee in Shuangwan Town of Jinchuan District. The power station was
officially connected to the grid for power generation on August 20, 2023, and the power generation earnings were used for centralized
heating in the Xinliangdi Village Nursing Home as well as for improving the living environment in the village.
Sungrow actively engaged in community support activities by donating Sungrow Smart Classrooms and setting up the Sungrow New
Energy Science Popularization Courses, hence to assist children's growth and education. The Company set up Sungrow Elderly Care
and donated recreation centers for the elderly in villages and towns to watch for the physical and mental health of the elderly.
On the night of December 18, 2023, a 6.2 magnitude earthquake rattled Jishishan County of Linxia Prefecture in Gansu Province. The
Company quickly responded to the disaster and donated CNY 1 million to the China Foundation for Rural Development for emergency
rescue and disaster recovery.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section VI Significant Events
I. Fulfillment of Undertakings
by the end of the reporting period
Applicable □ Not Applicable
Origin of Type of Date of Status of
Undertaker Content Duration
undertaking undertaking undertaking fulfillment
Shareholders Mr. Cao Renxian, Mr. Zheng Guibiao and Mr.
Zhao Wei, who serve as the Company’s directors and/or The
Undertaking at Undertaking on executives, hereby undertake that no shares exceeding 25% of undertaking is
Cao Renxian, Zheng
IPO or executive’s the total shares held by each individual shall be transferred Jan. 31, 2011 Long-term being fulfilled
Guibiao, Zhao Wei
refinancing share lock up each year after the lock-up period, and no shares held by each with no signs
individual shall be transferred within 6 months after the of breaching.
shareholder resigns from the Company.
companies I have interests in, have not produced or developed
any product that competes or may compete with those
produced by the joint-stock company; have not directly or
indirectly operated any business that competes or may compete
with those operated by the joint-stock company; have not
invested in any other enterprise that competes or may compete
with the joint-stock company in terms of products or business;
companies I have interests in, will not produce or develop any The
Undertaking at Undertaking on product that competes or may compete with those produced by undertaking is
IPO or Cao Renxian horizontal the joint-stock company; will not directly or indirectly operate Jan. 31, 2011 Long-term being fulfilled
refinancing competition any business that competes or may compete with those with no signs
operated by the joint-stock company; will not invest in any of breaching.
other enterprise that competes or may compete with the joint-
stock company in terms of products or business; 3. As of the
date of signing this Letter of Undertaking if the joint-stock
company further expands its products and business scope, I or
the companies I have interests in, will not compete with the
joint-stock company in terms of the expanded products or
business. In the event of competition with the expanded
products or business of the joint-stock company, I or the
companies I have interests in, will stop producing the
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Origin of Type of Date of Status of
Undertaker Content Duration
undertaking undertaking undertaking fulfillment
competing product or operating the competing business, or
incorporate the competing business into the joint-stock
company, or transfer the competing business to an unrelated
third party, in order to avoid horizontal competition; 4. If this
Letter of Undertaking is proven to be untrue or not complied
with, the undertaker will indemnify the joint-stock company
for any and all direct and indirect losses.
undertaker or the company controlled by the undertaker, has
not produced or developed any product that competes or may
compete with those produced by the joint-stock company; has
not directly or indirectly operated any business that competes
Hefei Huizhuo Equity or may compete with those operated by the joint-stock
Investment Partnership company; has not invested in any other enterprise that
(Limited Partnership) competes or may compete with the joint-stock company in
The
(formerly Xinjiang Shangge terms of products or business; 2. Whenever the undertaker still
Undertaking at Undertaking on undertaking is
Equity Investment holds 5% or more of the joint-stock company’s shares, the
IPO or horizontal Jan. 31, 2011 Long-term being fulfilled
Partnership (Limited undertaker or the company controlled by the undertaker will
refinancing competition with no signs
Partnership), Luzhou not produce or develop any product that competes or may
of breaching.
Huizhuo Enterprise compete with those produced by the joint-stock company; will
Management Partnership not directly or indirectly operate any business that competes or
(Limited Partnership)) may compete with those operated by the joint-stock company;
will not control any other enterprise that competes or may
compete with the joint-stock company in terms of products or
business; 3. If this Letter of Undertaking is proven to be untrue
or not complied with, the undertaker will indemnify the joint-
stock company for any and all direct and indirect losses.
During the
The
The undertaker does not provide loans or financial assistance in implement
Undertaking undertaking is
Other other forms, including providing guarantees for their loans, for May 13, action of the
on equity Sungrow being fulfilled
undertaking incentive objects of the 2022 Restricted Stock Incentive Plan to 2022 Company's 2022
incentive with no signs
acquire restricted shares. Restricted Stock
of breaching.
Incentive Plan
The undertaker does not provide loans or financial assistance in During the The
Undertaking
Other other forms, including providing guarantees for their loans, for December 6, implement undertaking is
on equity Sungrow
undertaking incentive objects of the 2023 Restricted Stock Incentive Plan to 2023 action of the being fulfilled
incentive
acquire restricted shares. Company's 2023 with no signs
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Origin of Type of Date of Status of
Undertaker Content Duration
undertaking undertaking undertaking fulfillment
Restricted Stock of breaching.
Incentive Plan
Undertaking is
fulfilled on Yes
time
If the
undertaking is
expired and
not fulfilled,
specify the
Not Applicable
detailed
reasons for
failure to fulfill
and subsequent
action plans
the profit forecast and the reasons behind
□ Applicable Not Applicable
II. Non-Operating Appropriation of Funds by Controlling Shareholders or Other Related Parties
□ Applicable Not Applicable
In the reporting period, there was no non-operating appropriation of funds by controlling shareholders or other related parties.
III. Illegal External Guarantees
□ Applicable Not Applicable
In the reporting period, the Company made no illegal external guarantees.
IV. The Board of Directors’ Statement on the Most Recent Non-Standard Audit Report
□ Applicable Not Applicable
V. Statement of the Board of Directors, the Board of Supervisors, and Independent Directors (if any) on the Non-Standard Audit Report Issued by the Accounting Firm in the
Reporting Period
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
VI. The Board of Directors’ Statement on the Changes in Accounting Policies and Accounting Estimates and the
Corrections to Significant Accounting Errors in the Reporting Period
Applicable □ Not Applicable
that is not subject to initial recognition exemption” in the No. 16 Interpretation of Accounting Standards for Business Enterprises
On November 30, 2022, the Ministry of Finance issued the No. 16 Interpretation of Accounting Standards for Business Enterprises
(MOF-Acc-[2022] No. 31, hereinafter referred to as the Interpretation No. 16), in which the “Accounting treatment for deferred income
tax related to assets and liabilities arising from individual transactions that is not subject to initial recognition exemption” started to
take effect as of January 1, 2023.
The Company started to implement this provision in the Interpretation No. 16 as of January 1, 2023. For applicable individual
transactions throughout the period from the beginning of the earliest period in financial statements where the provision was
implemented for the first time (that is, January 1, 2022) to January 1, 2023, the Company made adjustments according to the provision
in the Interpretation No. 16. For applicable lease liabilities and right of use assets recognized on January 1, 2022, should there be
taxable temporary differences and deductible temporary differences, the Company adjusted the cumulative impact on retained earnings
and other related financial statement items on the date of January 1, 2022 in accordance with the Interpretation No. 16 and the
provisions in Accounting Standards for Business Enterprises No. 18—Income Tax.
Following the implementation of this accounting treatment regulation, the Company retroactively adjusted the deferred income tax
assets of CNY 1,091,131.85 in the consolidated financial statements dated January 1, 2022. The impact posed by this adjustment on
equity attributable to owners of the parent company in the consolidated financial statements was CNY 951,864.62, including a capital
reserve of CNY 38,645.81, a surplus reserve of CNY 29,777.66, and undistributed profits of CNY 883,441.15. The impact on equity
of minority shareholders was CNY 139,267.23. In the financial statements of the parent company, the deferred income tax assets dated
January 1, 2022 was adjusted by CNY 297,776.60. The impact posed by this adjustment on shareholder's equity in the financial
statements of the parent company was CNY 297,776.60, including a surplus reserve of CNY 29,777.66 and undistributed profits of
CNY 267,998.94.
In addition, the Company retrospectively adjusted the relevant items in the 2022 consolidated financial statements and the financial
statements of the parent company as follows:
Items affected Dated December 31, 2022/Year 2022 Dated December 31, 2022/Year 2022
Balance sheet items: (Consolidated) (Parent Company)
Before Adjustment After Adjustment Before Adjustment After Adjustment
Deferred income tax assets
Capital reserve 1,024,759,727.51 1,025,988,368.36 310,943,335.06 311,100,998.02
Surplus reserve 7,052,840,542.50 7,052,879,188.31
Undistributed profits 1,066,201,017.69 1,066,216,783.99 1,066,201,017.69 1,066,216,783.99
Minority shareholders’
equity
Income statement items: 1,070,689,811.07 1,070,930,082.47
Income tax expenses
Items affected 438,525,751.74 438,388,242.74 380,272,127.77 380,412,241.41
on Information Disclosure by Companies Offering Their Securities to Public - Non-recurring Gains and Losses (Revision 2023) (CSRC
Announcement [2023] No. 65). As a result, the net non-recurring gains and losses after income tax deduction for the year 2022
decreased by CNY 38,592,748.76, including a decrease of CNY 38,431,832.32 in the net non-recurring gains and losses attributable
to common shareholders of the Company and a decrease of CNY 160,916.44 in the net non-recurring gains and losses attributable to
minority shareholders. The major non-recurring profit and loss item affected in 2022 was Government subsidies included in the current
profits and losses (excluding government subsidies closely related to the business and issued in the quota or quantity as per state
standards), which decreased by CNY 38,742,748.76.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Accounting Standards for Business Enterprises Interpretation.
On October 25, 2023, the Ministry of Finance issued No. 17 Interpretation of Accounting Standards for Business Enterprises (MOF-
Acc-[2023] No. 21) (hereinafter referred to as Interpretation No. 17), in which enterprises were allowed to implement the provisions
on “Accounting Treatment for Sale and Leaseback Transactions” in advance from the year of issuance. The Company started to
implement the provisions in Interpretation No. 17 on “Accounting Treatment for Sale and Leaseback Transactions” as of January 1,
VII. Changes in the Scope of Consolidated Statements as Compared to the Financial Reports of the Previous Year
Applicable □ Not Applicable
In this period, the Company newly established 4 wholly-owned subsidiaries, namely Hefei Sungrow Electrical Equipment Co., Ltd.,
Tangshan Leyang Power Supply Co., Ltd., Jiangsu Yuyi Yangxuan Energy Technology Co., Ltd., Weihai Renyang Power Supply Co.,
Ltd. The Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd., newly established 333 subsidiaries for power
station projects; other holding subsidiaries of the Company newly established 6 subsidiaries, and none of the subsidiaries newly
established in this period is an important one.
In this period, the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd., acquired 18 overseas project
companies for the purpose of developing power station business. None of the project companies newly included in the scope of
consolidated statements for this period is an important one.
According to the Company's business needs, in this period, the Company’s holding subsidiary, Sungrow Renewables Development
Co., Ltd., cancelled 224 subsidiaries that were not in actual business; the Company’s holding subsidiary, Sungrow Floating Modules
Technology Co., Ltd., cancelled 1 subsidiary that was not in actual business.
According to the Company's business needs, the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd.,
transferred 113 new energy project companies in this period, all of which were set up and transferred for the implementation of projects.
According to operational needs, Sungrow Renewable Energy Development Co., Ltd., a controlling subsidiary of the Company, reduced
one overseas subsidiary via consolidation merger in this period.
Zhong'an) and Hefei Zhong'an Sungrow New Energy Industry Investment Partnership (Limited Partnership) (hereinafter referred to as
Zhong'an Sungrow)
In October 2023, Anhui Railway Development Fund Co., Ltd. (hereinafter referred to as Railway Fund) withdrew its 49% equity in
Sungrow Zhong'an through capital reduction, and the Company became the only shareholder of Sungrow Zhong'an. Therefore,
Sungrow Zhong'an was included in the scope of consolidation. In December 2023, Railway Fund and other shareholders transferred
subsidiary of the Company, Sungrow Renewable Energy Development Co., Ltd. Therefore, Zhong’an Sungrow (including its subsidiary,
Hefei Qianhe New Energy Investment Co., Ltd.) was included in the scope of consolidation.
VIII. Engagement and Disengagement of Accounting Firms
Accounting firm currently engaged
Name of accounting firm in China RSM China (Special General Partnership)
Compensation for accounting firm in China (CNY 10K) 240
Years of continuous auditing service provided by the accounting firm in China 17
Name of CPAs of the accounting firm in China Wan Yunlong, Jiang Wei, Pan Lili
Years of continuous auditing service provided by the CPAs of the firm 4 years, 4 years, 2 years
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Whether to replace the accounting firm or not
□ Yes No
Engagement of internal control auditing/accounting firms, financial advisors, or sponsors
□ Applicable Not Applicable
IX. Statement on Delisting after the Disclosure of Annual Report
□ Applicable Not Applicable
X. Matters Related to Bankruptcy Reorganization
□ Applicable Not Applicable
No bankruptcy reorganization related matters happened to the Company in the reporting period.
XI. Major Litigations and Arbitrations
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
A case was filed against the 116.02 Yes In bankruptcy Judgment made by Enforcement was terminated by the People’s Sep. 5, Announcement
customer because they failed to proceedings the People’s Court Court of Hefei High-Tech Industrial Development 2019 2019-057
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property (http://www.cn
the contract. We applied for Industrial available for enforcement. Our bankruptcy info.com.cn/ne
enforcement to the court, and Development Zone liquidation application (2022-JS-1282-BLA-38) w/disclosure/d
the case is under enforcement has been accepted by the People's Court of etail?plate=szs
at the moment. Jingjiang City, our rights as a creditor has been e&orgId=9900
declared and confirmed. Currently, Jiangsu 021300&stock
Shenque Law Firm, the bankruptcy administrator, Code=300274
is proceeding with bankruptcy liquidation, we &announceme
will receive corresponding repayment in ntId=1206903
proportion to the asset situation in the future. 792&announce
A case was filed against the 103 No In enforcement Judgment made by Enforcement was terminated by the People’s mentTime=20
customer because they failed to the People's Court Court of Hefei High-Tech Industrial Development 19-09-
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property 05%2015:52)
the contract. The two parties Industrial available for enforcement. After our bankruptcy
reached a mediation in the Development Zone, liquidation application (2022-GD-13-BLA-46)
second instance, but the and mediated at the was rejected by the Interim People's Court of
defendant failed to perform as Intermediate Huizhou City, we appealed to the Higher People's
per the mediation. Therefore, People's Court of Court of Guangdong Province. On June 6, 2023,
we applied for enforcement to Hefei City Guangdong Provincial High People's Court
the court, and the case is under dismissed the appeal and affirmed the original
enforcement at the moment. judgment Affirmed in civil ruling 2022-GD-BFR-
the Supreme People's Court has been accepted.
The customer is a subsidiary of 1,634.4 Yes In bankruptcy Judgment made by We were not effectively repaid after judgment
Zhejiang Dunan Group. proceedings the Intermediate was made by the Intermediate People's Court of
Affected by the overall People’s Court of Hangzhou City. On February 4, 2021, the
operation of Dunan Group, the Hangzhou City Intermediate People's Court of Ordos City in
customer failed to pay as Inner Mongolia issued a ruling (2021-IM-0602-
agreed in the contract. BLA-1) on the Company’s bankruptcy and
Although a lawsuit was brought liquidation, and we have declared creditors'
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
to the court, they failed to claims to the administrator. So far, the first
perform; therefore, we applied creditors' meeting has been held, the
for enforcement. administrator is working on the checking, sorting,
and resale of the company's assets.
The customer is a subsidiary of 359 Yes In bankruptcy Judgment made by We were not effectively repaid after judgment
Zhejiang Dunan Group. proceedings the Intermediate was made by the Intermediate People's Court of
Affected by the overall People’s Court of Hangzhou City. On February 4, 2021, the
operation of Dunan Group, the Hangzhou City Intermediate People's Court of Ordos City in
customer failed to pay as Inner Mongolia issued a ruling (2021-IM-0602-
agreed in the contract. BLA-1) on the Company’s bankruptcy and
Although a lawsuit was brought liquidation, and we have declared creditors'
to the court, they failed to claims to the administrator. So far, the first
perform; therefore, we applied creditors' meeting has been held, the
for enforcement. administrator is working on the checking, sorting,
and resale of the company's assets.
The customer is a subsidiary of 534 Yes In bankruptcy Judgment made by We were not effectively repaid after judgment
Zhejiang Dunan Group. proceedings the Intermediate was made by the Intermediate People's Court of
Affected by the overall People’s Court of Hangzhou City. On February 4, 2021, the
operation of Dunan Group, the Hangzhou City Intermediate People's Court of Ordos City in
customer failed to pay as Inner Mongolia issued a ruling (2021-IM-0602-
agreed in the contract. BLA-1) on the Company’s bankruptcy and
Although a lawsuit was brought liquidation, and we have declared creditors'
to the court, they failed to claims to the administrator. So far, the first
perform; therefore, we applied creditors' meeting has been held, the
for enforcement. administrator is working on the checking, sorting,
and resale of the company's assets.
A case was filed against the 60.2 No In enforcement Judgment made by Enforcement was terminated by the People’s
customer because they failed to the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. We brought a Industrial available for enforcement. After we filed the
lawsuit to the court, and the Development Zone bankruptcy liquidation application at the
case is under enforcement at Intermediate People's Court of Wuhan City on
the moment. May 28, 2022, the company provided its accounts
receivable claims to a third party. Based on the
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
information, we had the accounts receivable
claims to third party frozen. Currently, the claims
have not matured and will be paid as conditions
allow.
A case was filed at the court 22.2 Yes In bankruptcy Judgment made by Enforcement was terminated by the People’s
because the customer failed to proceedings the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. Customer was Industrial available for enforcement. On March 29, 2021,
requested to pay CNY 222,000 Development Zone other creditors applied for bankruptcy liquidation
for the purchase together with of the company; however, the bankruptcy
overdue interests. Judgment has reorganization failed. On July 2, 2022, the
been made and enforcement in People's Court of Zhenjiang Economic
progress. Development Zone ruled bankruptcy liquidation
of the Company (2021-JS-1191-BLA-3).We have
declared creditor's rights to the administrator and
is currently waiting for the administrator’s further
advice.
A case was filed at the court 34.38 No In enforcement Judgment made by Enforcement was terminated by the People’s
because the customer failed to the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. Judgment has been Industrial available for enforcement. In June 2022, we filed
made and enforcement in Development Zone a bankruptcy liquidation application for the
progress. company at the People's Court of Lanshan
District, Linyi City, and the application materials
are currently being reviewed by the court.
A case was filed at the court 112.53 Yes In bankruptcy Judgment made by Enforcement was terminated by the People’s
because the customer failed to proceedings the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. Judgment has been Industrial available for enforcement. The bankruptcy
made and enforcement in Development Zone liquidation application (2022-AH-8601-BLA-15)
progress. filed by the Company had been accepted by the
Railway Transportation Primary Court of Hefei.
So far, the first creditors' meeting has been held,
the administrator is sorting the company's assets.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
A case was filed at the court 139.6 No In enforcement Judgment made by Enforcement in process. Application has been
because the customer failed to the People’s Court filed to the court to list the respondent as a
make the payment as agreed in of Hefei High-Tech defaulter and limit his/her high-end consumption.
the contract. Judgment has been Industrial The Company is actively pursuing clues of
made and enforcement in Development Zone respondent’s property at the moment. The
progress. Company has filed an application to Suzhou
Intermediate People's Court in Jiangsu Province
for bankruptcy liquidation of the respondent, and
the court is currently reviewing the application.
A case was filed at the court 784.18 Yes In enforcement Mediated at the Enforcement in process. Application has been
because the customer failed to People’s Court of filed to the court to list the respondent as a
make the payment as agreed in Hefei High-Tech defaulter and limit his/her high-end consumption.
the contract. Judgment has been Industrial The payment has been partially recovered from
made and enforcement in Development Zone the enforcement, and the Company is actively
progress. pursuing clues of respondent’s property at the
moment.
A case was filed at the court 355.57 No In enforcement Application for Qinghai Zhuma Sapphire Crystal Co., Ltd. and
because the defendant, Qinghai court enforcement He Kangyu were listed as defaulters by the court.
Zhuma, refused to refund the filed at the People's No money or assets have been collected from the
bid security. We requested Court of Hefei execution.
Qinghai Zhuma and the High-Tech Zone
guarantor He Kangyu to
assume the repayment
obligations. After the case came
into effect, we applied for
enforcement to the court, and
the enforcement is in process at
the moment.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
XII. Punishments and Rectification
□ Applicable Not Applicable
The Company was subject to no punishment or rectification in the reporting period.
XIII. Integrity of the Company, its Controlling Shareholder and Actual Controller
□ Applicable Not Applicable
XIV. Significant Related-Party Transactions
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Content of In
transaction Pricing Amount of percentage Transaction Exceeding Market price
Settlement
Related- Type of principles Transaction related-party of the limit the available for Date of Index of
Relation of
party transaction for price transaction (in amount of approved (in approved similar disclosure disclosure
transaction
transactions CNY 10K) similar CNY 10K) limit Y/N transactions
transactions
Hefei Racks Apr. 25, Announcement
Renchuang Purchas Wire 2023 2023-025 on
Not
Phase II e from transfer, Apr. 25, 2023;
Equity related- bank Announcement
e
Partnership party transfer 2023-097 on
(Limited Oct. 28, 2023
Partnership) OEM, Apr. 25, Announcement
is the technica 2023 2023-025 on
controlling l Apr. 25, 2023
shareholder services
of & raw
EnerTrack, material
and Mr. Cao s
Renxian,
EnerTrack Chairman of
Market Market
Technology Sungrow,
price- price-
Co., Ltd. holds
based based
(EnerTrack) 99.9975% of Wire
Sell to Not
the equity in transfer,
related- 61.71 0.00% 30 No Applicabl
Hefei bank
party e
Renchuang transfer
Phase II
Equity
Partnership
(Limited
Partnership)
as a limited
partner.
Based on the
principle of
prudence, the
Company
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
reviewed and
disclosed
transactions
with
EnerTrack as
related-party
transactions.
Hefei
Renchuang
Investment
Management
Center
(Limited
Partnership)
is the largest
shareholder
of Sunpure,
and Mr. Cao
Renxian,
Chairman of
Sungrow,
holds
the equity in
Hefei
Renchuang
as a limited
partner.
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with Sunpure
as related-
party
transactions.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sunpure Hefei Purchas Intellige Wire Apr. 25, Announcement
Not
Intelligent Renchuang e from nt transfer, 2023 2023-025 on
Technology Phase II related- cleaning bank Apr. 25, 2023
e
Co., Ltd. Equity party robots transfer
(Sunpure) Partnership OEM, Apr. 25, Announcement
(Limited technica 2023 2023-025 on
Wire
Partnership) Sell to l Not Apr. 25, 2023
transfer,
is the related- services 418.72 100% 1,500 No Applicabl
bank
controlling party & raw e
transfer
shareholder material
of Bluesight, s
and Mr. Cao Facilitie Apr. 25, Announcement
Renxian, s & 2023 2023-025 on
Chairman of houses Apr. 25, 2023
Sungrow,
holds
the equity in
Market Market
Hefei
price- price-
Renchuang
based based
Phase II
Equity
Partnership
(Limited Lease Wire
Not
Partnership) from transfer,
as a limited related- bank
e
partner. party transfer
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with
Blugesight as
related-party
transactions.
Hefei
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Renchuang
Phase II
Equity
Partnership
(Limited
Partnership)
is the
controlling
shareholder
of
EnerTrack,
and Mr. Cao
Renxian,
Chairman of
Sungrow,
holds
the equity in
Hefei
Renchuang
Phase II
Equity
Partnership
(Limited
Partnership)
as a limited
partner.
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with
EnerTrack as
related-party
transactions.
Hefei
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Renchuang
Investment
Management
Center
(Limited
Partnership)
is the largest
shareholder
of Sunpure,
and Mr. Cao
Renxian,
Chairman of
Sungrow,
holds
the equity in
Hefei
Renchuang
as a limited
partner.
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with Sunpure
as related-
party
transactions.
Hefei Hefei Purchas Testing Wire Apr. 25, Announcement
Not
Bluesight Renchuang e from power transfer, 2023 2023-025 on
Power Co., Phase II related- supply Market Market bank Apr. 25, 2023
e
Ltd. Equity party price- price- transfer
(Bluesight) Partnership Assets, based based Wire Apr. 25, Announcement
Sell to Not
(Limited equipme transfer, 2023 2023-025 on
related- 337.81 100% 500 No Applicabl
Partnership) nt, bank Apr. 25, 2023
party e
is the technica transfer
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
controlling l
shareholder services
of Bluesight, & raw
and Mr. Cao material
Renxian, s
Chairman of Facilitie
Sungrow, s
holds
the equity in
Hefei
Renchuang
Phase II
Equity
Partnership
(Limited
Wire
Partnership) Lease to Not Announcement
transfer, Apr. 25,
as a limited related- 27.82 64.04% 50 No Applicabl 2023-025 on
bank 2023
partner. party e Apr. 25, 2023
transfer
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with
Blugesight as
related-party
transactions.
Total -- -- 33,069.79 -- 51,620 -- -- -- -- --
Details of large sales returns Not Applicable
Actual performance of daily related-party
transactions in the reporting period (if any), for Not Applicable
which the total amount is estimated by category
Reasons for significant differences between
Not Applicable
transaction prices and market prices (if applicable)
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
The Company did not make any related-party transactions arising from the acquisition or sale of assets or equity in the reporting
period.
Applicable □ Not Applicable
Co-Investors Relationship Name of Main business Registered Total Net assets Net profit
investee of investee capital of assets of of of
investee investee investee investee
(in CNY (in CNY (in CNY (in CNY
Hefei Renrui Mr. Cao Renxian, Hefei Technology 10,000
Enterprise Chairman of Sungrow, Tanrui transfer,
Management holds 99.9980% of the Technolog technology
Partnership (Limited equity in Hefei Renrui y Co., Ltd. promotion,
Partnership), Hefei Enterprise Management new
Yueling Equity Partnership (Limited technology
Investment Partnership) as a limited research and
Partnership (Limited partner; Mr. Zhao Wei, development
Partnership) Director and Senior in the field of
Vice President of new energy,
Sungrow, is the incubation of
Executive Partner of new
Hefei Yueling Equity technologies, Nil Nil Nil
Investment Partnership etc.
(Limited Partnership);
Mr. Lu Yang, Vice
President and Board
Secretary of Sungrow,
and Mr. Xie Xiaoyong,
former Vice President of
Sungrow, are limited
partners of Hefei
Yueling Equity
Investment Partnership
(Limited Partnership).
Cao Renxian, Peng Mr. Cao Renxian is the Sungrow Research and 40,383
Chaocai, Hefei Chairman of Sungrow; Hydrogen development
Yuanxi Qingwei Mr. Peng Chaocai is a Technolog of new
New Energy Vice President of y Co., Ltd. material
Technology Sungrow. The Executive technologies,
Partnership (Limited Partner of Yuanxi etc.
Partnership) Qingwei is Mr. Zhang 104,682.
Youquan, former Vice 25
President of Sungrow;
and limited partners of
Yuanxi Qingwei are
mostly directors,
supervisors, and
executives of Sungrow.
Cao Renxian, Xie Mr. Cao Renxian is the Sungrow Software 9,881.5
Xiaoyong, Wang Chairman of Sungrow; Zhiwei development, 47,974.8
Jun, Hefei Huizhang Mr. Xie Xiaoyong is Technolog IoT 0
Enterprise former Vice President of y Co., Ltd. technology
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Management Sungrow. Mr. He Wei, a (Equity services,
Partnership (Limited Supervisor of Sungrow, Incentive) industrial
Partnership), Hefei is the Executive Partner Internet data
Zhiyun Enterprise of Hefei Huizhang; Mr. service,
Management Gu Yilei, Vice information
Partnership (Limited Chairman and Senior system
Partnership), Hefei Vice President of integration
Shuren Enterprise Sungrow, Mr. Wu services, etc.
Management Jiamao, Director and
Partnership (Limited Senior Vice President of
Partnership), Hefei Sungrow, Mr. Li Shun,
Haoqing Enterprise Senior Vice President of
Management Sungrow, Mr. Chen
Partnership (Limited Zhiqiang, Vice
Partnership), Hefei President of Sungrow,
Cuihui Enterprise Mr. Deng Dejun, Vice
Management President of Sungrow,
Partnership (Limited Mr. Xie Xiaoyong,
Partnership), Hefei former Vice President of
Langshu Enterprise Sungrow, Mr. Lu Yang,
Management Vice President and
Partnership (Limited Board Secretary of
Partnership), Hefei Sungrow, Mr. Tian
Jinlin Enterprise Shuai, Vice President
Management and Finance Director of
Partnership (Limited Sungrow, and Ms. Wang
Partnership), Hefei Lei, Vice President of
Furui Enterprise Sungrow are limited
Management partners of Hefei
Partnership (Limited Huizhang. The above
Partnership) individuals collectively
hold 100% of the equity
in Hefei Huizhang.
Cao Renxian, Hong Mr. Cao Renxian is the Hefei R&D, 49,082.9
Siming, Hefei Chairman of Sungrow. Sungrow production,
Zhouyang Electric Mr. Zhang Youquan, Electric sales, and
Power Technology former Vice President of Power service of
Partnership (Limited Sungrow, is the Technolog motor drive
Partnership), Hefei Executive Partner of y Co., Ltd. systems,
Muyang Electric Hefei Zhouyang; Mr. Gu (Equity motors,
Power Technology Yilei, Vice Chairman Incentive) automotive
Partnership (Limited and Senior Vice electrical
Partnership), Hefei President of Sungrow, systems, and
Shuiyang Electric Mr. Zheng Guibiao, battery
Power Technology former Director and management
Partnership (Limited Senior Vice President of systems, etc. 40,677.28 -7,310.54
Partnership), Hefei Sungrow, Mr. Wu
Lanyang Electric Jiamao, Director and
Power Technology Senior Vice President of
Partnership (Limited Sungrow, Mr. Li Shun,
Partnership), Hefei Senior Vice President of
Huoyang Electric Sungrow, Mr. Chen
Power Technology Zhiqiang, Vice
Partnership (Limited President of Sungrow,
Partnership), Hefei Mr. Deng Dejun, Vice
Yueyang Electric President of Sungrow,
Power Technology Mr. Lu Yang, Vice
Partnership (Limited President and Board
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Partnership), Hefei Secretary of Sungrow,
Yuyang Electric Mr. Tian Shuai, Vice
Power Technology President and Finance
Partnership (Limited Director of Sungrow,
Partnership), Hefei Mr. He Wei, Supervisor
Weiyang Electric of Sungrow, and Ms.
Power Technology Wang Lei, Vice
Partnership (Limited President of Sungrow
Partnership), Hefei are limited partners of
Huiyang Electric Hefei Zhouyang. The
Power Technology above individuals
Partnership (Limited collectively hold 100%
Partnership), Hefei of the equity in Hefei
Xingyang Electric Zhouyang.
Power Technology
Partnership (Limited
Partnership)
Hefei Shangren Hefei Renzhi New Hefei Research and 30,000
New Energy Energy Industry Zero development
Industry Development Carbon of emerging
Development Partnership (Limited Technolog energy
Partnership Partnership) is a limited y Co., Ltd. technologies,
(Limited partner of Hefei etc.
Partnership), Hefei Shangren, and Mr. Cao
Chuangwei Equity Renxian, Chairman of 23,055.04 -4,587.21
Investment Sungrow, is a limited
Partnership partner of Hefei Renzhi.
(Limited Mr. Zhao Wei, Director
Partnership) and Senior Vice
President of Sungrow,
is a limited partner of
Hefei Chuangwei.
Cao Renxian, Li Mr. Cao Renxian is the Sungrow Solar power 12,252.1
Xiang, Huainan Chairman of Sungrow. Floating generation
Haoyang Ms. Wang Lei, Vice Modules technology
Photovoltaic President of Sungrow, is Technolog services,
Technology the Executive Partner of y Co., Ltd. research and
Partnership (Limited Huainan Chengyang; (Equity development
Partnership), Mr. Gu Yilei, Vice Incentive) of new
Huainan Hanyang Chairman and Senior material
Photovoltaic Vice President of technologies,
Technology Sungrow, Mr. Wu etc.
Partnership (Limited Jiamao, Director and
Partnership), Senior Vice President of
Huainan Lanyang Sungrow, Mr. Li Shun, 50,700.0
Photovoltaic Senior Vice President of 7
Technology Sungrow, Mr. Chen
Partnership (Limited Zhiqiang, Vice
Partnership), President of Sungrow,
Huainan Qiyang Mr. Deng Dejun, Vice
Photovoltaic President of Sungrow,
Technology Mr. Lu Yang, Vice
Partnership (Limited President and Board
Partnership), Secretary of Sungrow,
Huainan Chengyang Mr. Tian Shuai, Vice
Photovoltaic President and Finance
Technology Director of Sungrow,
Partnership (Limited Mr. He Wei, Supervisor
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Partnership), of Sungrow, and Mr.
Huainan Pengyang Zheng Guibiao, former
Photovoltaic Director and Senior
Technology Vice President of
Partnership (Limited Sungrow, are limited
Partnership), partners of Huainan
Huainan Yuyang Chengyang. The above
Photovoltaic individuals collectively
Technology hold 100% of the equity
Partnership (Limited in Huainan Chengyang.
Partnership),
Huainan Zeyang
Photovoltaic
Technology
Partnership (Limited
Partnership)
Cao Renxian, Gu Mr. Cao Renxian is the Sungrow New energy 149,946.0
Yilei, Zhang Chairman of Sungrow; Renewabl investment 959
Xucheng, Hefei Mr. Gu Yilei is Vice es and
Yueyang New Chairman and Senior Developm development
Energy Technology Vice President of ent Co.,
Partnership(Limited Sungrow; Mr. Zhang Ltd.
Partnership) Xucheng is Director of
Sungrow. Ms. Wang
Lei, Vice President of
Sungrow is the
Executive Partner of
Yueyang Partnership;
Mr. Peng Chaocai, Vice
President of Sungrow,
Mr. Deng Dejun, Vice
President of Sungrow,
Mr. Lu Yang, Vice
President and Board
Secretary of Sungrow,
and Mr. Tian Shuai,
Vice President and
Finance Director of
Sungrow, are limited
partners of Yueyang
Partnership. The above
individuals collectively
hold 33.99% of the
equity in Yueyang
Partnership.
Status of major construction-in-progress of the
Not Applicable
investee (if any)
□ Applicable Not Applicable
There were no related credits and liabilities in the reporting period.
□ Applicable Not Applicable
There was no saving, loan, credit or other financial business between the Company and related financial companies or related parties.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
There was no saving, loan, credit or other financial business between financial companies controlled by the Company and related
parties.
□ Applicable Not Applicable
There were no other significant related-party transactions in the reporting period.
XV. Major Contracts and the Contract Performance
(1) Trusteeship
□ Applicable Not Applicable
There was no trusteeship in the reporting period.
(2) Contracting
□ Applicable Not Applicable
There was no contracting in the reporting period.
(3) Leasing
□ Applicable Not Applicable
There was no leasing in the reporting period.
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(in 10K CNY)
Outbound Guarantees of the Company and its Subsidiaries (Excl. Guarantees for Subsidiaries)
Date of
Actual Counter- Guarantee
Disclosing Amount Actual Date Type of Collateral Fulfilled
Guarantee Object Amount of Guarantee Guarantee Period for Related
the Amount Guaranteed of Guarantee Guarantee (if any) Y/N
Guarantee (if any) Party Y/N
Guaranteed
Users of the Company's Jan. 26, 2018 80,478.17 Jan. 26, 2018 39,233.89 Joint and From the date of loan No No
residential PV products, several origination to the date
owners of industrial and liability of loan pay off
commercial distributed guarantee
projects (loan application
from collaborating banks)
Residential PV users eligible Aug. 5, 2021 50,000 Aug. 6, 2021 14,471.99Joint and From the date of loan No No
for financing several origination to the date
liability of loan pay off
guarantee
The Company’s Guarantee for Subsidiaries
Guarantee Object Date of Amount Actual Date Actual Type of Collateral Counter- Guarantee Period Fulfilled Guarantee
Disclosing Guaranteed of Guarantee Amount of Guarantee (if any) Guarantee Y/N for Related
the Amount Guarantee (if any) Party Y/N
Guaranteed
Sungrow Power (Hong Kong) May 19, 14,181 Joint and No more than 3 years Yes No
Co., Ltd. 2020 several
liability
guarantee
Sungrow Nov. 17, 71,742.63 Joint and No more than 2 years Yes No
USA Corporation 2020 several
liability
guarantee
SUNGROW POWER UK Apr. 1, 2021 40,075.15 Aug. 2, 2021 12,042.18 Joint and No more than 10 years No No
LIMITED several
liability
guarantee
Nov. 15, 28,032.97 Joint and No more than 10 years No No
liability
guarantee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow USA Corporation May 18, 115,966.11 Feb. 17, 61,736.75 Joint and No later than Dec. 31, No No
liability
guarantee
Dec. 4, 2021 54,229.36 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Sungrow Energy Storage May 18, 500,000 Sep. 27, 193,573.99 Joint and No more than 2 years No No
Technology Co., Ltd. 2022 2023 several
liability
guarantee
Sungrow Renewables Apr. 1, 2021 150,000 Joint and No more than 2 years Yes No
Development Co., Ltd. several
liability
guarantee
Sungrow Renewables May 18, 250,000 Joint and No more than 2 years Yes No
Development Co., Ltd. 2021 several
liability
guarantee
SUNGROW Aug. 20, 21,005.31 Joint and As of end 2024 Yes No
POWER （VIETNAM） 2021 several
LIMITED COMPANY liability
guarantee
Sungrow USA Corporation May 18, 426,224.43 Aug.10, 79,487.91 Joint and No later than Dec. 31, No No
liability
guarantee
Oct. 19, 2022 15,052.4 Joint and No later than Jul. 13, No No
several 2028
liability
guarantee
Feb. 24, Joint and No later than Nov. 28, Yes No
liability
guarantee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Mar. 3, 2023 88,074.93 Joint and No later than Aug. 16, No No
several 2028
liability
guarantee
Apr. 3, 2023 75,757.11 Joint and No later than May 22, No No
several 2027
liability
guarantee
May 9, 2023 114,242.49 Joint and No later than Apr. 1, No No
several 2029
liability
guarantee
May 9, 2023 53,609.79 Joint and No later than Jul. 31, No No
several 2024
liability
guarantee
Sungrow Australia Group PTY May 18, 75,000 As of the 2022 Annual Yes No
LTD 2022 Shareholders’ Meeting
Sungrow Japan K.K. May 18, 5,000 As of the 2022 Annual Yes No
Sungrow Power UK limited May 18, 28,860.28 Jul. 14, 2022 8,517.92 Joint and No more than 10 years No No
liability
guarantee
Apr. 26, 20,342.36 Joint and No more than 10 years No No
liability
guarantee
SUNGROW May 18, 1,454.83 Sep. 29, 1,454.83 Joint and When obligations are No No
DO BRASIL 2022 2022 several completed or five years
REPRESENTACAO liability from the date of the
COMERCIAL, guarantee Letter of guarantee
INSTALACAO E (whichever comes
MANUTENCAO DE first)
EQUIPAMENTOS
LTDA
Sungrow May 18, 3,000 As of the 2022 Yes No
Power Korea Limited 2022 Shareholders’ Meeting
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow Floating Modules May 18, 10,000 Apr. 3, 2023 5,000 Joint and No more than 2 years No No
Co., Ltd. 2022 several
liability
guarantee
Hefei Sungrow Electric May 18, 10,000 Mar. 7, 2023 10,000 Joint and No more than 2 years No No
Power Technology Co., Ltd. 2022 several
liability
guarantee
Sungrow Zhiwei Technology May 18, 10,000 Joint and No more than 2 years No No
Co., Ltd. 2022 several
liability
guarantee
Sungrow USA Corporation May 19, 650,000 May 29, 89,932.84 Joint and No later than Mar. 18, No No
liability
guarantee
Jun. 28, 2023 32,215.34 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Jul. 27, 2023 2,316.11 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Nov. 2, 2023 9,600.97 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Sungrow Australia Group PTY May 19, 120,000 As of the 2023 No No
LTD 2023 Shareholders’ Meeting
Sungrow Japan K.K. May 19, 5,000 As of the 2023 No No
Sungrow May 19, 240,000 Nov. 27, 18,062.8 Joint and From the date of the No No
Power UK limited 2023 2023 several Letter of guarantee to
liability 10 years after the
guarantee warranty takes effect
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
SUNGROW DO BRASIL May 19, 50,000 Dec. 20, 7,573.22 Joint and No later than Dec. 20, No No
REPRESENTACAO 2023 2023 several 2028
COMERCIAL, liability
INSTALACAO E guarantee
MANUTENCAO DE
EQUIPAMENTOS LTDA
SUNGROW ITALY S.R.L. May 19, 5,000 As of the 2023 No No
SUNGROW (INDIA) May 19, 5,000 As of the 2023 No No
PRIVATE LIMITED 2023 Shareholders’ Meeting
SUNGROW IBERICA SA May 19, 20,000 As of the 2023 No No
Sungrow Power Korea May 19, 5,000 As of the 2023 No No
Limited 2023 Shareholders’ Meeting
Sungrow Energy Storage May 19, 300,000 Dec. 27, 199,756.44 Joint and No more than 3 years No No
Technology Co., Ltd. 2023 2023 several
liability
guarantee
Sungrow Floating Modules May 19, 20,000 Joint and No more than 3 years No No
Co., Ltd. 2023 several
liability
guarantee
Hefei Sungrow Electric May 19, 40,000 Joint and No more than 3 years No No
Power Technology Co., Ltd. 2023 several
liability
guarantee
Hefei Zero Carbon Dec. 22, 80,000 Dec. 25, 80,000 Joint and No more than 15 years No No
Technology Co., Ltd. 2023 2023 several
liability
guarantee
Hefei Sungrow Electric Dec. 22, 12,000 Dec. 28, 12,000 Joint and No more than 4 years No No
Power Technology Co., Ltd. 2023 2023 several
liability
guarantee
Subsidiary's Guarantee for Subsidiaries
Guarantee Object Date of Amount Actual Date Actual Type of Collateral Counter- Guarantee Period Fulfilled Guarantee
Disclosing Guaranteed of Guarantee Amount of Guarantee (if any) Guarantee Y/N for Related
the Amount Guarantee (if any) Party Y/N
Guaranteed
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow USA Corporation Apr. 25, 15,445.9 Apr. 22, 15,445.9 General No more than 5 years No No
SUNGROW DO BRASIL Apr. 1, 2021 8,449.79 Mar. 30, 8,449.79 Joint and No more than 7 years No No
REPRESENTACAO 2021 several
COMERCIAL, liability
INSTALACAO E guarantee
MANUTENCAO DE
EQUIPAMENTOS
LTDA
Sungrow Power Australia Pty Dec. 4, 2021 14,714.05 General Less than 2 years from Yes No
Ltd guarantee the date the Letter of
Guarantee takes effect
Sungrow Ibérica S.A.U. Dec. 4, 2021 3,309.16 Dec. 2, 2021 3,309.16 Joint and No later than Dec. 2, No No
several 2026
liability
guarantee
SUNGROW IBERICA SA Jul. 1, 2022 26,459.68 Jul. 1, 2022 26,459.68 Joint and No later than Jul. 1, No No
several 2027
liability
guarantee
Sungrow Ibérica S.A.U. Sep. 22, 16,264.11 Sep. 20, 16,264.11 Joint and No later than Sep. 20, No No
liability
guarantee
Sungrow Ibérica S.A.U. Oct. 11, 2023 10,085.51 Sep. 30, 10,085.51 Joint and No later than Sep. 30, No No
liability
guarantee
SUNGROW ITALY S.R.L. Dec. 14, 1,600.2 Dec. 8, 2023 1,600.2 Joint and No later than Dec. 8, No No
liability
guarantee
Sungrow Dec. 14, 141,092.22 Dec. 12, 141,092.22 Joint and No later than Dec. 12, No No
Benelux B.V. 2023 2023 several 2028
liability
guarantee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
SUNGROW Dec. 29, 1,559.42 Dec. 22, 1,559.42 Joint and No later than Dec. 22, No No
DEUTSCHLAND GMBH 2023 2023 several 2028
liability
guarantee
SUNGROW RENEWABLE Dec. 2, 2022 3,500 Aug. 10, 3,500 Joint and From the date of the No No
ENERGY INVESTMENT 2023 several main debt contract to 1
PTE.LTD liability year after the debt
guarantee maturity under the
main contract
SUNGROW POWER Dec. 2, 2022 35,000 As of the 2022 Annual Yes No
(VIETNAM) COMPANY Shareholders’ Meeting
LIMITED of Sungrow RE
SUNGROW QURYLYS LLP Dec. 2, 2022 35,000 As of the 2022 Annual Yes No
Shareholders’ Meeting
of Sungrow RE
SUNGROW POWER Dec. 2, 2022 30,000 As of the 2022 Annual Yes No
AUSTRALIA PTY LTD Shareholders’ Meeting
of Sungrow RE
SUNGROW RENEWABLE Dec. 2, 2022 15,000 As of the 2022 Annual Yes No
ENERGY SPAIN, S.L. Shareholders’ Meeting
of Sungrow RE
Xuancheng Heyang New Dec. 2, 2022 4,118.57 Jan. 31, 2023 4,118.57 Joint and Three years after the No No
Energy Co., Ltd. several maturity of the last
liability debt repayment
guarantee
Anhui Sungrow Supply Chain Dec. 2, 2022 300,000 As of the 2022 Annual Yes No
Management Co., Ltd. Shareholders’ Meeting
of Sungrow RE
SUNGROW POWER Dec. 2, 2022 25,000 As of the 2022 Annual Yes No
CONSTRUCCIONES SPA Shareholders’ Meeting
of Sungrow RE
SUNGROW RENEWABLE Jun. 8, 2023 240,000 Jun. 25, 2023 865.05 Joint and From the date of each No No
ENERGY INVESTMENT several debt maturity to three
PTE. LTD liability years after the maturity
guarantee of the last repayment
of the contract
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
SUNGROW RENEWABLE Jun. 8, 2023 240,000 Jul. 14, 2023 3,119.4 Joint and From the date of each No No
ENERGY INVESTMENT several debt maturity to three
PTE. LTD liability years after the maturity
guarantee of the last repayment
of the contract
SUNGROW POWER Jun. 8, 2023 40,000 One year from the date No No
(VIETNAM) COMPANY it is approved at the
LIMITED 2022 Annual
Shareholders’ Meeting
of Sungrow RE
SUNGROW POWER Jun. 8, 2023 40,000 One year from the date No No
AUSTRALIA PTY LTD it is approved at the
Shareholders’ Meeting
of Sungrow RE
SUNGROW RENEWABLE Jun. 8, 2023 40,000 One year from the date No No
ENERGY SPAIN, S.L. it is approved at the
Shareholders’ Meeting
of Sungrow RE
ECO WATT AKA LLP Jun. 8, 2023 40,000 One year from the date No No
it is approved at the
Shareholders’ Meeting
of Sungrow RE
CAO NGUYEN 1 WIND Jun. 8, 2023 80,000 One year from the date No No
POWER DEVELOPMENT it is approved at the
INVESTMENT JOINT 2022 Annual
STOCK COMPANY Shareholders’ Meeting
of Sungrow RE
Anhui Sungrow Supply Chain Jun. 8, 2023 150,000 Nov. 21, 5,100 Joint and No more than 1 year No No
Management Co., Ltd. 2023 several
liability
guarantee
SUNGROW QURYLYS LLP Jun. 8, 2023 40,000 Sep. 21, 1,000 Joint and Three years from the No No
liability under the main
guarantee contract
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(1) Entrusted financial management
Applicable □ Not Applicable
Overview of entrusted financial management in the reporting period
(in 10K CNY)
Type Source of funds for Overdue Impairment provision
Amount of entrusted
entrusted financial Undue balance amount to be for overdue amount to
financial management
management collected be collected
Financial products Funds raised
issued by banks
Financial products Funds owned by the
issued by banks Company
Financial products Funds owned by the
issued by Company 20,000 1,000
securities traders
Total 494,000 169,500
Details of high-risk entrusted financial management with large amount, low security, or low flowability
□ Applicable Not Applicable
Expected inability to recover the principal of entrusted financial management or other circumstances that may lead to impairment
□ Applicable Not Applicable
(2) Entrusted loans
□ Applicable Not Applicable
There were no entrusted loans in the reporting period.
□ Applicable Not Applicable
There were no other major contracts in the reporting period.
XVI. Explanation on Other Significant Matters
□ Applicable Not Applicable
There were no other significant matters to be explained in the reporting period.
XVII. Significant Matters of the Company's Subsidiaries
Applicable □ Not Applicable
On December 8, 2023, the Company disclosed the Announcement on the Planned Spin-Off and Listing of Holding Subsidiary
(Announcement No. 2023-117). According to the overall strategic layout of the Company and the business development needs of its
holding subsidiary, Sungrow Renewable Energy Development Co., Ltd., the Company plans to initiate the preliminary work for the
spin-off and listing of Sungrow Renewable Energy on China’s stock exchanges.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section VII Changes in Shares and Information about Shareholders
I. Changes in Share Capital
(in shares)
Before the change Changes in the period (+, -) After the change
Capitalized from
Quantity Percentage New issuance Bonus Others Sub-total Quantity Percentage
common reserve
I. Shares subject to conditional
restriction(s)
shareholders
Incl. shares held by domestic
enterprise
Shares held by domestic natural
person
Incl. shares held by overseas
enterprise
Shares held by overseas natural
person
II. Shares subject to no restrictions 1,129,222,668 76.03% 10,709,370 10,709,370 1,139,932,038 76.76%
III. Total 1,485,190,984 100.00% -40,000.00 -40,000.00 1,485,150,984 100.00%
Reasons for share changes
Applicable □ Not Applicable
to each of them on the last trading day of 2022. On the same day, Shenzhen Branch of China Securities Depository and Clearing Corporation Limited unlocked the tradable shares held by the
Company’s directors, supervisors, and executives that are subject to no transfer restrictions within the current year's transferable amount.
Board of Directors. Mr. Zhang Youquan, Vice President in the fourth management team of the Company, no longer assumed the office as an executive after the election of the fifth Board of
Directors. The shares held by Mr. Zheng Guibiao and Mr. Zhang Youquan will be unlocked 6 months after their terms of office expire. Should any executive in the fourth management team resign
before the expiration of his/her term, the shares held by this executive will be unlocked 6 months after his/her term of office was due to expire.
the office as an executive.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
resignation.
Buyback and Cancellation of Some Restricted Shares was reviewed and approved. Since two incentive objects in the Company’s 2018 Restricted Stock Incentive Plan departed, according to the
Measures for the Administration of Equity Incentives of Listed Companies and the 2018 Restricted Stock Incentive Plan (Draft), all the restricted shares that were granted to the aforementioned
personnel but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 40,000 shares. The Company completed the buyback and
cancellation at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on July 18, 2023, and the Company’s total share capital changed from 1,485,190,984 shares
to 1,485,150,984 shares.
Approvals for share changes
Applicable □ Not Applicable
Refer to “Reasons for share changes” in the above.
Share transfers
Applicable □ Not Applicable
Refer to “Reasons for share changes” in the above.
The impact of changes in shares on financial indicators such as basic earnings per share, diluted earnings per share, net assets per share attributable to common shareholders in the last year and
the last period
□ Applicable Not Applicable
Other contents the Company considers necessary or required by the securities regulatory authorities to disclose
□ Applicable Not Applicable
Applicable □ Not Applicable
(in shares)
Shareholder Opening Increased in Unlocked in Closing Reason for restriction Estimated date of unlocking
restricted shares current period current period restricted shares
Cao Renxian 338,256,000 338,256,000 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Zhao Wei 5,307,000 5,307,000 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Shareholder Opening Increased in Unlocked in Closing Reason for restriction Estimated date of unlocking
restricted shares current period current period restricted shares
Gu Yilei 337,500 337,500 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Chen Zhiqiang 281,250 281,250 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Wu Jiamao 281,250 281,250 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Deng Dejun 277,259 277,259 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Zhang Xucheng 112,500 28,125 84,375 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Peng Chaocai 59,062 59,062 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Li Shun 18,750 18,750 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Wang Lei 16,500 16,500 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Zheng Guibiao 8,982,270 8,982,270 Lock-up of executives’ shares, Holder departed upon the expiration of the
although holder has departed term of office in the reporting period, and the
upon the expiration of the term restriction will be released in 6 month after
of office the departure
Zhang Youquan 168,750 168,750 Lock-up of executives’ shares, Holder departed upon the expiration of the
although holder has departed term of office in the reporting period, and the
upon the expiration of the term restriction will be released in 6 month after
of office the departure
Xie Xiaoyong 225,000 75,000 300,000 Lock-up of executives’ shares, Holder resigned prior to the expiration of the
although holder has resigned as term of office in the reporting period, the
an executive prior to the shares remain locked up in 6 month after the
expiration of the term of office resignation
Departed executives 1,621,725 1,621,725 Lock-up of executives’ shares, Holder departed upon the expiration of the
(resigned before expiration although holder has resigned as term of office in the reporting period, and the
of term) an executive prior to the restriction will be released in 6 month after
expiration of the term of office the departure
Other incentive objects 40,000 40,000 Equity incentive restriction As per the relevant regulations of the
Restricted Stock Incentive Plan
Total 355,968,316 91,500 10,840,870 345,218,946 -- --
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
II. Issuance and Listing of Securities
□ Applicable Not Applicable
Applicable □ Not Applicable
On April 24, 2023, the Company held the twenty-third meeting of the fourth Board of Directors and the twentieth meeting of the fourth Board of Supervisors, at which the Proposal on the Buyback
and Cancellation of Some Restricted Shares was reviewed and approved. Since two incentive objects in the Company’s 2018 Restricted Stock Incentive Plan departed, according to the Measures
for the Administration of Equity Incentives of Listed Companies and the 2018 Restricted Stock Incentive Plan (Draft), all the restricted shares that were granted to the aforementioned personnel
but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 40,000 shares. The Company completed the buyback and cancellation at the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on July 18, 2023, and the Company’s total share capital changed from 1,485,190,984 shares to 1,485,150,984
shares.
□ Applicable Not Applicable
III. Shareholders and Actual Controllers
(in shares)
Total number of Total number of Total number of preference
Total number of
ordinary shareholders preference shareholders shareholders with restored Total number of
ordinary
at the end of the with restored voting voting rights at the end of the shareholders holding
shareholders at 128,503 109,029
previous month before rights at the end of the previous month before the special voting shares
the end of the
the disclosure date of reporting period (if any) disclosure date of the annual (if any)
reporting period
the annual report (see Note 9) report (if any) (see Note 9)
Shareholders with a shareholding of over 5% or shareholdings of the top ten shareholders
Pledged, marked, or
Total shares held
Changes in the Non-tradable Tradable frozen
Name of shareholder Nature of shareholder Percentage at the end of the
reporting period shares held shares held Share
reporting period Quantity
status
Cao Renxian Domestic natural
person
Hong Kong Securities Clearing Company Overseas legal person
Limited
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Hefei Huizhuo Equity Investment Domestic non-state-
Partnership (Limited Partnership) owned legal person
Industrial and Commercial Bank of China Other
Limited - E Fund GEM Open-Ended Index 1.01% 14,933,708 9,710,200 14,933,708
Securities Investment Fund
Zheng Guibiao Domestic natural
person
Bank of China Co., Ltd. - Huatai-PineBridge Other
CSI PV Industry Open-Ended Index 0.76% 11,330,519 948,872 11,330,519
Securities Investment Fund
Chinalink Asia Holdings Limited Overseas legal person 0.71% 10,586,305 -649,000 10,586,305
China Construction Bank Corporation - GF Other
Technology Pioneer Hybrid Securities 0.70% 10,381,073 -333,933 10,381,073
Investment Fund
China Minsheng Bank Co., Ltd. - GF Other
Industry Selected Three-Year Hybrid 0.62% 9,142,619 -279,800 9,142,619
Securities Investment Fund
CITIC Securities Co., Ltd. - Tianhong CSI Other
PV Industry Index Initiated Securities 0.61% 9,104,396 1,050,787 9,104,396
Investment Fund
Strategic investors or general legal
persons becoming the top 10
Not Applicable
shareholders due to placement of new
shares (if any) (refer to Note 4)
Relations between the above-mentioned Mr. Cao Renxian, the controlling shareholder and actual controller of the Company, holds 10.44% equity of Hefei Huizhuo Equity Investment
shareholders or actions in concert Partnership (Limited Partnership). Apart from the shareholders’ relations specified as above, the Company is not aware of any other relations
between shareholders, and does not know whether they are persons acting in concert as stipulated in the Administrative Measures for the
Acquisition of Listed Companies.
Notes on above shareholders who are
involved in delegating/delegated voting Not Applicable
rights and waiving of voting rights
Special notes on dedicated buy-back As of the end of the reporting period, the Company’s special account for buyback shares holds 16,312,308 shares, accounting for 1.10% of the
accounts held by top 10 shareholders (if total shares. Although the number of shares held ranked fourth among all shareholders in the current period, the special account is not listed in top
any) (refer to Note 10) ten shareholders according to prevailing disclosure rules.
Shares held by top 10 shareholders subject to no restrictions on trading
Unrestricted shares held at the Share Details
Shareholder
end of the reporting period Type Quantity
Hong Kong Securities Clearing Company Limited 172,808,826 A-share 172,808,826
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Cao Renxian 112,752,000 A-share 112,752,000
Hefei Huizhuo Equity Investment Partnership (Limited Partnership) 44,965,442 A-share 44,965,442
Industrial and Commercial Bank of China Limited - E Fund GEM Open-Ended Index Securities A-share
Investment Fund
Zheng Guibiao 11,971,360 A-share 11,971,360
Bank of China Co., Ltd. - Huatai-PineBridge CSI PV Industry Open-Ended Index Securities A-share
Investment Fund
Chinalink Asia Holdings Limited 10,586,305 A-share 10,586,305
China Construction Bank Corporation - GF Technology Pioneer Hybrid Securities Investment Fund 10,381,073 A-share 10,381,073
China Minsheng Bank Co., Ltd. - GF Industry Selected Three-Year Hybrid Securities Investment A-share
Fund
CITIC Securities Co., Ltd. - Tianhong CSI PV Industry Index Initiated Securities Investment Fund 9,104,396 A-share 9,104,396
Relations between top 10 shareholders of
Mr. Cao Renxian, the controlling shareholder and actual controller of the Company, holds 10.44% equity of Hefei Huizhuo Equity Investment
unrestricted circulating shares, relations
Partnership (Limited Partnership). Apart from the shareholders’ relations specified as above, the Company is not aware of any other relations
between top 10 shareholders of
between shareholders, and does not know whether they are persons acting in concert as stipulated in the Administrative Measures for the
unrestricted circulating shares and top 10
Acquisition of Listed Companies.
shareholders, or actions in concert
Shareholders participating in margin fina
ncing and securities lending business (if Not Applicable
any) (refer to Note 10)
Top ten shareholders’ participation in share lending through refinancing
Applicable □ Not Applicable
(in shares)
Top ten shareholders’ lending of shares via refinancing activities
Shareholder (Full Name) Shared held in regular Shares lent via refinancing Shared held in regular Shares lent via refinancing
account and credit account at at the beginning of the account and credit account at at the end of the period and
the beginning of the period period and not yet returned the end of the period not yet returned
Quantity % in total Quantity % in total Quantity % in total Quantity % in total
share capital share capital share capital share capital
CITIC Securities Co., Ltd. - Tianhong CSI PV Industry 8,053,609 0.54% 466,200 0.03% 9,104,396 0.61% 111,600 0.01%
Index Initiated Securities Investment Fund
Bank of China Co., Ltd. - Huatai-PineBridge CSI PV 10,381,647 0.70% 206,300 0.01% 11,330,519 0.76% 147,200 0.01%
Industry Open-Ended Index Securities Investment Fund
Industrial and Commercial Bank of China Limited - E 5,223,508 0.35% 1,460,200 0.10% 14,933,708 1.01% 36,500 0.00%
Fund GEM Open-Ended Index Securities Investment
Fund
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Changes in top ten shareholders during the reporting period
Applicable □ Not Applicable
(in shares)
Changes in top ten shareholders during the reporting period
Shared held in regular account and
Shares lent via refinancing at
credit account at the end of the period
Changes in the end of the period and not
and shares lent via refinancing at the
Shareholder (Full Name) the reporting yet returned
end of the period and not yet returned
period
% in total % in total
Quantity Quantity
share capital share capital
Industrial and Commercial Bank of
China Limited - E Fund GEM
New 36,500 0.00% 14,970,208 1.01%
Open-Ended Index Securities
Investment Fund
Shanghai Pudong Development
Bank Co., Ltd. - GF High-End
Exit 0 0.00% 8,781,661 0.59%
Manufacturing Equity Sponsored
Securities Investment Fund
Whether the Company has made arrangements for different voting rights
□ Applicable Not Applicable
Whether the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions
made the buy-back transaction as agreed in the reporting period
□ Yes No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions did not
make the buy-back transaction as agreed in the reporting period.
Nature of controlling shareholder: Natural person
Type of controlling shareholder: Natural person
Name of controlling shareholder Nationality In possession of right of abode in other countries
Cao Renxian Chinese No
Mr. Cao Renxian has been the Chairman and President of the Company for the past 5
Main occupation and title
years
Domestic/overseas listed companies
Mr. Cao Renxian does not control other domestic/overseas listed companies
controlled/vested in the past 10 years
Changes of controlling shareholder during the reporting period
□ Applicable Not Applicable
The controlling shareholder of the Company did not change in the reporting period.
Nature of actual controller: Domestic natural person
Type of actual controller: Natural person
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Relationship with actual In possession of right of
Name of actual controller Nationality
controller abode in other countries
Cao Renxian Himself Chinese No
Mr. Cao Renxian has been the Chairman and President
Main occupation and title
of the Company for the past 5 years
Domestic/overseas listed companies controlled/vested in the past 10 Mr. Cao Renxian does not control other
years domestic/overseas listed companies
Change of actual controller during the reporting period
□ Applicable Not Applicable
The actual controller of the Company did not change during the reporting period.
Block diagram of the property rights and control relationship between the Company and the actual controller
中文 英文
曹仁贤 Cao Renxian
通过配偶苏蕾 Via spouse Su Lei
泸州汇卓企业管理合伙企业（有限合伙） Luzhou Huizhuo Enterprise Management Partnership
(Limited Partnership)
阳光电源股份有限公司 Sungrow Power Supply Co., Ltd.
The actual controller controls the Company through trust or other asset management methods
□ Applicable Not Applicable
persons acting in concert account for more than 80% of the Company’s shares held by them
□ Applicable Not Applicable
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
entities
□ Applicable Not Applicable
IV. Specific implementation of share buy-back during the reporting period
Progress of share buy-back
Applicable □ Not Applicable
Date of plan Number of In Planned Planned Purpose of buy-back Number In percentage
disclosure shares to be percentage amount of period of of shares of the target
bought-back of total share buy-back buy-back already quantity
capital (in 10K bought- involved in
CNY) back the equity
incentive
plan (if any)
May. 14, 5,000,000 – 0.34% – 50,000 – May 13, For the employee stock 6,485,049 99.77%
May 12, equity incentive plan
Sep. 13, 3,330,000 – 0.22% – 50,000 – Sep. 12, For the employee stock 11,316,00 98.40%
Sep. 12, equity incentive plan
Progress of buy-back share reduction via centralized bidding
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section VIII Preference Shares
□ Applicable Not Applicable
No preference shares exist in the Company during the reporting period.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section IX Bonds
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section X Financial Reports
I. Audit Report
Type of Audit Opinion Standard unqualified opinion
Audit Report Signed on April 22, 2024
Auditing Firm RSM China (Special General Partnership)
Audit Report Number RSM-AR [2024] No. 230Z0321
Name of CPAs Wan Yunlong, Jiang Wei, Pan Lili
Audit Report
I. Audit Opinion
We have audited the financial statements of Sungrow Power Supply Co., Ltd. (hereinafter referred to as Sungrow), including the
Consolidated Balance Sheet and Balance Sheet of Parent Company as at December 31, 2023, the Consolidated Income Statement and
Income Statement of Parent Company in 2023, and the Consolidated Statement of Cash Flows and Statement of Cash Flows of Parent
Company, Consolidated Statement of Changes in Equity and Statement of Changes in Equity of Parent Company, as well as Notes to
the relevant financial statements.
In our opinion, the financial statements as attached were prepared in accordance with the Accounting Standards for Business
Enterprises in all material aspects, which fairly reflect the consolidated financial position of Sungrow and the parent company as at
December 31, 2023, as well as the consolidated operating results and cash flows of Sungrow and the parent company in 2023.
II. Grounds for the Audit Opinion
The audit has been performed in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities
under these standards are further explained in the part CPA's Responsibilities for the Audit of Financial Statements in this audit report.
Abiding by the China Code of Ethics for Certified Public Accountants, we have operated independently from Sungrow, and fulfilled
other responsibilities in professional ethics. We believe that the audit evidence we obtained is sufficient and appropriate to provide a
ground for our audit opinion.
III. Key Audit Matters
Key audit matters are those we consider to be the most important to the audit of financial statements of the current period based on our
professional judgment. Such matters are addressed in the context that the financial statements are audited as a whole with the audit
opinion issued. We do not express separate opinions on these matters.
A. Recoverability of accounts receivable
As stated in Notes “V. 11 Financial Instruments” and “VII. 4 Accounts Receivable”, the book value of accounts receivable in Sungrow’s
consolidated financial statements was CNY 21,098 million, of which bad debt provision was CNY 2,002 million. The Company
determined the bad debt provision according to the recoverability of accounts receivable. To determine the book value of the accounts
receivable at the end of the period, the Sungrow management team (hereinafter referred to as the Management) needs to identify the
items that have been impaired and the objective evidences, evaluate the cash flows that are expected in the future and determine their
present value, which involves the Management’s use of significant accounting estimates and judgments. Moreover, the recoverability
of accounts receivable is vital to the financial statements; therefore, we have identified the recoverability of accounts receivable as a
key audit matter.
The procedures we performed mainly include the following:
(1) We evaluated and tested the rationality of design and operational effectiveness of Sungrow's credit policy and internal controls
related to accounts receivable management.
(2) We analyzed the rationality of accounting estimates for bad debt provision for Sungrow's accounts receivable, including the basis
for determining the combination of accounts receivable and the judgment on separate bad debts provision.
(3) On perusal of the actual amount of bad debts of similar receivables and the situations in the past, as well as customer credit, market
condition and other factors, we evaluated the appropriateness of approaches used by the Management which divided receivables into
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
several groups for impairment assessment. For receivables that had been accrued for bad debt provision individually, we verified the
foundations used by the Management to evaluate the expected cash flow; for receivables that had been accrued for bad debt provision
according to the characteristics of credit risk combination, we used expected credit loss rate and aging analysis to test the rationality
and accuracy of the Management's provision for bad debts.
(4) We evaluated the recoverability of accounts receivable in large amount, with special attention paid to those with an aging of more
than one year and those covered in lawsuits filed by Sungrow (for selected samples). Through the investigation of customer background,
operating status, litigation situation and the like, we interviewed with lawyers and sales personnel, inspected the letters of confirmation
and collections after the period, in order to evaluate the rationality and adequacy of the Management’s bad debts provision.
B. Revenue recognition
As stated in Notes “V. 27 Principles and Measurements for Revenue Recognition” and “VII. 47 Operating Income and Operating
Costs”, Sungrow recognized an operating income of CNY 72,251 million. Since operating income is one of the Company's key metrics,
there might be an inherent risk that the Management manipulate revenue recognition in order to achieve specific goals or expectations;
therefore, we have identified revenue recognition as a key audit matter.
The procedures we used mainly include the following:
(1) We evaluated and tested the design and operational effectiveness of internal controls related to Sungrow's revenue from product
sales and power station construction.
(2) We verified revenue growth and changes in gross profit in an analytic way.
(3) For revenue from product sales, we inspected samples of sales contracts, sales invoices, logistics documents, customer receipts,
customs declarations and other relevant materials to evaluate the authenticity of revenue recognition; for sales revenue recognized
around the date of the balance sheet, we ran cut-off test and verified supporting documents such as customer receipts, thereby evaluating
the completeness of revenue recognition.
(4) For revenue from collective power station construction, we compared and analyzed the actual total cost of the completed project
samples and the total contract cost estimated by the Management before project completion to evaluate the Management's experience
and capacity in making the accounting estimation; we inspected contracts of major construction projects to verify the total contract
revenue, review key contract terms, and confirm the correctness of contract revenue. For major contracts involving power generation
commitments, we reviewed the basis for determining the power generation estimation and the accuracy of revenue recognition. For the
actual cost of major projects, we checked the supporting documents such as contracts, invoices, equipment receipts, progress
confirmation documents, and analyzed the gross profit rate of the project, thereby evaluating the authenticity and accuracy of the actual
cost accounting. We shortlisted several projects and visited the project sites to determine whether the site status matched the progress
recorded.
(5) For revenue from distributed residential power station construction, we checked the equity transfer agreements, sales contracts, and
grid-connected power generation situation of the power stations to evaluate the authenticity, accuracy, and completeness of revenue
recognition.
C. Inventory impairment
As stated in Notes “V. 13 Inventories” and “VII. 9 Inventories”, as of December 31, 2023, the book balance of inventories in Sungrow’s
consolidated financial statements is CNY 23,130 million, the inventory depreciation provision is CNY 1,689 million, and the book
value of inventories is CNY 21,442 million. Because the inventory amount is huge and the determination of the net realizable value of
inventories involves significant management judgment, we have identified inventories as a key audit matter.
The procedures we used mainly include the following:
(1) We evaluated and tested the rationality of design and operational effectiveness of Sungrow's internal controls related to inventory
management.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(2) We supervised inventory counting in the field, and inspected the quantity and status of inventories, with special attention paid to
the ending inventory status and the identification of obsolete stocks. For inventories at customers’ premises, we ran external
confirmations to verify the quantity.
(3) We obtained the Management’s spreadsheet for calculating inventory depreciation provision, ran the inventory impairment test and
confirmation procedure, checked and analyzed the rationality of the net realizable value, and evaluated the accuracy of the inventory
depreciation reserve and resale.
(4) We conducted peer analysis of Sungrow’s inventory turnover rate and ratio of inventory depreciation provision, to analyze whether
the Company's inventory depreciation significantly deviates from the average level of the peer industry.
(5) We evaluated the appropriateness of the Management's disclosure of inventories and notes in the financial statements.
IV. Other information
The Management is responsible for other information. Other information includes those covered in Sungrow's 2023 annual report, but
does not include the financial statements and our audit report.
The audit opinion on financial statements does not cover other information, nor do we make assurance conclusions on other information
in any form.
As it relates to the audit of financial statements, our responsibility is to read other information and identify whether there are material
inconsistence or errors between other information and the financial statements or the situation we learned during the audit.
Based on what we have done, if we are certain that material errors exist in other information, we should report. In this case, there is
nothing to be reported.
V. Management’s and Governance’s Responsibilities for the Financial Statements
The Management is responsible for preparing and presenting these financial statements fairly in accordance with the Accounting
Standards for Business Enterprises, and for designing, implementing, and maintaining necessary internal controls so that the financial
statements are free from material misstatements due to fraud or error.
When preparing the financial statements, the Management is responsible for evaluating Sungrow’s ability to continue as a going
concern, disclosing matters related to going concerns (if applicable), and applying going concern assumptions, unless the Management
is arranging liquidation, termination, or options of no other realistic alternatives for Sungrow.
Sungrow's governance team is responsible for overseeing Sungrow's financial reporting process.
VI. CPA's Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance on that the financial statements as a whole are free from material misstatement due to
fraud or error, and to issue an auditor report containing our audit opinion. A reasonable assurance is a high level of assurance, however,
there is no assurance that an audit performed in accordance with Auditing Standards can always identify a material misstatement in
existence. Misstatements may result from fraud or error, and are generally considered material if, individually or in aggregate, the
misstatements could be reasonably expected to influence the economic decisions made by users of the financial statements based on
the content of the financial statements.
In the process of conducting the audit in accordance with Auditing Standards, we exercise professional judgment and maintain
professional skepticism. At the same time, we also perform the following:
the risk, and obtain sufficient and appropriate audit evidence as the grounds for our audit opinion. Since fraud may involve collusion,
forgery, intentional omission, misrepresentation or override of internal controls, the risk of failure to detect material misstatements due
to fraud is higher than the risk of failure to detect material misstatements due to error.
the effectiveness of internal controls.
related disclosures.
draw conclusions on whether there are significant uncertainties in matters or situations that are likely to impair Sungrow's ability to
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
continue as a going concern. Should the conclusions considered significant uncertainties, we are required by the auditing standards to
remind users of the financial statements to the relevant disclosures in the financial statements; if the disclosures were insufficient, we
should not issue our opinion as non-qualified. Our conclusions are based on information available as of the date of the audit report.
However, matters or circumstances in the future may still cause Sungrow to cease to operate as a going concern.
fairly reflect the relevant transactions and matters.
issue an audit opinion on the financial statements. We are responsible for directing, supervising and performing the group audit, and
are solely responsible for the audit opinion we make.
We communicate with the governance team on the planned scope, schedule and significant audit findings of the audit, including internal
control deficiencies of concern that we identified during our audit.
We have also provided the governance team with a statement of compliance with professional ethical requirements related to
independence, and communicated with them on all relationships and other matters that might be reasonably believed to affect our
independence, together with the corresponding countermeasures.
From the list of matters that we have communicated with the governance team, we identify those of the most significance to the audit
of financial statements of the current period as the key audit matters. We describe these matters in our audit report unless public
disclosure of such matters is prohibited by laws or regulations or; in rare circumstances where the adverse consequences of
communicating a matter in the audit report would be reasonably expected to outweigh the benefits in the public interest, we decide not
to communicate such a matter in the audit report.
II. Financial Statements
All numbers in the financial statements are in CNY.
Prepared by: Sungrow Power Supply Co., Ltd.
December 31, 2023
(in CNY)
Item December 31, 2023 January 1, 2023
Current Assets:
Cash and cash equivalents 18,030,617,790.74 11,666,601,491.42
Settlements Provision
Loans to banks and other financial institutions
Financial assets held for trading 2,072,049,126.18 1,490,493,996.98
Derivative financial assets
Notes receivable 693,721,862.60 1,086,866,640.25
Accounts receivable 21,097,509,472.32 13,804,040,262.60
Financing receivables 772,690,180.45 1,038,041,498.25
Prepayments 542,848,240.91 382,891,914.73
Insurance premium receivable
Due from reinsurers
Reinsurance contract reserves receivable
Other receivables 1,408,874,420.62 1,171,813,634.65
Including: Interest receivable
Dividends receivable 1,188,236.31 27,389,502.93
Financial assets purchased under agreements to resell
Inventories 21,441,505,396.60 19,060,142,584.88
Contract assets 2,008,704,215.79 1,291,527,303.40
Assets classified as held for sale
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Non-current assets due in one year 53,789,000.00 53,713,000.00
Other current assets 1,161,580,351.66 947,593,110.24
Total current assets 69,283,890,057.87 51,993,725,437.40
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 320,380,000.00 352,460,000.00
Long-term equity investments 440,042,074.75 228,278,242.43
Other equity instruments investments
Other non-current financial assets 500,017,198.94 303,677,642.96
Investment properties
Fixed assets 6,438,183,727.36 4,543,555,993.02
Construction in progress 1,685,757,860.53 1,188,671,605.49
Productive biological assets
Oil and gas assets
Right-of-use asset 397,537,305.84 559,699,600.83
Intangible assets 732,415,239.68 340,374,616.37
Development expenditures
Goodwill
Long-term prepaid expenses 89,178,971.43 98,761,004.79
Deferred tax assets 2,071,287,917.89 1,025,988,368.36
Other non-current assets 917,816,373.28 992,247,656.31
Total non-current assets 13,592,616,669.70 9,633,714,730.56
Total assets 82,876,506,727.57 61,627,440,167.96
Current liabilities:
Short-term borrowings 2,793,019,025.13 1,422,187,421.05
Borrowing from the central bank
Deposits and balances from banks and other financial
institutions
Financial liabilities held for trading 51,919,973.63
Derivative financial liabilities 1,027,953.77
Notes payable 12,914,780,574.41 12,502,200,528.61
Accounts payable 15,571,135,653.23 13,423,788,672.62
Receipts in advance
Contract liabilities 6,564,810,202.26 3,788,439,560.39
Financial assets sold under agreements to buy
Customer deposits and balances from banks and other
financial institutions
Customer brokerage deposits
Securities underwriting brokerage deposits
Payroll and employee benefits payable 1,063,589,056.26 647,136,521.65
Taxes payable 2,897,601,796.23 842,046,338.30
Other payables 1,418,388,234.60 760,375,319.15
Including: Interest payable
Dividend payable
Fees and commission payable
Payable reinsurance
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Liabilities classified as held for sale
Non-current liabilities due in one year 1,342,087,764.59 809,879,585.68
Other current liabilities 1,371,576,221.97 1,219,596,256.39
Total current liabilities 45,936,988,528.68 35,468,598,131.24
Non-current liabilities:
Insurance reserves
Long-term borrowings 4,179,703,100.00 4,161,650,000.00
Bonds payable
Including: Preference shares
Perpetual debt
Lease liabilities 323,824,924.50 430,999,112.05
Long-term Payable 191,823,895.92 596,102,307.79
Long-term payroll and employee benefits payable
Provisions 2,568,690,015.39 1,012,055,993.93
Deferred income 168,761,589.35 166,799,167.22
Deferred tax liabilities 12,608,380.01 13,401,614.14
Other non-current liabilities 39,610,000.00 39,610,000.00
Total non-current liabilities 7,485,021,905.17 6,420,618,195.13
Total liabilities 53,422,010,433.85 41,889,216,326.37
Owners’ equity:
Paid-in capital 1,485,150,984.00 1,485,190,984.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 7,606,175,870.49 7,052,879,188.31
Less: treasury shares 1,381,067,983.76 520,749,625.73
Other comprehensive income 172,490,837.09 -30,520,376.52
Including: Preference share 27,728,572.97
Special reserve 1,066,216,783.99 1,066,216,783.99
Surplus reserve
General risk reserve 18,728,523,299.62 9,614,276,805.07
Retained earnings 27,705,218,364.40 18,667,293,759.12
Equity attributable to owners of the parent 1,749,277,929.32 1,070,930,082.47
Non-controlling interests 29,454,496,293.72 19,738,223,841.59
Total owners’ equity 82,876,506,727.57 61,627,440,167.96
Legal Representative: Cao Renxian Chief Accountant: Tian Shuai Head of Accounting Department: Li Pan
(in CNY)
Item December 31, 2023 January 1, 2023
Current Assets:
Cash and cash equivalents 12,265,530,503.76 7,843,493,020.92
Financial assets held for trading 1,792,634,524.90 1,023,462,624.14
Derivative financial assets
Notes receivable 617,470,007.33 513,951,198.39
Accounts receivable 11,479,153,437.35 12,289,281,607.26
Financing receivables 623,245,933.65 841,039,102.74
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Prepayments 33,593,762.18 15,214,576.36
Other receivables 1,916,890,245.06 1,064,683,730.83
Including: Interest receivable
Dividends receivable 27,389,502.93
Inventories 5,937,909,845.99 4,305,038,408.84
Contract assets 531,059,645.40 356,483,190.49
Assets classified as held for sale
Non-current assets due in one year 53,789,000.00 53,713,000.00
Other current assets 13,798.87 49,297,706.52
Total current assets 35,251,290,704.49 28,355,658,166.49
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 3,913,030,600.00 352,460,000.00
Long-term equity investments 7,103,505,466.75 5,287,620,696.34
Other equity instruments investments
Other non-current financial assets 201,011,383.13 125,035,324.41
Investment properties
Fixed assets 2,305,827,037.94 1,412,825,971.90
Construction in progress 1,040,113,698.40 585,904,972.37
Productive biological assets
Oil and gas assets
Right-of-use asset 19,917,144.38 47,727,364.25
Intangible assets 322,028,915.70 207,480,610.30
Development expenditures
Goodwill
Long-term prepaid expenses 37,956,122.81 57,092,196.74
Deferred tax assets 471,147,897.46 311,100,998.02
Other non-current assets 607,088,723.95 537,065,057.02
Total non-current assets 16,021,626,990.52 8,924,313,191.35
Total assets 51,272,917,695.01 37,279,971,357.84
Current liabilities:
Short-term borrowings 12,122,000.00 74,407,523.19
Financial liabilities held for trading 6,367,790.64
Derivative financial liabilities 1,027,953.77
Notes payable 6,536,520,996.50 6,574,809,279.06
Accounts payable 9,418,109,832.25 9,326,539,265.79
Receipts in advance
Contract liabilities 1,661,943,885.04 690,409,136.06
Payroll and employee benefits payable 440,161,828.92 259,302,306.80
Taxes payable 1,381,108,157.24 265,054,124.87
Other payables 2,932,177,231.32 419,115,721.82
Including: Interest payable
Dividend payable
Liabilities classified as held for sale
Non-current liabilities due in one year 165,036,053.57 64,942,372.58
Other current liabilities 630,180,362.22 124,706,255.00
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Total current liabilities 23,177,360,347.06 17,806,681,729.58
Non-current liabilities:
Long-term borrowings 811,360,000.00 957,720,000.00
Bonds payable
Including: Preference shares
Perpetual debt
Lease liabilities 2,605,017.41 21,784,939.47
Long-term Payable
Long-term payroll and employee benefits payable
Provisions 834,812,719.63 532,428,639.25
Deferred income 140,456,724.31 146,613,574.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 1,789,234,461.35 1,658,547,152.72
Total liabilities 24,966,594,808.41 19,465,228,882.30
Owners’ equity:
Paid-in capital 1,485,150,984.00 1,485,190,984.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 7,206,040,925.89 7,146,687,476.79
Less: treasury shares 1,381,067,983.76 520,749,625.73
Other comprehensive income 281,692.50
Special reserve 11,303,424.15
Surplus reserve 1,066,216,783.99 1,066,216,783.99
Retained earnings 17,918,678,752.33 8,637,115,163.99
Total owners’ equity 26,306,322,886.60 17,814,742,475.54
Total liabilities and owners’ equity 51,272,917,695.01 37,279,971,357.84
(in CNY)
Item 2023 2022
I. Total revenue 72,250,674,939.46 40,257,239,155.34
Including: Operating proceeds 72,250,674,939.46 40,257,239,155.34
Interest income
Net earned premiums
Net fee and commission revenue
II. Total operating costs 59,150,023,669.27 35,514,911,265.50
Including: Operating costs 50,317,573,513.17 30,375,806,550.32
Interest expenses
Fees and commission expenses
Surrenders
Net payments for insurance claims
Net provision of insurance reserve
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 324,453,897.24 142,614,456.42
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
Selling expenses 5,166,844,506.28 3,169,263,472.82
General and administrative expenses 873,167,416.41 612,314,748.77
R&D expenses 2,447,389,317.47 1,692,156,198.42
Financial expenses 20,595,018.70 -477,244,161.25
Including: Interest expense 318,936,658.27 209,088,016.88
Interest income 198,329,706.84 77,821,870.16
Add: Other income 266,145,031.37 220,935,253.06
Investment gains (or losses) 96,558,622.32 40,338,523.02
Including: Share of gains of associates and joint ventures -2,984,635.20 -2,286,676.64
Gains from derecognition of financial assets measured at
amortized cost
Exchange gains (or losses)
Net exposure hedging gains (or losses)
Gains (or losses) on the changes in fair value 36,192,212.68 -29,610,984.47
Credit impairment losses -727,817,342.49 -456,447,435.65
Assets impairment losses -1,300,637,092.52 -374,657,742.38
Gain (or losses) from disposal of assets -4,638,267.85 -1,741,000.52
III. Operating profit (or loss) 11,466,454,433.70 4,141,144,502.90
Add: Non-operating income 25,159,042.65 9,156,115.54
Less: Non-operating costs 31,650,315.31 16,339,008.39
IV. Profit (or loss) before tax 11,459,963,161.04 4,133,961,610.05
Less: Income tax expense 1,851,223,389.07 438,388,242.74
V. Net profit (or loss) 9,608,739,771.97 3,695,573,367.31
(1) Categorized by operation continuity
(2) Categorized by ownership
VI. Other comprehensive income, net of tax 205,116,106.60 -7,899,020.61
Other comprehensive income, net of tax, attributable to
shareholders of parent company
a. Other comprehensive income not be reclassified as profit
or loss
profit or loss using the equity method
investments
b. Other comprehensive income to be reclassified as profit or
loss
loss using equity method
comprehensive income
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
financial
Other comprehensive income, net of tax, attributable to non-
controlling interests
VII. Total comprehensive income 9,813,855,878.57 3,687,674,346.70
Total comprehensive income attributable to owners of parent 9,642,573,013.86
company
Total comprehensive income attributable to non-controlling 171,282,864.71
interests
VIII. Earnings per share
(1) Basic earnings per share 6.36 2.42
(2) Diluted earnings per share 6.36 2.42
Legal Representative: Cao Renxian Chief Accountant: Tian Shuai Head of Accounting Department: Li Pan
(in CNY)
Item 2023 2022
I. Operating revenue 37,321,678,590.58 26,798,345,232.68
Less: Operating costs 23,356,714,305.38 20,736,938,957.77
Taxes and surcharges 184,254,854.76 89,454,540.58
Selling expenses 1,535,457,794.43 1,121,725,628.76
General and administrative expenses 407,053,310.39 294,158,951.57
R&D expenses 1,679,755,029.12 1,108,693,906.17
Financial expenses -308,921,861.88 -387,191,420.14
Including: Interest expense 25,051,165.78 24,305,403.72
Interest income 132,016,709.02 75,655,482.56
Add: Other income 89,069,732.35 70,596,800.23
Investment gains (or losses) 742,350,027.68 434,746,619.98
Including: Share of gains of associates and joint ventures -6,167,283.56 -2,408,049.57
Gains (or losses) from derecognition of financial assets
measured at amortized cost
Net exposure hedging gains (or losses)
Gains (or losses) on the changes in fair value 53,915,750.12 -506,748.31
Credit impairment losses -177,336,989.70 -447,759,303.14
Assets impairment losses -204,710,292.22 -15,264,193.57
Gain (or losses) from disposal of assets -1,611,581.06 86,130.64
II. Operating profit (or loss) 10,969,041,805.55 3,876,463,973.80
Add: Non-operating income 14,297,511.32 4,704,919.95
Less: Non-operating costs 9,366,929.68 5,014,049.48
III. Total profit (or loss) 10,973,972,387.19 3,876,154,844.27
Less: Income tax expense 1,367,093,493.15 380,412,241.41
V. Net profit (or loss) 9,606,878,894.04 3,495,742,602.86
a. Net profit (or loss) from continuing operations 9,606,878,894.04 3,495,742,602.86
b. Net profit (or loss) from discontinuing operations
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
V. Other comprehensive income, net of tax -281,692.50 281,692.50
a. Other comprehensive income not to be reclassified as
profit or loss
profit or loss using the equity method
investments
b. Other comprehensive income to be reclassified as profit or
-281,692.50 281,692.50
loss
loss using equity method
comprehensive income
financial
VI. Total comprehensive income 9,606,597,201.54 3,496,024,295.36
VII. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
(in CNY)
Item 2023 2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of
services
Net increase in customer bank deposits and due to banks and
other financial institutions
Net increase in loans from the central bank
Net increase in funds borrowed from other financial
institutions
Cash premiums received on original insurance contracts
Net cash received from re-insurance business
Net increase in deposits and investments from insurers
Cash received from interest, fees and commission
Net increase in funds deposit
Net increase in repurchase business funds
Net income from securities trading brokerage business
Tax refunds received 1,910,464,684.09 2,010,210,787.57
Cash received relating to other operating activities 1,093,633,476.16 636,129,354.20
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
Sub-total of cash inflows 64,909,783,214.55 40,759,815,988.81
Cash paid for purchase of goods and services 47,378,838,109.93 32,223,692,792.32
Net increase in loans and payments on behalf of customers
Net increase in deposits with central bank and other financial
institutions
Payments for claims for original insurance contracts
Net increase in funds lent
Cash paid for interest, fees and commission
Commissions on insurance policies paid
Cash paid to and on behalf of employee 3,919,184,125.68 2,905,936,662.96
Cash paid for taxes 2,925,533,794.68 1,983,956,956.63
Cash paid relating to other operating activities 3,704,388,206.98 2,435,731,091.01
Sub-total of cash outflows 57,927,944,237.27 39,549,317,502.92
Net cash flows from operating activities 6,981,838,977.28 1,210,498,485.89
II. Cash flows from investing activities:
Cash received from disposal of investments 23,445,934,178.93 14,661,894,272.35
Cash received from investment income 99,611,189.52 13,728,203.53
Net proceeds from disposal of fixed assets, intangible assets
-1,409,268.89 9,368,073.62
and other long-term assets
Cash received from disposal of subsidiaries and other
business units
Cash received relating to other investing activities
Sub-total of cash inflows 23,544,136,099.56 14,684,990,549.50
Cash paid for purchase/construction of fixed assets,
intangible assets and other non-current assets
Cash paid for investments 24,633,662,834.72 12,812,669,124.27
Net increase in secured loans
Net cash paid for acquisition of a subsidiary and other
-9,608,508.09
operating units
Cash paid relating to other investing activities
Sub-total of cash outflows 27,365,292,970.63 14,339,435,233.12
Net cash flows from investing activities -3,821,156,871.07 345,555,316.38
III. Cash flows from financing activities:
Cash received from investment 1,012,744,912.50 15,000,000.00
Including: Cash receipts from capital contributions from non-
controlling interests of subsidiaries
Proceeds from borrowings 6,849,766,421.53 8,870,222,959.85
Cash receipts relating to other financing activities 2,110,483,282.13 1,064,751,941.30
Subtotal of cash inflows 9,972,994,616.16 9,949,974,901.15
Repayments for debts 3,560,563,814.12 5,678,221,694.06
Cash payments for distribution of dividends or profit and
interest expenses
Including: Dividends or profit paid to non-controlling
shareholders of subsidiaries
Cash payments relating to other financing activities 2,492,603,592.17 2,173,420,467.94
Subtotal of cash outflows 6,693,485,685.31 8,203,257,437.80
Net cash flows from financing activities 3,279,508,930.85 1,746,717,463.35
IV. Effect of exchange rate changes on cash and cash 24,738,607.63 -60,678,401.58
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
equivalents
V. Net increase in cash and cash equivalents 6,464,929,644.69 3,242,092,864.04
Add: Cash and cash equivalents at beginning of the period 9,802,092,656.80 6,559,999,792.76
VI. Cash and cash equivalents at end of the period 16,267,022,301.49 9,802,092,656.80
(in CNY)
Item 2023 2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of
services
Tax refunds received 1,353,859,576.51 1,147,907,367.79
Cash received relating to other operating activities 260,602,342.64 190,264,372.84
Sub-total of cash inflows 35,007,722,394.13 22,649,354,965.63
Cash paid for purchase of goods and services 22,346,864,428.08 16,517,692,526.60
Cash paid to and on behalf of employee 1,597,003,312.62 1,275,541,506.39
Cash paid for taxes 606,106,105.13 417,527,277.33
Cash paid relating to other operating activities 2,090,113,582.90 1,213,446,733.19
Sub-total of cash outflows 26,640,087,428.73 19,424,208,043.51
Net cash flows from operating activities 8,367,634,965.40 3,225,146,922.12
II. Cash flows from investing activities:
Cash received from disposal of investments 22,901,050,502.93 13,338,421,935.62
Cash received from investment income 368,517,311.24 107,506,947.55
Net proceeds from disposal of fixed assets, intangible assets
and other long-term assets
Cash received from disposal of subsidiaries and other business
units
Cash received relating to other investing activities 2,019,346,250.00
Sub-total of cash inflows 23,269,617,856.80 15,490,362,130.92
Cash paid for purchase/construction of fixed assets, intangible
assets and other non-current assets
Cash paid for investments 25,467,532,068.00 12,442,801,480.00
Net increase in secured loans
Net cash paid for acquisition of a subsidiary and other
operating units
Cash paid relating to other investing activities 27,766,302,715.77 15,564,344,305.37
Sub-total of cash outflows -4,496,684,858.97 -73,982,174.45
Net cash flows from investing activities
III. Cash flows from financing activities: 52,746,412.50
Cash received from investment 12,122,000.00 1,209,531,000.00
Cash received from borrowings 2,716,599,774.59 134,997,884.97
Cash receipts relating to other financing activities 2,781,468,187.09 1,344,528,884.97
Subtotal of cash inflows 113,641,000.00 726,205,196.00
Repayments for debts 350,502,484.73 182,657,721.65
Cash payments for distribution of dividends or profit and
interest expenses
Cash payments relating to other financing activities 1,900,754,789.45 1,645,285,239.00
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
Net cash flows from financing activities 880,713,397.64 -300,756,354.03
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 4,775,096,388.95 2,797,910,705.17
Add: Cash and cash equivalents at beginning of the period 6,925,024,941.28 4,127,114,236.11
VI. Cash and cash equivalents at end of the period 11,700,121,330.23 6,925,024,941.28
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Current amount
(in CNY)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
I. Balance at the end -
of previous year 1,485, 7,052,8 520,749,6 30,520,376. 1,066,2 9,613, 18,666 1,070,689 19,736
Add: changes in
accounting policies 38,645. 15,766. 933,95 988,36 240,271.4 1,228,
Corrections of prior
period errors
Others
II. Balance at the -
beginning of the year 1,485, 7,052,8 520,749,6 30,520,376. 1,066,2 9,614, 18,667 1,070,930 19,738
III. Increase (or
decrease) during the - 553,296 860,318,3 203,011,21 27,728 9,114, 9,037, 678,347,8 9,716,
period 40,000 ,682.18 58.03 3.61 ,572.9 246,49 924,60 46.85 272,45
.00 7 4.55 5.28 2.13
a. Total
comprehensive 203,011,21 9,439, 9,642, 169,177,9 9,811,
income 3.61 561,80 573,01 71.72 750,98
b. Owners’
contribution and - 122,883 122,84 973,754,9 1,096,
reduction 40,000 ,862.87 3,862. 16.85 598,77
.00 87 9.72
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
contribution in - - - 959,998,5 959,80
ordinary share 40,000 153,180 193,18 00.00 5,320.
.00 .00 0.00 00
other equity
instruments
based payments 123,037 123,03 13,756,41 136,79
recognized in equity ,042.87 7,042. 6.85 3,459.
c. Profit distribution -
- - 37,595,72 -
reserve
reserve
owner (or - - 37,595,72 -
shareholder) 325,31 325,31 7.30 362,91
d. Transfer within
equity
converted to share
capital
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
converted to share
capital
surplus reserves
defined benefit plan
transferred to retained
earnings
comprehensive
income transferred to
retained earnings
e. Special reserve
,572.9 ,572.9 .36 ,355.3
,173.6 ,173.6 .36 ,955.9
,600.6 ,600.6 ,600.6
f. Others - -
,819.31 58.03 5,538. 96.78 858,52
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
IV. Balance at the end
of the period 1,485, 7,606,1 1,381,067 172,490,83 27,728 1,066,2 18,728 27,705 1,749,277 29,454
Last period amount
(in CNY)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Special Surplus General Retained controlling owners’
Preference Perpetual Capital reserve treasury comprehensive Others Subtotal
capital Others reserve reserve reserve earnings interests equity
share debt shares income
I. Balance at the end 1,485, 15,133 - 6,532, 15,655, 1,048,6 16,703,
of previous year 215,98 ,520.0 24,221,290.1 893,91 063,485 14,563. 678,048
Add: changes in 29,777.6 883,44 951,864 139,267 1,091,1
accounting policies 6 1.15 .62 .23 31.85
Corrections of prior
period errors
Others
II. Balance at the 1,485, 15,133 - 6,533, 15,656, 1,048,7 16,704,
beginning of the year 215,98 ,520.0 24,221,290.1 777,35 015,350 53,830. 769,180
III. Increase (or - 505,61 3,080, 3,011,2 3,033,4
decrease) during the 25,000 6,105. 499,44 78,408. 54,660.
period .00 73 7.31 79 98
a. Total 3,593, 3,587,1 3,689,2
- 102,126
comprehensive 446,51 47,427. 74,280.
income 4.09 69 91
b. Owners’ - 505,61 - - -
contribution and 25,000 6,105. 387,105 4,729,5 391,834
reduction .00 73 ,043.70 45.53 ,589.23
contribution in 25,000 -101,237.94 126,237 4,729,5 4,855,7
ordinary share .00 .94 45.53 83.47
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
other equity
instruments
based payments 6,105. 386,978 386,978
recognized in equity 73 ,805.76 ,805.76
c. Profit distribution -
- -
,806.49 ,806.49
reserve 349,574, 349,57
reserve
- -
owner (or 163,37
shareholder) 2,806.
,806.49 ,806.49
d. Transfer within
equity
converted to share
capital
converted to share
capital
surplus reserves
defined benefit plan
transferred to
retained earnings
comprehensive
income transferred to
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
retained earnings
e. Special reserve
f. Others - - - -
IV. Balance at the end 7,052,879,1 1,066,21
of the period 88.31 6,783.99
Current amount
(in CNY)
Item 2023
Share capital Other equity instruments Capital Less: Other Special Surplus Retained Others Total
Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
I. Balance at the end of 1,485,190,984.00 7,146,6 520,749 281,692.50 1,066,2 8,636,973 17,814,
previous year 87,476. ,625.73 01,017. ,267.33 584,812
Add: changes in accounting 15,766. 141,896.6 157,662
policies 30 6 .96
Corrections of
prior period errors
Others
II. Balance at the beginning 1,485,190,984.00 7,146,6 520,749 281,692.50 1,066,2 8,637,115 17,814,
of the year 87,476. ,625.73 16,783. ,163.99 742,475
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023
Share capital Other equity instruments Capital Less: Other Special Surplus Retained Others Total
Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
III. Increase (or decrease) -40,000.00 59,353, 860,318 -281,692.50 11,303,4
during the period 449.10 ,358.03 24.15 9,281,563 8,491,5
,588.34 80,411.0
a. Total comprehensive -281,692.50
income 9,606,878 9,606,5
,894.04 97,201.
b. Owners’ contribution and -40,000.00 59,353, 59,313,
reduction 449.10 449.10
ordinary share 153,180 193,180
.00 .00
equity instruments
payments recognized in 629.10 629.10
equity
c. Profit distribution - -
reserve
shareholder) 325,315,3 325,315
d. Transfer within equity
converted to share capital
converted to share capital
reserves
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023
Share capital Other equity instruments Capital Less: Other Special Surplus Retained Others Total
Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
benefit plan transferred to
retained earnings
income transferred to
retained earnings
e. Special reserve 11,303,4 11,303,4
f. Others 860,318 -
,358.03 860,318
,358.03
IV. Balance at the end of the 1,485,150,984.00 7,206,0 1,381,0 11,303,4 1,066,2 17,918,67 26,306,
period 40,925. 67,983. 24.15 16,783. 8,752.33 322,886
Previous period amount
(in CNY)
Item 2022
Share Other equity instruments Capital Less: Other Special Surplus Retained Others Total
capital Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
I. Balance at the end of previous 1,485,215,9 7,074,553 15,133,520. 716,612 5,654,051 14,915,30
year 84.00 ,205.11 00 ,746.04 ,628.97 0,044.12
Add: changes in accounting 29,777. 267,998.9 297,776.6
policies 66 4 0
Corrections of prior period errors
Others
II. Balance at the beginning of the 1,485,215,9 7,074,553 15,133,520. 716,642 5,654,319 14,915,59
year 84.00 ,205.11 00 ,523.70 ,627.91 7,820.72
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2022
Share Other equity instruments Capital Less: Other Special Surplus Retained Others Total
capital Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
III. Increase (or decrease) during -25,000.00 72,134,27 505,616,10 281,692.50 349,574 2,982,795 2,899,144
the period 1.68 5.73 ,260.29 ,536.08 ,654.82
a. Total comprehensive income 281,692.50 3,495,742 3,496,024
,602.86 ,295.36
b. Owners’ contribution and -25,000.00 72,134,27 505,616,10 -
reduction 1.68 5.73 433,506,8
share 101,237.9 126,237.9
instruments
payments recognized in equity 9.62 5.73 433,380,5
c. Profit distribution 349,574 - -
,260.29 512,947,0 163,372,8
,260.29 349,574,2
shareholder) 163,372,8 163,372,8
d. Transfer within equity
share capital
share capital
reserves
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2022
Share Other equity instruments Capital Less: Other Special Surplus Retained Others Total
capital Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
plan transferred to retained
earnings
transferred to retained earnings
e. Special reserve
.03 3
.03 3
f. Others
IV. Balance at the end of the period 1,485,190,9 7,146,687 520,749,62 281,692.50 1,066,2 8,637,115 17,814,74
Sungrow Power Supply Co., Ltd.
April 2024
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section I Important Notes, Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the Company hereby guarantee that
the information presented in this annual report is truthful, accurate and integrate, free of any false records, misleading
statements or material omissions, and assume individual and joint legal liabilities thereof.
Cao Renxian as the President of the Company, Tian Shuai as the Chief Accountant, and Li Pan as the head of accounting
department (accounting supervisor) hereby guarantee the truthfulness, integrity, and accuracy of financial statements in this
annual report.
All directors have attended the board meeting to review this report.
Contents in this report concerning future plans, performance forecasts, and etc., do not constitute any commitment made by
the Company to any investor or related party. Investors and related parties should maintain adequate risk awareness and
understand the possible difference between plans, forecasts, and commitments. Investors are kindly advised to pay attention to
investment risks.
(1) Policy-related risks
Although technologies related to renewable energy power generation are still evolving and grid parity has been achieved in
most regions around the world, there are still a few regions where the power generation cost or the on-grid electricity price is
higher than that of fossil energy, and the unit electricity cost per kilowatt-hour from wind-solar-storage integrated applications
remains relatively high. In addition, considering the various constraints including grid consumption, intermittent fluctuations
in new energy availability, as well as land and taxation, policy support and encouragement from governments are still necessary.
Since the supportive policies are formulated by the governments of various countries, despite of the constant global trend of
energy conservation and emission reduction, major changes in the macro economies of major markets or relevant supportive
policies will affect the growth pace of the industry and the Company’s profitability to a certain extent. To this end, the Company
actively makes global presence, and continually delves into the global market to minimize the impact of policy fluctuations
within a single country.
(2) Risk of gross margin reduction due to intensified competition
As the world's largest PV inverter manufacturer, the Company's core product, PV inverters, enjoys an obvious market
advantage. However, the huge potential of Chinese and foreign markets has also attracted fierce market competition. If the
Company fails to maintain the leading edge in technological innovation, new product development, and cost control, the
products will face the risk of gross margin declination. As such, the Company needs to further accelerate new product upgrade
and iteration through R&D innovation and increasing R&D investment, speed up the research and application of AI
technologies, so as to continually provide customers with value-added services, deliver better customer experience, and
consolidate product advantages in the market.
(3) Risk of collecting accounts receivables
As the Chinese market grows rapidly, the Company puts more efforts in product sales. On perusal of the huge project
investment and long payment term prevailing in China’s PV industry, fast business growth of the Company will lead to a quick
increase of receivables and certain risks in payment collection. To prevent credit risks and accelerate capital turnover, the
Company has formulated strict credit management systems and sale-on-credit policies, and actively reduce the risk of non-
performing loans and bad accounts through legal actions.
(4) Risk of international trade frictions
Currently, some countries restrict PV-related imports and exports, raise tariffs, or set other trade barriers in order to grow
their native PV industry, posing foreign trade risks on the PV industry where the Company operates in. The Company has
developed a series of defensive measures and lean production plans to actively respond to the complicated global situation and
expand the global market. By strengthening the global manufacturing and supply chain layout, improving supply chain
management, the Company strives to reduce trade frictions and other adverse impacts, ensuring that the annual tasks are
completed on time.
(5) Risk of exchange rate fluctuation
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
USD, AUD and EUR are the three major currencies used for the Company's overseas revenue settlement. The impact of
exchange rate fluctuations is mainly reflected in the following two aspects: a. Because of the CNY exchange rate fluctuation,
changes in operating income measured in local currency pose a direct impact on the gross margin of main products; b. From
the moment sales revenue is confirmed and accounts receivable is generated to the moment of foreign currency collection, the
Company is subject to exchange gains/losses from the fluctuations in the CNY exchange rate, hence the Company's
performance is also affected. On the foundation of normal operation and relying on specific businesses, the Company takes
various means, including hedging, continuous monitoring, and timely settling foreign currency sales to reduce exchange-related
loss and control operating risks.
(6) Risks in construction management of new energy investment and development projects
New energy projects feature large amount of investment and short project lead time. Such projects involve not only ground
resources but also commercial and residential roofs. For such projects, the investment decision-making is quite challenging,
and a lot of uncertainties exist in project engineering and implementation, which may lead to project delays and jeopardize
timely grid connection for power generation. While challenging the Company's project management, the projects also require
a huge amount of working capital. In response to such risks, the Company makes cautious considerations when selecting new
energy power generation projects to prioritize those with better grid connection conditions, controllable construction cost and
higher gross margin. Meanwhile, the Company enhances engineering management and improves project management. After
entering into sales contracts with customers, the Company reinforces project construction management in a timely manner,
adequately communicates with customers on project progress, and adjusts the work schedule according to the result of
communication, so that the impact of project delay on the Company's production and operation is eliminated or alleviated to
the most extent. By providing customers with safe, efficient and intelligent new energy power stations to their satisfaction, the
Company's brand reputation in new energy investment and development is improved.
The board meeting has reviewed and approved the following profit distribution proposal: Based on a base quantity of
share (tax inclusive) will be distributed, and 4 shares will be transferred from capital reserve to every 10 shares held by
shareholders.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Contents
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Documents for Future Reference
department of the Company.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Definitions
Term Definition
Sungrow, the Company Sungrow Power Supply Co., Ltd.
Sungrow Renewables Sungrow Renewables Development Co., Ltd., the Company's holding subsidiary
PV Solar photovoltaic effect, refers to the light-caused potential difference inside uneven
semiconductors or combinations of semiconductors and metals
Inverter, PV inverter One of the critical devices in a solar PV power generation system, which converts DC
power from solar cells into AC power that meets the grid power quality requirements
Centralized PV inverter Connecting a number of parallel PV modules to the DC input of a centralized inverter for
maximum power point tracking (MPPT), then connecting them into the grid after inversion.
With a relatively high power, it is mainly used in large-scale centralized ground PV power
stations with uniform lighting and other centralized PV power generation systems
String PV inverter Performing separate MPPT on several groups (in general 1 to 4 groups) of PV modules,
and connecting them into the AC grid after inversion. A string inverter may have multiple
MPPT modules. With a relatively low small power, it is mainly used in distributed power
generation systems, and sometimes also in centralized PV power generation systems
Energy storage converter Power conversion devices between the energy storage batteries and the AC power grid,
capable of charging and discharging the batteries. They are used in PV, power smoothing
for wind power generation, peak load shifting, micro-grid and other scenarios
Wind power converter Devices that convert the electric energy with unstable voltage frequency and amplitude
generated by wind turbine generators under the actions of natural wind into electric energy
with stable frequency and amplitude that meets the grid requirements, and connect it to the
grid
Distributed power supply Distributed power supply units, that is, small and modular standalone power supplies
ranging from several kilowatts to 50 MW that are environment-compatible
Energy storage Storage of electrical energy
One of the globally renowned testing and certification bodies and standard development
UL
bodies
A safety certification mark granted by the TüV Group to products, which is widely
TüV
recognized around the world
CE A certification that must be obtained by products entering the European market
A standard developed by the Italian State Power Board (Enel), which is widely recognized
Enel-GUIDA
in Italy
An Australian standard. PV modules and inverters must comply with this standard in order
AS4777
to be used in the design and installation of PV systems in Australia
Abbreviation of the California Energy Commission. External power supplies exported to
CEC
California must obtain this certification
Canadian Standards Association, the largest non-profit organization for defining industrial
CSA
standards in Canada
One of the most experienced certification bodies in Europe with a high reputation in the
VDE
world that is directly involved in developing the German national standards
IPD Integrated product development management process
Watt (W), Kilowatt (kW), The unit of measure for power of electricity, in specific, 1 GW = 1,000 MW = 1,000,000
Megawatt (MW), Gigawatt (GW) kW = 1,000,000,000 W
CNY, 10K CNY, 100 million Renminbi yuan, renminbi 10,000 yuan, renminbi 100 million yuan
CNY
Reporting period, current January 1, 2023 to December 31, 2023
reporting period, this period
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section II Company Profile & Key Financial Indicators
I. Company Profile
Stock abbreviation Sungrow Stock code 300274
Name of the Company in Chinese 阳光电源股份有限公司
Abbreviation of the Company in Chinese 阳光电源
Name of the Company in English (if any) Sungrow Power Supply Co., Ltd.
Abbreviation of the Company in English (if any) Sungrow Power Supply
Legal representative Cao Renxian
Registered address No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province
Zip code of registered address 230088
Changes in the Company's registered address The registered address has not changed since the Company went public in
Business address No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province
Zip code of business address 230088
Company website http://www.sungrowpower.com
E-mail dshms@sungrow.cn, kangml@sungrowpower.com
II. Contacts and Contact Information
Board Secretary Securities Affairs Representative
Name Lu Yang Kang Maolei
Address No. 1699 Xiyou Road, High-tech Zone, Hefei, No. 1699 Xiyou Road, High-tech Zone, Hefei,
Anhui Province Anhui Province
Phone 0551-65325617 0551-65325617
Fax 0551-65327800 0551-65327800
E-mail dshms@sungrow.cn kangml@sungrowpower.com
III. Information Disclosure and Place of the Report
Website of the stock exchange specified for disclosing the
http://www.cninfo.com.cn
Annual Report
Media and websites specified for disclosing the Annual Report China Securities Journal, Securities Times, Shanghai Securities
News, Securities Daily
Place where the Annual Report is available for Office of the Board of Directors
IV. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm RSM China (Special General Partnership)
Business address of the accounting firm 29/F, Block A, the Landmark, Shushan District, Hefei City,
Anhui Province
Name of the undersigning accountants Wan Yunlong, Jiang Wei, Pan Lili
Sponsor institution engaged by the Company for continuous supervision during the reporting period
Applicable □ Not Applicable
Name of sponsor Business address of Sponsor Period of continuous supervision
institution sponsor institution representative
China International Floors 27/28, China World Liu Chengli, Li October 22, 2021 to December 31, 2023 (The continuous
Capital Corporation Office 2, No. 1 Jizhe supervision and guidance period by China International
Limited Jianguomenwai Avenue, Capital Corporation Limited has ended on December 31,
Beijing 100004, P.R. 2023. However, the funds raised by the Company have
China not been fully utilized, therefore, continuous supervision
and guidance by China International Capital Corporation
Limited is required before the funds are fully utilized.)
Financial advisor engaged by the Company for continuous supervision during the reporting period
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
V. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment or restatement of previous accounting data
Yes □ No
Reason for retroactive adjustment or restatement
Changes in Accounting Policies
YOY
Change
Before After After Before After
Adjustment Adjustment Adjustment Adjustment Adjustment
Operating income (CNY) 72,250,674,93 40,257,239,15 40,257,239,15 24,136,598,72 24,136,598,72
Net profit attributable to
shareholders of the 162.69%
.25 .26 .09 .76 .57
Company (CNY)
Net profit attributable to
shareholders of the
Company after deducting 172.18%
.77 .38 .21 .45 .26
non-recurring gains and
losses (CNY)
Net cash flows from - -
operating activities (CNY) 476.77% 1,638,632,122 1,638,632,122
.28 .89 .89
.77 .77
Basic earnings per share
(CNY/share)
Diluted earnings per share
(CNY/share)
Weighted average return on
equity
YOY
As at Dec. 31 2022 As at Dec. 31 2021
As at Dec. 31 Change
Adjustment Adjustment Adjustment Adjustment Adjustment
Total assets (CNY) 82,876,506,72 61,626,211,52 61,627,440,16 42,840,130,91 42,841,222,04
Net assets attributable to
shareholders of the 48.42%
Company (CNY)
Reasons for changes in accounting policies and correction of accounting errors
On November 30, 2022, the Ministry of Finance issued the No. 16 Interpretation of Accounting Standards for Business Enterprises
(hereinafter referred to as the Interpretation No. 16). The Company started implementing the “Accounting treatment for deferred
income tax related to assets and liabilities arising from individual transactions that is not subject to initial recognition exemption” as
of January 1, 2023, and adjusted applicable individual transactions throughout the period from the beginning of the earliest period in
financial statements where the provision was implemented for the first time to the first day of implementation. For lease liabilities and
right of use assets recognized at the beginning of the earliest period in financial statements where the provision was implemented for
the first time, and for estimated liabilities and corresponding assets related to abandonment obligations recognized, should there be
taxable temporary differences and deductible temporary differences, the cumulative impact should be adjusted in the initial retained
earnings and other related financial statement items of the earliest period in accordance with this provision and the provisions in
Accounting Standards for Business Enterprises No. 18—Income Tax.
The lower of the Company's net profit including extraordinary and net profit excluding extraordinary is negative in the last three fiscal
years, and the audit report for the last year shows that uncertainties exist in the Company's business continuity
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Yes No
The lower of net profit including extraordinary and net profit excluding extraordinary is negative
□ Yes No
VI. Key Financial Indicators by Quarter
(in CNY)
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating income 12,580,349,961.26 16,041,874,001.06 17,792,410,869.64 25,836,040,107.50
Net profit attributable to shareholders of
the Company
Net profit attributable to shareholders of
the Company after deducting non- 1,458,553,118.15 2,823,316,713.82 2,793,225,277.35 2,140,508,927.45
recurring gains and losses
Net cash flows from operating activities -793,931,336.59 5,563,441,170.68 -217,205,993.25 2,429,535,136.44
Whether there are significant differences between above financial indicators or their sums and the relevant financial indicators in the
quarterly and half-year reports disclosed by the Company
□ Yes No
VII. Differences in Accounting Data between Chinese and Overseas Accounting Standards
standards and China accounting standards
□ Applicable Not Applicable
There is no difference in the net profits and net assets disclosed in the financial statements as per the international accounting standards
and China accounting standards.
standards and China accounting standards
□ Applicable Not Applicable
There is no difference in the net profits and net assets disclosed in the financial statements as per the local (overseas) accounting
standards and China accounting standards.
VIII. Non-recurring Items and Their Gains/Losses
Applicable □ Not Applicable
(in CNY)
Item Amount in 2023 Amount in 2022 Amount in 2021 Remarks
Gains or losses from disposal of non-current assets -13,874,372.86 -3,361,515.27 198,734,481.06
(including the write-off accrued for impairment of assets)
Government grants accounted for, in the Gains or losses for 118,675,145.65 140,744,784.09 110,269,947.66
the current period (except for those closely related to the
Company’s normal business operation, compliant with
national policies and regulations, and granted to a certain
standard or at a fixed amount)
Gains or losses from changes in fair value arising from 162,726,489.74 114,038,405.73 12,598,837.40
holding trading financial assets and trading financial
liabilities, as well as investment gains from disposal of
trading financial assets, trading financial liabilities, and
salable financial assets, except for the effective hedging
business associated with the Company’s normal business
operation
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Reversal of impairment provisions for accounts receivable 5,822,834.44 5,784,209.13 2,883,005.14
which are separately tested for impairment
Gains entitled to the Company when the investment cost of 69,649.51 266,221.04
acquiring subsidiaries, associates or joint ventures is no more
than the fair value of identifiable net assets of invested unit
at the time of investment
Gains or losses from debt restructuring -154,355.00 8,019,908.32
Other non-operational income and expenditure in addition to 2,254,304.98 -6,748,079.29 -198,891.28
the items listed above
Less: Income tax impact 42,613,860.90 39,295,421.32 42,695,728.48
Minority shareholders' equity impact (after tax) 8,948,072.08 3,549,677.19 41,759,772.55
Total 223,957,763.48 207,612,705.88 248,118,008.31 --
Details of other gains or losses that fit in the definition of extraordinary items:
□ Applicable Not Applicable
There are no other gains or losses in the Company that fit in the definition of extraordinary items.
Explanation on defining the extraordinary items listed in the Explanatory Announcement No. 1 on Information Disclosure for
Companies Publicly Offering Securities - Extraordinary Items as recurring gains or losses
Applicable □ Not Applicable
Item Amount Involved (CNY) Reason
Equity gains from transfer of power Equity transfer of power station projects is
-1,004,622.00
station projects one of the Company's day-to-day businesses
Gains from changes in fair value of Equity transfer of power station projects is
-54,578,073.34
power station projects in possession one of the Company's day-to-day businesses
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section III Management’s Discussion and Analysis
I. Discussion and Analysis of Business Situation
In the reporting period, the PV industry grew sustainably and vigorously under the guidance of the global low-carbon goals thanks to
the joint efforts of policy guidance, economic growth, and technological advancement. According to data from the National Energy
Administration, China Photovoltaic Industry Association, and third-party institutions, installed capacity of PV increased by 390 GW
(ac) worldwide in 2023, a year-on-year increase of 69%. In addition to traditional markets such as China, Europe, and North America,
emerging markets such as the Asia Pacific, Latin America, the Middle East, and Africa benefited from the continuous reduction in PV
costs and the advantages of clean and flexible PV power generation, developed rapidly with huge potential ahead. In 2023, GW-level
markets increased from 26 to 32, and the diversification of the global PV installation market accelerated. Among them, China's PV
market application grew beyond expectation, with an annual installed capacity of 216.8 GW (ac) and a year-on-year increase of 148%
hitting a historic high. In addition, China's PV industry achieved remarkable results in various aspects. In terms of the industrial chain,
growth continued in the output of main components, including 1.43 million tons of polycrystalline silicon, 622 GW of silicon wafers,
export amount declined slightly due to the decrease in export prices, rapid growth was maintained in export volume. In terms of
technological innovation, the speed of technological iteration accelerated further, industrialization of TOPCon, HJT, and BC cell
technologies speeded up, the conversion efficiency of perovskite solar cells and stacked solar cells set world records repeatedly, hitting
a world-leading technological level.
In the reporting period, developing renewable energy was once again established as a global consensus on sustainable development.
At COP28, the installation targets for global solar power and wind power were increased. China and the United States released The
Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis, pursuing efforts to triple renewable energy capacity
globally by 2030 and intending to sufficiently accelerate renewable energy deployment in their respective economies through 2030
from 2020 levels. The Central Economic Work Conference of China further specified the widespread application of green technology,
the development of green consumption, the emphasis on supporting energy conservation, emission reduction, and carbon reduction,
thereby actively and steadily promoting carbon peaking and carbon neutrality, and accelerating the establishment of a new energy
system. Globally speaking, confidence in developing new energy became stronger. According to the International Energy Agency (IEA)
and third-party institutions, the cumulative installed capacity of PV worldwide will exceed that of hydropower in 2024, and PV will
become the largest non-fossil energy source for power generation. In 2026, the cumulative installed capacity of PV systems worldwide
will exceed that of natural gas. By 2027, the cumulative installed capacity of PV systems worldwide will exceed that of coal, and PV
will become the world's largest form of electricity with a broad prospect.
II. Business Scope in the Reporting Period
Sungrow Power Supply Co., Ltd. is a national key high-tech enterprise specializing in R&D, manufacturing, sales and service of solar
energy, wind energy, energy storage, electric vehicles, and other new energy power supply equipment. With a wide range of products
including PV inverters, wind energy converters, energy storage systems, electric drive system for new energy vehicles, floating PV
systems, and smart energy operation and maintenance service, the Company is committed to providing world-class solutions for the
full life cycle of clean energy.
Since the establishment in 1997, the Company has been concentrating on the R&D and manufacturing of PV system equipment, with
PV inverters being the core product. Adhering to the mission of “Clean power for all”, the Company provides cutting-edge PV system
solutions to users around the globe.
PV inverter is one of the main components in a PV power generation system, which connects PV arrays to the grid and plays a critical
role in ensuring the long-term and reliable operation of PV power stations and improving the project investment return. Sungrow’s PV
inverter family, consisting of residential inverters, string inverters, centralized inverters, and modular inverters, covers a power range
from 3 kW to 8,800 kW, and is widely used in residential, industrial and commercial, large ground power station, among other
application scenarios.
Residential PV inverters feature high power density, appealing exterior design, and simple installation and maintenance, which can
automatically adapt to complicated grid environment, prolong power generation, and effectively improve power generation revenue.
With built-in lightning protection and high-precision leakage current protection, as well as energy storage interfaces and various
communication modes, they can meet various application requirements indoor and outdoor, and are widely used in residential PV
power generation systems on residential roofs or in courtyards.
String PV inverters feature high power density and simple installation and maintenance, which are suitable for different indoor and
outdoor applications, hence are widely used in small and medium PV power generation systems in parking lots or on commercial roofs,
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
as well as in large-scale ground power stations on complex terrains.
Centralized PV inverters feature high conversion efficiency, safety and reliability, are highly grid-friendly and cost effective. They can
cope with various environments such as extremely low temperature and high altitude, and are widely used in large and medium-sized
PV power generation systems in deserts, plateaus, and on commercial roofs.
Modular inverters mark a new category in the industry. At a unit power of 1.1 MW, modules can be connected in parallel to form a
flexible subarray configuration of 1.1 MW to 8.8 MW. Integrating the advantages of centralized inverters and string inverters, each
module features an independent MPPT design and operates independently, is built with higher tracking accuracy and plug-and-play
operation and maintenance, capable of addressing the diverse needs and application scenarios of different markets around the world.
Sungrow Cloud: Capitalizing on the Internet of Things, artificial intelligence, big data, and blockchain technologies, Sungrow Cloud
enables group customers to collectively operate and manage solar energy, energy storage, charging poles and other energies, and creates
a smart energy brain. It comprehensively satisfies the management needs of customers at different levels throughout the entire energy
lifecycle, and delivers four core values: stabilizing investment returns, guaranteeing asset safety, standardizing operation and
management, and assisting the group’s decision-making.
Sungrow's PV inverters are exported to more than 170 countries around the world. For the second time, the Company topped the S&P
Global’s list of 2022 Global PV Inverter Shipment with a total shipment of 77 GW.
As one of the first companies involved in energy storage, Sungrow relies on the world-leading technology integration of power
electronics, electrochemistry, and grid support to build professional energy storage systems. With a focus on the R&D, production,
sales, and service of lithium battery ESS, the Company offers a range of ESS solutions for auxiliary new energy grid connection, power
frequency and peak regulation, demand side response, micro-grid, and residential scenarios, and is acknowledged a world-class supplier
of energy storage equipment and system solutions.
In recent years, Sungrow Renewables, as the Company's new energy project development and investment platform, has upheld to the
development concept of "More Power Generation in a Friendlier Way" to comprehensively advance development efforts for residential
PV stations, industrial and commercial PV stations, energy storage stations, centralized PV and wind power stations, exploring a new
model of green and ecological development featuring multiple-energy complementation and industrial synergy. Under the dual
propulsion of technology and market, Sungrow has established a diversified and collaborative business landscape featuring a solid
foundation in China and rapid development overseas. As of end 2023, the Company has developed and built PV and wind power
stations with a cumulatively capacity of more than 40 million kilowatts.
Residential PV power stations: The annual installed capacity of Sungrow residential PV power stations has increased by 200%. By
implementing the "Rest-assured installation" service strategy and redefining residential PV, Sungrow provides users with assuring
services and leads the industry into a quality service era of higher values. With intelligence and digitalization as the foundation, the
Company upgrades products for various installation scenarios such as flat roofs, flat-to-slope roofs, slope roofs, courtyards, and
sunrooms. The proprietary iSolarRoof intelligent design software for residential PV is widely used by channel partners. Featuring
optimized component layout, system wiring, rack cutting, and quick design drawing, the software helps improve power station design
efficiency by 400%.
Industrial and commercial PV power stations: The Company capitalizes on its world-leading new energy technological strength as well
as innovative and efficient industrial and commercial PV power station products to provide enterprises with new energy full lifecycle
solutions covering consulting, development, investment, and delivery. In response to the surging demand for green energy across
various industries, Sungrow continually explores the channel ecosystem and implement the 2188 Galaxy Project, and establishes a
multi-win landscape for the brand, channel operators, partners, industrial and commercial enterprises based on the core advantages of
“technology + platform”. With in-depth insights on energy consumption scenarios and characteristics of industries, Sungrow has
developed innovative zero carbon solutions for automobiles, home appliances, cement, warehousing, logistics, among other industries
to address the green energy demand and accelerate the zero carbon transformation of various industries.
Centralized PV power stations: Covering various application scenarios, centralized PV power stations leverage advanced R&D
capabilities and extensive project experiences to largely improve the ROI of PV power stations, creating greater value for customers.
In the meanwhile, comprehensive development models such as PV desertification control, reclamation of saline and alkaline land, PV-
agriculture complement, and floating systems are adopted to enable efficient and composite utilization of wind, solar, and land
resources, providing integrated development examples for comprehensive environmental treatment and new energy industry
application.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Wind power station: Wind farms can fit in different operating environments such as high/low temperatures, high altitude, low wind
speed, coastal areas, and are intended for plain wind power, mountain wind power, decentralized wind power, wind-PV complementary
systems and other healthy ecosystems and development patterns to meet the diverse needs of customers and maximize value.
Multi-energy integration: Relying on the PowMart smart energy solution featuring independent intellectual property, Sungrow
incorporates advanced system integration technology into the wind-PV-storage integration, wind-PV-hydrogen production, PV-
storage-charging integration and other new energy integration application scenarios, establishes innovative examples in multi-energy
collaboration, intelligent scheduling, grid friendliness, safety and reliability, and provides support for building a new type of power
system running on new energies.
Sungrow’s Wind Energy Division is committed to promoting high-power and high-performance power electronic conversion
technology and its engineering applications. It specializes in high-power energy conversion, high-performance grid connection control,
and high-power motor drive and control technologies, with a business scope covering wind power converters, wind power pitch drives,
wind power aftermarkets, grid simulation power supplies, and drive frequency converters. The Company’s shipment of wind power
converters ranked first in the world. In the future, Sungrow Wind Energy Division will keep exploring high-power energy conversion
and control, and strive to become the leader in global wind power conversion and transmission technology.
Relying on the Company’s 20+ years of power electronic conversion technology and power station investment and development
practice, Sungrow Smart Operation adheres to the service concept of “Secure with technology, be reliable and trustworthy” to provide
one-stop asset management services for new energy assets, and continues to ensure customers' stable return and asset safety with
advanced technology.
In the reporting period, Sungrow Smart Operation was recognized as the National High-Tech Industry enterprise, the National SRDI
(Specialized, Refined, Differential and Innovative) Little Giant enterprise, the Anhui Provincial Enterprise Technology Center, and the
Anhui Provincial Big Data Enterprise, achieved a 60% increase in business size. As of end 2023, Sungrow Smart Operation had
contracted a cumulative operation and maintenance capacity of 31 GW, gained extensive experiences in PV power station, wind farm,
and energy storage operation and maintenance thanks to the One Strategy for One Station solution. The SolarEye smart energy
operation and maintenance platform developed independently by the Company experienced the fifth upgrade in the reporting period.
By focusing on four types of business scenarios and establishing a 1+3+N product ecosystem strategy, Sungrow Smart Operation
enabled 100% online treatment for core operations and maintenance tasks. By using drone inspection, expected power generation
assessment, and other intelligent tools, the team quickly identified and dealt with anomalies and defects in power stations, hence
ensuring the safety of owners’ assets and maximizing their returns.
With the profound accumulation of clean power conversion technology and R&D advantages, Sungrow has extended inverter
application into the electric vehicle industry, providing new energy vehicles with quality drive systems.
Sungrow Electric Power is a national key high-tech enterprise specializing in R&D, production, sales, and service of electronic control,
power supply, and other products for new energy vehicles. Based on more than a decade of R&D and manufacturing experience and
the robust global supply chain, Sungrow Electric Power brings together high-level automotive electronics professionals and is
committed to providing quality electric control and power supply products for energy-saving and new energy vehicles. Sungrow
Electric Power has been providing products and services for manufacturers of quality passenger vehicles, commercial vehicles, and
construction machineries since 2010. Having adopted a platform based design, the serialized products boast high efficiency, high
reliability, and flexible adaptation.
Sungrow Electric Power has obtained the IATF16949, ISO14001, ISO45001 and other system certifications, as well as the ISO 26262
Automotive Safety Integrity Level ASIL-D certification, and instituted a product development and management system to the highest
level of functional safety. With multiple electric control and power supply automation production lines built, the Company is capable
of producing 1.5 million units per annum. Thanks to professional technological competence, trustworthy product quality, and stable
delivery capability, the company has won a number of honors, such as the Red Dot: Best of the Best, the First Prize in Science and
Technology of the China Electrotechnical Society, the First Prize of Science and Technology Award of China Power Supply Society,
and Top 100 Excellent Automotive Parts Suppliers in China. Moreover, the company was recognized as the National SRDI Enterprise
as well as the Anhui Provincial Enterprise R&D Center and the Anhui Provincial Enterprise Technology Center.
Sungrow Floating Modules (Sungrow FM) is a national high-tech enterprise specializing in floating PV modules and system solutions.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
The company is committed to creating eco-friendly, reliable, and efficient floating PV systems, and delivering one-stop floating PV
system solutions suitable for different water bodies.
Specializing in R&D, design, and manufacturing of floating systems for water surface PV power stations, Sungrow Floating Modules
(Sungrow FM) has fostered an R&D team with extensive R&D experience and strong innovation capabilities. The team has mastered
key technologies of floating power stations, including system design, materials, product structure and arrays, anchoring system, made
more than 230 patent applications, led and participated in the formulation of multiple standards related to floating systems, and their
products have been certified and tested by a number of international certification bodies including TÜV, DNV, WARS, and CGC.
The production base for floating PV systems is built with a fully intelligent management system, advanced raw material R&D and
product mechanical performance testing laboratories, and intelligent production workshops. Its annual production capacity can meet
the requirements of building GW-level floating PV power stations.
Sungrow FM had received a wide range of honors, including 2023 China's Leading Enterprise in Floating PV Systems, 2022 Anhui
Province’s Small- and Medium-Sized SRDI (Specialized, Refined, Differential and Innovative) Enterprises, 2021 Asian Photovoltaic
Innovative Enterprise, 2019 China's Largest Floating Power Station Project Award, and 2017 China PV+ Floating Bodies Gold Award.
As of December 2023, the cumulative application of Sungrow’s floating PV systems worldwide exceeded 3 GW, accounting for the
largest market share globally for six consecutive years, and making Sungrow the world's first GW-level floating PV system supplier.
Rooted in Sungrow’s 20+ years of design and application experiences in outdoor high-power-rating power supply products as well as
the profound power electronics technology background, Sungrow Lechong builds EV charging equipment based on the core principles
of "Reliable, Efficient, and Intelligent", has introduced DC charging poles and AC charging poles series. The industry's first "integrated
DC charging pole" has adopted an innovative integrated design that delivers high reliability, maintenance free, and long service life,
leading technological transformation of the charging industry. The products were quickly applied in many benchmark projects after
the launch, such as the Shanghai urban road charging project and the Shenzhen freeway service area project, receiving wide praise
from operators and electric vehicle owners.
In the reporting period, Sungrow delivered 30 kW charging poles in batch in Europe, continually leading the charging technology
transformation. In the meanwhile, Sungrow Lechong’s 180 kW integrated charging poles were launched globally with batch deliveries
made. Sungrow charging poles can be connected to Sungrow’s PV and energy storage systems to provide charging stations with an
integrated PV-storage-charging solution, offering new energy to new energy vehicles and helping to deliver the dual carbon target
earlier.
As the very first new energy company that set foot in the hydrogen energy field in China, Sungrow Hydrogen is committed to offering
efficient, intelligent and safe hydrogen production systems and solutions based on renewable energy. The company is capable of
developing and delivering PWM hydrogen production power supply, ALK and PEM water electrolysis equipment, gas-liquid
separation and purification equipment, smart hydrogen energy management system, and other integrated system equipment. It has also
developed hydrogen production system solutions in off-grid, grid-connected, and micro-grid modes. Sungrow Hydrogen is the first to
build a nationally-leading 20 MW demonstration base for electrolyzed water hydrogen production system, a demonstration platform
for renewable energy variable-power hydrogen production and hydrogen storage power generation, a joint laboratory of PEM
electrolysis for hydrogen production technology, an electrolysis hydrogen production material research center, and a hydrogen research
institute in Germany.
In the reporting period, Sungrow Hydrogen passed a number of certifications including ISO9001/14001/45001, ASME, GC2, and TÜV,
implemented TPM/TQM in operations. The company optimized structure and key component materials for the 1,000 m 3/h ALK
electrolysis cell, with cell body energy consumption reaching an industry-leading level; developed the 300 m3/h PEM electrolysis cell
and the 500 m3/h container-based PEM hydrogen production system; upgraded the smart hydrogen energy management system that
won the iF Design Award for superior product capabilities and interactive experiences. With the construction of phase II automated and
intelligent manufacturing plants, production capacity of the campus will be increased to 3 GW by 2024. The concept of flexible
hydrogen production from renewable energy put forward by Sungrow Hydrogen has been introduced to the market, attracting high
attention from the industry.
In the reporting period, Sungrow Hydrogen Energy received a number of honors, including the 2023 Industry Leading Enterprise by
the Hydrogen Energy Observation, the 2023 Leading Enterprise in Alkaline Electrolyzed Water Hydrogen Production Equipment by
Solarbe, the Top 50 Companies in the Hydrogen Energy Industry in 2023 by GG-FC, the 2022 Hydrogen Energy Influence Enterprise
by the Hydrogen Energy Industry Committee of China Energy Conservation Association, and the 2022 Most Influential Enterprise in
China's Hydrogen Energy Industry by the Hydrogen Energy Industry Promotion Association. In terms of hydrogen production project
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
contracts entered in 2023, Sungrow Hydrogen Energy ranked top two in China, securing a leading position in the hydrogen production
industry.
Sungrow Hydrogen’s flexible hydrogen production system is applicable for various scenarios such as energy and power, industry, and
transportation, which has been widely used in wind-PV-water renewable energy hydrogen production projects across Jilin, Ningxia,
Inner Mongolia, Gansu, and Hubei provinces.
Division Product Picture Brief Introduction
Based on the profound insight into market
demands, the Company made significant
innovation to traditional inverters and
introduced the industry’s first 1+X modular
inverters with a cumulative global shipment
of more than 30 GW. Featuring a modular
design, multiple inverters at a unit power of
a flexible sub-array of 1.1 MW to 8.8 MW,
products
making station configuration more flexible
and operation and maintenance easier. A
number of innovative technologies, such as
the intelligent IV diagnosis for high-power
inverters and the DC parallel arc detection
and shutdown, further streamlined system
operation and maintenance and improved
power generation efficiency.
To cope with the widespread application of
high-power modules, Sungrow introduced
the 320HX high-power string inverter for
large-scale ground power stations. The
application of advanced technologies, such as
SG320HX string the AI-based air duct health management, the
inverter (overseas 24-hour insulation monitoring, and the
model: 350) HV/LV grid adaptation, contributed to the
PV inverters upgrade in intelligent operation and
maintenance, safety and reliability, and
support for the power grid, continuously
leading the market of 300kW+high-power
series inverters.
Based on precise market insights, Sungrow
introduced the 125 KW high-power industrial
and commercial inverters. Featuring high
SG30-125CX-P2 power, 1+II lightning protection, and
string inverter (for AFCI2.0, the products guaranteed the safety
industrial & of industrial and commercial power stations,
commercial and achieved large-scale application
scenarios) worldwide.
To cope with the widespread application of
high-power PV modules and the demand for
larger residential PV systems, Sungrow made
all-around upgrades to its RT series of
SG10-30T-CN products. The input current of a single string
residential inverter increased to 18A, allowing it to flexibly adapt
to high-power PV modules and double-sided
PV modules. At the same time, the power
range of products was expanded to address
diversified residential installation needs.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
As a high-power single-phase PV-storage
inverter for residential use recently
introduced by the Company, the product's
power is increased to 8-10 kW, which can be
used in combination with SBR/SBH large-
SH8.0-10RS capacity batteries to deliver green power for
residential inverter the entire house. Having integrated
convenience and multi-level safety design,
the product is built with AFCI2.0 and other
active safety technologies, allowing more
families around the world to enjoy more
convenient and safer green power.
As the new generation of energy storage
system built with the “3-in-1 integration”
concept, PowerTitan 2.0 is equipped with
embedded PCS to enable AC storage. The
product can support a configuration capacity
PowerTitan 2.0 of 2.5 MW/5 MWh in a standard 20-foot
large-scale ground container, greatly improving the energy
energy storage density of the system. Liquid cooling for the
system entire system, intelligent cluster-level
management, and the Stem Cell Tech
contribute to a product that is more efficient,
application friendlier, and safer for users,
helping new power systems operate steadily
in all scenarios.
Adhering to the “3-in-1 integration" concept
and the innovative combination of power
electronics, electrochemistry, and grid
support technologies, Sungrow introduced
the professionally integrated PowerTitan
PowerTitan 1.0 series energy storage systems with a capacity
large-scale ground of 3.44 MWh. Liquid-cooling temperature
energy storage control and intelligent cluster-level
Energy
system management helped to deliver the goals of
storage
longer service life, higher efficiency, and less
systems
loss. A combination of innovations in
electrical safety, cell safety, and grid safety
improved the overall safety of energy storage
systems.
Carrying forward Sungrow’s tradition of “3-
in-1 integration” and “Independent
development across all stacks”, PowerStack
electronics, electrochemistry, and grid
support technologies. Thanks to the
innovative use and integration of AI
PowerStack 200CS technology, it takes an “intelligence and
industrial and storage integrated" design to deliver EMS,
commercial energy PCS, and BMS functions, with a system
storage system capacity of up to 225 kWh. The product
demonstrates leading advantages in revenue,
low-maintenance use, and comprehensive
safety, which helps address three major pain
points of users, namely revenue, operation
and maintenance, and safety, and eliminating
the concerns in industrial and commercial
power distribution and storage.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
In response to the increased civil power
consumption and large power load in peak
hours, Sungrow introduced the PowerStack
industrial and commercial energy storage
system for industrial and commercial
scenarios with a capacity of 535 kWh. Based
PowerStack 500CP
on intelligent EMS energy management, the
industrial and
product can support multiple application
commercial energy
modes in on-grid or off-grid scenarios, and
storage system
coordinate energy scheduling among grids,
PV systems, charging poles, and loads.
Thanks to the liquid-cooling technology and
intelligent safety protection, it can improve
the reliability of energy storage systems in
multiple dimensions.
As the residential energy storage market
heats up, Sungrow quickly advances its PV-
storage integration business. In 2023, the
Company launched the new generation of
SBH series residential batteries, an all-
around upgrade on top of the advantageous
performances of SBR series batteries. The
module capacity was upgraded, with
maximum capacity reaching 40 kWh per unit.
The charging and discharging performance
residential battery
was upgraded, and batteries could be quickly
SBH100-400
charged to full state at an ultra-large charging
and discharging current of 50 A. Safety was
upgraded thanks to the pre-bundled design of
cells and module-level fire protection. When
used in combination with the brand-new SHT
and SHRS series high-power PV-storage
inverters, the product can support green
power supply and storage for the entire
house.
Capitalizing on the channel advantages,
Sungrow accelerates the residential PV-
storage business and has introduced the new
Residential battery
generation of SBR series residential battery
SBR096-256
solutions. The product features convenient
installation, flexible configuration, safety and
reliability, and outstanding performance.
Centralized PV power station solution covers
various application scenarios, and relies on
market-leading technologies to optimize
power station LCOE, hence significantly
improving the ROI of PV power stations and
New energy
creating greater value for customers.
investment Centralized PV
Following the national strategy of building
and power station
large wind-PV power generation bases,
development
Sungrow offers comprehensive utilization
models such as desertification control, land
reclamation, forestry-PV complement, salt-
PV complement, and floating systems to set
integrated development examples for
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
comprehensive environmental treatment and
new energy industry application.
Wind power station solution covers plain
wind power, mountain wind power, and
decentralized wind power applications.
Upholding the principle of "wind power
Wind power development and ecological protection in
station solution parallel", Sungrow develops and builds
ecologically friendly wind power stations in
various scenarios, and refines wind resource
assessment according to local situation for
value maximization.
iClean cleaning solution for distributed PV
system leverages AI to ensure all-around
powerful self-cleaning, which can
iClean cleaning
significantly reduce dirt coverage loss and
solution for
increase power generation by minimum 6%.
distributed PV
As a distributed PV system that enables
system
secondary power generation improvement, it
can drastically reduce power station overhead
and achieve long-term investment return.
iBlock flat-roof distributed solution is an
innovative application developed for flat-
roof distributed power stations. The module
brackets are integrated with cement bases for
iBlock flat-roof
support and stabilization. Standard modular
distributed solution
design and installation improves placement
rate of modules and increases installed
capacity, hence significantly shortening the
construction lead time.
iBuilding smart BIPV distributed solution is
an integrated system that combines modern
roof building materials and PV power
iBuilding smart generation. Built with a national patented
BIPV distributed waterproof technology, it requires no
solution consumable replacement in 30 years, enables
a worry-free and comfortable production
environment together with multiple benefits
brought by clean power.
The Yueyanglou The Yueyanglou Sunroom Solution is a high-
Sunroom Solution end residential PV power generation system
exclusively designed and developed by
Sungrow Residential PV. Featuring an
exclusive waterproof patent and triple
waterproof and leakage protection, the
product is resistant to wear, corrosion, and
earthquake, ensuring safety in all aspects.
The 5-degree reverse-V slope design looks
appealing and pleasing, which gives user a
larger space while delivering power
generation benefits.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
The Chaoyangge The Chaoyangge Flat-to-Slope Roof Solution
Flat-to-Slope Roof is exclusively designed by Sungrow
Solution Residential PV. By taking a low wind
resistance design, it is safer, more reliable,
and worry-free. The color steel packaging
allows the PV system to be effectively
integrated into buildings, which protects the
roof and keeps heat or cold away. This
solution enables users to gain a stable
revenue with an attractive design.
The The Shangyangyuan Courtyard Solution is
Shangyangyuan exclusively designed by Sungrow Residential
Courtyard Solution PV. While fully retaining and efficiently
utilizing the courtyard space, this solution
can expand PV installation capacity and bring
more revenue for users. It is available in a
number of customizable arrangements, and
the oriental aesthetic design can perfectly
blend in with the surroundings.
The Huiyangding The Huiyangding Flat Roof Solution is
Flat Roof Solution exclusively designed by Sungrow Residential
PV, which can be customized according to
user needs. The product protects the roof and
delays its aging, and its wind resistance,
pressure resistance, and corrosion resistance
performances are reliable and assuring. With
a standard working procedure developed, the
product can be easily and efficiently
installed.
The Canyangfang The Canyangfang Slope Roof Solution is
Slope Roof exclusively designed by Sungrow Residential
Solution PV. Featuring an integrated design for flat
and slope roofs, it can support higher
installed capacity. The product can protect
the tile surface and delay the aging of roof,
and can be quickly installed following a
standard working procedure. It tightly fits to
the roof and blend in with the entire building
seamlessly.
The product features an integrated heat
dissipation design that improves heat
dissipation efficiency and product stability, a
Double-fed 4.x high power density design and integrated
Wind power MW - 15 MW components for a compact structure, an
converters wind power integrated design of main control and
converter converters for larger load-carrying capacity,
and strong environmental adaptability for
customization in various application
scenarios.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
This product features the highest unit power
of wind power converters in China, and a
redundant design to ensure unit power
generation revenue. It can proactively adapt
Full power 5.x
to complex grid environments to ensure grid
MW - 26 MW
friendliness; it is built with enhanced anti-
wind power
corrosion and anti-condensation design to
converter
effectively cope with the marine
environment; cabin-mounted applications
and a special anti-vibration structure help to
meet the strict vibration requirements.
Wind power pitch The product is highly integrated, safe, and
drive reliable, featuring a quadruple safety chain
design to ensure the safety of wind turbines.
The pitch control system converts wind
energy into reasonable mechanical energy by
adjusting the blade angle of the fan. In safe
conditions, it adjusts the blade angle together
with the main control to enable power control
of the fan. In the event of malfunctions, it acts
as a brake to ensure the safety of the fan.
Drive frequency With low-voltage transmission models
converter covering 690 V/1140 V/1380V and medium-
to high-voltage transmission models
covering 3.3 kV/6 kV/10 kV/35 kV, the
product is widely used in industrial
transmission and new energy fields, suitable
for various load types such as fans, pumps,
constant torque, and soft start of motor.
Available in cabinet or container
configuration, and supporting two-quadrant
or four-quadrant circuit topology, it can adapt
to various voltage levels, with the power of
medium- to high-voltage transmission
models reaching 60 MW.
Grid simulator The brand-new virtual impedance function
allows users to set short-circuit ratio or
impedance value to simulate weak current
grid environment and test the operation of
new energy equipment in distributed and
other weak current grid conditions. The
advanced impedance sweep frequency
function helps the stability analysis of new
energy systems connected to grid by scanning
the impedance characteristics of such
systems across a wide frequency range. The
upgraded high- and low-voltage ride through
function enables continuous ride-throughs
and supports phase steps in the meantime of
amplitude steps, which can realistically
simulate fault conditions caused by
commutation failures. The equipment can
reach a standalone capacity of 1 MVA to 15
MVA and or a capacity of up to 130 MVA
when connected in parallel.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Relying on the Company’s 20+ years of
power electronic conversion technology and
power station integration practice, Sungrow
Zhiwei adheres to the service concept of
Smart Smart OP&M
“Secure with technology, be reliable and
OP&M service
trustworthy” to provide standard all-around
services for new energy assets, and continues
to ensure customers' stable return and asset
safety with advanced technology.
HEM3 series The product is suitable for Class A and Class
hybrid dual electric B hybrid passenger vehicles, and can work
control for with various drive motors with a rated power
passenger vehicles of 45 to 80 kW. Built with the brand-new
discrete device parallel connection
technology, it features high reliability and
power scalability.
EC60 series SiC The product is suitable for Class B and Class
motor controller C high-end new energy passenger vehicles,
and can work with various drive motors with
a rated power of 100 to 140 kW. Built with
the full silicon carbide discrete device
parallel connection technology, it features
ultra-high efficiency and meets functional
safety standards.
EE30 series 4-in-1 With main motor controller, DCDC, OBC,
controller and PDU integrated, the product is suitable
for N1 vehicles such as minivans and
minitrucks. It features high integration, high
reliability, and flexible adaptation.
New energy
vehicle
electric
EC53 series motor The product is suitable for new energy buses,
drive system
controller heavy-duty trucks, and construction
machineries. Built with single- and dual-
motor control functions to flexibly cope with
various scenarios, it supports power
expansion and is reliable and compliant with
functional safety standards.
EC11 series motor The product is suitable for Class A00 pure
controller electric passenger vehicles, and can work
with various drive motors with a rated power
of 10 to 15 kW. It features high reliability,
high power density, and platform design.
EP34 series in- With OBC, DCDC, and PDU functions
vehicle power integrated on a platform design, the product
supply is suitable for Class A00 and Class A0 new
energy passenger vehicles. It features high
reliability, high power density, and flexible
grid adaptation.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
EP32 series in- With OBC, DCDC, and PDU functions
vehicle power integrated, the product supports external
supply power discharge and is suitable for Class A
and Class B new energy passenger vehicles.
It features high power density, flexible grid
adaptation, and a safety rating of ASIL-C.
EM33 series With electric control, motor, and reducer
electric drive axle integrated, the product is suitable for Class
A0 and Class A passenger vehicles.
Sophisticated single pipe parallel connection
integrates motor control module to the motor
end cover, shared enclosure for motor and
electric control as well as the direct
connection design of cooling water channels
contribute to a compact assembly structure,
allowing the vehicle layout to be more
flexible.
Floating PV power station is a new type of
PV power generation system that integrates a
PV module floating platform, an electrical
equipment floating platform, and anchoring
equipment. 1. It can reduce water evaporation
and minimize waste of water resources; 2. It
Floating PV
Floating bodies inhibits the growth of blue-green algae and
system
improves water environment; 3. It effectively
cools down the floating modules and can
increase power generation; 4. It can be used
in various water environments such as coal
mining subsidence areas, reservoirs, and
offshore areas.
Chinese standard The industry-leading 120 kW integrated DC
DC charging pole power conversion, system control, and
thermal management systems. The dual-
chamber isolated design of power electronics
and heat dissipation parts enables IP65
protection rating and a service life of more
than 10 years, which effectively reduces the
total cost across the entire life cycle and
ensures ROI for charging station operators.
Charging European standard This European standard charging pole is
equipment 30 kW integrated compatible with all vehicles with a European
DC charging pole CCS2 interface, and is mainly used in
destination charging scenarios. Being a
reliable, efficient, and friendly product, it
delivers industry-leading technological
advantages, including IP65 protection rating,
efficiency up to 96.5%, noise below 50 dB,
and residential level EMC Class B
performance. The product has a minimum
service life of 10 years, is reliable and
maintenance free, hence can bring
continuous benefits to customers.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
DC charging pole technology, the power unit features an
independent air channel design, with all
electronic devices completely sealed to avoid
contamination, thereby assuring maintenance
free, high reliability, and long service life.
PWM rectifier The product leverages the IGBT full-control
power supply power devices and PWM control technology
to rectify and convert AC into DC required
for the electrolytic cell, which is suitable for
large-scale renewable energy AC-coupling
hydrogen production scenarios.
PWM DC The product leverages the IGBT full-control
converter power power devices and PWM control technology
supply to convert unstable wind or solar power
supply into DC required for the electrolytic
cell, which is suitable for direct hydrogen
production scenarios using off-grid wind
and/or solar power.
Hydrogen
production
systems Alkaline The product uses direct current to electrolyze
based on electrolyzed water alkaline solution into hydrogen and oxygen,
renewable hydrogen and obtains high-purity finished hydrogen
energy production after gas-liquid separation and purification. It
equipment consists of an alkaline electrolysis cell, gas-
liquid separation and purification equipment,
and utilities equipment.
PEM electrolyzed The product uses direct current to electrolyze
water hydrogen pure water into hydrogen and oxygen, and
production obtains high-purity finished hydrogen after
equipment gas-liquid separation and purification. It
consists of a PEM electrolysis cell, gas-liquid
separation and purification equipment, and
utilities equipment.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Intelligent The product is the "brain" of green power
hydrogen energy hydrogen production systems, which enables
management coordinated control between multiple
system hydrogen production systems as well as
between hydrogen production systems and
multiple energy sources. It is built with four
major functions: operation monitoring,
analysis and diagnosis, coordinated control,
and operation management, which can ensure
system efficiency, intelligence, and safety.
The Company needs to comply with the requirements on the disclosure of PV industry chain related business specified in the Shenzhen
Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed Companies.
The indicator “conversion efficiency” refers to the ratio of inverters converting input DC power to AC power, which is inverter’s output
power / inverter’s DC input power × 100%.
By utilizing new semiconductor materials and highly efficient magnetic devices, optimizing circuit design, improving MPPT algorithm,
and optimizing the heat dissipation system, the Company continuously drives inverters’ efficiency to go up. The maximum efficiency
of Sungrow's full range of inverters has reached 99% at the moment.
The indicator “cost of energy per kilowatt-hour” refers to the ratio of the PV system’s total investment cost versus the power generated
throughout the system’s life cycle. The total investment cost includes the initial investment and the operation and maintenance
investment throughout the life cycle. The cost of energy per kilowatt-hour directly reflects the power generation cost of the PV system,
that is, the lower the cost of energy per kilowatt-hour, the higher revenue the PV system generates.
Through constant technological innovation and system optimization, the Company reduces investment cost and increases system power
generation, thereby reducing the cost of energy per kilowatt-hour and improving customers' return on investment. By increasing the
unit power of inverters, less inverters are required for power stations to reach the same capacity, and the cable cost is also reduced. By
forming inverters into power units of larger capacity, a maximum sub-array of 12.5 MW can be supported, which further saves the cost
of transformers and reduces the initial investment. Highly integrated inverters and solutions will be widely used. For example, the box-
type medium-voltage inverter not only has the inverter, transformer, power distribution, communication, and smoke detection functions
integrated, but also is built with a PID control box and communication power supply interfaces for the tracking system. By improving
the level of integration, the system cost across its life cycle, including cable cost, construction cost, project management cost, post-
operation and maintenance cost, can be reduced; systems are strongly coupled, which improves reliability and increases power
generation of the power station. The modular design from "device level" to "system level" reduces system operation and maintenance
costs, and higher equipment uptime rate increases the power generation of PV power stations. Intelligent medium-voltage shutdown
solutions feature intelligent algorithm control between inverters, collector circuit breakers, and step-up transformers, achieving zero
loss standby for step-up transformers and further improving ROI for customers. The world’s first 2000 V high voltage system pushes
the boundary of cost reduction and efficiency increase further, enabling a significant improvement in the economics of power stations.
As PV systems are being utilized at large scale, the penetration rate of PV increases year by year. Inverters are directly connected to
the grid as a link for energy transfer, and the requirements for inverters’ grid friendliness are getting increasingly higher.
Sungrow inverters are built with low-voltage ride-through, zero-voltage ride-through, and high-voltage ride-through capabilities, which
can cope with the voltage changes of power grid in the case of power grid problems, hence to ensure that PV systems will not be
disconnected from the grid on a large scale and result in the escalation of incident. Moreover, inverters are built-in with fast power
control modules to enable quick scheduling in less than 20 ms for active/reactive power response. The application of grid construction
technologies allows inverters to behave like synchronous generators, which can quickly suppress voltage and frequency fluctuations
in the power grid, and improve the stability of PV or PV-storage power stations, contributing to a higher new energy penetration rate.
The integrated DC energy storage interface eliminates the need for modification, and the inverter supports reverse charging and
connection of energy storage equipment. The power generation side is a multi-energy complementary platform that allows PV power
station peak regulation, smooth PV power station output, and grid stability; the power consumption side is an intelligent PV-storage
micro-grid platform, which enables peak-trough balance through energy storage, improves PV consumption, and achieves precise
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
energy supply. As new energy application increases year by year, the SCR (short-circuit ratio) of power grid decreases, which can easily
cause frequent disconnection of inverters. Sungrow has developed the adaptive control algorithm to precisely perceive the strength of
power grid. The algorithm has passed the SCR=1.02 weak current grid certification, which positively promotes an ear of "grid
friendliness" and achieves the dual carbon target.
As the installed capacity of PV systems increase year by year, safety hazards in PV power stations become an increasingly large concern.
The Company takes the safety of power stations a priority at work and further improves the safety of system design.
Sungrow’s inverter systems are capable of detecting DC series and parallel arc pulling in real time. They have passed relevant protection
certifications, can quickly identify arc pulling based on the intelligent arc pulling detection algorithm, and cut off in milliseconds to
block the damage of arc pulling. Inverters are built with AC/DC insulation monitoring systems to cope with various application
environments, quickly locate insulation faults, enable self-protection in case of cable faults, avoid electric shock and fire risks, and
safeguard the power station round-the-clock. Thanks to the intelligent protection and control algorithms, integrated isolation switches,
and big data-based operations, inverters can precisely identify reverse connections, short circuits, and other faults, cut off in down to
Due to wide range of the Company's PV inverters and different power ratings, the unit production cost varies from CNY 0.07 to CNY
III. Analysis of Core Competitiveness
In the nearly two decades of rapid development, the Company has been committed to the independent innovation of power electronics
and electric energy conversion technology in the new energy field, with a number of technologies reaching the world-leading level. In
recent years, the Company successively deployed a range of new businesses, such as key components of new energy vehicles, micro-
grid energy storage, smart energy, and new energy hydrogen production, and gained considerable growth.
Since the establishment in 1997, Sungrow has been concentrated on the R&D, production, sales, and services of solar power, wind
power, energy storage, hydrogen energy, electric vehicles, and other new energy power supply equipment. PV inverters, as the
Company’s core product, are sold to more than 170 countries and regions worldwide. In 2023, the Company shipped 130 GW of PV
inverters worldwide, securing a globally leading position. With a total global shipment of 10.5 GWh of energy storage systems, the
Company ranked first among Chinese companies for eight consecutive years. Sungrow’s brand and reputation are highly acknowledged
in the industry and continually improving. The Company has successively received the honors of China Industry Awards,
Demonstration Enterprise of National Individual Champion in Manufacturing, Forbes Top 50 Most Innovative Chinese Companies,
Forbes China 2023 Best Employer in ESG Practice, National Intellectual Property Demonstration Enterprise, Fortune China 500,
Fortune Future 50, Best Companies to Work For in Asia, and etc. Boasting a state-level post-doctoral research workstation, a national
high-tech industrialization demonstration base, a national recognized enterprise technology center, a national industrial design center,
and a national green plant, the Company holds a leading position in the global new energy power generation industry in terms of
comprehensive strength. In the 2023 list of China's 500 Most Valuable Brands released by the World Brand Lab, the Company ranked
No. 117 with a brand value of CNY 80,270 million.
Since its establishment in 1997, the Company has been focusing on the new energy power generation sector to advance the research
and development of core technologies while maintaining market oriented and innovation based. To transform technological advantages
into product advantages, benefits advantages, and competitive advantages, the Company has fostered a professional R&D team with
solid R&D experiences and strong innovation capabilities. The Company has set up six R&D centers in Hefei, Shanghai, Nanjing,
Shenzhen, Germany, and the Netherlands, providing leading technological support for building globally competitive new energy
equipment. In order to explore cutting-edge technologies, the Company has set up the Central Research Institute that is responsible for
making high-value intellectual property plans in advance and addressing critical technical challenges, hence to provide efficient
platform services and innovation management for the Company's product and technology development, and foster R&D and
management professionals to build core technological competitiveness. In the meantime, each division has set up an independent R&D
task-force for close interaction with the market and customers. In 2023, the Company invested CNY 2,447 million in research and
development, an increase of 45% year-on-year. As of the end of the reporting period, the Company boasted an R&D headcount of
Company has successively undertaken more than 20 national key science and technology programs, and led the drafting of multiple
national standards, making it one of the few enterprises in the industry that boast multiple independent core technologies. The Company
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
also attaches great importance to the accumulation of intellectual properties in technological innovation achievements and closely
follows the evolution of various new technical standards. As of the end of the reporting period, the Company has cumulatively obtained
research and development innovation, the Company plays a leading role in promoting new quality productive forces in the industry
with advanced technologies and innovation capabilities.
The Company has introduced the IPD (Integrated Product Development) process to guide the technological reserve and product
development efforts according to customer demand analysis, technology development analysis, and competitive strategy analysis. From
concept, planning, development, verification, trial production to mass production, staged quality indicators are set for each step of new
product development to ensure the quality of products. The Company has invested in a world-leading electromagnetic compatibility
laboratory that is equipped with high-performance large-capacity low-voltage ride-through facilities as well as a variety of power
supplies and power grid simulators, which is capable of providing the most demanding test condition. The Company continues to
establish and optimize the ISO9001:2015, ISO14001, OHSAS18001 management systems, and strictly promote the integrated quality,
environment, occupational health and safety management system. The Company's products have passed a number of authoritative
international certifications including UL, TÜV, CE, Enel-GUIDA, AS4777, CEC, CSA, and VDE.
At the very beginning, the Company has identified a global development strategy, and established by now an oversea production
capacity of 25 GW with the India production base and the Thailand plant. As of today, the Company has set up 20+ oversea subsidiaries,
than 170 countries. At the end of the reporting period, the Company boasted 1,423 employees overseas, an increase of 58.1% year-on-
year. In the future, the Company will continue to explore the global market, orderly promote the global deployment of inverters, energy
storage, charging, power stations, and floating system businesses, prioritize the improvement of global marketing, service, financing,
and other key capabilities, thereby reinforcing the global support capability system and strengthen the global influence.
IV. Core Business Analysis
A. Overview of core business analysis
As the global new energy market expanded rapidly in 2023, the Company strengthened innovation and transformation with a focus on
its core business, and made great efforts in marketing and R&D. By continually advancing the comprehensive strategy of products and
services, the Company implemented digital transformation and reinforced lean operation to enable the rapid growth of core business.
As a result, the Company further consolidated its leading position in the industry and expanded its brand influence, and the Company’s
profitability improved significantly.
In the reporting period, the Company achieved a total revenue of CNY 72,251 million, an increase of 79.47% year-on-year; an operating
cost of CNY 50,318 million, a year-on-year increase of 65.65%. The increase in both revenue and operating cost mainly benefited from
the Company's continuous expansion in the market and the subsequent expansion of sales scale. The Company achieved a gross profit
rate of 30.36%, a year-on-year increase of 5.81%, which was mainly contributed by the Company’s brand premium, product innovation,
economies of scale, shipping cost reduction, and exchange earnings. The Company realized a net profit attributable to shareholders of
CNY 9,440 million, an increase of 162.69% year-on-year; selling expenses amounted to CNY 5,167 million, a year-on-year increase
of 63.03%, which mainly came from the significant increase in the remuneration of sales staff and the post-sales service fee accrued
for the increased sales revenue in the current period. The Company realized an R&D expense amounting to CNY 2,447 million, a year-
on-year increase of 44.63%, which was mainly due to the large increase in the remuneration of R&D staff and the use of raw materials
for the expanded R&D investment in the current period. The Company realized a financial expense of CNY 21 million, a year-on-year
increase of 104.32%, mainly due to the large reduction in exchange earnings from foreign exchange rate fluctuations in the current
period. The net cash flow from operating activities was CNY 6,982 million, a year-on-year increase of 476.77%, which was mainly
contributed by the increase in cash collection.
B. Overview of core business in the reporting period
In the reporting period, the Company made the following attempts related to the core business:
(1) Business development
a. PV inverters
In the reporting period, the Company continued to strengthen R&D innovation, vigorously pushed forward the global brand strategy,
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
and deeply explore key segmented markets, in order to capitalize on the global marketing, service, and supply chain advantages. With
increasing global competitiveness and influence, the Company shipped 130 GW of inverter equipment worldwide in 2023.
In the reporting period, the Company expanded its presence in the European, American, Australian, and Chinese channel markets, and
set up 490+ service outlets worldwide to accelerate the channel business. Sungrow Global Sales & Marketing Center opened in
Shanghai, aiming to leverage the geographical and cultural advantages of this international metropolitan to interface Sungrow’s Hefei
headquarters, industrial bases, as well as subsidiaries and service outlets around the world, so as to shorten the distance to global
customers, improve responsiveness, attract high-end human resources, and energize business connections.
In the reporting period, Sungrow’s SG320HX high-power string inverters and 1+X modular inverters were widely applied in various
scenarios worldwide. By the end of December 2023, a cumulative order volume of 45 GW+ was entered for 1+X modular inverters.
The Company was the 2.1 GW inverter solution provider for the AI Shuaibah project in Saudi Arabia, entered into a supply agreement
for the 814 MW AC PV project in Qatar, and assisted in the successful grid connection of the Alxa League Desert Ecological
Governance PV-Storage Project in Inner Mongolia and the world's largest salt-PV complementary project, Huadian Tianjin Haijing
Power Station.
Sungrow released the 5A Fusion—Ground Power Station Solution White Paper and introduced the 5A fusion solution featuring All-
Scenario Application, All-Day Efficiency, All-Link Safety, All-Life Smart O&M, and All-Grid Support to support the quick and quality
development of ground PV power stations at a large scale.
The 2,000 VDC high-voltage inverters recently developed by the Company were successfully connected to the grid for power
generation at the Mengjiawan PV Project in Yulin of Shaanxi Province. Being the first demonstration of grid-connected 2,000 V
systems worldwide, it marked the successful evolvement of PV systems from 1,500 V to 2,000 V, setting a critical milestone in the
process of reducing costs and increasing efficiency of PV systems.
In response to the growing global demand for residential storage, Sungrow introduced the “1+∞ House-Wide Green power Solution.
Centered around inverter technologies, Sungrow was the first in the industry to deliver an independently developed system-level
product portfolio of PV, Storage, Charging, Optimization, and Cloud. By creating one-stop system solutions and services, Sungrow
provided consumers with seamless, efficient, and flexible experience. The new generation of residential storage system adopted a
modular design to improve configuration flexibility and facilitate operation and maintenance. The upgraded combination of ultra-large
battery capacity, ultra-high inverter power, and ultra-large charging and discharging current helped meet the large load demand of
families and deliver truly green power for the entire house. In addition, the new generation of iSolarCloud brought refreshed visual and
operational experiences of users, and supported the fusion of multiple energies to optimize the use of green power. The Company
entered into a 2 GW distribution agreement with Menlo in Europe and a 500 MW distribution agreement with SOL+Distribuidora in
Brazil.
b. Energy storage
In the reporting period, Sungrow released the Sungrow Stem Cell Grid White Paper and introduced the innovative Stem Cell Tech that
could be applied in energy bases, flexible transmission, island power supply, terminal energy consumption and other scenarios. The
Company also introduced the “customizable” grid technology solutions that could be tailored to address different grid conditions,
assisting in the stable operation of the new power systems in all scenarios.
In the reporting period, Sungrow introduced the world's first 10 MWh liquid-cooled energy storage system, and started to offer
industrial and commercial liquid-cooled energy storage systems worldwide. For large-scale ground application overseas, Sungrow
introduced the PowerTitan 2.0 liquid-cooled energy storage system built with the “3-in-1 integration” concept. Featuring a large cell
capacity of 314 Ah and embedded, the product can support a capacity of 2.5 MW/5 MWh in a standard 20-foot container, effectively
enabling AC and DC integration. In addition, the Stem Cell Tech built into the product makes it more efficient, friendlier, and safer. In
consecutive years.
For the industrial and commercial energy storage market in China, Sungrow introduced the PowerStack energy storage system solution
featuring “3-in-1 integration” and an “intelligence and storage integrated" design. By placing advertisements online and offline and
recruiting quality distributors, Sungrow established a "one-stop information resource platform" as well as a solid sales and marketing
service layout that contributed to the sustainable and quality development of industrial and commercial energy storage.
At present, the Company's energy storage systems are widely used in mature electricity markets such as US, UK, and Germany to
enhance the deep integration of wind power, solar power, and energy storage. No safety incident was reported in any of the energy
storage projects the Company was involved in, extensive application experiences were gained in frequency regulation and peak shaving,
auxiliary renewable energy grid connection, micro-grid, industrial and commercial energy storage, residential energy storage and other
fields. In the reporting period, the Company received the GPS grid connection license in Australia and was awarded the largest
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
independent energy storage contract of 138 MW/330 MWh in South Australia. The Company also entered into a 500 MWh distribution
agreement with Solar Juice Group in Australia, an 825 MWh energy storage contract in the UK, a 264 MWh liquid-cooled energy
storage system contract for South Africa's first wind-PV-energy storage integrated virtual power station project. The Company signed
a strategic agreement with Hive, an independent energy storage project in Australia, to provide a 3 GWh large-scale liquid-cooled
energy storage system in the next three years. In addition, Sungrow assisted in the largest PV-storage integration project in Southeast
Asia, and contributed to the successful phase I grid connection and commissioning of the largest energy storage power station of China
Southern Power Grid, the Banchong 200 MW/400 MWh Energy Storage Project in Chongzuo City of Guangxi Province. Sungrow
delivered the world's first offshore grid-type energy storage project, the Weizhou 5 MW/10 MWh Energy Storage Project, and provided
comprehensive solutions for a number of projects worldwide.
c. New energy investment and development
In the reporting period, Sungrow RE, a holding subsidiary of the Company, made a number of new energy investment and development
attempts. Centered around the vision of “To be the global leader of new energy power generation technology” and the value proposition
of “More Power Generation in a Friendlier Way”, Sungrow RE continued to strengthen research and development of new energy
system technology, innovate and optimize power station products, accelerate channel ecosystem layout, and upgrade service capability.
As of the end of the reporting period, Sungrow RE's business footprint had covered 30 provinces, autonomous regions and
municipalities in China, as well as countries along the Belt and Road, with cumulative volume of global development and construction
of PV/wind power stations exceeding 40 million kilowatts.
Leveraging system technology innovation to secure the differentiated competitiveness, Sungrow RE continually expanded
technological innovation and industrial application of new energy systems. In the reporting period, Sungrow RE increased R&D
investment targeting at three core technology systems (high-efficiency power generation, system integration, and power station life
cycle optimization); upgraded the PowMart smart energy solution portfolio to cover more application scenarios and cope with
diversified industries. The latest version of iSolarBP, iSolarTool, iSolarRoof software assisted industrial, commercial, and residential
PV power stations in quick design, efficient revenue evaluation, intelligent optimization, cost reduction and efficiency improvement,
and efficient power generation, which accelerated the quality development of the distributed PV industry.
Focusing on new energy development and guided by the value proposition of "More Power Generation in a Friendlier Way”, Sungrow
RE openly embraced major national energy strategies such as the large-scale wind power and PV base, and the county-wide PV/wind
power development, continuously enhanced project reserves and resource conversion. In China, Sungrow RE built the largest grid-side
energy storage power station in Anhui, the 240 MW salt-PV complementary project in Laizhou of Shandong, the 115 MW agriculture-
PV complementary project in Binyang of Guangxi, the 150 MW fishery-PV complementary project in Huagang, Feixi of Hefei, and
the 100 MW fishery-PV complementary project in Wenchang of Hainan. Overseas, Sungrow RE made parallel breakthroughs in PV
and wind power sectors, and was awarded the 200 MW large-scale wind power project in Kazakhstan, with the contract capacity
ranking first among all bidders. Mr. Roman Sklyar, interim prime minister of Kazakhstan, visited Sungrow RE to understand the global
business and operation of the company. Sungrow RE's international brand image and global development capabilities were further
demonstrated.
In the field of industrial and commercial PV systems, Sungrow released and actively advanced the 2188 Galaxy Project, and fully
leveraged the advantages of “technology + platform" dual drive to incubate products that can generate more power and intelligent
software, hence assisting channel partners’ rapid growth. The Company introduced a series of platforms, including the technology
service platform, the partner platform, the financial platform, the supply chain platform, and the information management platform,
offering all-around platform-based services across the entire lifecycle to channel partners. In the reporting period, the Company was
awarded the 256 MW zero carbon campus project in Lu'an and commenced construction. In addition, the Company entered into project
contracts with a number of well-known brands such as Mengniu, NIO, Laoxiangji, Baosteel, Dongfeng Nissan, Selis, Dasheng Textile,
and Great Power, with market position improved further.
In the residential PV market, Sungrow Residential PV strengthened brand building, product innovation, and service upgrading, enabled
a year-on-year increase of over 200% in newly installed capacity in 2023. The “Rest-assured installation" service strategy promised to
offer rest-assured installation and use with transparent processes, guaranteed safety and revenue, and worry-free post-sales response.
The company made the commitment to grow channel partners through one-on-one assistance and point-to-point operational support as
well as guaranteed settlement in time. By expanding channel models, Sungrow Residential PV achieved coordinated development of
multiple business models in the market, including full payment, financing, cooperative operation, and operational leasing. The company
built a community of shared interests among manufacturers, and offered comprehensive market support to businesses through technical
guidance, financial support, training, and market promotion. The company introduced a number of full-scenario installation solutions
through independent R&D efforts, including the Yueyanglou Sunroom Solution, the Chaoyangge Flat-to-Slope Roof Solution, the
Shangyangyuan Courtyard Solution, the Huiyangding Flat Roof Solution, the Canyangfang Slope Roof Solution, with product and
technological advantages continually expanded. In the reporting period, Sungrow Residential PV’s market share steadily increased,
ranking top in the residential PV market.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
While business ramped up rapidly, Sungrow RE received a plenty of honors, including the MIIT’s fourth batch of intelligent PV
demonstration projects (Feixi Huagang 150 MW Fishery-PV Complementary Power Generation Project), the PVBL Global Top
Photovoltaic Solar Brand Award 2023, the 2023 China Distributed PV Outstanding Contribution Enterprise Award, the 2023 China
Energy Storage Industry Large Ground Power Station Energy Storage Technology Innovation Enterprise, the 2023 Most Influential
Distributed Photovoltaic Enterprise, the 2023 Most Influential PV and Power Construction Enterprise, the 2023 Most Influential
Photovoltaic Development Enterprise, the 2023 Industry Digitalization Golden Shovel Award, and China Social Welfare Foundation’s
Most Socially Responsible Award. Being a corporate citizen assuming social responsibilities, Sungrow RE actively engaged in the
rural revitalization strategy, and implemented a number of public welfare projects in the areas of enriching villages, supporting farmers,
benefiting children, and helping the elderly. Sungrow Smart Classrooms and Sungrow Elderly Care were built to practice social public
welfare.
Sungrow RE proactively embraced changes in policies and market environment while adhering to the strategic positioning of being a
proven player in new energy system technologies. With compressive efforts made in brand, products, channels, and service, Sungrow
RE developed and built power station products featuring "More Power Generation in a Friendlier Way”, helping achieve higher power
generation efficiency and lower unit electricity cost, and leading the quality development of the new energy industry.
d. Wind power converter
In the reporting period, the Company shipped 32 GW of wind power converters globally, accounting for the highest market share in
the world and a year-on-year increase of 40%. The Company also shipped 4.6 GW of offshore wind power converters, a year-on-year
increase of 190%. In the reporting period, Sungrow released the industry's first Blue Book of Converters, and Sungrow’s grid-type
converters passed the industry's first empirical test. Sungrow was the first to introduce ultra-high protection level air-cooled converters
and high-power wind power solutions. In 2023, Sungrow increased strategic investment in wind energy business, and insisted on R&D
innovation to secure a leading position in wind power conversion technology. The Company accelerated exploration in businesses
related to wind power conversion, electric control and transmission synergy, aiming to enhance Sungrow’s brand influence in the wind
power sector, promote the quality development of the wind power sector, practice green and low-carbon development, and contribute
to the delivery of the Dual Carbon target.
e. Hydrogen energy
In the reporting period, Sungrow Hydrogen ranked second in terms of project contracts awarded and market share. Being the first in
China to propose the concept of flexible hydrogen production, Sungrow Hydrogen released a flexible hydrogen production system
solution. On the foundation of six core technologies including flexible networking, power electronics, and energy management, it built
an agile, efficient, and friendly flexible hydrogen production system from renewable energy with three core equipment, the PWM
hydrogen production power supply, the electrolyzed water hydrogen production equipment, and the smart hydrogen management
system. Such a system could adapt to the rapid fluctuations and intermittent characteristics of new energy power, and enable “adapted
load to source fluctuations”, which was more grid friendly and able to operate stably at 30% of power. Sungrow Hydrogen’s flexible
hydrogen production system had been widely used in a number of large-scale demonstration projects in China, and the outstanding
features including “one press to start/stop” and "cluster control" were highly rated by users. Flexible hydrogen production technology
plays a significant role in the large-scale development of hydrogen production from wind and solar energies in the future. Sungrow
Hydrogen will continue to make innovative breakthroughs, highlight the value proposition of "Making electricity-hydrogen conversion
more efficient", and lead product and technological advancement, contributing to the quality development of the hydrogen energy
industry.
(2) Operational management and others
a. Corporate culture
Year 2023 marked the official release of the Sungrow Guidelines. In order to capture successful experiences and lessons learned from
failures, on perusal of the essential laws of competition and development, Sungrow made a top-level design for the future, reviewed
business philosophy, strategy, organization/human resource, and lean operation, and officially released the Sungrow Guidelines to
guide the rapid and sustainable development of Sungrow Group. According to the Sungrow Guidelines, all employees should uphold
the green mission of “Clean power for all”, and practice the core values of being "Honest & Reliable, Excellent & Open-minded,
Innovative & Respectful, Customer First”, to shape the Sungrow Style. To reflect employees’ day-to-day practices of corporate values
and tell true stories, Sungrow released the employer brand video Greener World Greater Us. Sungrow’s reputation as an employer
brand continued to rise as the Company won a number of awards including the Most Caring Company Awards, the MostIn Global
Talent Magnet Employer, the Great Place To Work Certification, the Top Company 2023, and the Best ESG Practice Employer. A
number of themed activities were launched worldwide: the Sungrow Trailwalk attracted nearly 5,000 participants, highlighting
Sungrow’s determination in environmental protection and public welfare; the Global Skills Competition across six regions intended to
foster craftsmanship and identify skilled employees; the Sungrow Family Day created a “sunny paradise” for employees and their
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
families. On the Chinese New Year’s Day, Chinese and overseas employees gathered together to celebrate, promoting cross-cultural
exchange and fusion. In the reporting period, Sungrow released the Year of Service badge, hosted the Sungrow Building Opening and
New Year Concert to create a sense of ceremony exclusive to Sungrow employees. Moreover, the Company upgraded the employee
activity center, employee dormitories, and the campus, diversified outdoor team building to improve employee experience.
b. Digital transformation
To improve the Company’s operational efficiency, secure leading advantages in competition, and enable quality sustainable
development, Sungrow invested extensively in digital transformation in the reporting period. Lead by the business strategy and driven
by data, Sungrow leveraged digital technology and artificial intelligence to create an agile and efficient organization with online and
shared processes, thereby empowering the business. In 2023, the Company accelerated its digital transformation and implemented 65
projects throughout the year. In the process aspect, Sungrow initiated process transformation and established a unified process system
that linked the value chain business processes, consolidated organizational capabilities, and improved the overall operational efficiency
of the Company. In the aspect of digital technology and tools, Sungrow introduced AI and low-code distributed applications to quickly
empower business, optimized and reconstructed a number of digital system platforms, such as the global digital marketing platform,
the digital R&D platform, and the intelligent manufacturing platform, to underpin end-to-end business transparency and intelligence,
and support cost reduction and efficiency improvement. In the data aspect, Sungrow unified data platforms and data governance, and
built various intelligent big data applications one the foundation of data and business scenarios, such as PV-storage operation
visualization, financial budget versus actual analysis, and supplier profiling, to assist in digital operation and informed decision-making.
c. Social responsibilities and sustainability
Assuming the mission of “Clean power for all”, the Company makes in-depth explorations in the field of clean power, and is committed
to addressing the challenges in producing, converting, storing, and using clean power with technological progress. We strive to lower
energy cost, raise the proportion of green energy worldwide, offer more efficient and convenient ways to use energy, and allow more
people to get involved, ultimately enabling affordable, safe, and smart low-carbon energy to be accessible for all, and making
unremitting contributions to a greener planet. In 2023, the Company was awarded the BCG Global-Challenger Climate Pioneers and
the Forbes China Top 50 Sustainable Development Industrial Enterprises, and was included in S&P Global’s Sustainability Yearbook
In the reporting period, Sungrow expanded its Strategy Committee to the Strategy and Sustainability Committee to optimize the
sustainability governance structure. With a focus on the solar power, wind power, energy storage, electric drive, and hydrogen sectors,
the Company insisted on investing in R&D intensively and delved into the energy-saving and emission reduction scenarios in various
industries, in order to offer extraordinary products and services that help customers to achieve long-term sustainability. In joint efforts
with customers, Sungrow reduced approximately 330 million tons of carbon dioxide emissions globally every year.
Sungrow cared about the ecological environment and actively responded to climate change to promote the harmonious coexistence
between the enterprise and nature. To set an example in green and low-carbon operation, Sungrow made the commitment to achieve
carbon neutrality in operations by 2028 and in supply chain by 2038, as well as net zero supply chain emissions by 2048. The Company
actively implemented carbon inventory to provide basic data support for the Company to address climate-related risks, reduce carbon
emissions, enhance competitiveness and stability. In 2023, the Company's Scope 1 emissions were 3,594 tons of CO2 equivalent, Scope
the Company speeded up towards the RE100 target and realized 55% of green power use during the year. Sungrow kept on improving
energy productivity, carried out various energy-saving and emission reduction activities, and gradually advanced the technology and
management dual drive mechanism for refined energy management. With the green concept embedded in the entire product lifecycle,
the SG350HX series obtained EPD certification, making it the world's first PV inverter with the EPD certification in Italy. In addition,
Sungrow maintained a constant focus on the sustainability of partners and the industry, and made joint efforts to build a green and low-
carbon supply chain.
Sungrow valued the demands of relevant stakeholders, and established a globalized team by creating an inclusive, innovative, and
respectful organizational atmosphere. Sungrow and partners practiced high accountability standards to safeguard the rights and interests
of supply chain workers, jointly building an integrate, sustainable, and win-win value chain ecosystem. Sungrow continued its public
welfare undertakings in ecological protection, education support, and community growth, carried out the "Go For Nature" volunteer
activity, striving to create broader and more long-term values for society. The Company’s total donation expenditure for 2023 amounted
to CNY 5.88 million.
d. R&D, intellectual property
In the reporting period, the Company continued to increase R&D investment and actively advanced the consolidation of independent
intellectual properties and patent application. In 2023, the Company was granted 1,135 new patents, all of which were original ones,
including 123 patents overseas, 195 inventions, 701 utility models, and 18 exterior design patents in China. A total of 2,673 new patent
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
applications were filed, including 314 patents in foreign countries, 1,176 invention patents, 1,015 utility model patents and 168
appearance patents in China. Such efforts further enhanced the Company's independent innovation capabilities and strengthened the
core competitiveness.
As of the end of the reporting period, the Company had cumulatively acquired a total of 4,123 patents, including 1,417 inventions,
the formulation and optimization of relevant standards in the industry, organized and contributed to a number of Chinese national
standards.
e. The 2023 Restricted Stock Incentive Plan
To further optimize the long-term incentive mechanism of the Company, attract and retain outstanding talents, and motivate employees
at work, by effectively considering the interests of shareholders, the Company, and employees so that all parties jointly contribute to
the Company’s long-term development, and following the principle of equal benefits and contributions, a total of 10,375,000 Class II
restricted shares were granted to 518 incentive objects at the price of CNY 43.22 per share in the reporting period. This equity incentive
plan helped to grow endogenic force for the sustainable and healthy development of the Company, which integrated the interests of
core personnel with the Company's future performance growth and shareholder return capability. It helped to continuously improve
the Company's operating performance and value creation capability, and set a guidance for attracting and retaining more outstanding
employees in the future and effectively implementing long-term strategic plans.
f. Share buyback for equity incentive
Based on the positive prospect of the Company's growth and the recognition of corporate values, Sungrow initiated the share buyback
plan again in 2023 to effectively integrate the interests of shareholders, employees, and the Company, improve the Company's long-
term incentive mechanism, and motivate employees, thereby promoting the sustainable and healthy development of the Company in
the long term. On perusal of the Company's operating performance, financial performance, profitability, and development prospects,
the Company bought back some of the Company's shares with self-supplied funds via collective bidding, and intended to use them for
employee stock ownership plans or equity incentive plans for key employees in the future. As of the end of the reporting period, the
Company had bought back approximately 11,316,000 shares through collective bidding in the Shenzhen Stock Exchange’s trading
system, with the total payment amounting to CNY 980 million.
g. Honors and awards received in the reporting period
Honors and Awards Awarded by
Top Chinese Listed Companies 2022 (Most Progressive Listed National Business Daily
Companies in New Energy and New Materials Industries)
Federation
Federation
Association
PVBL Top Global Photovoltaic Brand Award Photovoltaic Brand Lab (PVBL), Century New Energy
Network
Top 100 Global Photovoltaic Brands Century New Energy Network, Photovoltaic Brand Lab
Photovoltaic Industry Summit Forum
Hongwei International Exhibition Co., Ltd.
Hongwei International Exhibition Co., Ltd.
China Distributed PV Conference - Top Ten Most Influential Inverter Organizing Committee of the 5th China Distributed PV
Brands Conference
Integration Solution Award
The Solar Energy Cup Evaluation - 2022 Most Influential PV Inverter Solarbe Global, The Solar Energy Cup Evaluation
Companies Committee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Honors and Awards Awarded by
The Solar Energy Cup Evaluation - 2022 Most Influential PV Storage Solarbe Global, The Solar Energy Cup Evaluation
Solution Providers Committee
The 11th North Star Cup 2022 Most Influential PV-Storage Integration North Star Solar Photovoltaic Network, Beijing Huonet
Solution Providers Power Technology Co., Ltd.
The 11th North Star Cup 2022 Most Influential PV Inverter Brands North Star Solar Photovoltaic Network, Beijing Huonet
Power Technology Co., Ltd.
GGII Energy Storage 2022 Energy Storage Industry Chain GGII Energy Storage, GGII
Nominee for the Paulson Prize for Sustainability Paulson Institute
Contributor to the Carbon Neutrality Green Brand Influence Initiative China Energy News, China Institute of Energy Economics
Demonstration Enterprise of Green Design for Industrial Products Ministry of Industry and Information Technology
The 11th North Star Cup 2022 Most Influential Low Carbon Action North Star Solar Photovoltaic Network, Beijing Huonet
Brands Power Technology Co., Ltd.
First Prize in the Science and Technology Progress Award (Dispatching China Electrotechnical Society
and Control Technology and its Application for Multiple New
Resources Involved in Secondary Frequency Regulation of Power
Systems)
Science and Technology Award of China Power Supply Society (First China Power Supply Society
Prize - Technological Invention) (Key Technologies and Application of
a Large Scale Energy Storage System Based on Power Electronics
Battery Units)
Anhui Province Patent Gold Award (a method for exiting and switching Anhui Provincial Market Supervision and Administration
the MPPT centralized mode and its application)
China's 500 Most Valuable Brands World Brand Lab
Enterprise of Best Practices in Achieving the Sustainable Development Global Compact China Network
Goals (Carbon Peaking and Carbon Neutrality)
Top Company 2022 Kununu
(1) Composition of operating income
The Company needs to comply with the requirements on the disclosure of “PV industry chain related business” specified in the
Shenzhen Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed Companies:
Overview of operating income
(in CNY)
% of % of YoY
Amount Operating Amount Operating Change
Income Income
Total operating income 72,250,674,939.46 100% 40,257,239,155.34 100% 79.47%
By sector
PV 50,555,989,064.88 69.97% 27,245,555,359.81 67.68% 85.56%
Energy storage 17,801,524,369.61 24.64% 10,126,474,666.35 25.15% 75.79%
Other 3,893,161,504.97 5.39% 2,885,209,129.18 7.17% 34.94%
By product
PV inverters and other power
conversion devices
New energy investment and
development
Energy storage systems 17,801,524,369.61 24.64% 10,126,474,666.35 25.15% 75.79%
By geography 567,193,487.90 0.79% 625,483,634.25 1.55% -9.32%
Mainland China (not including 1,494,902,496.56 2.07% 722,798,978.99 1.80% 106.82%
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Hong Kong, Macau and Taiwan)
Overseas (including Hong Kong, Macao and Taiwan)
Total operating income 38,881,345,230.41 53.81% 21,194,893,809.26 52.65% 83.45%
By sector 33,369,329,709.05 46.19% 19,062,345,346.08 47.35% 75.05%
Sales to major revenue-contributing countries
(in CNY)
Significant adverse changes in local PV
industrial policies or trade policies and their
Major revenue-contributing countries Sales volume Sales revenue
impacts on the Company's current and future
operating results
Mainland China (not including Hong
Not Applicable 38,881,345,230.41 Not Applicable
Kong, Macau and Taiwan)
Basic situation of PV power stations
a. Basic situation of centralized PV power stations
Since there are a large number of centralized PV power station projects in the reporting period, the basic information of top ten
centralized PV power stations by revenue is disclosed here item by item, and the rest is listed as a whole by business pattern.
Project Source of PV
Capacity
No. Project Name Type Status inverters/wind
(MW)
BT/EPC power converters
Qinghai Mangai Wind Power Project Construction in
Hubei Honghu Zhuoyang PV Power Station Construction in
Project 156.20 progress
Hainan Wenchang PV Power Generation Construction in
Project 96.04 progress
Guangxi Binyang PV Power Generation
Project 100.68
Other centralized projects in total 659.09 - -
The construction contract between the Company and the
customer included the performance obligation for power
station construction. Since customer had control over the
construction-in-progress during the contract performance,
the Company considered it a performance obligation within
a certain period of time, and recognized revenue according
to the progress of performance, unless the progress of
performance could not be reasonably determined. The
Accounting treatment for BT and EPC models
Company determined the performance progress of service
provision according to the percentage of investment. The
performance progress was the ratio of the actual cost
incurred for the performance of the contract versus the
estimated cost of the contract. The Company re-estimated
the progress of completion or the labor service provided on
the date of the balance sheet, so that it could reflect changes
in the contract performance.
b. Basic situation of distributed PV power stations
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Since there are a large number of distributed PV power station projects in the reporting period, the basic information of top ten
distributed PV power stations by revenue is disclosed here item by item, and the rest is listed as a whole by business pattern.
No. Project Name Project Capacity Progress Source of PV
Type (MW/MWH) inverters/wind
BT/EPC power converters
Project
Project
Project
Project
Distributed PV Project
Park Distributed PV Project
and Commercial Project
Project
Distributed PV Project
PV Project
Other distributed projects in total 4982.73 - -
Accounting treatment The construction contract between the Company and the customer included the
performance obligation for power station construction. Since customer had control
over the construction-in-progress during the contract performance, the Company
considered it a performance obligation within a certain period of time, and
recognized revenue according to the progress of performance, unless the progress
of performance could not be reasonably determined. The Company determined
the performance progress of service provision according to the percentage of
investment. The performance progress was the ratio of the actual cost incurred for
the performance of the contract versus the estimated cost of the contract. The
Company re-estimated the progress of completion or the labor service provided
on the date of the balance sheet, so that it could reflect changes in the contract
performance.
For distributed residential power station construction services provided to
customers, the Company recognized power station construction revenue based on
the actual installed capacity of grid-connected assemblies of the residential power
station and the unit price specified in relevant agreements.
Power station projects sold In the reporting period, the Company sold approximately 5.1 GW of distributed
power stations at an average price (tax-exclusive) of approximately CNY 3.3 per
watt. The operation and maintenance of distributed power stations sold were
carried out by the customer or the party entrusted by the customer. The warranty
of distributed BT projects was executed according to equipment or engineering
industry standards, and the Company provided no financing guarantee for BT
projects.
Power station projects held In the reporting period, power generated by distributed power stations held by the
Company increased by approximately 4.19 million kWh, with a recognized power
generation revenue of approximately CNY 2.2 million. All power generation
revenue was entitled to the Company.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(2) Industries, products, geographies, and sales models that account for more than 10% of the Company's operating income
or operating profit
Applicable □ Not Applicable
(in CNY)
YoY changes YoY changes YoY changes
Gross
Operating income Operating cost in operating in operating in gross
margin
income cost margin
By sector
PV 50,555,989,064.88 36,307,102,620.52 28.18% 85.56% 78.08% 3.01%
Energy storage 17,801,524,369.61 11,131,619,017.64 37.47% 75.79% 43.20% 14.23%
By product
PV inverters and other
power conversion 27,653,073,535.51 17,163,270,423.44 37.93% 60.97% 47.86% 5.51%
devices
New energy investment
and development
Energy storage systems 17,801,524,369.61 11,131,619,017.64 37.47% 75.79% 43.20% 14.23%
By geography
Mainland China (not
including Hong Kong, 38,881,345,230.41 30,820,445,529.68 20.73% 83.45% 86.52% -1.31%
Macau and Taiwan)
Overseas (including
Hong Kong, Macao 33,369,329,709.05 19,497,127,983.49 41.57% 75.05% 40.75% 14.24%
and Taiwan)
Where the statistical caliber for the Company's core business data was adjusted in the reporting period, the adjusted core business
data in the last year at the end of the reporting period
□ Applicable Not Applicable
(3) Whether the Company's physical sales revenue is greater than the labor revenue
Yes □ No
Sector Item UoM 2023 2022 YoY Change
Sales GW 130 77 68.83%
PV inverters Production GW 151 82 84.15%
Inventory GW 44 23 91.30%
Reasons for year-on-year changes greater than 30%
Applicable □ Not Applicable
Sales volume increased by 68.83% year-on-year, production volume increased by 84.15% year-on-year, and inventory increased by
(4) Performance of major sales contracts and purchase contracts entered by the Company up to the reporting period
□ Applicable Not Applicable
(5) Composition of operating cost
By sector
(in CNY)
Sector Item % of Operating % of Operating YoY Change
Amount Amount
Income Income
PV Raw materials 26,429,538,227.85 72.79% 16,582,269,527.82 81.13% 59.38%
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(6) Whether the scope of consolidation changed in the reporting period
Yes □ No
For details, please refer to part IX. Changes in the Scope of Consolidation in Section X Financial Reports.
(7) Significant changes or adjustments to the Company's business, products or services in the reporting period
□ Applicable Not Applicable
(8) Major Customers and Major Suppliers Major customers
Sales to major customers
Total amount of sales to top five customers (CNY) 24,840,056,894.85
Proportion of total sales amount to top five customers in the annual total sales 34.39%
Proportion of related party sales to top five customers in the annual total sales 0.00%
Top 5 customers
No. Customer Name Sales (CNY) % of Total Annual Sales
Total -- 24,840,056,894.85 34.39%
Other information about major customers
□ Applicable Not Applicable
Major suppliers
Total amount of purchase from top five suppliers (CNY) 8,462,311,100.81
Proportion of total purchase amount from top five suppliers in the annual purchase amount 16.80%
Proportion of related party purchase from top five suppliers in the annual purchase amount 0.00%
Purchase from top 5 suppliers
Purchase Amount % of Total Annual Purchase
No. Supplier Name
(CNY) Amount
Total -- 8,462,311,100.81 16.80%
Other information about major suppliers
□ Applicable Not Applicable
(in CNY)
Sales 5,166,844,506.28 3,169,263,472.82 63.03% Mainly due to the significant increase in the remuneration
expenses of sales staff and the post-sales service fee accrued for the
increased sales revenue in the current period
Management 873,167,416.41 612,314,748.77 42.60% Mainly due to the significant increase in the remuneration
expenses of employees
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Financial 20,595,018.70 -477,244,161.25 104.32% Mainly due to the large reduction in exchange earnings
expenses from foreign exchange rate fluctuations in the current
period
R&D 2,447,389,317.47 1,692,156,198.42 44.63% Mainly due to the large increase in the remuneration of
expenses R&D staff and the use of raw materials for the expanded
R&D investment in the current period
Applicable □ Not Applicable
Major R&D Impacts Expected on the
Purpose Progress Planned Objective
Projects Company’s Growth
product resilience of shipment coastal areas, and high after failures is minimized;
optimization equipment, increase temperatures, improve high- customer’s initial investment
project power generation, voltage operation capability, is reduced, power generation
reduce costs, and increase power generation, and is increased, and the leading
reduce equipment reduce LCOE of power stations. position in the global market
maintenance. is secured.
SG320HX-20 Increase power In volume Work with the 182, 210, and Customer’s investment and
project generation, enhance shipment rectangular battery modules to product costs are reduced.
grid friendliness, and improve power response and Power generation, customer
reduce costs. support the grid. revenue, and market share
are increased.
Powertitan 2.0 Respond to regional In volume Design a fully liquid-cooled 5 MW The problem of large
large-scale value propositions, shipment battery system within a 20 foot footprint and low energy
energy storage address differentiated container that supports long-term density in the previous
product project needs of regions, system operation and off-grid generation of products is
introduce platform- running. Increase system RTE by solved. Costs are
based products, and 2%, reduce average auxiliary significantly lowered. This
enhance product power consumption by 40%, and upgraded product was the
competitiveness. improve station-wide response by first in the industry to
of 1.3 times and fast grid will gradually replace the
scheduling response in 20 ms. Powertitan1.0 series.
ST200CS Optimize the industrial In volume The outdoor cabinet features an The dilemma of no products
industrial and and commercial shipment integrated system design of EMS, for industrial and
commercial product portfolio, and PCS, and BMS, which can be commercial application is
energy storage expand product flexibly configured and broken. The product can lead
project applications to address conveniently installed, operated, the market trend, and gain
market demands. and maintained. Leverage market share.
intelligent near- and far-end
wireless operation and EMS
system to increase scheduling
revenue. Assist customers in
participating in various power
services, reduce electricity costs
and increase revenue for
customers.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Major R&D Impacts Expected on the
Purpose Progress Planned Objective
Projects Company’s Growth
SC5000UD- Respond to the In project Work with the 5 MWh energy The product solves the
MV-P3 PCS separated supply verification storage system to reduce the problem of the previous
separated supply demand of PCS, and number of energy storage units generation for being unable
project match the various and footprint. The system can be to provide single channel
types of battery flexibly configured with the DC output of battery box and
systems in the market. side detachable. Support 2 h/4 h low voltage limit on the DC
systems as well as multiple side voltage. Once launched,
transformer types and voltage this new product can fill up
levels ranging from 10 to 37 kV. the blank in the business
layout, add a revenue growth
point, and secure PCS’
leading position in the
industry.
ST800CS Cover large industrial In project Use a lightweight container-based The product stays ahead of
optimization use scenarios, provide development design to satisfy customer. the industrial energy storage
project an integrated 690 V Incorporate new customer curve. Product
small capacity outdoor demands into product competitiveness is enhanced,
cabinet together with development, create values for and product market share is
flexible customers, and contribute to increased.
configuration/add-on customer success.
options.
Statement of R&D staff
Total R&D Staff 5,372 3,647 47.30%
R&D Staff in Total HC 39.22% 39.47% -0.25%
Educational Background of R&D Staff
Bachelor 2,646 1,807 46.43%
Master 2,004 1,336 50.00%
Doctor 65 51 27.45%
College Graduate and below 657 453 45.03%
Age Structure of R&D Staff
Below 30 2,295 1,463 56.87%
Above 40 285 239 19.25%
R&D investment size and percentage in operating proceeds in the past three years
R&D investment (CNY) 2,447,389,317.47 1,692,156,198.42 1,161,389,788.60
Percentage of R&D investment in operating proceeds 3.39% 4.20% 4.81%
Capitalized R&D expenditure (CNY) 0.00 0.00 0.00
Capitalized R&D expenditure as a percentage of R&D
investment
Capitalized R&D expenditure as a percentage of net profit in
the period
Reasons for substantial changes in R&D staff and their impacts
□ Applicable Not Applicable
Reasons for substantial change in percentage of total R&D investment in operating income as compared with the previous year
□ Applicable Not Applicable
Reasons for substantial changes in the capitalization rate of R&D investment and the justifications
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(in CNY)
Item 2023 2022 YoY Change (%)
Cash inflow from operating activities 64,909,783,214.55 40,759,815,988.81 59.25%
Cash outflow from operating activities 57,927,944,237.27 39,549,317,502.92 46.47%
Net cash flow from operating activities 6,981,838,977.28 1,210,498,485.89 476.77%
Cash inflow from investment activities 23,544,136,099.56 14,684,990,549.50 60.33%
Cash outflow from investment activities 27,365,292,970.63 14,339,435,233.12 90.84%
Net cash flow from investment activities -3,821,156,871.07 345,555,316.38 -1,205.80%
Cash inflow from financing activities 9,972,994,616.16 9,949,974,901.15 0.23%
Cash outflow from financing activities 6,693,485,685.31 8,203,257,437.80 -18.40%
Net cash flow from financing activities 3,279,508,930.85 1,746,717,463.35 87.75%
Net increase in cash and cash equivalents 6,464,929,644.69 3,242,092,864.04 99.41%
Explanation on main contributors to the significant YoY change in relevant data
Applicable □ Not Applicable
Cash inflow from operating activities increased by 59.25% YoY, mainly contributed by the increase in cash collection from sales in
the current period;
Cash outflow from operating activities increased by 46.47% YoY, mainly contributed by the increase in cash payment for purchasing
in the current period;
Cash inflow from investment activities increased by 60.33% YoY, mainly contributed by the termination of wealth management
products;
Cash outflow from investment activities increased by 90.84% YoY, mainly contributed by the increased subscription of wealth
management products;
Explanation on reasons for the significant difference between the net cash flow from operating activities and the net profit of the year
during the reporting period
□ Applicable Not Applicable
V. Status of Non-Core Business
□ Applicable Not Applicable
VI. Analysis of Assets and Liabilities
(in CNY)
End of Year 2023 Beginning of Year 2023
Notes on
% of % of
Change Major
Amount Total Amount Total
Variations
Assets Assets
Money funds 18,030,617,790.74 21.76% 11,666,601,491.42 18.93% 2.83%
Accounts receivable 21,097,509,472.32 25.46% 13,804,040,262.60 22.40% 3.06%
Contract assets 2,008,704,215.79 2.42% 1,291,527,303.40 2.10% 0.32%
Inventory 21,441,505,396.60 25.87% 19,060,142,584.88 30.93% -5.06%
Long-term equity investment 440,042,074.75 0.53% 228,278,242.43 0.37% 0.16%
Fixed assets 6,438,183,727.36 7.77% 4,543,555,993.02 7.37% 0.40%
Construction-in-progress 1,685,757,860.53 2.03% 1,188,671,605.49 1.93% 0.10%
Right-of-use asset 397,537,305.84 0.48% 559,699,600.83 0.91% -0.43%
Short-term loan 2,793,019,025.13 3.37% 1,422,187,421.05 2.31% 1.06%
Contract liabilities 6,564,810,202.26 7.92% 3,788,439,560.39 6.15% 1.77%
Long-term loan 4,179,703,100.00 5.04% 4,161,650,000.00 6.75% -1.71%
Lease liability 323,824,924.50 0.39% 430,999,112.05 0.70% -0.31%
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
High percentage of overseas assets
□ Applicable Not Applicable
Applicable □ Not Applicable
(in CNY)
Cumulative
Gains/losses Amount of
changes at Impairment Amount of
Beginning from changes procureme Other Closing
Item fair value accrued for sales in the
Amount at fair value in nt in the changes amount
included in the period period
the period period
equity
Financial Assets
financial assets 1,481,039, 24,045,000, 23,396,500, 35,588,724 2,062,654
(excl. derivative 651.37 000.00 001.00 .13 ,466.36
financial assets)
-62,900.85 3,215.06
financial assets 61 .82
current financial 572,043.80
assets
investments in
debts
other equity
instruments
Sum - Financial -
Assets 15,727,760.
Accounts
receivable
financing
Sub-total -
Financial Liabilities
financial -
liabilities (excl. 51,919,973.
.63
derivative 63
financial assets)
financial
liabilities
current
.00 0.00
liabilities
Sum - Financial -
Liabilities 51,919,973.
.40 77 0.00
Other changes are resulted from exchange rate fluctuations.
Significant changes in the measurement attributes of the Company's main assets in the reporting period
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Yes No
(in CNY)
Item Book Balance Book Value Reasons for Restriction
Monetary funds Freeze, bank acceptance, letter of guarantee, letter of
credit and PV loan deposit, refundable deposits
Fixed assets 1,016,197,005.05 984,850,815.92 Long-term loan collateral
Accounts receivable 990,867,681.31 855,594,447.60 Long-term loan pledge
Accounts receivable Short-term loan pledge, notes payable pledge
financing
Notes receivable 16,240,927.13 16,240,927.13 Short-term loan pledge, notes payable pledge
Total 3,858,306,504.49 3,691,687,081.65
VII. Investment Analysis
Applicable □ Not Applicable
Investment in the reporting period (CNY) Investment in the same period last year (CNY) Change
□ Applicable Not Applicable
□ Applicable Not Applicable
(1) Securities investment
□ Applicable Not Applicable
The Company made no securities investment in the reporting period.
(2) Derivatives investment
Applicable □ Not Applicable
a. Derivatives investment for hedging purpose in the reporting period
Applicable □ Not Applicable
For details, please refer to VII. Notes to Consolidated Financial Statement, 2. Trading Financial Assets in Section X.
b. Derivatives investment for speculative purpose in the reporting period
□ Applicable Not Applicable
The Company made no derivatives investment for speculative purpose in the reporting period.
Applicable □ Not Applicable
(1) General use of raised funds
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(in 10K CNY)
Total Total amount Cumulative Percentage of Amount of
amount of Cumulative of raised funds amount of cumulative raised funds
Year of Fund- Net amount Total funds Purpose and
Total raised raised amount of with changed raised amount of that have
fund- raising of raised raised but whereabouts of
funds funds used raised use in the funds with raised funds been idle for
raising mode funds not used unused raised funds
in this funds used reporting changed with changed more than
period period use use two years
CNY 369,095,300
in the special
account for raised
Non-public funds, CNY
offering 600,000,000 in
premature wealth
management
products
Total -- 363,758.52 362,314.61 113,424.08 269,182.04 96,909.53 --
Description of the general use of raised funds
At the 12th meeting of the Fourth Board of Directors, the Proposal on Replacing Self-Raised Funds Previously Used in Fund-Raising Projects was reviewed and approved, which agreed that
the Company should replace CNY 243,141,600 of self-raised funds previously used in fund-raising projects with the raised funds. RSM China (Special General Partnership) verified the
advanced investment in the above-mentioned fundraising projects, and issued the Assurance Report on the Advance Input in Fund-Raising Projects made by Sungrow Power Supply Co., Ltd.
with Self-Raised Funds (RSM [2021] No. 230Z2674) on October 12, 2021.
Raising Investment Projects with Bank Acceptances and Replacing Them Equally with Raised Funds was reviewed and approved. It was agreed that during the implementation of the fund-
raising investment project, the Company could use bank acceptances for payments involved in the project, and regularly transfer the same amount from the special account of raised funds to
the Company's general settlement account. The Board of Supervisors, independent directors and sponsors expressed their consent. As of December 31, 2023, the Company had accumulatively
made investment project-related payments with CNY 376,767,000 of bank acceptances, and the same amount had been replaced with raised funds.
(2) Projects commitments of raised funds
Applicable □ Not Applicable
(in 10K CNY)
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Total Cumulative Cumulative
Changes in Total Amount Investment Date of Benefit
investment amount of benefit Substantial
Investment projects projects investment invested in progress by projects realized Expected
amount investment realized by changes in
committed and target (including after the the end of reaching in the benefits
committed by the end the end of the project
of over-raised funds partial adjustment reporting the period scheduled reporting achieved
by raised of the the reporting feasibility
changes) (1) period (3)=(2)/(1) availability period
funds period (2) period
Investment Project Commitments
The New Energy
Power Generation
Equipment Jun. 30, Not
No 241,787 240,343.09 88,232.97 153,701.2 63.95% No
Manufacturing Base 2025 Applicable
Project with an annual
output of 100 GW
The R&D Innovation
Mar. 31, Not
Center Expansion No 63,970 63,970 23,021.59 65,512.03 102.41% No
Project
The Global Marketing Mar. 31, Not
No 49,835 41,124.91 2,169.52 41,802.29 101.65% No
Service System Project 2023 Applicable
The Supplementary
Not
Working Capital No 8,166.52 8,166.52 8,166.52 100.00% No
Applicable
Project
Subtotal of committed
-- 363,758.52 353,604.52 113,424.08 269,182.04 -- -- -- --
investment projects
Target of over-raised funds
Total -- 363,758.52 353,604.52 113,424.08 269,182.04 -- -- -- --
Description of projects
Since the funds raised for the New Energy Power Generation Equipment Manufacturing Base with an Annual Capacity of 100 GW Project were received, the
behind planned
Company advanced project construction and implementation actively. As of December 31, 2023, the investment schedule was delivered by 63.95%, workshop
schedule or failing to
construction and layout of most production lines were completed. Because of adjustments in project planning and design layout, as well as impacts from the
gain expected returns
surrounding environment of the project site, equipment commissioning schedule, and status of relevant government permits during actual construction, some works
and the reasons
remained uncompleted, resulting in certain differences between the actual construction progress and the expected availability originally planned for the fundraising
(including those
project. In order to ensure the steady implementation of the Company's fundraising project, minimize the risks in using raised funds, and ensure the safe and rational
identified as “Not
use of funds, the Company decided to extend the completion date of the fundraising project from April 30, 2024 to June 30, 2025 based on the principles of being
Applicable” in the
responsible to investors and being prudent in investment. This proposal was reviewed and approved at the 7th meeting of the fifth Board of Directors and the 6th
column “Achieved the
meeting of the fifth Board of Supervisors.
expected benefits”)
Description of material
changes in project Not Applicable
feasibility
Amount, purpose, and Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Total Cumulative Cumulative
Changes in Total Amount Investment Date of Benefit
investment amount of benefit Substantial
Investment projects projects investment invested in progress by projects realized Expected
amount investment realized by changes in
committed and target (including after the the end of reaching in the benefits
committed by the end the end of the project
of over-raised funds partial adjustment reporting the period scheduled reporting achieved
by raised of the the reporting feasibility
changes) (1) period (3)=(2)/(1) availability period
funds period (2) period
progress of use of over-
raised funds
Changes in
implementation
locations of projects Not Applicable
invested with raised
funds
Changes in
implementation modes
Not Applicable
of projects invested
with raised funds
Applicable
As of October 11, 2021, the Company had invested CNY 243,141,600 in fund-raising projects with self-raised funds, of which CNY 143,827,900 was for the
Preliminary investment new energy power generation equipment manufacturing base with an annual output of 100 GW, CNY 94,743,100 for the expansion of R&D Innovation Center,
and replacement in and CNY 4,570,600 for the global marketing service system project. At the 12th meeting of the Fourth Board of Directors, the Proposal on Replacing Self-
projects invested with Raised Funds Previously Used in Fund-Raising Projects was reviewed and approved, which agreed that the Company should replace CNY 243,141,600 of self-
raised funds raised funds previously used in fund-raising projects with the raised funds. RSM China (Special General Partnership) verified the advanced investment in the
above-mentioned fundraising projects, and issued the Assurance Report on the Advance Input in Fund-Raising Projects made by Sungrow Power Supply Co.,
Ltd. with Self-Raised Funds (RSM [2021] No. 230Z2674) on October 12, 2021.
Description of
temporarily
replenishing working Not Applicable
capital with idle raised
funds
Amount of surplus Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Total Cumulative Cumulative
Changes in Total Amount Investment Date of Benefit
investment amount of benefit Substantial
Investment projects projects investment invested in progress by projects realized Expected
amount investment realized by changes in
committed and target (including after the the end of reaching in the benefits
committed by the end the end of the project
of over-raised funds partial adjustment reporting the period scheduled reporting achieved
by raised of the the reporting feasibility
changes) (1) period (3)=(2)/(1) availability period
funds period (2) period
raised fund in project There was a surplus in the funds raised for the Global Marketing Service System Project. It was mainly because the Company strictly followed relevant regulations
implementation and on managing raised funds during project implementation, strengthened project cost control, supervision, and management while ensuring the overall goals and
reasons behind quality of the fundraising project in the context of actual market situation, and reduced project spending, thus saving the actual investment amount of the fundraising
project.
On December 6, 2023, the Company held the fifth meeting of the fifth Board of Directors and the fourth meeting of the fifth Board of Supervisors, at which the
Proposal on Closing Some Raised Funds Investment Projects and Permanently Replenishing Working Capital with Surplus Raised Funds was reviewed and
approved. Whereas the Global Marketing Service System Project based on funds raised by issuing A-shares to specific objects in 2021 had basically reached the
expected availability, the project could be closed according to the implementation plan. In order to fully utilize the funds raised and maximize the effects of
fundraising, It was agreed that the Company would permanently replenish working capital with the surplus raised funds of CNY 87.0644 million (including bank
interest, subject to the final bank settlement amount on the day of transfer), and use them for day-to-day production and operation activities. The special account
for this fundraising should be cancelled accordingly. The actual surplus in the funds raised for the Global Marketing Service System Project on December 25, 2023
was CNY 87.109 million, all of which was used for permanently replenishing working capital.
Purpose and
As of December 31, 2023, the unused raised funds amounted to CNY 969,095,300, of which CNY 369,095,300 was in the special account for raised funds, CNY
whereabouts of unused
raised funds
On April 16, 2021, the Company held the first extraordinary general meeting in 2021, at which the Proposal on Requesting the Shareholders’ Meeting to Authorize
the Board of Directors to Proceed with the Issuance to Specific Objects was reviewed and approved. The Board of Directors was authorized to handle all matters
related to the issuance of shares to specific objects in 2021, including but not limited to determining the specific arrangements for the use of the raised funds for
this issuance to specific objects.
On October 21, 2021, Company held the 12th meeting of the fourth Board of Directors and the 11th meeting of the fourth Board of Supervisors, at which the
Proposal on Paying the Fund-Raising Investment Projects with Bank Acceptances and Replacing Them Equally with Raised funds was reviewed and approved. It
Problems or other
was agreed that during the implementation of the fund-raising investment project, the Company could use bank acceptances for payments involved in the project,
situations in the use
and regularly transfer the same amount from the special account of raised funds to the Company's general settlement account. The Board of Supervisors, independent
and disclosure of raised
directors and sponsors expressed their consent. As of December 31, 2022, the Company had accumulatively made investment project-related payments with CNY
funds
On August 24, 2023, the Company held the second meeting of the fifth Board of Directors and the second meeting of the fifth Board of Supervisors, at which the
Proposal on Continuously Using Idle Raised Funds for Wealth Management Products was reviewed and approved. It was agreed that the Company could use no
greater than CNY 1,300 million of idle raised funds for wealth management products, and the funds within the above-mentioned limit could be used in a rolling
manner. The Board of Supervisors, independent directors and sponsors expressed their consent. As of December 31, 2023, the Company’s total balance of wealth
management products purchased with idle raised funds amounted CNY 600 million.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(3) Projects with changes in raised funds
□ Applicable Not Applicable
There were no projects with changes in raised funds in the reporting period.
VIII. Sale of Major Assets or Equity
□ Applicable Not Applicable
The Company did not sell any major assets in the reporting period.
□ Applicable Not Applicable
IX. Analysis of Major Controlling and Holding Companies
Applicable □ Not Applicable
Major subsidiaries and holding companies that contribute to a net profit by 10% and above
(in CNY)
Company Type Main Registered Total Net Operating Operating Net Profit
Name Business Capital Assets Assets Income Profit
Sungrow Subsidiary New energy 1,499,460,9 28,138,05 7,826,61 26,574,546, 1,637,977,5 1,148,409,6
Renewables investment 59 0,679.29 8,212.16 338.58 43.38 94.90
Development and
Co., Ltd. development
Subsidiaries acquired or disposed in the reporting period
Applicable □ Not Applicable
For details, please refer to IX. Changes in the Scope of Consolidation 1. Changes in the scope of consolidation due to other reasons
in Section X Financial Reports.
X. Structured Entities Controlled by the Company
□ Applicable Not Applicable
XI. Prospects of the Company’s Future Development
(1) Planned Prospects
Focus on the field of clean power, make in-depth explorations in the core sectors of solar power, wind power, energy storage, electric
drive, and hydrogen production, and enhance innovation to make breakthroughs in power electronics, grid support, and AI technology,
and create integrated solutions, so as to pursue extraordinary customer experience, upgrade brand image, expand worldwide leading
advantages, and enable quality and sustainable development.
(2) Operating Plan
In 2024, the global green energy industry will benefit from the significant reduction in supply chain prices. As a result, the economic
viability of downstream projects will improve and the industry will maintain growth momentum. Taking “Collaborate and innovate in
verticals, contribute to customer success with digitalization” as the annual guideline, the Company will seize market opportunities to
deliver better products, expand channels, optimize services, strengthen brands, and accelerate digitalization to secure global leading
advantages in businesses and achieve rapid and sustainable growth.
To deliver the annual business objectives, the Company plans to take the following key measures:
a. Reinforce innovation efforts and promote comprehensive and in-depth development in all domains. Advocate intensive and
continuous innovation in all dimensions, and incorporate innovation to all processes of the Company. Integrate cutting-edge
technologies and commercial resources to maintain a leading advantage in products, services, business models and management.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
b. Maintain high level of investment in research and development to secure technological leadership. Enhance R&D and forward
design capabilities, accelerate breakthroughs in key technologies and reserve of future-proof technologies, and prioritize
explorations in power electronics, grid support, and grid construction technologies to address the needs of new power systems.
Improve the interactivity of product software and hardware, advance deep fusion and application of AI in the key aspects of R&D,
products, and solutions, hence to offer competitive products on the long run.
c. Uphold the quality product strategy and advance all-around product upgrades. Insist on low-cost innovation, promote rapid
product iteration and upgrade to provide customers with safe, reliable, and stable products, hence to attract more customers with
continuously leading products. Fully leverage the Company's existing advantages in solar power, wind power, energy storage,
electric drive, and hydrogen production, create integrated solutions based on new energy application scenarios, and create values
for customers with integrated solar-wind-energy storage-electric drive-hydrogen solutions.
d. Optimize the global market layout and upgrade the integration of sales and service. Consolidate the national-level operation
systems and speed up global deployment. of globalization strategies. Promote the integration of sales and service, build a
digitalized service platform to improve service standard, quality, and responsiveness, and continuously enhance customer service
experience.
e. Upgrade global supply and manufacturing systems, and improve localization capabilities. Closely interact with top suppliers to
advance local warehouses of suppliers. Accelerate the construction of global digital plants, expand manufacturing capacity in
Thailand and other regions, and build a global supply system with quick response, competitive cost, reliable quality, and timely
delivery.
f. Upgrade the brand philosophy and continue to advance ESG efforts. Build a global leading brand in clean power around core
businesses, and shape the brand image of an “agile and innovative clean energy expert". Actively practice ESG concepts and
optimize the ESG management system, promote sustainability of the Company and the planet with technological innovation and
continuous investment.
g. Accelerate digitalization and improve quality and efficiency with digitalized and intelligent operation. Leverage big data, AI, and
other digital technologies to create an agile and efficient organization with online and shared processes, improve the efficiency of
all business activities, and respond quickly to environmental changes, so as to secure a leading position in competitions and
achieve quality and sustainable development.
h. Strengthen organizational capacity building. Build a resilient organization capable of surviving the ups and downs to deliver the
objectives in market innovation, customer demand, and operational efficiency. Shape an inclusive, open, respectful, and
empathetic cultural atmosphere, continuously strengthen the roles of corporate culture in supporting and promoting business
development.
XII. Events Register for Research Visits, Communication, and Interviews in the Period
Applicable □ Not Applicable
Date Venue Type of Visit Type of Visitors Main Contents Index of Basic
Visitors of the Research Data
Discussion and
Information
Provided
Apr. 24, On the phone Phone Institution 1,000+ investors 2022 financial www.cninfo.com.cn
Securities, industry Activity Register
Changjiang situation, and No. 20230428
Securities, China outlook of the
Securities, Company's
Goldman Sachs, main products
and Huafu
Securities
Jun. 27, An investor Online Other Investors Operational www.cninfo.com.cn
interaction platform activity via the the Company Activity Register
(https://ir.p5 w.net) investor relations in 2022 and No. 20230627
platform of the like
https://ir.p5w.net
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Date Venue Type of Visit Type of Visitors Main Contents Index of Basic
Visitors of the Research Data
Discussion and
Information
Provided
Aug. 24, On the phone Phone Institution 1,000+ investors Industry www.cninfo.com.cn
Securities, Company’s Activity Register
Changjiang operational No. 20230825
Securities, Caitong and financial
Securities, Huafu performance
Securities, and for the first
Haitong Securities half of 2023
Sep. 21, Tencent Meeting Online Other Wellington The www.cninfo.com.cn
Nguyen, Simon domestic and Activity Register
Henry, T Rowe overseas No. 20230921
Price HK Limited, markets,
Zhao Yiqiang, product
CICC, Ma Yan, Shi markets, and
Yuqi, Liu Qihui, Yu status of
Yangqing overseas plants
Oct. 25, Cloud Interview Online Other Investors Basic situation www.cninfo.com.cn
http://irm.cninfo.co activity via Company, Activity Register
m.cn of Shenzhen http://irm.cninfo.co measures to No. 20231025
Stock Exchange m.cn of Shenzhen secure the
Stock Exchange leading
position in PV
and energy
storage
business, and
the impact of
global
situation on
the Company's
product
shipment
Oct. 27, On the phone Phone Institution About 800 investors The www.cninfo.com.cn
Securities, operational Activity Register
Changjiang and financial No. 20231027
Securities, Caitong performance
Securities, and for the first
Huafu Securities three quarters
of 2023,
industrial
prospect
XIII. Implementation Status of the Quality and Return Dual Enhancement Action Plan
Whether the Company disclosed the Quality and Return Dual Enhancement Action Plan.
Yes □ No
To implement the guidelines on “revitalizing the capital market and boosting investors’ confidence" put forward at the Central Political
Bureau conference and "vigorously improving the quality and investment value of public companies, and “taking robust and effective
measures to stabilize the market and investors’ confidence" at the State Council executive meeting, the Company developed the Quality
and Return Dual Enhancement Action Plan and disclosed it in Announcement on the Quality and Return Dual Enhancement Action
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Plan on February 26, 2024 on www.cninfo.com.cn (Announcement No. 2024-015).
The Company seized opportunities as the global new energy market grew rapidly, and achieved an increase of operating revenue from
CNY 10,370 million in 2018 to CNY 72,250 million in 2023, accounting for a compound growth rate of 47%. The net profit attributable
to shareholders of the Company increased from CNY 810 million in 2018 to CNY 9,440 million in 2023, accounting for a compound
growth rate of 63%. In 2023, the Company made significant efforts in marketing and R&D, continually advanced the full coverage
strategy of products and services, and leveraged digitalization and lean operation to achieve rapid growth in core businesses including
PV inverters, energy storage systems, and new energy investment and development. As a result, the net profit attributable to
shareholders of the Company increased by 163% year-on-year.
The Company attached great importance to investor returns and continuously offered stock dividends and cash dividends since going
public, with a cumulative cash dividends implemented no less than 10% of the cumulative net profit attributable to the parent company.
In 2023, the Company enabled a dynamic balance between corporate development, performance growth, and shareholder return, and
implemented a "long-term, stable, and sustainable" shareholder value return mechanism to improve the sense of gain for investors. The
Company made an equity distribution plan to distribute a cash dividend of CNY 9.65 (tax inclusive) per 10 shares to all shareholders,
with the total cash dividends amounting to approximately CNY 1,420 million (tax inclusive). In addition, 4 shares were transferred
from the capital reserve for every 10 shares to all shareholders.
Based on confidence in the future development of the Company and recognition of corporate values, and to establish and improve a
long-term incentive mechanism, adequately motivate all employees and effectively integrate the interests of shareholders, the Company,
and employees, as well as to promote the healthy, stable, and sustainable development of the Company, on September 12, 2023, the
Company held the third meeting of the fifth Board of Directors, at which the Proposal on the Buyback of Company Shares was reviewed
and approved. It was agreed that the Company would buy back some of the Company's shares via collective bidding with a self-supplied
fund of no less than CNY 500 million (inclusive) and no greater than CNY 1,000 million (inclusive), and use them for equity incentive
plans or employee stock ownership plans at an appropriate time in the future. As of March 31, 2024, the Company had cumulatively
bought back 11,512,334 shares via collective bidding in the Shenzhen Stock Exchange’s trading system, accounting for 0.7752% of
the Company's total share capital. The highest buyback price was CNY 90.72 per share, and the lowest was CNY 78.46 per share. The
total funds paid amounted CNY 996,648,688.03 (excluding transaction fees).
The Company highly prioritized investor relationship management, and constantly optimized the working mechanism and content of
investor relationship management, in order to achieve the goals of respecting, rewarding, and protecting investors. As the Company
attracted wider attention, the communication with investors was further enhanced, the frequency, profundity, and relevance of
communication were increased. The Company maintained sound interaction with investors through performance briefing, online
exchange, phone communication, among other channels. The Company established an investor relations platform on the official
website to update periodical reports, sustainability reports, and stock information on a timely basis, so that investors could access such
information conveniently. In the future, the Company will continue to actively convey its long-term investment values to the market,
improve the efficiency and transparency of information, promote mutual understanding, and advance healthy communication with
investors.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section IV Corporate Governance
I. Basic Situation of Corporate Governance
During the reporting period, the Company strictly followed the Company Law, the Securities Law, the Governance Guidelines for
Listed Companies, the Rules for GEM Stock Listing at Shenzhen Stock Exchange, Shenzhen Stock Exchange’s No. 2 Regulatory
Guidelines for Listed Companies — Standardized Operation of GEM-Listed Companies as well as other laws and regulations to
constantly optimize the corporate governance structure, improve the internal control system, and achieve standardized operation.
The Company's overall operation in the reporting period was standardized and highly independent, the information disclosure was
compliant, and the actual situation was basically in line with the requirements in the CSRC normative documents on the governance
of listed companies.
a. About shareholders and the shareholders’ meeting
Shareholders of the Company hold equal status based on the shares they possess and assume corresponding obligations following the
provisions in the Articles of Association. The Company convenes and holds shareholders’ meetings in strict accordance with the
regulations and requirements of the Rules for the Shareholders’ Meeting of Listed Companies and the Rules of Procedure for the
Shareholder’s Meeting, making sure shareholders exercise their rights and interests legitimately, treating all shareholders equally, and
providing as much convenience as possible for shareholders to participate in the shareholders’ meetings, so that they can fully exercise
their rights as shareholders.
b. About the Company and the controlling shareholder
The Company’s controlling shareholder, Mr. Cao Renxian, strictly abides by the Governance Guidelines for Listed Companies, the
Rules for GEM Stock Listing at Shenzhen Stock Exchange, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed
Companies — Standardized Operation of GEM-Listed Companies, and the Articles of Association to regulate his behavior. He makes
no actions that directly or indirectly interfere with the Company's decision-making and business activities beyond the shareholders’
meeting, nor jeopardizes the interests of the Company and other shareholders. There is no occurrence of the controlling shareholder
taking up the Company's funds or the Company providing guarantees for the controlling shareholder. The Company owns independent
and complete business and is capable of operating independently. The Company is independent from the controlling shareholder in
terms of business, assets, personnel, organization and finance; the Company's Board of directors, Board of Supervisors, and internal
organizations operate independently.
c. About directors and the Board of Directors
The Board of Directors is composed of 8 directors, including 3 independent directors. The number of directors and the composition of
the Board of Directors are in line with the relevant laws, regulations and the Articles of Association. Directors perform their duties in
accordance with the Rules for Independent Directors at Listed Companies, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines
for Listed Companies — Standardized Operation of GEM-Listed Companies, and the Rules of Procedure for the Board of Directors,
attend board meetings and shareholders' meetings, diligently assume their job responsibilities and obligations, and actively participate
in relevant training to get familiar with the relevant laws and regulations.
d. About supervisors and the Board of Supervisors
The Board of Supervisors is composed of 3 supervisors, including 2 employee supervisors. The number of supervisors and the
composition of the Board of Supervisors are in line with the requirements of laws and regulations. Supervisors perform their duties in
accordance with the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized Operation of
GEM-Listed Companies and the Rules of Procedure for the Board of Supervisors, and supervise the Company’s major transactions,
related-party transactions, financial status, and the legitimacy and compliance of directors’ and executives’ job performance.
e. About performance evaluation and the incentive and restraint mechanism
The Remuneration and Evaluation Committee is set up under the Board of Directors, which has formulated the Working Rules of the
Remuneration and Evaluation Committee, established and implemented the performance evaluation system, and defined a scientific
system of indicators. The various centers, product lines, and departments make full use of the performance management tools to ensure
objectives and performance plans are under control. The manager-in-charge holds the primary accountability for realizing annual
objectives and performance plans of the respective department. Each department further breaks down the work plan into monthly and
weekly tasks, and strives to achieve performance indicators on time, in quality and quantity, hence to ensure the delivery of the
Company's annual objectives. All accountable organizations and all employees are subject to regular performance evaluation and
objective assessment, and the evaluation results are used as the grounds for determining employees’ remuneration, promotion/demotion,
appraisal and job transfer.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
f. About information disclosure and transparency
In strict accordance with the Administrative Measures on Information Disclosure by Listed Companies, the Rules for GEM Stock Listing
at Shenzhen Stock Exchange, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized
Operation of GEM-Listed Companies, the Shenzhen Stock Exchange’s No. 5 Regulatory Guidelines for Listed Companies —
Information Disclosure, as well as the requirements in the Information Disclosure Management Procedures and the Investor Relations
Management Procedures, the Company fairly discloses the relevant information in a truthful, accurate, timely, and complete manner.
The Company's Board Secretary is responsible for organizing and coordinating information disclosure and investor relations, receiving
investors’ visits, and replying investors' inquiries. The Company has designated www.cninfo.com.cn as the website for disclosing
company information, China Securities Journal, Securities Times, Securities Daily and Shanghai Securities News as the newspapers
for disclosing the Company’s periodical reports, hence to ensure that all shareholders of the Company are informed of with equal
opportunities.
g. About stakeholders
The Company fully values and safeguards the legitimate rights and interests of relevant stakeholders, attaches great importance to the
Company's social responsibilities, actively collaborates with relevant stakeholders, and enhances communication and exchange with
all parties, in order to coordinate and balance the interests of shareholders, employees, society and other parties, so that they jointly
promote the sustainable and healthy development of the Company.
Whether there is a material difference between the actual situation of corporate governance and laws, administrative regulations and
the CSRC regulations on the governance of listed companies
□ Yes No
There is no material difference between the actual situation of corporate governance and laws, administrative regulations and the
CSRC regulations on the governance of listed companies.
II. Specific Measures Taken by the Controlling Shareholders and Actual Controllers to Ensure the Independence of the
Company's Assets, Personnel, Finance, Organization and Business
The Company is capable of operating its business independently and has set up a complete operation and management system that is
independent from the controlling shareholder in terms of business, personnel, assets, organization, and finance.
III. Horizontal Competition
□ Applicable Not Applicable
IV. Information on the Annual Shareholders’ Meeting and the Extraordinary General Meeting(s) Held in the Reporting
Period
Session Type Investor Date of Date of Resolution(s)
Participation % Meeting Disclosure
Shareholders’ Shareholders’ the Resolutions of the 2022 Annual
Meeting Meeting Shareholders’ Meeting on
http://www.cninfo.com.cn
The First Extraordinary Dec. 22, 2023 Dec. 22, 2023 No. 2022-124 Announcement on
Extraordinary General the Resolutions of the First
General Meeting Meeting Extraordinary General Meeting in
in 2023 2023 on http://www.cninfo.com.cn
□ Applicable Not Applicable
V. The Company’s Voting Rights Difference Arrangement
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
VI. Corporate Governance with the Red-Chip Architecture
□ Applicable Not Applicable
VII. Directors, Supervisors and Executives
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Name Gender Age Title Status Office Office Shares held Shares Shares Other Shares held Reason for
starts on ends on at the increased decreased changes at the end of changes in
beginning of during the during the (shares) the period shares
the period period period
Cao Renxian Male 55 Chairman and Incumbent Dec. 8, May 19, 451,008,000 451,008,000
President 2016 2026
Gu Yilei Male 45 Vice Chairman Incumbent May 18, May 19, 450,000 450,000
SVP Incumbent Dec. 11, May 19,
Zhang Xucheng Male 51 Director Incumbent May 19, May 19, 112,500 112,500
Zhao Wei Male 50 Director, SVP Incumbent Dec. 8, May 19, 7,076,000 7,076,000
Wu Jiamao Male 51 Director, SVP Incumbent May 19, May 19, 375,000 375,000
Gu Guang Female 60 Independent director Incumbent May 19, May 19,
Li Mingfa Male 61 Independent director Incumbent May 19, May 19,
Zhang Lei Male 43 Independent director Incumbent May 19, May 19,
Tao Gaozhou Male 52 Chairman of the Incumbent Dec. 8, May 19,
Board of Supervisors 2016 2026
He Wei Male 48 Employee Supervisor Incumbent Dec. 8, May 19,
Zhang Hui Male 49 Employee Supervisor Incumbent Apr. 21, May 19,
Li Shun Male 46 SVP Incumbent Oct. 29, May 19, 25,000 25,000
Chen Zhiqiang Male 43 VP Incumbent Dec. 8, May 19, 375,000 375,000
Peng Chaocai Male 46 VP Incumbent Oct. 29, May 19, 78,750 78,750
Deng Dejun Male 47 VP Incumbent Dec. 11, May 19, 369,679 369,679
Lu Yang Male 41 VP, Board Secretary Incumbent Oct. 21, May 19,
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Name Gender Age Title Status Office Office Shares held Shares Shares Other Shares held Reason for
starts on ends on at the increased decreased changes at the end of changes in
beginning of during the during the (shares) the period shares
the period period period
Tian Shuai Male 40 Finance Director, VP Incumbent Jun. 27, May 19,
Wang Lei Female 44 VP Incumbent May 19, May 19, 22,000 22,000
Zheng Guibiao Male 55 Director, SVP Departed Dec. 8, May 19, 11,976,360 5,000 11,971,360 Sell
Li Baoshan Male 71 Independent director Departed Dec. 8, May 19,
Li Xiaomei Female 55 Employee Supervisor Departed Dec. 8, May 19,
Zhang Youquan Male 56 VP Departed Dec. 8, May 19, 225,000 225,000
Xie Xiaoyong Male 47 VP Departed Aug. 14, Dec. 6, 300,000 300,000
Total -- -- -- -- -- -- 472,393,289 5,000 472,388,289 --
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Resignation of directors/supervisors or dismissal of executives within the term of office during the reporting period
□ Yes No
Changes in directors, supervisors and executives of the Company
Applicable □ Not Applicable
Name Position Type Date Reason
Wu Jiamao Director Election May 19, 2023 Elected as a non-independent director of the fifth
Board of Directors at the 2022 Annual
Shareholders’ Meeting
Zhang Lei Ind. Director Election May 19, 2023 Elected as an independent director of the fifth
Board of Directors at the 2022 Annual
Shareholders’ Meeting
Zhang Hui Employee Election Apr. 21, 2023 Elected as an employee supervisor of the fifth
Supervisor Board of Supervisors at the Workers Congress
Wu Jiamao SVP Appointment May 19, 2023 Appointed SVP at the first meeting of the fifth
Board of Directors
Li Shun SVP Appointment May 19, 2023 Appointed SVP at the first meeting of the fifth
Board of Directors
Wang Lei VP Appointment May 19, 2023 Appointed VP at the first meeting of the fifth Board
of Directors
Tian Shuai VP Appointment May 19, 2023 Appointed VP at the first meeting of the fifth Board
of Directors
Zheng Guibiao Director, SVP Departure May 19, 2023 Departed upon office expiration, still holding other
position(s) in the Company
Li Baoshan Ind. Director Departure May 19, 2023 Departed upon office expiration
Li Xiaomei Employee Departure May 19, 2023 Departed upon office expiration
Supervisor
Zhang Youquan VP Departure May 19, 2023 Departed upon office expiration, still holding other
position(s) in the Company
Xie Xiaoyong VP Departure Dec. 6, 2023 Resigned from the position of VP due to job
adjustment, still holding other position(s) in the
Company
The professional background, main work experience and job responsibilities of current directors, supervisors and executives of the
Company
(1) Directors
Mr. Cao Renxian, Chinese national with no permanent residency overseas, born in July 1968, master degree, and researcher, is currently
a delegate of the 14th National People's Congress and the chairman of the China Photovoltaic Industry Association. Mr. Cao Renxian
was one of the faculty of Hefei University of Technology from June 1993 to 1998, and worked in Sungrow Power Supply Co., Ltd.
from July 1998 to July 2001. He served the role of Executive Director and General Manager of Sungrow Power Supply Co., Ltd. from
July 2001 to August 2007, followed by the role of Chairman and President from August 2007 to date.
Mr. Gu Yilei, Chinese national with no permanent residency overseas, born in February 1978, Ph.D. He has successively worked in
Zhongda Simike Electronics Co., Ltd. (Delta Group), Shenzhen Kangdawei Electronic Technology Co., Ltd., Santak Electronics
(Shenzhen) Co., Ltd., and Eaton (China) Investment Co., Ltd. He joined Sungrow in September 2015, and successively served the roles
of Vice Director of the Sungrow Research Institute, Director of the Central Research Institute. He is currently Vice Chairman and
Senior Vice President of Sungrow and President of the Solar Storage Division.
Mr. Zhang Xucheng, Chinese national with no permanent residency overseas, born in June 1972, master degree. He served the roles of
Vice Procurement Manager, Logistics Manager, Human Resources Manager and Senior Vice President of Sungrow. He is currently a
director in the Sungrow Board, Chairman and President of Sungrow Renewables Development Co., Ltd.
Mr. Zhao Wei, Chinese national with no permanent residency overseas, born in December 1973, Ph.D., senior engineer. He served the
roles of Vice Director and Vice General Manager of Sungrow R&D Center, and is currently Director and Senior Vice President of
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow and Director of the Sungrow Research Institute.
Mr. Wu Jiamao, Chinese national with no permanent residency overseas, born in September 1972, master degree. He worked for Anhui
Ningguo Shuangjin Group previously and joined Sungrow in March 2005. He successively served the roles of Sales Manager of
Sungrow and General Manager of Sungrow Shanghai Company, is currently Director and Senior Vice President of Sungrow and
Director, Global Sales and Marketing of the Solar Storage Division.
Ms. Gu Guang, Chinese national with no permanent residency overseas, born in July 1963, master degree, certified public accountant
of China (non-practicing member). She graduated from the Department of Economics of Anhui University in 1986, and has been
teaching at the university ever since, having served the roles of Vice Director and Director of the Accounting Department of the School
of Business, Anhui University, Director of the MPAcc Education Center, Associate Professor and Master's Supervisor in accounting at
the School of Business, Anhui University. Currently, she is an independent director of Anhui Shanhe Pharmaceutical Excipients Co.,
Ltd., Atech Automotive Co., Ltd., and Sungrow Power Supply Co., Ltd.
Mr. Li Mingfa, Chinese national with no permanent residency overseas, born in February 1963, Ph.D., Level 2 professor and doctoral
supervisor of Anhui University. He was Director of the Law School of Anhui University and Executive Vice Director of the Graduate
School of Anhui University. He is currently Executive Director of the Civil Law Research Association of the China Law Society, Vice
Director-General of the Anhui Civil and Commercial Law Research Association, and an independent director of Wuhu Sanlian Forging
Co., Ltd., Anhui Estone Materials Technology Co., Ltd., and Sungrow Power Supply Co., Ltd.
Mr. Zhang Lei, Chinese national with no permanent residency overseas, born in December 1980, bachelor degree. He started service
and research in the power supply industry at the China Power Supply Society since 2005, and served the roles of Director of the
Exhibition Department, Director of the General Office, and Deputy Secretary General. He is currently the Secretary General of the
China Power Supply Society and an independent director of Sungrow.
(2) Supervisors
Mr. Tao Gaozhou, Chinese national with no permanent residency overseas, born in March 1971, master degree, senior engineer. He
was Manager of Structure Department and a Supervisor of Sungrow, and is currently the Chairman of Sungrow’s Board of Supervisors
and Director of the Institute of New Materials and Advanced Manufacturing.
Mr. He Wei, Chinese national with no permanent residency overseas, born in October 1975, master degree. He was Business Planning
Manager and Logistics Assurance Manager of Sungrow, and is currently an Employee Representative Supervisor of Sungrow and
General Manager of the Administrative Service Center.
Mr. Zhang Hui, Chinese national with no permanent residency overseas, born in October 1974, bachelor degree. He served the roles of
Supervisor of Technical Support Department, Manager of Engineering Technology Department, and Manager of Equipment and Power
Department of Sungrow. He is currently an Employee Representative Supervisor of Sungrow and Director of Equipment and Power
Department.
(3) Executives
Mr. Cao Renxian, President. Refer to the introduction in “(1) Directors” for details.
Mr. Gu Yilei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.
Mr. Zhao Wei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.
Mr. Wu Jiamao, Senior Vice President. Refer to the introduction in “(1) Directors” for details.
Mr. Li Shun, Chinese national with no permanent residency overseas, born in January 1977, master degree. He worked for China
Academy of Engineering Physics, Santak Electronics (Shenzhen) Co., Ltd., and Samil Power Co., Ltd. After joining Sungrow, he
successively served the roles of Director of Small-to-Medium Power Products, Director of String Products, and Vice President of the
Solar Storage Division. He is currently Senior Vice President of Sungrow.
Mr. Chen Zhiqiang, Chinese national with no permanent residency overseas, born in April 1980, graduated from the University of
Science and Technology of China in 2020 with a master degree, and a certified quality engineer of China. He served the roles of Quality
Control Supervisor, Quality Control Manager, Management Representative, Quality Director, Employee Supervisor, and Chairman of
the Board of Supervisors of Sungrow. He is currently Vice President of Sungrow.
Mr. Peng Chaocai, Chinese national with no permanent residency overseas, born in December 1977, master degree. He worked for
Shangqiu Experimental Middle School, Sinoma Technology Wind Power Blade Co., Ltd., and Delta Electronics (Shanghai) Co., Ltd.
before joining Sungrow as President of the Wind Energy Division. He is currently Vice President of Sungrow and President of the
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Wind Energy Division.
Mr. Deng Dejun, Chinese national with no permanent residency overseas, born in September 1976, bachelor degree. He worked for
Maanshan Iron and Steel Co., Ltd., Foxconn Technology Group, Philips Electronics, and Great Wall Development Technology Co.,
Ltd. previously. After joining Sungrow in January 2011, he successively served the role of Production Planning Manager, Production
Planning Manager and Vice General Manager of the Gansu Division, Manufacturing Director of the Production Center and Production
Planning Manager, Vice General Manager of the Production Center, and General Manager of the Production Center. He is currently
Vice President of Sungrow and General Manager of the Production Center.
Mr. Lu Yang, Chinese national with no permanent residency overseas, born in October 1982, master degree. He worked previously for
State Nuclear Power Technology Corporation, Beijing Zhenglue Junce Management Consulting Co., Ltd., and ENN Group Co., Ltd.
He joined Sungrow in August 2016 and successively served the roles of Strategic Planning Manager, Strategic Planning Director, and
General Manager of the Strategy Center. He is currently Vice President and Board Secretary of Sungrow.
Mr. Tian Shuai, Chinese national with no permanent residency overseas, born in November 1983, bachelor degree and MBA candidate
of Peking University, CMA (Certified Management Accountant). He worked previously for Sany Heavy Industry Co., Ltd., Huawei
Technologies Co., Ltd., Hunan Huinong Technology Co., Ltd., and Honor Device Co., Ltd. He joined Sungrow in September 2021 and
successively served the roles of Vice General Manager of the Finance Center and General Manager of the Finance Center. He is
currently Vice President and Finance Director of Sungrow.
Ms. Wang Lei, Chinese national with no permanent residency overseas, born in December 1979, master degree, Senior Human
Resources Manager and Economist. She joined Sungrow in June 2003 and served the roles of Manager of the Human Resources Center,
General Manager of the Human Resources Center, and Vice President of the Solar Storage Division. She is currently Vice President of
Sungrow.
Positions in organizations as a shareholder
□ Applicable Not Applicable
Positions in other organizations
Applicable □ Not Applicable
Name Organization Position Office Office Paid by the
Starts on Ends on Organization
Cao Renxian Hefei Renshang Enterprise Management Co., Ltd. Supervisor No
Li Mingfa Anhui Estone Material Technology Co., Ltd. Ind. Director Yes
Li Mingfa Wuhu Sanlian Forging Co., Ltd. Ind. Director Yes
Gu Guang Anhui Shanhe Pharmaceutical Excipients Co., Ltd. Ind. Director Yes
Gu Guang Atech Automotive Co., Ltd. Ind. Director Yes
Lu Yang Jiangyin Wanzai Trading Co., Ltd. Supervisor No
Wang Lei Hefei Shangneng Enterprise Management Co., Ltd. Supervisor No
Penalties imposed by securities regulators in the past three years on incumbent directors, supervisors, executives and those departed
in the reporting period
□ Applicable Not Applicable
The procedure for determining remuneration for directors, supervisors and executives, the ground for determination, and the actual
payment
Procedure for determination: Remuneration of the Company's directors and supervisors is determined by the shareholders' meeting;
remuneration of executives is determined by the Board of Directors. Directors, supervisors and executives who hold offices in the
Company receive remuneration according to their specific positions.
Grounds for determination: Remuneration of directors, supervisors and executives is determined and paid in accordance with the
provisions in the Working Rules of the Remuneration and Evaluation Committee stipulated by the Board of Directors, taking into
consideration of their respective business performance, professional competency, job ranking and other evaluation results.
Actual payment: Remuneration of directors, supervisors and executives has been paid in full according to the predefined standard.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Remuneration of Directors, Supervisors and Executives of the Company during the reporting period
(in 10K CNY)
Total Paid by related-
Name Gender Age Position Status remuneration party of the
before tax Company
Cao Renxian Male 55 Chairman, President Incumbent 351.00 No
Gu Yilei Male 45 Vice Chairman, SVP Incumbent 1,440.00 No
Zhang Director
Male 51 Incumbent 406.00 No
Xucheng
Zhao Wei Male 50 Director, SVP Incumbent 373.00 No
Wu Jiamao Male 51 Director, SVP Incumbent 994.00 No
Gu Guang Female 60 Ind. Director Incumbent 8.00 No
Li Mingfa Male 61 Ind. Director Incumbent 8.00 No
Zhang Lei Male 43 Ind. Director Incumbent 5.33 No
Tao Gaozhou Chairman of the Board of
Male 52 Incumbent 107.38 No
Supervisors
He Wei Male 48 Employee Supervisor Incumbent 129.00 No
Zhang Hui Male 49 Employee Supervisor Incumbent 58.82 No
Li Shun Male 46 SVP Incumbent 400.00 No
Chen Zhiqiang Male 43 VP Incumbent 343.00 No
Peng Chaocai Male 46 VP Incumbent 357.00 No
Deng Dejun Male 47 VP Incumbent 283.00 No
Lu Yang Male 41 VP, Board Secretary Incumbent 251.00 No
Tian Shuai Male 40 VP, Finance Director Incumbent 249.00 No
Wang Lei Female 44 VP Incumbent 194.97 No
Zheng Guibiao Male 55 Director, SVP Departed 41.67 No
Li Baoshan Male 71 Ind. Director Departed 3.34 No
Li Xiaomei Female 55 Employee Supervisor Departed 13.74 No
Zhang VP
Male 56 Departed 39.14 No
Youquan
Xie Xiaoyong Male 47 VP Departed 301.00 No
Total -- -- -- -- 6,357.39 --
Note: Director and Senior Vice President Mr. Zheng Guibiao, Independent Director Mr. Li Baoshan, Employee Supervisor Ms. Li
Xiaomei, and Vice President Mr. Zhang Youquan resigned upon the expiration of their term of office during the reporting period. The
remuneration listed above indicated the total remuneration before tax they received from the Company from January to May 2023. Mr.
Zhang Lei, Mr. Zhang Hui, and Ms. Wang Lei were elected or appointed Independent Director, Employee Supervisor, and Vice
President of the Company during the reporting period. The remuneration listed above indicated the total remuneration before tax they
received from the Company from May to December 2023. The remuneration of other incumbent or departed directors, supervisors, and
executives indicated the total remuneration before tax they received from the Company from January to December 2023.
Notes on other facts
□ Applicable Not Applicable
VIII. Directors' Performance of Duties During the Reporting Period
Session Date of Meeting Date of Disclosure Resolution(s)
The 22nd meeting of the fourth January 18, 2023 January 18, 2023 No. 2023-005 Announcement on
Board of Directors Resolutions of the Twenty-Second Meeting
of the Fourth Board of Directors on
http://www.cninfo.com.cn
The 23rd meeting of the fourth April 24, 2023 April 25, 2023 No. 2023-016 Announcement on
Board of Directors Resolutions of the Twenty-Third Meeting of
the Fourth Board of Directors on
http://www.cninfo.com.cn
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Session Date of Meeting Date of Disclosure Resolution(s)
The 1st meeting of the fifth Board May 19, 2023 May 19, 2022 No. 2023-053 Announcement on
of Directors Resolutions of the First Meeting of the Fifth
Board of Directors on
http://www.cninfo.com.cn
The 2nd meeting of the fifth August 24, 2023 August 25, 2023 No. 2023-077 Announcement on
Board of Directors Resolutions of the Second Meeting of the
Fifth Board of Directors on
http://www.cninfo.com.cn
The 3rd meeting of the fifth September 12, 2023 September 13, 2023 No. 2023-085 Announcement on
Board of Directors Resolutions of the Third Meeting of the
Fifth Board of Directors on
http://www.cninfo.com.cn
The 4th meeting of the fifth October 27, 2023 October 28, 2023 No. 2023-094 Announcement on
Board of Directors Resolutions of the Fourth Meeting of the
Fifth Board of Directors on
http://www.cninfo.com.cn
The 5th meeting of the fifth December 6th, 2023 December 7, 2023 No. 2023-107 Announcement on
Board of Directors Resolutions of the Fifth Meeting of the Fifth
Board of Directors on
http://www.cninfo.com.cn
The 6th meeting of the fifth December 22, 2023 December 22, 2023 No. 2023-126 Announcement on
Board of Directors Resolutions of the Sixth Meeting of the Fifth
Board of Directors on
http://www.cninfo.com.cn
Directors’ presence at Board Meetings and Shareholders’ Meetings
Board In-person Audio/Video Delegate Absence Failing in-person
Presence at
meetings to presence at presence at presence at from presence at two
Director shareholders’
be attended board board board board consecutive
meetings
in the period meetings meetings meetings meeting board meetings
Cao Renxian 8 3 5 0 0 No 2
Gu Yilei 8 3 5 0 0 No 2
Zhang
Xucheng
Zhao Wei 8 3 5 0 0 No 2
Wu Jiamao 6 2 4 0 0 No 2
Gu Guang 8 3 5 0 0 No 2
Li Mingfa 8 3 5 0 0 No 2
Zhang Lei 6 2 4 0 0 No 1
Zheng Guibiao 2 1 1 0 0 No 1
Li Baoshan 2 1 1 0 0 No 1
Whether there were objections raised by directors to matters related to the Company
□ Yes No
No directors raised any objection to matters related to the Company during the reporting period.
Whether suggestions made by directors were accepted
Yes □ No
Explanation on accepting or rejecting suggestions made by directors
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
During the reporting period, all directors of the Company strictly followed the Company Law, the Securities Law, the Governance
Guidelines for Listed Companies, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized
Operation of GEM-Listed Companies, as well as other relevant regulations and requirements in the Articles of Association and the
Rules of Procedure for the Board of Directors. All directors attended board meetings and shareholders’ meetings proactively, performed
their duties in a diligent and conscientious way, and put forward relevant opinions on the Company's major governance and business
decisions based on the actual situation, to ensure adequate discussion and science-based decision-making in a timely and efficient way,
and safeguard the legitimate rights and interests of the Company and all shareholders.
IX. Operation of Special Committees under the Board of Directors During the Reporting Period
Specific
Important
No. of Date of Performance circumstances
Committee Members Content of Meeting comments and
Meetings Meeting of other duties of objection (if
suggestions made
any)
The Audit Gu 1 Apr. 22, 2023 Deliberation of the Approved the No No
Committee Guang, Li Proposal on Re- proposals, and
Baoshan, engaging the agreed to submit
Zheng Company's Auditing the proposals for
Guibiao Firm for 2023, the deliberation by
Proposal on the the Board of
Company's 2022 Directors
Annual Report and
the Report Summary
The Audit Gu Apr. 22, 2023 Deliberation of the Approved the
Committee Guang, Li Proposal on the proposal, and
Baoshan, Company's 2023 agreed to submit
Zheng 1 First Quarter Report the proposal for No No
Guibiao deliberation by
the Board of
Directors
The Audit Gu Aug. 17, Deliberation of the Approved the
Committee Guang, Li 2023 Proposal on the proposal, and
Mingfa, Company's 2023 agreed to submit
Zhang 1 Half Year Report the proposal for No No
Lei and the Report deliberation by
Summary the Board of
Directors
The Audit Gu Oct. 26, 2023 Deliberation of the Approved the
Committee Guang, Li Proposal on the proposal, and
Mingfa, Company's 2023 agreed to submit
Zhang 1 Third Quarter the proposal for No No
Lei Report deliberation by
the Board of
Directors
The Cao Apr. 22, 2023 Deliberation of the Approved the
Nomination Renxian, Proposal on the proposal, and
Committee Li Election of the agreed to submit
Mingfa, Board of Directors the proposal for
Gu and Nomination of deliberation by
Guang Candidates for the the Board of
Fifth Board of Directors
Directors
The Li Apr. 22, 2023 Deliberation of the Approved the
Remuneration Baoshan, Proposal on the proposals, and
and Evaluation Li 2023 Remuneration agreed to submit
Committee Mingfa, of Directors, the proposals for
Zhang Supervisors and deliberation by
Xucheng Executives, the the Board of
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Proposal on the Directors
Achievement of
Vesting Conditions
for the First Vesting
Schedule of the First
Grant in the 2022
Restricted Stock
Incentive Plan and
Relevant Matters,
the Proposal on
Granting the
Reserved Part of
Restricted Shares to
Incentive Objects of
the 2022 Restricted
Stock Incentive Plan,
the Proposal on the
Buyback and
Cancellation of
Some Restricted
Shares
The Cao Nov. 29, 2023 Deliberation of the Approved the
Remuneration Renxian, Proposal on the proposals, and
and Evaluation Li Company's 2023 agreed to submit
Committee Mingfa, Restricted Stock the proposals for
Zhang Incentive Plan deliberation by
Lei (Draft) and its the Board of
Summary, the Directors
Proposal on the
Assessment
Measures for the
Implementation of
Stock Incentive Plan,
and the Proposal on
Requesting the
Shareholders’
Meeting to Authorize
the Board of
Directors to Proceed
with the 2023
Restricted Stock
Incentive Plan
Related Initiatives
The Cao Dec. 15, 2023 Deliberation of the Approved the
Remuneration Renxian, Proposal on the proposal, and
and Evaluation Li First Grant of agreed to submit
Committee Mingfa, 1 Restricted Shares to the proposal for No No
Zhang Incentive Objects deliberation by
Lei the Board of
Directors
The Strategy Cao Dec. 5, 2023 Discussion on the
and Renxian, Company's medium-
Approved the
Sustainability Gu Yilei, 1 and long-term No No
relevant content
Committee Zhang planning
Xucheng
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
X. Operation of the Board of Supervisors
Whether the Board of Supervisors identified any risks during the monitoring activities in the reporting period
□ Yes No
The Board of Supervisors had no objections to matters subject to supervision in the reporting period.
XI. Employees
Incumbent employees of the parent company at the end of the period 5,926
Incumbent employees of major subsidiaries at the end of the period 7,771
Total incumbent employees at the end of the period 13,697
Total number of employees receiving remuneration in the current period 13,697
Retirees to be financially supported by the parent company and major subsidiaries 0
Professional Background
Profession Split Head Count
Production 4,261
Sales 2,076
Technical 5,372
Financial 215
Administration 1,773
Total 13,697
Educational Background
Education Level Head Count
Doctor 89
Master 3,024
Bachelor 6,025
College Graduate and below 4,559
Total 13,697
Competitive remuneration stimulates employees’ enthusiasm and creativity, and promotes the sustainable growth of the Company. On
perusal of the Company’s strategic development needs and based on the different stages of business development (mature business for
profit contribution and seeding business for rapid growth), the Company designed targeted incentive plans incorporating the medium-
and long-term objectives, thereby promoting the sustainable development of the various businesses. The Company also made
remuneration adjustments according to the relevant national laws and regulations on human resources management, the market status,
and employees' individual job performance, so as to allow employees to receive reasonable returns, and establish a remuneration and
performance management system that takes into account of internal fairness and external competitiveness.
Adhering to the value proposition of “accelerate employees’ growth and fulfill employees’ dreams", the Company empowers
employees in a continuous, systematic, and science-based manner. By establishing a three-tier training architecture consisting of
leadership/induction/general competency training at the group level, professional capacity training at division level, and job skills
training at department level, the Company improves employees' professional skills and competencies through the accumulation, sharing,
application, and innovation of knowledge, experience, and abilities, so that employees’ growth is aligned with the Company's strategic
goals. On the foundation of the Regulations on Training Management, the Company has established and optimized a management
mechanism for key groups including internal trainers, induction mentors, and learning committee members, in order to accelerate
empowerment, standardize and promote human resources development, and enhance organizational capabilities. In addition, the
Company has launched a number of strategic training programs along its development, such as the internationalization and
digitalization enhancement programs, to continuously reinforce the Company's global competitiveness and promote digital
transformation. The Company received a number of honors related to human resources and learning development in 2023, such as the
Silver Award in the 8th CSTD National Enterprise Learning Design Competition, the 2023 SHL Best Practice in Talent Driven Award,
and the 2023-2024 Best Practices for Offshore HR Management.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
XII. Profit Distribution and Conversion of Capital Reserve into Share Capital
The formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy, during the
reporting period
Applicable □ Not Applicable
The 2022 profit distribution plan was reviewed and approved at the 23rd meeting of the fourth Board of Directors held on April 24,
(the existing total share capital of 1,485,190,984 shares minus 6,485,049 shares that have been bought back in the special account for
buyback), the Company planned to distribute a cash dividend of CNY 2.20 (tax inclusive) for every 10 shares to all shareholders, with
the total cash dividend amounting to CNY 325,315,305.70 (tax inclusive). The remaining undistributed profit carried forward next
year. No share capital was increased, and no bonus shares was issued this year. This profit distribution plan was implemented on June
The Company strictly implemented the profit distribution policy in accordance with the Articles of Association. The formulation and
implementation of the Company's cash dividend policy were aligned with the provisions in the Articles of Association and the
requirements in the resolution of the shareholders' meeting. The dividend standard and proportion were clearly specified; the relevant
decision-making procedures and mechanisms were in place. Independent directors fulfilled their responsibilities and played their roles,
the minority shareholders fully expressed their opinions and demands, and the legitimate rights and interests of the minority
shareholders were adequately safeguarded.
Special Explanation on the Cash Dividend Policy
Whether it complied with the provisions in the Articles of Association or the Yes
requirements in the resolution(s) of the shareholders' meeting:
Whether the dividend standard and proportion were clearly specified: Yes
Whether the relevant decision-making procedures and mechanisms were in Yes
place:
Whether independent directors performed their duties and played their roles: Yes
Where no cash dividend was distributed, explain the reason(s) in detail as well
Not Applicable
as the follow-up measures to enhance investor returns:
Whether minority shareholders had the opportunity to fully express their
views and demands, and whether their legitimate rights and interests were Yes
adequately safeguarded:
In the case of cash dividend policy modification or change, whether the
Not Applicable
conditions and procedures were compliant and transparent:
The Company's profit distribution plan and capital reserve conversion plan for the reporting period were consistent with the relevant
provisions in the Articles of Association and the dividend management policy
Yes □ No □ Not Applicable
The Company's profit distribution plan and capital reserve conversion plan for the reporting period were in line with the relevant
provisions in the Articles of Association.
Profit distribution and conversion of capital reserve into share capital for the year
Number of bonus shares for every 10 shares 0
Dividend (in CNY) per 10 shares (tax inclusive) 9.65
Number of shares transferred per 10 shares 4
Equity base of the distribution plan (in shares) 1,468,642,351
Cash dividend (in CNY) (tax inclusive) 1,417,239,868.72
Cash dividend in other ways (such as share buyback) (in CNY) 980,071,383.03
Total cash dividend (including those distributed in other ways) (in CNY) 2,397,311,251.75
Distributable profit (in CNY) 17,918,678,752.33
Total cash dividend (including those distributed in other ways) in total
profit distribution
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Overview of this Cash Dividend
Other
Detailed description of the profit distribution or the capital reserve conversion plan
As audited and confirmed by RSM China (Special General Partnership), the net profit realized by the parent company in 2023
was CNY 9,606,878,894.04, and the accrual for statutory reserves exceeded 50% of the total share capital, hence requiring no
further accrual. As of December 31, 2023, the distributable profit of the parent company was CNY 17,918,678,752.33, which was
composed of CNY 9,606,878,894.04 of remaining undistributed profit and CNY 8,637,115,163.99 of undistributed profit from
previous periods, deducted by a cash dividend of CNY 325,315,305.70 distributed in 2022.
According to CSRC’s guidelines on encouraging listed companies to distribute cash dividends and providing investors with stable
and reasonable returns, as well as relevant provisions in the Company Law and the Articles of Association, while considering the
Company's financial status, share capital, profitability, and future business growth and for the purposes of improving returns for
shareholders, sharing operating results with shareholders, and enhancing stock liquidity, the Company plans to appropriately
increase the cash dividend ratio for this year and transfer certain capital reserve to share capital. The plan for profit distribution
and share capital increase from capital reserve for 2023 is as follows:
Based on a share capital of 1,468,642,351 shares (the existing total share capital of 1,485,190,984 shares minus 16,508,633 shares
that have been bought back in the special account for buyback), the Company plans to distribute a cash dividend of CNY 9.65
(tax inclusive) for every 10 shares to all shareholders, with the total cash dividend amounting to CNY 1,417,239,868.72 (tax
inclusive). The remaining undistributed profit will carry forward next year. In addition, 4 shares from the capital reserve will be
transferred for every 10 shares to all shareholders. After the increase, the total share capital goes up to 2,072,607,924 shares. No
bonus shares will be issued this year. In the event that the total share capital and the number of buyback shares change in the
period from the date of disclosure of this plan and the date of record for equity distribution, the total amount of cash dividend will
be adjusted following the principle of “fixed ratio for cash dividend distribution” based on a share capital of total shares on the
date of record minus shares that have been bought back in the special account for buyback, and the total amount of share capital
increase will be adjusted following the principle of "fixed ratio for transferring capital reserve to share capital".
The Company was profitable during the reporting period, the parent company made positive profits distributable to shareholders, but
no cash dividend distribution plan was proposed
□ Applicable Not Applicable
XIII. Progress of the Company's Equity Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentive
Measures
Applicable □ Not Applicable
a. Equity incentives
The 2022 Restricted Stock Incentive Plan
Stock Incentive Plan (Draft) and its Summary, the Proposal on the Assessment Measures for the Implementation of the 2022 Restricted
Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with
the 2022 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. Independent directors expressed independent
views on whether the plan contributed to the sustainable development of the Company and whether there were any signs of
compromising the benefits of the Company and all shareholders. On the same day, the Company held the 14th meeting of the fourth
Board of Supervisors, at which the Proposal on the 2022 Restricted Stock Incentive Plan (Draft) and its Summary, the Proposal on
Verifying the List of Incentive Objects in the Company’s 2022 Restricted Stock Incentive Plan, and the Proposal on Assessment
Measures for the Implementation of the 2022 Restricted Stock Incentive Plan were reviewed and approved. The Board of Supervisors
verified the relevant matters of this incentive plan and issued verification opinions.
www.cninfo.com.cn. Subject to the entrust from other independent directors of the Company, independent director Li Mingfa, as the
solicitor, solicited voting rights from all shareholders of the Company for the 2022 Restricted Stock Incentive Plan to be reviewed at
the first extraordinary general meeting in 2022.
The Board of Supervisors did not receive any objections to the list during the announcement period. On May 24, 2022, the Company
announced the Explanation and Verification Opinions of the Board of Supervisors on the List of Incentive Objects in the Company's
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Stock Incentive Plan (Draft) and its Summary, the Proposal on Assessment Measures for the Implementation of the 2022 Restricted
Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with
the 2022 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, the Company disclosed
the Self-Examination Report on the 2022 Restricted Stock Incentive Plan Insiders’ Trading of the Company’s Stock on
www.cninfo.com.cn.
Supervisors, at which the Proposal on Adjusting the List of Incentive Objects, the Number of Objects and the Number of Shares to be
Granted for the First Grant of the 2022 Restricted Stock Incentive Plan and the Proposal on Granting Restricted Shares to Incentive
Objects for the First Time were reviewed and approved. Independent directors expressed independent views on the matters, reckoning
that the granting conditions were met, the qualifications of the Company and the incentive objects were legitimate and valid, and the
grant date identified complied with relevant regulations. The Board of Supervisors verified the relevant matters of this incentive plan
and issued verification opinions.
Supervisors, at which the Proposal on the Achievement of Vesting Conditions for the First Vesting Schedule of the First Grant in the
Incentive Objects of the 2022 Restricted Stock Incentive Plan were reviewed and approved. Independent directors expressed
independent views on the matters, the Board of Supervisors verified the list of incentive objects for the grant and issued verification
opinions.
circulation. A total of 1,488,750 shares from 449 holders vested this time. According to the 2022 Restricted Stock Incentive Plan (Draft)
and its Summary, due to the equity distribution of the Company before the equity incentives, the granting price of the 2022 Restricted
Stock Incentive Plan should be adjusted from CNY 35.43 per share to 35.21 per share.
The 2023 Restricted Stock Incentive Plan
Stock Incentive Plan (Draft) and its Summary, the Proposal on the Assessment Measures for the Implementation of the 2023 Restricted
Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with
the 2023 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, the Company held the 4th
meeting of the fifth Board of Supervisors, at which the Proposal on the 2022 Restricted Stock Incentive Plan (Draft) and its Summary,
the Proposal on the Assessment Measures for the Implementation of the 2023 Restricted Stock Incentive Plan, and the Proposal on
Verifying the List of Incentive Objects in the Company’s 2023 Restricted Stock Incentive Plan were reviewed and approved. The Board
of Supervisors verified the relevant matters of this incentive plan and issued verification opinions.
www.cninfo.com.cn. Subject to the entrust from other independent directors of the Company, independent director Gu Guang, as the
solicitor, solicited voting rights from all shareholders of the Company for the 2023 Restricted Stock Incentive Plan to be reviewed at
the first extraordinary general meeting in 2023.
recipients for the first grant. The Board of Supervisors did not receive any objections to the list during the announcement period. On
December 15, 2023, the Company announced the Explanation and Verification Opinions of the Board of Supervisors on the List of
Incentive Objects in the Company's 2023 Restricted Stock Incentive Plan on www.cninfo.com.cn.
Restricted Stock Incentive Plan (Draft) and its Summary, the Proposal on Assessment Measures for the Implementation of the 2023
Restricted Stock Incentive Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to
Proceed with the 2023 Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, the Company
disclosed the Self-Examination Report on the 2023 Restricted Stock Incentive Plan Insiders’ and First Grant Incentive Objects’ Trading
of the Company’s Stock on www.cninfo.com.cn.
Supervisors, at which the Proposal on Granting Restricted Shares to Incentive Objects for the First Time was reviewed and approved.
The Board of Directors reckoned that the granting conditions were met, the qualifications of the Company and the incentive objects
were legitimate and valid, and the grant date identified complied with relevant regulations. The Board of Supervisors verified the list
of incentive objects for the grant and issued verification opinions.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity incentives granted to directors and executives
Applicable □ Not Applicable
(in shares)
Name Title Stock Stock Shares Shares Exercise price Stock Market price Restricted Restricted Restricted Granting price Restricted
options options exercisable exercised of shares options at the end of shares shares shares of restricted shares
held at the granted in the period in the exercised in held at the period held at unlocked newly shares held at
beginning in the period the period the end (CNY/share) the in the granted in (CNY/share) the end of
of the period (CNY/share) of the beginning period the period the period
period period of the
period
Gu Yilei Vice 200,000 43.22
Chairman,
SVP
Wu Jiamao Director, 150,000 43.22
SVP
Li Shun SVP 120,000 43.22
Chen Zhiqiang VP 120,000 43.22
Deng Dejun VP 120,000 43.22
Lu Yang VP 120,000 43.22
Tian Shuai VP 120,000 43.22
Wang Lei VP 120,000 43.22
Total -- -- -- 1,070,000 --
Evaluation mechanism and incentives for executives
The Company has established a complete performance evaluation system and remuneration system for executives. Based on the delivery status of the Company's annual business objectives and
the job performance of executives, the Remuneration and Evaluation Committee of the Board of Directors carries out annual performance evaluation of executives and supervises the
implementation of the remuneration system. Rewards and punishments will be applied correspondingly according to the performance evaluation results.
b. Implementation of the Employee Stock Ownership Plan
□ Applicable Not Applicable
c. Other Employee Incentive Measures
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
XIV. Establishment and Implementation of the Internal Control System during the Reporting Period
In strict accordance with the Company Law, the Securities Law, the Governance Guidelines for Listed Companies as well as other
requirements in normative documents on the governance of listed companies issued by the China Securities Regulatory Commission,
the Company continued to improve the corporate governance structure and systems, such as the shareholders’ meeting, the Board of
Directors, and the Board of Supervisors. In addition, the Company followed the latest requirements of laws and regulations to
standardize the behavior of controlling shareholders, actual controllers, directors, supervisors, executives and related parties, thereby
improving the level of internal governance. The Company organized directors, supervisors and executives to regulatory compliance
training on a timely basis, hence to improve the corporate governance standard of the management team. For middle-level managers
and ordinary employees, the Company conducted targeted compliance training to improve their risk prevention awareness, strengthen
operational compliance, and ensure the effective implementation of internal control policies, so that the Company’s standard operation
level could be effectively raised, and the healthy and sustainable development could be promoted.
Subject to the Basic Internal Control Standards and the supporting guidelines as well as other internal control regulations, the Company
established internal control systems and evaluation mechanisms. Following the principle of risk orientation, such systems and
mechanisms were constantly optimized on the basis of routine supervision and special supervision of internal control, so as to cope
with the ever-changing external environment and internal management requirements. During the reporting period, the development
and implementation of the Company's internal control system complied with the Basic Internal Control Standards and the relevant
laws and regulations, and ensured effective internal control in all major aspects related to the business operation and management of
the Company. There were no critical internal control deficiencies in financial reporting or non-financial reporting.
□ Yes No
XV. Management and Control of the Company's Subsidiaries during the Reporting Period
Problems
Company Integration Resolutions Resolution
Integration Plan during Action Plan
Name Progress Taken Progress
Integration
Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
XVI. Internal Control Self-Assessment Report or Internal Control Audit Report
The full text of the internal control assessment report was disclosed on April 23, 2024
The full text of the internal control assessment report was disclosed at www.cninfo.com.cn
The ratio of the total assets of organizations included in the assessment to
the total assets of the Company's consolidated financial statements
The ratio of the operating income of organizations included in the
assessment to the Company’s total operating income in the consolidated 100.00%
financial statements
Criteria of Deficiencies
Category Financial Reports Non-Financial Reports
Qualitative Criteria Each of the following is considered a critical Deficiencies with the following characteristics are
deficiency of the Company: Fraudulence of the considered as critical deficiencies in the internal
Company's directors, supervisors and control of non-financial reports:
executives; corrections to financial statements 1) No scientific basis for the decision-making
disclosed; mistakes or omissions of major data procedures, resulting in major mistakes;
in the current financial statements discovered by 2) High turnover of key positions, professionals
certified public accountant but ignored by the and technical personnel;
internal audit department during the control 3) Internal control assessment results, especially
operation. critical deficiencies, are not rectified;
negative impact on the Company.
Other situations are categorized as major
deficiencies or minor deficiencies according to the
level of impact.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Quantitative Criteria The quantitative criteria for determining the The quantitative criteria for determining internal
significance of mistakes (including omissions) control deficiencies in non-financial reports shall
in the Company's consolidated financial refer to the quantitative criteria for determining
statements by benchmarking the data from internal control deficiencies in financial reports.
previous annual financial statements:
Critical deficiency: mistakes ≥ 5% of total profit
Major deficiency: 2% of total profits ≤ mistakes
≤ 5% of total profit
Minor deficiency: mistakes ≤ 2% of total profit
Number of critical deficiencies in financial reports 0
Number of critical deficiencies in non-financial reports 0
Number of major deficiencies in financial reports 0
Number of major deficiencies in non-financial reports 0
Not Applicable
XVII. Rectification of Problems Found in Dedicated Self-Examination Initiatives on Corporate Governance
According to the relevant requirements, the Company carried out dedicated self-examination initiatives on corporate governance in
strict accordance with the Company Law, the Securities Law and relevant laws and administrative regulations following a truth-based
principle. The dedicated self-examination on corporate governance of listed companies identified that the Company had established a
supporting corporate governance structure and internal control system in accordance with the provisions of the Company Law, the
Securities Law, and the Governance Guidelines for Listed Companies, and there were no critical issues that need to be rectified. As the
Company develops and the internal and external environment changes, it shall further improve the internal control system, strengthen
the learning and training of directors, supervisors, executives and relevant personnel, optimize the management details of the internal
control system and standardized operation of listed companies, hence to continuously improve the governance quality as a listed
company.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section V Environment and Social Responsibilities
I. Major Environmental Issues
Whether the Company and its subsidiaries are included in the list of key pollutant discharge organizations identified by the
environmental authority
□ Yes No
Administrative penalties for environmental issues during the reporting period
The Company was subject to no environment-related administrative penalties during the reporting period.
Other environmental information disclosed as a key pollutant discharge unit
The Company was subject to no environment-related administrative penalties during the reporting period.
Measures taken to reduce carbon emissions during the reporting period and their effects
Applicable □ Not Applicable
Sungrow actively implements carbon inventory and carbon footprint standards, and started company-wide carbon inventory in 2020 to
provide basic data support for the Company to address climate-related risks, reduce carbon emissions, enhance competitiveness and
stability. The Company joined the RE100 and EP100 initiatives, insisted on supporting the Dual Carbon goals with its operation, and
constantly grew a sustainable low-carbon industrial chain to promote harmonious coexistence between the Company and nature. The
Company developed emission reduction measures and comprehensively rolled out the Net Zero strategy. The Company's greenhouse
gas emissions (Scope 1 + Scope 2) in 2023 were 41,755 tons of CO2 equivalent, a decrease of 1,502 tons year-on-year. In 2023, the
Company’s use of green power accounted for 55% of total use of electricity. For details of the Company’s carbon emission results,
please refer to the Sungrow Power Supply Co., Ltd. 2023 Sustainability Report disclosed on www.cninfo.com.cn.
Reasons for not disclosing other environmental information
The Company and its subsidiaries are not included in the list of key pollutant discharge units identified by the environmental authority.
The Company actively responds to the requirements of the national and local governments, strictly regulates noise, effluent, waste gas,
and hazardous waste generated within the Company, formulates corresponding environmental protection rules and regulations, and
monitors noise, effluent, waste gas, and hazardous waste in strict accordance with the pollution discharge permit management
requirements.
II. Social Responsibilities
For details, please refer to the Sungrow Power Supply Co., Ltd. 2023 Sustainability Report disclosed on www.cninfo.com.cn.
III. Efforts on Consolidating and Expand the Achievements of Poverty Alleviation and Rural Revitalization
Sungrow practices sustainability in operation and leverages its business advantages and resources to improve the lives of residents in
the surrounding, and contribute to local communities. The Company collaborates with governments, customers, enterprises, and non-
profit organizations in various countries to launch a number of activities, including rural revitalization, disaster assistance, and public
welfare donations, so as to benefit the communities along the Company's operations. In order to progress the public welfare volunteer
service effectively, ensure the rational and efficient use of public welfare funds, and practically fulfill corporate social responsibilities,
the Company formulated the Regulations on Managing External Donations, developed implementation plans for public welfare
products, and empowered public welfare volunteer service in the aspects of system, process, and resources, hence to reward the society
with practical actions. The Company made the following efforts in 2023:
In 2023, Sungrow organized a number of volunteer service activities in the theme of "Go For Nature” in Hefei, Beijing, Shanghai,
Munich, Dubai, and Sydney, including the Clean Mountains Action, the Get Close to Nature and Understand Bees, and the Garbage
Cleaning and Classification. By the end 2023, there were 1,352 registered volunteers in the Company contributing to a cumulative
volunteer service of 3,442 hours. In the future, Sungrow will further optimize the volunteer management system and plan diverse global
activities.
In October 2023, Sungrow, in joint efforts with The Nature Conservancy (TNC) and the Deyang Administration Branch of the Giant
Panda National Park, planted 6.67 hectares of Sungrow Forest and built 10 breeding caves for wild animals in Deyang Giant Panda
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
National Park of Sichuan. The Sungrow Forest program plans to plant 33.33 hectares of suitable trees and edible bamboo over a period
of 5 years, rebuild wildlife corridors and the ecosystem, in order to accelerate the habitat restoration for giant pandas. Currently, 13.33
hectares of trees and bamboo have been planted. In June 2023, Sungrow kicked off the Sungrow Trailwalk globally, and worked with
the China Green Foundation in the Wetland Conservation Program which protected and restored approximately 3,500 square meters
of wetland to maintain the habitats of Baer′s pochard, red-crowned cranes, among other rare species.
With a focus on the rural revitalization strategy, Sungrow actively responded to national policies such as green development, energy
conservation and emission reduction, and contributed to the sustainable development of villages and towns by donating PV power
stations. Located in the central part of Gansu Province, Jinchang City boasted abundant solar energy resources. Sungrow built a 100.8
kW PV power station on the roofs of Xinliangdi Village Committee in Shuangwan Town of Jinchuan District. The power station was
officially connected to the grid for power generation on August 20, 2023, and the power generation earnings were used for centralized
heating in the Xinliangdi Village Nursing Home as well as for improving the living environment in the village.
Sungrow actively engaged in community support activities by donating Sungrow Smart Classrooms and setting up the Sungrow New
Energy Science Popularization Courses, hence to assist children's growth and education. The Company set up Sungrow Elderly Care
and donated recreation centers for the elderly in villages and towns to watch for the physical and mental health of the elderly.
On the night of December 18, 2023, a 6.2 magnitude earthquake rattled Jishishan County of Linxia Prefecture in Gansu Province. The
Company quickly responded to the disaster and donated CNY 1 million to the China Foundation for Rural Development for emergency
rescue and disaster recovery.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section VI Significant Events
I. Fulfillment of Undertakings
by the end of the reporting period
Applicable □ Not Applicable
Origin of Type of Date of Status of
Undertaker Content Duration
undertaking undertaking undertaking fulfillment
Shareholders Mr. Cao Renxian, Mr. Zheng Guibiao and Mr.
Zhao Wei, who serve as the Company’s directors and/or The
Undertaking at Undertaking on executives, hereby undertake that no shares exceeding 25% of undertaking is
Cao Renxian, Zheng
IPO or executive’s the total shares held by each individual shall be transferred Jan. 31, 2011 Long-term being fulfilled
Guibiao, Zhao Wei
refinancing share lock up each year after the lock-up period, and no shares held by each with no signs
individual shall be transferred within 6 months after the of breaching.
shareholder resigns from the Company.
companies I have interests in, have not produced or developed
any product that competes or may compete with those
produced by the joint-stock company; have not directly or
indirectly operated any business that competes or may compete
with those operated by the joint-stock company; have not
invested in any other enterprise that competes or may compete
with the joint-stock company in terms of products or business;
companies I have interests in, will not produce or develop any The
Undertaking at Undertaking on product that competes or may compete with those produced by undertaking is
IPO or Cao Renxian horizontal the joint-stock company; will not directly or indirectly operate Jan. 31, 2011 Long-term being fulfilled
refinancing competition any business that competes or may compete with those with no signs
operated by the joint-stock company; will not invest in any of breaching.
other enterprise that competes or may compete with the joint-
stock company in terms of products or business; 3. As of the
date of signing this Letter of Undertaking if the joint-stock
company further expands its products and business scope, I or
the companies I have interests in, will not compete with the
joint-stock company in terms of the expanded products or
business. In the event of competition with the expanded
products or business of the joint-stock company, I or the
companies I have interests in, will stop producing the
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Origin of Type of Date of Status of
Undertaker Content Duration
undertaking undertaking undertaking fulfillment
competing product or operating the competing business, or
incorporate the competing business into the joint-stock
company, or transfer the competing business to an unrelated
third party, in order to avoid horizontal competition; 4. If this
Letter of Undertaking is proven to be untrue or not complied
with, the undertaker will indemnify the joint-stock company
for any and all direct and indirect losses.
undertaker or the company controlled by the undertaker, has
not produced or developed any product that competes or may
compete with those produced by the joint-stock company; has
not directly or indirectly operated any business that competes
Hefei Huizhuo Equity or may compete with those operated by the joint-stock
Investment Partnership company; has not invested in any other enterprise that
(Limited Partnership) competes or may compete with the joint-stock company in
The
(formerly Xinjiang Shangge terms of products or business; 2. Whenever the undertaker still
Undertaking at Undertaking on undertaking is
Equity Investment holds 5% or more of the joint-stock company’s shares, the
IPO or horizontal Jan. 31, 2011 Long-term being fulfilled
Partnership (Limited undertaker or the company controlled by the undertaker will
refinancing competition with no signs
Partnership), Luzhou not produce or develop any product that competes or may
of breaching.
Huizhuo Enterprise compete with those produced by the joint-stock company; will
Management Partnership not directly or indirectly operate any business that competes or
(Limited Partnership)) may compete with those operated by the joint-stock company;
will not control any other enterprise that competes or may
compete with the joint-stock company in terms of products or
business; 3. If this Letter of Undertaking is proven to be untrue
or not complied with, the undertaker will indemnify the joint-
stock company for any and all direct and indirect losses.
During the
The
The undertaker does not provide loans or financial assistance in implement
Undertaking undertaking is
Other other forms, including providing guarantees for their loans, for May 13, action of the
on equity Sungrow being fulfilled
undertaking incentive objects of the 2022 Restricted Stock Incentive Plan to 2022 Company's 2022
incentive with no signs
acquire restricted shares. Restricted Stock
of breaching.
Incentive Plan
The undertaker does not provide loans or financial assistance in During the The
Undertaking
Other other forms, including providing guarantees for their loans, for December 6, implement undertaking is
on equity Sungrow
undertaking incentive objects of the 2023 Restricted Stock Incentive Plan to 2023 action of the being fulfilled
incentive
acquire restricted shares. Company's 2023 with no signs
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Origin of Type of Date of Status of
Undertaker Content Duration
undertaking undertaking undertaking fulfillment
Restricted Stock of breaching.
Incentive Plan
Undertaking is
fulfilled on Yes
time
If the
undertaking is
expired and
not fulfilled,
specify the
Not Applicable
detailed
reasons for
failure to fulfill
and subsequent
action plans
the profit forecast and the reasons behind
□ Applicable Not Applicable
II. Non-Operating Appropriation of Funds by Controlling Shareholders or Other Related Parties
□ Applicable Not Applicable
In the reporting period, there was no non-operating appropriation of funds by controlling shareholders or other related parties.
III. Illegal External Guarantees
□ Applicable Not Applicable
In the reporting period, the Company made no illegal external guarantees.
IV. The Board of Directors’ Statement on the Most Recent Non-Standard Audit Report
□ Applicable Not Applicable
V. Statement of the Board of Directors, the Board of Supervisors, and Independent Directors (if any) on the Non-Standard Audit Report Issued by the Accounting Firm in the
Reporting Period
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
VI. The Board of Directors’ Statement on the Changes in Accounting Policies and Accounting Estimates and the
Corrections to Significant Accounting Errors in the Reporting Period
Applicable □ Not Applicable
that is not subject to initial recognition exemption” in the No. 16 Interpretation of Accounting Standards for Business Enterprises
On November 30, 2022, the Ministry of Finance issued the No. 16 Interpretation of Accounting Standards for Business Enterprises
(MOF-Acc-[2022] No. 31, hereinafter referred to as the Interpretation No. 16), in which the “Accounting treatment for deferred income
tax related to assets and liabilities arising from individual transactions that is not subject to initial recognition exemption” started to
take effect as of January 1, 2023.
The Company started to implement this provision in the Interpretation No. 16 as of January 1, 2023. For applicable individual
transactions throughout the period from the beginning of the earliest period in financial statements where the provision was
implemented for the first time (that is, January 1, 2022) to January 1, 2023, the Company made adjustments according to the provision
in the Interpretation No. 16. For applicable lease liabilities and right of use assets recognized on January 1, 2022, should there be
taxable temporary differences and deductible temporary differences, the Company adjusted the cumulative impact on retained earnings
and other related financial statement items on the date of January 1, 2022 in accordance with the Interpretation No. 16 and the
provisions in Accounting Standards for Business Enterprises No. 18—Income Tax.
Following the implementation of this accounting treatment regulation, the Company retroactively adjusted the deferred income tax
assets of CNY 1,091,131.85 in the consolidated financial statements dated January 1, 2022. The impact posed by this adjustment on
equity attributable to owners of the parent company in the consolidated financial statements was CNY 951,864.62, including a capital
reserve of CNY 38,645.81, a surplus reserve of CNY 29,777.66, and undistributed profits of CNY 883,441.15. The impact on equity
of minority shareholders was CNY 139,267.23. In the financial statements of the parent company, the deferred income tax assets dated
January 1, 2022 was adjusted by CNY 297,776.60. The impact posed by this adjustment on shareholder's equity in the financial
statements of the parent company was CNY 297,776.60, including a surplus reserve of CNY 29,777.66 and undistributed profits of
CNY 267,998.94.
In addition, the Company retrospectively adjusted the relevant items in the 2022 consolidated financial statements and the financial
statements of the parent company as follows:
Items affected Dated December 31, 2022/Year 2022 Dated December 31, 2022/Year 2022
Balance sheet items: (Consolidated) (Parent Company)
Before Adjustment After Adjustment Before Adjustment After Adjustment
Deferred income tax assets
Capital reserve 1,024,759,727.51 1,025,988,368.36 310,943,335.06 311,100,998.02
Surplus reserve 7,052,840,542.50 7,052,879,188.31
Undistributed profits 1,066,201,017.69 1,066,216,783.99 1,066,201,017.69 1,066,216,783.99
Minority shareholders’
equity
Income statement items: 1,070,689,811.07 1,070,930,082.47
Income tax expenses
Items affected 438,525,751.74 438,388,242.74 380,272,127.77 380,412,241.41
on Information Disclosure by Companies Offering Their Securities to Public - Non-recurring Gains and Losses (Revision 2023) (CSRC
Announcement [2023] No. 65). As a result, the net non-recurring gains and losses after income tax deduction for the year 2022
decreased by CNY 38,592,748.76, including a decrease of CNY 38,431,832.32 in the net non-recurring gains and losses attributable
to common shareholders of the Company and a decrease of CNY 160,916.44 in the net non-recurring gains and losses attributable to
minority shareholders. The major non-recurring profit and loss item affected in 2022 was Government subsidies included in the current
profits and losses (excluding government subsidies closely related to the business and issued in the quota or quantity as per state
standards), which decreased by CNY 38,742,748.76.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Accounting Standards for Business Enterprises Interpretation.
On October 25, 2023, the Ministry of Finance issued No. 17 Interpretation of Accounting Standards for Business Enterprises (MOF-
Acc-[2023] No. 21) (hereinafter referred to as Interpretation No. 17), in which enterprises were allowed to implement the provisions
on “Accounting Treatment for Sale and Leaseback Transactions” in advance from the year of issuance. The Company started to
implement the provisions in Interpretation No. 17 on “Accounting Treatment for Sale and Leaseback Transactions” as of January 1,
VII. Changes in the Scope of Consolidated Statements as Compared to the Financial Reports of the Previous Year
Applicable □ Not Applicable
In this period, the Company newly established 4 wholly-owned subsidiaries, namely Hefei Sungrow Electrical Equipment Co., Ltd.,
Tangshan Leyang Power Supply Co., Ltd., Jiangsu Yuyi Yangxuan Energy Technology Co., Ltd., Weihai Renyang Power Supply Co.,
Ltd. The Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd., newly established 333 subsidiaries for power
station projects; other holding subsidiaries of the Company newly established 6 subsidiaries, and none of the subsidiaries newly
established in this period is an important one.
In this period, the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd., acquired 18 overseas project
companies for the purpose of developing power station business. None of the project companies newly included in the scope of
consolidated statements for this period is an important one.
According to the Company's business needs, in this period, the Company’s holding subsidiary, Sungrow Renewables Development
Co., Ltd., cancelled 224 subsidiaries that were not in actual business; the Company’s holding subsidiary, Sungrow Floating Modules
Technology Co., Ltd., cancelled 1 subsidiary that was not in actual business.
According to the Company's business needs, the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd.,
transferred 113 new energy project companies in this period, all of which were set up and transferred for the implementation of projects.
According to operational needs, Sungrow Renewable Energy Development Co., Ltd., a controlling subsidiary of the Company, reduced
one overseas subsidiary via consolidation merger in this period.
Zhong'an) and Hefei Zhong'an Sungrow New Energy Industry Investment Partnership (Limited Partnership) (hereinafter referred to as
Zhong'an Sungrow)
In October 2023, Anhui Railway Development Fund Co., Ltd. (hereinafter referred to as Railway Fund) withdrew its 49% equity in
Sungrow Zhong'an through capital reduction, and the Company became the only shareholder of Sungrow Zhong'an. Therefore,
Sungrow Zhong'an was included in the scope of consolidation. In December 2023, Railway Fund and other shareholders transferred
subsidiary of the Company, Sungrow Renewable Energy Development Co., Ltd. Therefore, Zhong’an Sungrow (including its subsidiary,
Hefei Qianhe New Energy Investment Co., Ltd.) was included in the scope of consolidation.
VIII. Engagement and Disengagement of Accounting Firms
Accounting firm currently engaged
Name of accounting firm in China RSM China (Special General Partnership)
Compensation for accounting firm in China (CNY 10K) 240
Years of continuous auditing service provided by the accounting firm in China 17
Name of CPAs of the accounting firm in China Wan Yunlong, Jiang Wei, Pan Lili
Years of continuous auditing service provided by the CPAs of the firm 4 years, 4 years, 2 years
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Whether to replace the accounting firm or not
□ Yes No
Engagement of internal control auditing/accounting firms, financial advisors, or sponsors
□ Applicable Not Applicable
IX. Statement on Delisting after the Disclosure of Annual Report
□ Applicable Not Applicable
X. Matters Related to Bankruptcy Reorganization
□ Applicable Not Applicable
No bankruptcy reorganization related matters happened to the Company in the reporting period.
XI. Major Litigations and Arbitrations
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
A case was filed against the 116.02 Yes In bankruptcy Judgment made by Enforcement was terminated by the People’s Sep. 5, Announcement
customer because they failed to proceedings the People’s Court Court of Hefei High-Tech Industrial Development 2019 2019-057
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property (http://www.cn
the contract. We applied for Industrial available for enforcement. Our bankruptcy info.com.cn/ne
enforcement to the court, and Development Zone liquidation application (2022-JS-1282-BLA-38) w/disclosure/d
the case is under enforcement has been accepted by the People's Court of etail?plate=szs
at the moment. Jingjiang City, our rights as a creditor has been e&orgId=9900
declared and confirmed. Currently, Jiangsu 021300&stock
Shenque Law Firm, the bankruptcy administrator, Code=300274
is proceeding with bankruptcy liquidation, we &announceme
will receive corresponding repayment in ntId=1206903
proportion to the asset situation in the future. 792&announce
A case was filed against the 103 No In enforcement Judgment made by Enforcement was terminated by the People’s mentTime=20
customer because they failed to the People's Court Court of Hefei High-Tech Industrial Development 19-09-
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property 05%2015:52)
the contract. The two parties Industrial available for enforcement. After our bankruptcy
reached a mediation in the Development Zone, liquidation application (2022-GD-13-BLA-46)
second instance, but the and mediated at the was rejected by the Interim People's Court of
defendant failed to perform as Intermediate Huizhou City, we appealed to the Higher People's
per the mediation. Therefore, People's Court of Court of Guangdong Province. On June 6, 2023,
we applied for enforcement to Hefei City Guangdong Provincial High People's Court
the court, and the case is under dismissed the appeal and affirmed the original
enforcement at the moment. judgment Affirmed in civil ruling 2022-GD-BFR-
the Supreme People's Court has been accepted.
The customer is a subsidiary of 1,634.4 Yes In bankruptcy Judgment made by We were not effectively repaid after judgment
Zhejiang Dunan Group. proceedings the Intermediate was made by the Intermediate People's Court of
Affected by the overall People’s Court of Hangzhou City. On February 4, 2021, the
operation of Dunan Group, the Hangzhou City Intermediate People's Court of Ordos City in
customer failed to pay as Inner Mongolia issued a ruling (2021-IM-0602-
agreed in the contract. BLA-1) on the Company’s bankruptcy and
Although a lawsuit was brought liquidation, and we have declared creditors'
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
to the court, they failed to claims to the administrator. So far, the first
perform; therefore, we applied creditors' meeting has been held, the
for enforcement. administrator is working on the checking, sorting,
and resale of the company's assets.
The customer is a subsidiary of 359 Yes In bankruptcy Judgment made by We were not effectively repaid after judgment
Zhejiang Dunan Group. proceedings the Intermediate was made by the Intermediate People's Court of
Affected by the overall People’s Court of Hangzhou City. On February 4, 2021, the
operation of Dunan Group, the Hangzhou City Intermediate People's Court of Ordos City in
customer failed to pay as Inner Mongolia issued a ruling (2021-IM-0602-
agreed in the contract. BLA-1) on the Company’s bankruptcy and
Although a lawsuit was brought liquidation, and we have declared creditors'
to the court, they failed to claims to the administrator. So far, the first
perform; therefore, we applied creditors' meeting has been held, the
for enforcement. administrator is working on the checking, sorting,
and resale of the company's assets.
The customer is a subsidiary of 534 Yes In bankruptcy Judgment made by We were not effectively repaid after judgment
Zhejiang Dunan Group. proceedings the Intermediate was made by the Intermediate People's Court of
Affected by the overall People’s Court of Hangzhou City. On February 4, 2021, the
operation of Dunan Group, the Hangzhou City Intermediate People's Court of Ordos City in
customer failed to pay as Inner Mongolia issued a ruling (2021-IM-0602-
agreed in the contract. BLA-1) on the Company’s bankruptcy and
Although a lawsuit was brought liquidation, and we have declared creditors'
to the court, they failed to claims to the administrator. So far, the first
perform; therefore, we applied creditors' meeting has been held, the
for enforcement. administrator is working on the checking, sorting,
and resale of the company's assets.
A case was filed against the 60.2 No In enforcement Judgment made by Enforcement was terminated by the People’s
customer because they failed to the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. We brought a Industrial available for enforcement. After we filed the
lawsuit to the court, and the Development Zone bankruptcy liquidation application at the
case is under enforcement at Intermediate People's Court of Wuhan City on
the moment. May 28, 2022, the company provided its accounts
receivable claims to a third party. Based on the
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
information, we had the accounts receivable
claims to third party frozen. Currently, the claims
have not matured and will be paid as conditions
allow.
A case was filed at the court 22.2 Yes In bankruptcy Judgment made by Enforcement was terminated by the People’s
because the customer failed to proceedings the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. Customer was Industrial available for enforcement. On March 29, 2021,
requested to pay CNY 222,000 Development Zone other creditors applied for bankruptcy liquidation
for the purchase together with of the company; however, the bankruptcy
overdue interests. Judgment has reorganization failed. On July 2, 2022, the
been made and enforcement in People's Court of Zhenjiang Economic
progress. Development Zone ruled bankruptcy liquidation
of the Company (2021-JS-1191-BLA-3).We have
declared creditor's rights to the administrator and
is currently waiting for the administrator’s further
advice.
A case was filed at the court 34.38 No In enforcement Judgment made by Enforcement was terminated by the People’s
because the customer failed to the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. Judgment has been Industrial available for enforcement. In June 2022, we filed
made and enforcement in Development Zone a bankruptcy liquidation application for the
progress. company at the People's Court of Lanshan
District, Linyi City, and the application materials
are currently being reviewed by the court.
A case was filed at the court 112.53 Yes In bankruptcy Judgment made by Enforcement was terminated by the People’s
because the customer failed to proceedings the People’s Court Court of Hefei High-Tech Industrial Development
make the payment as agreed in of Hefei High-Tech Zone because the defendant had no property
the contract. Judgment has been Industrial available for enforcement. The bankruptcy
made and enforcement in Development Zone liquidation application (2022-AH-8601-BLA-15)
progress. filed by the Company had been accepted by the
Railway Transportation Primary Court of Hefei.
So far, the first creditors' meeting has been held,
the administrator is sorting the company's assets.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Amount An
Progress of Result and impacts
Basic information of litigation involved estimated Date of Index of
litigation of litigation Execution of litigation (arbitration) judgment
(arbitration) (in CNY liability disclosure disclosure
(arbitration) (arbitration)
A case was filed at the court 139.6 No In enforcement Judgment made by Enforcement in process. Application has been
because the customer failed to the People’s Court filed to the court to list the respondent as a
make the payment as agreed in of Hefei High-Tech defaulter and limit his/her high-end consumption.
the contract. Judgment has been Industrial The Company is actively pursuing clues of
made and enforcement in Development Zone respondent’s property at the moment. The
progress. Company has filed an application to Suzhou
Intermediate People's Court in Jiangsu Province
for bankruptcy liquidation of the respondent, and
the court is currently reviewing the application.
A case was filed at the court 784.18 Yes In enforcement Mediated at the Enforcement in process. Application has been
because the customer failed to People’s Court of filed to the court to list the respondent as a
make the payment as agreed in Hefei High-Tech defaulter and limit his/her high-end consumption.
the contract. Judgment has been Industrial The payment has been partially recovered from
made and enforcement in Development Zone the enforcement, and the Company is actively
progress. pursuing clues of respondent’s property at the
moment.
A case was filed at the court 355.57 No In enforcement Application for Qinghai Zhuma Sapphire Crystal Co., Ltd. and
because the defendant, Qinghai court enforcement He Kangyu were listed as defaulters by the court.
Zhuma, refused to refund the filed at the People's No money or assets have been collected from the
bid security. We requested Court of Hefei execution.
Qinghai Zhuma and the High-Tech Zone
guarantor He Kangyu to
assume the repayment
obligations. After the case came
into effect, we applied for
enforcement to the court, and
the enforcement is in process at
the moment.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
XII. Punishments and Rectification
□ Applicable Not Applicable
The Company was subject to no punishment or rectification in the reporting period.
XIII. Integrity of the Company, its Controlling Shareholder and Actual Controller
□ Applicable Not Applicable
XIV. Significant Related-Party Transactions
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Content of In
transaction Pricing Amount of percentage Transaction Exceeding Market price
Settlement
Related- Type of principles Transaction related-party of the limit the available for Date of Index of
Relation of
party transaction for price transaction (in amount of approved (in approved similar disclosure disclosure
transaction
transactions CNY 10K) similar CNY 10K) limit Y/N transactions
transactions
Hefei Racks Apr. 25, Announcement
Renchuang Purchas Wire 2023 2023-025 on
Not
Phase II e from transfer, Apr. 25, 2023;
Equity related- bank Announcement
e
Partnership party transfer 2023-097 on
(Limited Oct. 28, 2023
Partnership) OEM, Apr. 25, Announcement
is the technica 2023 2023-025 on
controlling l Apr. 25, 2023
shareholder services
of & raw
EnerTrack, material
and Mr. Cao s
Renxian,
EnerTrack Chairman of
Market Market
Technology Sungrow,
price- price-
Co., Ltd. holds
based based
(EnerTrack) 99.9975% of Wire
Sell to Not
the equity in transfer,
related- 61.71 0.00% 30 No Applicabl
Hefei bank
party e
Renchuang transfer
Phase II
Equity
Partnership
(Limited
Partnership)
as a limited
partner.
Based on the
principle of
prudence, the
Company
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
reviewed and
disclosed
transactions
with
EnerTrack as
related-party
transactions.
Hefei
Renchuang
Investment
Management
Center
(Limited
Partnership)
is the largest
shareholder
of Sunpure,
and Mr. Cao
Renxian,
Chairman of
Sungrow,
holds
the equity in
Hefei
Renchuang
as a limited
partner.
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with Sunpure
as related-
party
transactions.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sunpure Hefei Purchas Intellige Wire Apr. 25, Announcement
Not
Intelligent Renchuang e from nt transfer, 2023 2023-025 on
Technology Phase II related- cleaning bank Apr. 25, 2023
e
Co., Ltd. Equity party robots transfer
(Sunpure) Partnership OEM, Apr. 25, Announcement
(Limited technica 2023 2023-025 on
Wire
Partnership) Sell to l Not Apr. 25, 2023
transfer,
is the related- services 418.72 100% 1,500 No Applicabl
bank
controlling party & raw e
transfer
shareholder material
of Bluesight, s
and Mr. Cao Facilitie Apr. 25, Announcement
Renxian, s & 2023 2023-025 on
Chairman of houses Apr. 25, 2023
Sungrow,
holds
the equity in
Market Market
Hefei
price- price-
Renchuang
based based
Phase II
Equity
Partnership
(Limited Lease Wire
Not
Partnership) from transfer,
as a limited related- bank
e
partner. party transfer
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with
Blugesight as
related-party
transactions.
Hefei
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Renchuang
Phase II
Equity
Partnership
(Limited
Partnership)
is the
controlling
shareholder
of
EnerTrack,
and Mr. Cao
Renxian,
Chairman of
Sungrow,
holds
the equity in
Hefei
Renchuang
Phase II
Equity
Partnership
(Limited
Partnership)
as a limited
partner.
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with
EnerTrack as
related-party
transactions.
Hefei
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Renchuang
Investment
Management
Center
(Limited
Partnership)
is the largest
shareholder
of Sunpure,
and Mr. Cao
Renxian,
Chairman of
Sungrow,
holds
the equity in
Hefei
Renchuang
as a limited
partner.
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with Sunpure
as related-
party
transactions.
Hefei Hefei Purchas Testing Wire Apr. 25, Announcement
Not
Bluesight Renchuang e from power transfer, 2023 2023-025 on
Power Co., Phase II related- supply Market Market bank Apr. 25, 2023
e
Ltd. Equity party price- price- transfer
(Bluesight) Partnership Assets, based based Wire Apr. 25, Announcement
Sell to Not
(Limited equipme transfer, 2023 2023-025 on
related- 337.81 100% 500 No Applicabl
Partnership) nt, bank Apr. 25, 2023
party e
is the technica transfer
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
controlling l
shareholder services
of Bluesight, & raw
and Mr. Cao material
Renxian, s
Chairman of Facilitie
Sungrow, s
holds
the equity in
Hefei
Renchuang
Phase II
Equity
Partnership
(Limited
Wire
Partnership) Lease to Not Announcement
transfer, Apr. 25,
as a limited related- 27.82 64.04% 50 No Applicabl 2023-025 on
bank 2023
partner. party e Apr. 25, 2023
transfer
Based on the
principle of
prudence, the
Company
reviewed and
disclosed
transactions
with
Blugesight as
related-party
transactions.
Total -- -- 33,069.79 -- 51,620 -- -- -- -- --
Details of large sales returns Not Applicable
Actual performance of daily related-party
transactions in the reporting period (if any), for Not Applicable
which the total amount is estimated by category
Reasons for significant differences between
Not Applicable
transaction prices and market prices (if applicable)
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
The Company did not make any related-party transactions arising from the acquisition or sale of assets or equity in the reporting
period.
Applicable □ Not Applicable
Co-Investors Relationship Name of Main business Registered Total Net assets Net profit
investee of investee capital of assets of of of
investee investee investee investee
(in CNY (in CNY (in CNY (in CNY
Hefei Renrui Mr. Cao Renxian, Hefei Technology 10,000
Enterprise Chairman of Sungrow, Tanrui transfer,
Management holds 99.9980% of the Technolog technology
Partnership (Limited equity in Hefei Renrui y Co., Ltd. promotion,
Partnership), Hefei Enterprise Management new
Yueling Equity Partnership (Limited technology
Investment Partnership) as a limited research and
Partnership (Limited partner; Mr. Zhao Wei, development
Partnership) Director and Senior in the field of
Vice President of new energy,
Sungrow, is the incubation of
Executive Partner of new
Hefei Yueling Equity technologies, Nil Nil Nil
Investment Partnership etc.
(Limited Partnership);
Mr. Lu Yang, Vice
President and Board
Secretary of Sungrow,
and Mr. Xie Xiaoyong,
former Vice President of
Sungrow, are limited
partners of Hefei
Yueling Equity
Investment Partnership
(Limited Partnership).
Cao Renxian, Peng Mr. Cao Renxian is the Sungrow Research and 40,383
Chaocai, Hefei Chairman of Sungrow; Hydrogen development
Yuanxi Qingwei Mr. Peng Chaocai is a Technolog of new
New Energy Vice President of y Co., Ltd. material
Technology Sungrow. The Executive technologies,
Partnership (Limited Partner of Yuanxi etc.
Partnership) Qingwei is Mr. Zhang 104,682.
Youquan, former Vice 25
President of Sungrow;
and limited partners of
Yuanxi Qingwei are
mostly directors,
supervisors, and
executives of Sungrow.
Cao Renxian, Xie Mr. Cao Renxian is the Sungrow Software 9,881.5
Xiaoyong, Wang Chairman of Sungrow; Zhiwei development, 47,974.8
Jun, Hefei Huizhang Mr. Xie Xiaoyong is Technolog IoT 0
Enterprise former Vice President of y Co., Ltd. technology
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Management Sungrow. Mr. He Wei, a (Equity services,
Partnership (Limited Supervisor of Sungrow, Incentive) industrial
Partnership), Hefei is the Executive Partner Internet data
Zhiyun Enterprise of Hefei Huizhang; Mr. service,
Management Gu Yilei, Vice information
Partnership (Limited Chairman and Senior system
Partnership), Hefei Vice President of integration
Shuren Enterprise Sungrow, Mr. Wu services, etc.
Management Jiamao, Director and
Partnership (Limited Senior Vice President of
Partnership), Hefei Sungrow, Mr. Li Shun,
Haoqing Enterprise Senior Vice President of
Management Sungrow, Mr. Chen
Partnership (Limited Zhiqiang, Vice
Partnership), Hefei President of Sungrow,
Cuihui Enterprise Mr. Deng Dejun, Vice
Management President of Sungrow,
Partnership (Limited Mr. Xie Xiaoyong,
Partnership), Hefei former Vice President of
Langshu Enterprise Sungrow, Mr. Lu Yang,
Management Vice President and
Partnership (Limited Board Secretary of
Partnership), Hefei Sungrow, Mr. Tian
Jinlin Enterprise Shuai, Vice President
Management and Finance Director of
Partnership (Limited Sungrow, and Ms. Wang
Partnership), Hefei Lei, Vice President of
Furui Enterprise Sungrow are limited
Management partners of Hefei
Partnership (Limited Huizhang. The above
Partnership) individuals collectively
hold 100% of the equity
in Hefei Huizhang.
Cao Renxian, Hong Mr. Cao Renxian is the Hefei R&D, 49,082.9
Siming, Hefei Chairman of Sungrow. Sungrow production,
Zhouyang Electric Mr. Zhang Youquan, Electric sales, and
Power Technology former Vice President of Power service of
Partnership (Limited Sungrow, is the Technolog motor drive
Partnership), Hefei Executive Partner of y Co., Ltd. systems,
Muyang Electric Hefei Zhouyang; Mr. Gu (Equity motors,
Power Technology Yilei, Vice Chairman Incentive) automotive
Partnership (Limited and Senior Vice electrical
Partnership), Hefei President of Sungrow, systems, and
Shuiyang Electric Mr. Zheng Guibiao, battery
Power Technology former Director and management
Partnership (Limited Senior Vice President of systems, etc. 40,677.28 -7,310.54
Partnership), Hefei Sungrow, Mr. Wu
Lanyang Electric Jiamao, Director and
Power Technology Senior Vice President of
Partnership (Limited Sungrow, Mr. Li Shun,
Partnership), Hefei Senior Vice President of
Huoyang Electric Sungrow, Mr. Chen
Power Technology Zhiqiang, Vice
Partnership (Limited President of Sungrow,
Partnership), Hefei Mr. Deng Dejun, Vice
Yueyang Electric President of Sungrow,
Power Technology Mr. Lu Yang, Vice
Partnership (Limited President and Board
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Partnership), Hefei Secretary of Sungrow,
Yuyang Electric Mr. Tian Shuai, Vice
Power Technology President and Finance
Partnership (Limited Director of Sungrow,
Partnership), Hefei Mr. He Wei, Supervisor
Weiyang Electric of Sungrow, and Ms.
Power Technology Wang Lei, Vice
Partnership (Limited President of Sungrow
Partnership), Hefei are limited partners of
Huiyang Electric Hefei Zhouyang. The
Power Technology above individuals
Partnership (Limited collectively hold 100%
Partnership), Hefei of the equity in Hefei
Xingyang Electric Zhouyang.
Power Technology
Partnership (Limited
Partnership)
Hefei Shangren Hefei Renzhi New Hefei Research and 30,000
New Energy Energy Industry Zero development
Industry Development Carbon of emerging
Development Partnership (Limited Technolog energy
Partnership Partnership) is a limited y Co., Ltd. technologies,
(Limited partner of Hefei etc.
Partnership), Hefei Shangren, and Mr. Cao
Chuangwei Equity Renxian, Chairman of 23,055.04 -4,587.21
Investment Sungrow, is a limited
Partnership partner of Hefei Renzhi.
(Limited Mr. Zhao Wei, Director
Partnership) and Senior Vice
President of Sungrow,
is a limited partner of
Hefei Chuangwei.
Cao Renxian, Li Mr. Cao Renxian is the Sungrow Solar power 12,252.1
Xiang, Huainan Chairman of Sungrow. Floating generation
Haoyang Ms. Wang Lei, Vice Modules technology
Photovoltaic President of Sungrow, is Technolog services,
Technology the Executive Partner of y Co., Ltd. research and
Partnership (Limited Huainan Chengyang; (Equity development
Partnership), Mr. Gu Yilei, Vice Incentive) of new
Huainan Hanyang Chairman and Senior material
Photovoltaic Vice President of technologies,
Technology Sungrow, Mr. Wu etc.
Partnership (Limited Jiamao, Director and
Partnership), Senior Vice President of
Huainan Lanyang Sungrow, Mr. Li Shun, 50,700.0
Photovoltaic Senior Vice President of 7
Technology Sungrow, Mr. Chen
Partnership (Limited Zhiqiang, Vice
Partnership), President of Sungrow,
Huainan Qiyang Mr. Deng Dejun, Vice
Photovoltaic President of Sungrow,
Technology Mr. Lu Yang, Vice
Partnership (Limited President and Board
Partnership), Secretary of Sungrow,
Huainan Chengyang Mr. Tian Shuai, Vice
Photovoltaic President and Finance
Technology Director of Sungrow,
Partnership (Limited Mr. He Wei, Supervisor
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Partnership), of Sungrow, and Mr.
Huainan Pengyang Zheng Guibiao, former
Photovoltaic Director and Senior
Technology Vice President of
Partnership (Limited Sungrow, are limited
Partnership), partners of Huainan
Huainan Yuyang Chengyang. The above
Photovoltaic individuals collectively
Technology hold 100% of the equity
Partnership (Limited in Huainan Chengyang.
Partnership),
Huainan Zeyang
Photovoltaic
Technology
Partnership (Limited
Partnership)
Cao Renxian, Gu Mr. Cao Renxian is the Sungrow New energy 149,946.0
Yilei, Zhang Chairman of Sungrow; Renewabl investment 959
Xucheng, Hefei Mr. Gu Yilei is Vice es and
Yueyang New Chairman and Senior Developm development
Energy Technology Vice President of ent Co.,
Partnership(Limited Sungrow; Mr. Zhang Ltd.
Partnership) Xucheng is Director of
Sungrow. Ms. Wang
Lei, Vice President of
Sungrow is the
Executive Partner of
Yueyang Partnership;
Mr. Peng Chaocai, Vice
President of Sungrow,
Mr. Deng Dejun, Vice
President of Sungrow,
Mr. Lu Yang, Vice
President and Board
Secretary of Sungrow,
and Mr. Tian Shuai,
Vice President and
Finance Director of
Sungrow, are limited
partners of Yueyang
Partnership. The above
individuals collectively
hold 33.99% of the
equity in Yueyang
Partnership.
Status of major construction-in-progress of the
Not Applicable
investee (if any)
□ Applicable Not Applicable
There were no related credits and liabilities in the reporting period.
□ Applicable Not Applicable
There was no saving, loan, credit or other financial business between the Company and related financial companies or related parties.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
□ Applicable Not Applicable
There was no saving, loan, credit or other financial business between financial companies controlled by the Company and related
parties.
□ Applicable Not Applicable
There were no other significant related-party transactions in the reporting period.
XV. Major Contracts and the Contract Performance
(1) Trusteeship
□ Applicable Not Applicable
There was no trusteeship in the reporting period.
(2) Contracting
□ Applicable Not Applicable
There was no contracting in the reporting period.
(3) Leasing
□ Applicable Not Applicable
There was no leasing in the reporting period.
Applicable □ Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(in 10K CNY)
Outbound Guarantees of the Company and its Subsidiaries (Excl. Guarantees for Subsidiaries)
Date of
Actual Counter- Guarantee
Disclosing Amount Actual Date Type of Collateral Fulfilled
Guarantee Object Amount of Guarantee Guarantee Period for Related
the Amount Guaranteed of Guarantee Guarantee (if any) Y/N
Guarantee (if any) Party Y/N
Guaranteed
Users of the Company's Jan. 26, 2018 80,478.17 Jan. 26, 2018 39,233.89 Joint and From the date of loan No No
residential PV products, several origination to the date
owners of industrial and liability of loan pay off
commercial distributed guarantee
projects (loan application
from collaborating banks)
Residential PV users eligible Aug. 5, 2021 50,000 Aug. 6, 2021 14,471.99Joint and From the date of loan No No
for financing several origination to the date
liability of loan pay off
guarantee
The Company’s Guarantee for Subsidiaries
Guarantee Object Date of Amount Actual Date Actual Type of Collateral Counter- Guarantee Period Fulfilled Guarantee
Disclosing Guaranteed of Guarantee Amount of Guarantee (if any) Guarantee Y/N for Related
the Amount Guarantee (if any) Party Y/N
Guaranteed
Sungrow Power (Hong Kong) May 19, 14,181 Joint and No more than 3 years Yes No
Co., Ltd. 2020 several
liability
guarantee
Sungrow Nov. 17, 71,742.63 Joint and No more than 2 years Yes No
USA Corporation 2020 several
liability
guarantee
SUNGROW POWER UK Apr. 1, 2021 40,075.15 Aug. 2, 2021 12,042.18 Joint and No more than 10 years No No
LIMITED several
liability
guarantee
Nov. 15, 28,032.97 Joint and No more than 10 years No No
liability
guarantee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow USA Corporation May 18, 115,966.11 Feb. 17, 61,736.75 Joint and No later than Dec. 31, No No
liability
guarantee
Dec. 4, 2021 54,229.36 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Sungrow Energy Storage May 18, 500,000 Sep. 27, 193,573.99 Joint and No more than 2 years No No
Technology Co., Ltd. 2022 2023 several
liability
guarantee
Sungrow Renewables Apr. 1, 2021 150,000 Joint and No more than 2 years Yes No
Development Co., Ltd. several
liability
guarantee
Sungrow Renewables May 18, 250,000 Joint and No more than 2 years Yes No
Development Co., Ltd. 2021 several
liability
guarantee
SUNGROW Aug. 20, 21,005.31 Joint and As of end 2024 Yes No
POWER （VIETNAM） 2021 several
LIMITED COMPANY liability
guarantee
Sungrow USA Corporation May 18, 426,224.43 Aug.10, 79,487.91 Joint and No later than Dec. 31, No No
liability
guarantee
Oct. 19, 2022 15,052.4 Joint and No later than Jul. 13, No No
several 2028
liability
guarantee
Feb. 24, Joint and No later than Nov. 28, Yes No
liability
guarantee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Mar. 3, 2023 88,074.93 Joint and No later than Aug. 16, No No
several 2028
liability
guarantee
Apr. 3, 2023 75,757.11 Joint and No later than May 22, No No
several 2027
liability
guarantee
May 9, 2023 114,242.49 Joint and No later than Apr. 1, No No
several 2029
liability
guarantee
May 9, 2023 53,609.79 Joint and No later than Jul. 31, No No
several 2024
liability
guarantee
Sungrow Australia Group PTY May 18, 75,000 As of the 2022 Annual Yes No
LTD 2022 Shareholders’ Meeting
Sungrow Japan K.K. May 18, 5,000 As of the 2022 Annual Yes No
Sungrow Power UK limited May 18, 28,860.28 Jul. 14, 2022 8,517.92 Joint and No more than 10 years No No
liability
guarantee
Apr. 26, 20,342.36 Joint and No more than 10 years No No
liability
guarantee
SUNGROW May 18, 1,454.83 Sep. 29, 1,454.83 Joint and When obligations are No No
DO BRASIL 2022 2022 several completed or five years
REPRESENTACAO liability from the date of the
COMERCIAL, guarantee Letter of guarantee
INSTALACAO E (whichever comes
MANUTENCAO DE first)
EQUIPAMENTOS
LTDA
Sungrow May 18, 3,000 As of the 2022 Yes No
Power Korea Limited 2022 Shareholders’ Meeting
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow Floating Modules May 18, 10,000 Apr. 3, 2023 5,000 Joint and No more than 2 years No No
Co., Ltd. 2022 several
liability
guarantee
Hefei Sungrow Electric May 18, 10,000 Mar. 7, 2023 10,000 Joint and No more than 2 years No No
Power Technology Co., Ltd. 2022 several
liability
guarantee
Sungrow Zhiwei Technology May 18, 10,000 Joint and No more than 2 years No No
Co., Ltd. 2022 several
liability
guarantee
Sungrow USA Corporation May 19, 650,000 May 29, 89,932.84 Joint and No later than Mar. 18, No No
liability
guarantee
Jun. 28, 2023 32,215.34 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Jul. 27, 2023 2,316.11 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Nov. 2, 2023 9,600.97 Joint and No later than Dec. 31, No No
several 2026
liability
guarantee
Sungrow Australia Group PTY May 19, 120,000 As of the 2023 No No
LTD 2023 Shareholders’ Meeting
Sungrow Japan K.K. May 19, 5,000 As of the 2023 No No
Sungrow May 19, 240,000 Nov. 27, 18,062.8 Joint and From the date of the No No
Power UK limited 2023 2023 several Letter of guarantee to
liability 10 years after the
guarantee warranty takes effect
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
SUNGROW DO BRASIL May 19, 50,000 Dec. 20, 7,573.22 Joint and No later than Dec. 20, No No
REPRESENTACAO 2023 2023 several 2028
COMERCIAL, liability
INSTALACAO E guarantee
MANUTENCAO DE
EQUIPAMENTOS LTDA
SUNGROW ITALY S.R.L. May 19, 5,000 As of the 2023 No No
SUNGROW (INDIA) May 19, 5,000 As of the 2023 No No
PRIVATE LIMITED 2023 Shareholders’ Meeting
SUNGROW IBERICA SA May 19, 20,000 As of the 2023 No No
Sungrow Power Korea May 19, 5,000 As of the 2023 No No
Limited 2023 Shareholders’ Meeting
Sungrow Energy Storage May 19, 300,000 Dec. 27, 199,756.44 Joint and No more than 3 years No No
Technology Co., Ltd. 2023 2023 several
liability
guarantee
Sungrow Floating Modules May 19, 20,000 Joint and No more than 3 years No No
Co., Ltd. 2023 several
liability
guarantee
Hefei Sungrow Electric May 19, 40,000 Joint and No more than 3 years No No
Power Technology Co., Ltd. 2023 several
liability
guarantee
Hefei Zero Carbon Dec. 22, 80,000 Dec. 25, 80,000 Joint and No more than 15 years No No
Technology Co., Ltd. 2023 2023 several
liability
guarantee
Hefei Sungrow Electric Dec. 22, 12,000 Dec. 28, 12,000 Joint and No more than 4 years No No
Power Technology Co., Ltd. 2023 2023 several
liability
guarantee
Subsidiary's Guarantee for Subsidiaries
Guarantee Object Date of Amount Actual Date Actual Type of Collateral Counter- Guarantee Period Fulfilled Guarantee
Disclosing Guaranteed of Guarantee Amount of Guarantee (if any) Guarantee Y/N for Related
the Amount Guarantee (if any) Party Y/N
Guaranteed
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Sungrow USA Corporation Apr. 25, 15,445.9 Apr. 22, 15,445.9 General No more than 5 years No No
SUNGROW DO BRASIL Apr. 1, 2021 8,449.79 Mar. 30, 8,449.79 Joint and No more than 7 years No No
REPRESENTACAO 2021 several
COMERCIAL, liability
INSTALACAO E guarantee
MANUTENCAO DE
EQUIPAMENTOS
LTDA
Sungrow Power Australia Pty Dec. 4, 2021 14,714.05 General Less than 2 years from Yes No
Ltd guarantee the date the Letter of
Guarantee takes effect
Sungrow Ibérica S.A.U. Dec. 4, 2021 3,309.16 Dec. 2, 2021 3,309.16 Joint and No later than Dec. 2, No No
several 2026
liability
guarantee
SUNGROW IBERICA SA Jul. 1, 2022 26,459.68 Jul. 1, 2022 26,459.68 Joint and No later than Jul. 1, No No
several 2027
liability
guarantee
Sungrow Ibérica S.A.U. Sep. 22, 16,264.11 Sep. 20, 16,264.11 Joint and No later than Sep. 20, No No
liability
guarantee
Sungrow Ibérica S.A.U. Oct. 11, 2023 10,085.51 Sep. 30, 10,085.51 Joint and No later than Sep. 30, No No
liability
guarantee
SUNGROW ITALY S.R.L. Dec. 14, 1,600.2 Dec. 8, 2023 1,600.2 Joint and No later than Dec. 8, No No
liability
guarantee
Sungrow Dec. 14, 141,092.22 Dec. 12, 141,092.22 Joint and No later than Dec. 12, No No
Benelux B.V. 2023 2023 several 2028
liability
guarantee
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
SUNGROW Dec. 29, 1,559.42 Dec. 22, 1,559.42 Joint and No later than Dec. 22, No No
DEUTSCHLAND GMBH 2023 2023 several 2028
liability
guarantee
SUNGROW RENEWABLE Dec. 2, 2022 3,500 Aug. 10, 3,500 Joint and From the date of the No No
ENERGY INVESTMENT 2023 several main debt contract to 1
PTE.LTD liability year after the debt
guarantee maturity under the
main contract
SUNGROW POWER Dec. 2, 2022 35,000 As of the 2022 Annual Yes No
(VIETNAM) COMPANY Shareholders’ Meeting
LIMITED of Sungrow RE
SUNGROW QURYLYS LLP Dec. 2, 2022 35,000 As of the 2022 Annual Yes No
Shareholders’ Meeting
of Sungrow RE
SUNGROW POWER Dec. 2, 2022 30,000 As of the 2022 Annual Yes No
AUSTRALIA PTY LTD Shareholders’ Meeting
of Sungrow RE
SUNGROW RENEWABLE Dec. 2, 2022 15,000 As of the 2022 Annual Yes No
ENERGY SPAIN, S.L. Shareholders’ Meeting
of Sungrow RE
Xuancheng Heyang New Dec. 2, 2022 4,118.57 Jan. 31, 2023 4,118.57 Joint and Three years after the No No
Energy Co., Ltd. several maturity of the last
liability debt repayment
guarantee
Anhui Sungrow Supply Chain Dec. 2, 2022 300,000 As of the 2022 Annual Yes No
Management Co., Ltd. Shareholders’ Meeting
of Sungrow RE
SUNGROW POWER Dec. 2, 2022 25,000 As of the 2022 Annual Yes No
CONSTRUCCIONES SPA Shareholders’ Meeting
of Sungrow RE
SUNGROW RENEWABLE Jun. 8, 2023 240,000 Jun. 25, 2023 865.05 Joint and From the date of each No No
ENERGY INVESTMENT several debt maturity to three
PTE. LTD liability years after the maturity
guarantee of the last repayment
of the contract
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
SUNGROW RENEWABLE Jun. 8, 2023 240,000 Jul. 14, 2023 3,119.4 Joint and From the date of each No No
ENERGY INVESTMENT several debt maturity to three
PTE. LTD liability years after the maturity
guarantee of the last repayment
of the contract
SUNGROW POWER Jun. 8, 2023 40,000 One year from the date No No
(VIETNAM) COMPANY it is approved at the
LIMITED 2022 Annual
Shareholders’ Meeting
of Sungrow RE
SUNGROW POWER Jun. 8, 2023 40,000 One year from the date No No
AUSTRALIA PTY LTD it is approved at the
Shareholders’ Meeting
of Sungrow RE
SUNGROW RENEWABLE Jun. 8, 2023 40,000 One year from the date No No
ENERGY SPAIN, S.L. it is approved at the
Shareholders’ Meeting
of Sungrow RE
ECO WATT AKA LLP Jun. 8, 2023 40,000 One year from the date No No
it is approved at the
Shareholders’ Meeting
of Sungrow RE
CAO NGUYEN 1 WIND Jun. 8, 2023 80,000 One year from the date No No
POWER DEVELOPMENT it is approved at the
INVESTMENT JOINT 2022 Annual
STOCK COMPANY Shareholders’ Meeting
of Sungrow RE
Anhui Sungrow Supply Chain Jun. 8, 2023 150,000 Nov. 21, 5,100 Joint and No more than 1 year No No
Management Co., Ltd. 2023 several
liability
guarantee
SUNGROW QURYLYS LLP Jun. 8, 2023 40,000 Sep. 21, 1,000 Joint and Three years from the No No
liability under the main
guarantee contract
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(1) Entrusted financial management
Applicable □ Not Applicable
Overview of entrusted financial management in the reporting period
(in 10K CNY)
Type Source of funds for Overdue Impairment provision
Amount of entrusted
entrusted financial Undue balance amount to be for overdue amount to
financial management
management collected be collected
Financial products Funds raised
issued by banks
Financial products Funds owned by the
issued by banks Company
Financial products Funds owned by the
issued by Company 20,000 1,000
securities traders
Total 494,000 169,500
Details of high-risk entrusted financial management with large amount, low security, or low flowability
□ Applicable Not Applicable
Expected inability to recover the principal of entrusted financial management or other circumstances that may lead to impairment
□ Applicable Not Applicable
(2) Entrusted loans
□ Applicable Not Applicable
There were no entrusted loans in the reporting period.
□ Applicable Not Applicable
There were no other major contracts in the reporting period.
XVI. Explanation on Other Significant Matters
□ Applicable Not Applicable
There were no other significant matters to be explained in the reporting period.
XVII. Significant Matters of the Company's Subsidiaries
Applicable □ Not Applicable
On December 8, 2023, the Company disclosed the Announcement on the Planned Spin-Off and Listing of Holding Subsidiary
(Announcement No. 2023-117). According to the overall strategic layout of the Company and the business development needs of its
holding subsidiary, Sungrow Renewable Energy Development Co., Ltd., the Company plans to initiate the preliminary work for the
spin-off and listing of Sungrow Renewable Energy on China’s stock exchanges.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section VII Changes in Shares and Information about Shareholders
I. Changes in Share Capital
(in shares)
Before the change Changes in the period (+, -) After the change
Capitalized from
Quantity Percentage New issuance Bonus Others Sub-total Quantity Percentage
common reserve
I. Shares subject to conditional
restriction(s)
shareholders
Incl. shares held by domestic
enterprise
Shares held by domestic natural
person
Incl. shares held by overseas
enterprise
Shares held by overseas natural
person
II. Shares subject to no restrictions 1,129,222,668 76.03% 10,709,370 10,709,370 1,139,932,038 76.76%
III. Total 1,485,190,984 100.00% -40,000.00 -40,000.00 1,485,150,984 100.00%
Reasons for share changes
Applicable □ Not Applicable
to each of them on the last trading day of 2022. On the same day, Shenzhen Branch of China Securities Depository and Clearing Corporation Limited unlocked the tradable shares held by the
Company’s directors, supervisors, and executives that are subject to no transfer restrictions within the current year's transferable amount.
Board of Directors. Mr. Zhang Youquan, Vice President in the fourth management team of the Company, no longer assumed the office as an executive after the election of the fifth Board of
Directors. The shares held by Mr. Zheng Guibiao and Mr. Zhang Youquan will be unlocked 6 months after their terms of office expire. Should any executive in the fourth management team resign
before the expiration of his/her term, the shares held by this executive will be unlocked 6 months after his/her term of office was due to expire.
the office as an executive.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
resignation.
Buyback and Cancellation of Some Restricted Shares was reviewed and approved. Since two incentive objects in the Company’s 2018 Restricted Stock Incentive Plan departed, according to the
Measures for the Administration of Equity Incentives of Listed Companies and the 2018 Restricted Stock Incentive Plan (Draft), all the restricted shares that were granted to the aforementioned
personnel but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 40,000 shares. The Company completed the buyback and
cancellation at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on July 18, 2023, and the Company’s total share capital changed from 1,485,190,984 shares
to 1,485,150,984 shares.
Approvals for share changes
Applicable □ Not Applicable
Refer to “Reasons for share changes” in the above.
Share transfers
Applicable □ Not Applicable
Refer to “Reasons for share changes” in the above.
The impact of changes in shares on financial indicators such as basic earnings per share, diluted earnings per share, net assets per share attributable to common shareholders in the last year and
the last period
□ Applicable Not Applicable
Other contents the Company considers necessary or required by the securities regulatory authorities to disclose
□ Applicable Not Applicable
Applicable □ Not Applicable
(in shares)
Shareholder Opening Increased in Unlocked in Closing Reason for restriction Estimated date of unlocking
restricted shares current period current period restricted shares
Cao Renxian 338,256,000 338,256,000 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Zhao Wei 5,307,000 5,307,000 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Shareholder Opening Increased in Unlocked in Closing Reason for restriction Estimated date of unlocking
restricted shares current period current period restricted shares
Gu Yilei 337,500 337,500 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Chen Zhiqiang 281,250 281,250 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Wu Jiamao 281,250 281,250 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Deng Dejun 277,259 277,259 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Zhang Xucheng 112,500 28,125 84,375 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Peng Chaocai 59,062 59,062 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Li Shun 18,750 18,750 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Wang Lei 16,500 16,500 Lock-up of executives’ shares 25% of lock-up shares at the end of last year
is released every year
Zheng Guibiao 8,982,270 8,982,270 Lock-up of executives’ shares, Holder departed upon the expiration of the
although holder has departed term of office in the reporting period, and the
upon the expiration of the term restriction will be released in 6 month after
of office the departure
Zhang Youquan 168,750 168,750 Lock-up of executives’ shares, Holder departed upon the expiration of the
although holder has departed term of office in the reporting period, and the
upon the expiration of the term restriction will be released in 6 month after
of office the departure
Xie Xiaoyong 225,000 75,000 300,000 Lock-up of executives’ shares, Holder resigned prior to the expiration of the
although holder has resigned as term of office in the reporting period, the
an executive prior to the shares remain locked up in 6 month after the
expiration of the term of office resignation
Departed executives 1,621,725 1,621,725 Lock-up of executives’ shares, Holder departed upon the expiration of the
(resigned before expiration although holder has resigned as term of office in the reporting period, and the
of term) an executive prior to the restriction will be released in 6 month after
expiration of the term of office the departure
Other incentive objects 40,000 40,000 Equity incentive restriction As per the relevant regulations of the
Restricted Stock Incentive Plan
Total 355,968,316 91,500 10,840,870 345,218,946 -- --
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
II. Issuance and Listing of Securities
□ Applicable Not Applicable
Applicable □ Not Applicable
On April 24, 2023, the Company held the twenty-third meeting of the fourth Board of Directors and the twentieth meeting of the fourth Board of Supervisors, at which the Proposal on the Buyback
and Cancellation of Some Restricted Shares was reviewed and approved. Since two incentive objects in the Company’s 2018 Restricted Stock Incentive Plan departed, according to the Measures
for the Administration of Equity Incentives of Listed Companies and the 2018 Restricted Stock Incentive Plan (Draft), all the restricted shares that were granted to the aforementioned personnel
but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 40,000 shares. The Company completed the buyback and cancellation at the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on July 18, 2023, and the Company’s total share capital changed from 1,485,190,984 shares to 1,485,150,984
shares.
□ Applicable Not Applicable
III. Shareholders and Actual Controllers
(in shares)
Total number of Total number of Total number of preference
Total number of
ordinary shareholders preference shareholders shareholders with restored Total number of
ordinary
at the end of the with restored voting voting rights at the end of the shareholders holding
shareholders at 128,503 109,029
previous month before rights at the end of the previous month before the special voting shares
the end of the
the disclosure date of reporting period (if any) disclosure date of the annual (if any)
reporting period
the annual report (see Note 9) report (if any) (see Note 9)
Shareholders with a shareholding of over 5% or shareholdings of the top ten shareholders
Pledged, marked, or
Total shares held
Changes in the Non-tradable Tradable frozen
Name of shareholder Nature of shareholder Percentage at the end of the
reporting period shares held shares held Share
reporting period Quantity
status
Cao Renxian Domestic natural
person
Hong Kong Securities Clearing Company Overseas legal person
Limited
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Hefei Huizhuo Equity Investment Domestic non-state-
Partnership (Limited Partnership) owned legal person
Industrial and Commercial Bank of China Other
Limited - E Fund GEM Open-Ended Index 1.01% 14,933,708 9,710,200 14,933,708
Securities Investment Fund
Zheng Guibiao Domestic natural
person
Bank of China Co., Ltd. - Huatai-PineBridge Other
CSI PV Industry Open-Ended Index 0.76% 11,330,519 948,872 11,330,519
Securities Investment Fund
Chinalink Asia Holdings Limited Overseas legal person 0.71% 10,586,305 -649,000 10,586,305
China Construction Bank Corporation - GF Other
Technology Pioneer Hybrid Securities 0.70% 10,381,073 -333,933 10,381,073
Investment Fund
China Minsheng Bank Co., Ltd. - GF Other
Industry Selected Three-Year Hybrid 0.62% 9,142,619 -279,800 9,142,619
Securities Investment Fund
CITIC Securities Co., Ltd. - Tianhong CSI Other
PV Industry Index Initiated Securities 0.61% 9,104,396 1,050,787 9,104,396
Investment Fund
Strategic investors or general legal
persons becoming the top 10
Not Applicable
shareholders due to placement of new
shares (if any) (refer to Note 4)
Relations between the above-mentioned Mr. Cao Renxian, the controlling shareholder and actual controller of the Company, holds 10.44% equity of Hefei Huizhuo Equity Investment
shareholders or actions in concert Partnership (Limited Partnership). Apart from the shareholders’ relations specified as above, the Company is not aware of any other relations
between shareholders, and does not know whether they are persons acting in concert as stipulated in the Administrative Measures for the
Acquisition of Listed Companies.
Notes on above shareholders who are
involved in delegating/delegated voting Not Applicable
rights and waiving of voting rights
Special notes on dedicated buy-back As of the end of the reporting period, the Company’s special account for buyback shares holds 16,312,308 shares, accounting for 1.10% of the
accounts held by top 10 shareholders (if total shares. Although the number of shares held ranked fourth among all shareholders in the current period, the special account is not listed in top
any) (refer to Note 10) ten shareholders according to prevailing disclosure rules.
Shares held by top 10 shareholders subject to no restrictions on trading
Unrestricted shares held at the Share Details
Shareholder
end of the reporting period Type Quantity
Hong Kong Securities Clearing Company Limited 172,808,826 A-share 172,808,826
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Cao Renxian 112,752,000 A-share 112,752,000
Hefei Huizhuo Equity Investment Partnership (Limited Partnership) 44,965,442 A-share 44,965,442
Industrial and Commercial Bank of China Limited - E Fund GEM Open-Ended Index Securities A-share
Investment Fund
Zheng Guibiao 11,971,360 A-share 11,971,360
Bank of China Co., Ltd. - Huatai-PineBridge CSI PV Industry Open-Ended Index Securities A-share
Investment Fund
Chinalink Asia Holdings Limited 10,586,305 A-share 10,586,305
China Construction Bank Corporation - GF Technology Pioneer Hybrid Securities Investment Fund 10,381,073 A-share 10,381,073
China Minsheng Bank Co., Ltd. - GF Industry Selected Three-Year Hybrid Securities Investment A-share
Fund
CITIC Securities Co., Ltd. - Tianhong CSI PV Industry Index Initiated Securities Investment Fund 9,104,396 A-share 9,104,396
Relations between top 10 shareholders of
Mr. Cao Renxian, the controlling shareholder and actual controller of the Company, holds 10.44% equity of Hefei Huizhuo Equity Investment
unrestricted circulating shares, relations
Partnership (Limited Partnership). Apart from the shareholders’ relations specified as above, the Company is not aware of any other relations
between top 10 shareholders of
between shareholders, and does not know whether they are persons acting in concert as stipulated in the Administrative Measures for the
unrestricted circulating shares and top 10
Acquisition of Listed Companies.
shareholders, or actions in concert
Shareholders participating in margin fina
ncing and securities lending business (if Not Applicable
any) (refer to Note 10)
Top ten shareholders’ participation in share lending through refinancing
Applicable □ Not Applicable
(in shares)
Top ten shareholders’ lending of shares via refinancing activities
Shareholder (Full Name) Shared held in regular Shares lent via refinancing Shared held in regular Shares lent via refinancing
account and credit account at at the beginning of the account and credit account at at the end of the period and
the beginning of the period period and not yet returned the end of the period not yet returned
Quantity % in total Quantity % in total Quantity % in total Quantity % in total
share capital share capital share capital share capital
CITIC Securities Co., Ltd. - Tianhong CSI PV Industry 8,053,609 0.54% 466,200 0.03% 9,104,396 0.61% 111,600 0.01%
Index Initiated Securities Investment Fund
Bank of China Co., Ltd. - Huatai-PineBridge CSI PV 10,381,647 0.70% 206,300 0.01% 11,330,519 0.76% 147,200 0.01%
Industry Open-Ended Index Securities Investment Fund
Industrial and Commercial Bank of China Limited - E 5,223,508 0.35% 1,460,200 0.10% 14,933,708 1.01% 36,500 0.00%
Fund GEM Open-Ended Index Securities Investment
Fund
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Changes in top ten shareholders during the reporting period
Applicable □ Not Applicable
(in shares)
Changes in top ten shareholders during the reporting period
Shared held in regular account and
Shares lent via refinancing at
credit account at the end of the period
Changes in the end of the period and not
and shares lent via refinancing at the
Shareholder (Full Name) the reporting yet returned
end of the period and not yet returned
period
% in total % in total
Quantity Quantity
share capital share capital
Industrial and Commercial Bank of
China Limited - E Fund GEM
New 36,500 0.00% 14,970,208 1.01%
Open-Ended Index Securities
Investment Fund
Shanghai Pudong Development
Bank Co., Ltd. - GF High-End
Exit 0 0.00% 8,781,661 0.59%
Manufacturing Equity Sponsored
Securities Investment Fund
Whether the Company has made arrangements for different voting rights
□ Applicable Not Applicable
Whether the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions
made the buy-back transaction as agreed in the reporting period
□ Yes No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions did not
make the buy-back transaction as agreed in the reporting period.
Nature of controlling shareholder: Natural person
Type of controlling shareholder: Natural person
Name of controlling shareholder Nationality In possession of right of abode in other countries
Cao Renxian Chinese No
Mr. Cao Renxian has been the Chairman and President of the Company for the past 5
Main occupation and title
years
Domestic/overseas listed companies
Mr. Cao Renxian does not control other domestic/overseas listed companies
controlled/vested in the past 10 years
Changes of controlling shareholder during the reporting period
□ Applicable Not Applicable
The controlling shareholder of the Company did not change in the reporting period.
Nature of actual controller: Domestic natural person
Type of actual controller: Natural person
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Relationship with actual In possession of right of
Name of actual controller Nationality
controller abode in other countries
Cao Renxian Himself Chinese No
Mr. Cao Renxian has been the Chairman and President
Main occupation and title
of the Company for the past 5 years
Domestic/overseas listed companies controlled/vested in the past 10 Mr. Cao Renxian does not control other
years domestic/overseas listed companies
Change of actual controller during the reporting period
□ Applicable Not Applicable
The actual controller of the Company did not change during the reporting period.
Block diagram of the property rights and control relationship between the Company and the actual controller
中文 英文
曹仁贤 Cao Renxian
通过配偶苏蕾 Via spouse Su Lei
泸州汇卓企业管理合伙企业（有限合伙） Luzhou Huizhuo Enterprise Management Partnership
(Limited Partnership)
阳光电源股份有限公司 Sungrow Power Supply Co., Ltd.
The actual controller controls the Company through trust or other asset management methods
□ Applicable Not Applicable
persons acting in concert account for more than 80% of the Company’s shares held by them
□ Applicable Not Applicable
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
entities
□ Applicable Not Applicable
IV. Specific implementation of share buy-back during the reporting period
Progress of share buy-back
Applicable □ Not Applicable
Date of plan Number of In Planned Planned Purpose of buy-back Number In percentage
disclosure shares to be percentage amount of period of of shares of the target
bought-back of total share buy-back buy-back already quantity
capital (in 10K bought- involved in
CNY) back the equity
incentive
plan (if any)
May. 14, 5,000,000 – 0.34% – 50,000 – May 13, For the employee stock 6,485,049 99.77%
May 12, equity incentive plan
Sep. 13, 3,330,000 – 0.22% – 50,000 – Sep. 12, For the employee stock 11,316,00 98.40%
Sep. 12, equity incentive plan
Progress of buy-back share reduction via centralized bidding
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section VIII Preference Shares
□ Applicable Not Applicable
No preference shares exist in the Company during the reporting period.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section IX Bonds
□ Applicable Not Applicable
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Section X Financial Reports
I. Audit Report
Type of Audit Opinion Standard unqualified opinion
Audit Report Signed on April 22, 2024
Auditing Firm RSM China (Special General Partnership)
Audit Report Number RSM-AR [2024] No. 230Z0321
Name of CPAs Wan Yunlong, Jiang Wei, Pan Lili
Audit Report
I. Audit Opinion
We have audited the financial statements of Sungrow Power Supply Co., Ltd. (hereinafter referred to as Sungrow), including the
Consolidated Balance Sheet and Balance Sheet of Parent Company as at December 31, 2023, the Consolidated Income Statement and
Income Statement of Parent Company in 2023, and the Consolidated Statement of Cash Flows and Statement of Cash Flows of Parent
Company, Consolidated Statement of Changes in Equity and Statement of Changes in Equity of Parent Company, as well as Notes to
the relevant financial statements.
In our opinion, the financial statements as attached were prepared in accordance with the Accounting Standards for Business
Enterprises in all material aspects, which fairly reflect the consolidated financial position of Sungrow and the parent company as at
December 31, 2023, as well as the consolidated operating results and cash flows of Sungrow and the parent company in 2023.
II. Grounds for the Audit Opinion
The audit has been performed in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities
under these standards are further explained in the part CPA's Responsibilities for the Audit of Financial Statements in this audit report.
Abiding by the China Code of Ethics for Certified Public Accountants, we have operated independently from Sungrow, and fulfilled
other responsibilities in professional ethics. We believe that the audit evidence we obtained is sufficient and appropriate to provide a
ground for our audit opinion.
III. Key Audit Matters
Key audit matters are those we consider to be the most important to the audit of financial statements of the current period based on our
professional judgment. Such matters are addressed in the context that the financial statements are audited as a whole with the audit
opinion issued. We do not express separate opinions on these matters.
A. Recoverability of accounts receivable
As stated in Notes “V. 11 Financial Instruments” and “VII. 4 Accounts Receivable”, the book value of accounts receivable in Sungrow’s
consolidated financial statements was CNY 21,098 million, of which bad debt provision was CNY 2,002 million. The Company
determined the bad debt provision according to the recoverability of accounts receivable. To determine the book value of the accounts
receivable at the end of the period, the Sungrow management team (hereinafter referred to as the Management) needs to identify the
items that have been impaired and the objective evidences, evaluate the cash flows that are expected in the future and determine their
present value, which involves the Management’s use of significant accounting estimates and judgments. Moreover, the recoverability
of accounts receivable is vital to the financial statements; therefore, we have identified the recoverability of accounts receivable as a
key audit matter.
The procedures we performed mainly include the following:
(1) We evaluated and tested the rationality of design and operational effectiveness of Sungrow's credit policy and internal controls
related to accounts receivable management.
(2) We analyzed the rationality of accounting estimates for bad debt provision for Sungrow's accounts receivable, including the basis
for determining the combination of accounts receivable and the judgment on separate bad debts provision.
(3) On perusal of the actual amount of bad debts of similar receivables and the situations in the past, as well as customer credit, market
condition and other factors, we evaluated the appropriateness of approaches used by the Management which divided receivables into
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
several groups for impairment assessment. For receivables that had been accrued for bad debt provision individually, we verified the
foundations used by the Management to evaluate the expected cash flow; for receivables that had been accrued for bad debt provision
according to the characteristics of credit risk combination, we used expected credit loss rate and aging analysis to test the rationality
and accuracy of the Management's provision for bad debts.
(4) We evaluated the recoverability of accounts receivable in large amount, with special attention paid to those with an aging of more
than one year and those covered in lawsuits filed by Sungrow (for selected samples). Through the investigation of customer background,
operating status, litigation situation and the like, we interviewed with lawyers and sales personnel, inspected the letters of confirmation
and collections after the period, in order to evaluate the rationality and adequacy of the Management’s bad debts provision.
B. Revenue recognition
As stated in Notes “V. 27 Principles and Measurements for Revenue Recognition” and “VII. 47 Operating Income and Operating
Costs”, Sungrow recognized an operating income of CNY 72,251 million. Since operating income is one of the Company's key metrics,
there might be an inherent risk that the Management manipulate revenue recognition in order to achieve specific goals or expectations;
therefore, we have identified revenue recognition as a key audit matter.
The procedures we used mainly include the following:
(1) We evaluated and tested the design and operational effectiveness of internal controls related to Sungrow's revenue from product
sales and power station construction.
(2) We verified revenue growth and changes in gross profit in an analytic way.
(3) For revenue from product sales, we inspected samples of sales contracts, sales invoices, logistics documents, customer receipts,
customs declarations and other relevant materials to evaluate the authenticity of revenue recognition; for sales revenue recognized
around the date of the balance sheet, we ran cut-off test and verified supporting documents such as customer receipts, thereby evaluating
the completeness of revenue recognition.
(4) For revenue from collective power station construction, we compared and analyzed the actual total cost of the completed project
samples and the total contract cost estimated by the Management before project completion to evaluate the Management's experience
and capacity in making the accounting estimation; we inspected contracts of major construction projects to verify the total contract
revenue, review key contract terms, and confirm the correctness of contract revenue. For major contracts involving power generation
commitments, we reviewed the basis for determining the power generation estimation and the accuracy of revenue recognition. For the
actual cost of major projects, we checked the supporting documents such as contracts, invoices, equipment receipts, progress
confirmation documents, and analyzed the gross profit rate of the project, thereby evaluating the authenticity and accuracy of the actual
cost accounting. We shortlisted several projects and visited the project sites to determine whether the site status matched the progress
recorded.
(5) For revenue from distributed residential power station construction, we checked the equity transfer agreements, sales contracts, and
grid-connected power generation situation of the power stations to evaluate the authenticity, accuracy, and completeness of revenue
recognition.
C. Inventory impairment
As stated in Notes “V. 13 Inventories” and “VII. 9 Inventories”, as of December 31, 2023, the book balance of inventories in Sungrow’s
consolidated financial statements is CNY 23,130 million, the inventory depreciation provision is CNY 1,689 million, and the book
value of inventories is CNY 21,442 million. Because the inventory amount is huge and the determination of the net realizable value of
inventories involves significant management judgment, we have identified inventories as a key audit matter.
The procedures we used mainly include the following:
(1) We evaluated and tested the rationality of design and operational effectiveness of Sungrow's internal controls related to inventory
management.
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
(2) We supervised inventory counting in the field, and inspected the quantity and status of inventories, with special attention paid to
the ending inventory status and the identification of obsolete stocks. For inventories at customers’ premises, we ran external
confirmations to verify the quantity.
(3) We obtained the Management’s spreadsheet for calculating inventory depreciation provision, ran the inventory impairment test and
confirmation procedure, checked and analyzed the rationality of the net realizable value, and evaluated the accuracy of the inventory
depreciation reserve and resale.
(4) We conducted peer analysis of Sungrow’s inventory turnover rate and ratio of inventory depreciation provision, to analyze whether
the Company's inventory depreciation significantly deviates from the average level of the peer industry.
(5) We evaluated the appropriateness of the Management's disclosure of inventories and notes in the financial statements.
IV. Other information
The Management is responsible for other information. Other information includes those covered in Sungrow's 2023 annual report, but
does not include the financial statements and our audit report.
The audit opinion on financial statements does not cover other information, nor do we make assurance conclusions on other information
in any form.
As it relates to the audit of financial statements, our responsibility is to read other information and identify whether there are material
inconsistence or errors between other information and the financial statements or the situation we learned during the audit.
Based on what we have done, if we are certain that material errors exist in other information, we should report. In this case, there is
nothing to be reported.
V. Management’s and Governance’s Responsibilities for the Financial Statements
The Management is responsible for preparing and presenting these financial statements fairly in accordance with the Accounting
Standards for Business Enterprises, and for designing, implementing, and maintaining necessary internal controls so that the financial
statements are free from material misstatements due to fraud or error.
When preparing the financial statements, the Management is responsible for evaluating Sungrow’s ability to continue as a going
concern, disclosing matters related to going concerns (if applicable), and applying going concern assumptions, unless the Management
is arranging liquidation, termination, or options of no other realistic alternatives for Sungrow.
Sungrow's governance team is responsible for overseeing Sungrow's financial reporting process.
VI. CPA's Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance on that the financial statements as a whole are free from material misstatement due to
fraud or error, and to issue an auditor report containing our audit opinion. A reasonable assurance is a high level of assurance, however,
there is no assurance that an audit performed in accordance with Auditing Standards can always identify a material misstatement in
existence. Misstatements may result from fraud or error, and are generally considered material if, individually or in aggregate, the
misstatements could be reasonably expected to influence the economic decisions made by users of the financial statements based on
the content of the financial statements.
In the process of conducting the audit in accordance with Auditing Standards, we exercise professional judgment and maintain
professional skepticism. At the same time, we also perform the following:
the risk, and obtain sufficient and appropriate audit evidence as the grounds for our audit opinion. Since fraud may involve collusion,
forgery, intentional omission, misrepresentation or override of internal controls, the risk of failure to detect material misstatements due
to fraud is higher than the risk of failure to detect material misstatements due to error.
the effectiveness of internal controls.
related disclosures.
draw conclusions on whether there are significant uncertainties in matters or situations that are likely to impair Sungrow's ability to
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
continue as a going concern. Should the conclusions considered significant uncertainties, we are required by the auditing standards to
remind users of the financial statements to the relevant disclosures in the financial statements; if the disclosures were insufficient, we
should not issue our opinion as non-qualified. Our conclusions are based on information available as of the date of the audit report.
However, matters or circumstances in the future may still cause Sungrow to cease to operate as a going concern.
fairly reflect the relevant transactions and matters.
issue an audit opinion on the financial statements. We are responsible for directing, supervising and performing the group audit, and
are solely responsible for the audit opinion we make.
We communicate with the governance team on the planned scope, schedule and significant audit findings of the audit, including internal
control deficiencies of concern that we identified during our audit.
We have also provided the governance team with a statement of compliance with professional ethical requirements related to
independence, and communicated with them on all relationships and other matters that might be reasonably believed to affect our
independence, together with the corresponding countermeasures.
From the list of matters that we have communicated with the governance team, we identify those of the most significance to the audit
of financial statements of the current period as the key audit matters. We describe these matters in our audit report unless public
disclosure of such matters is prohibited by laws or regulations or; in rare circumstances where the adverse consequences of
communicating a matter in the audit report would be reasonably expected to outweigh the benefits in the public interest, we decide not
to communicate such a matter in the audit report.
II. Financial Statements
All numbers in the financial statements are in CNY.
Prepared by: Sungrow Power Supply Co., Ltd.
December 31, 2023
(in CNY)
Item December 31, 2023 January 1, 2023
Current Assets:
Cash and cash equivalents 18,030,617,790.74 11,666,601,491.42
Settlements Provision
Loans to banks and other financial institutions
Financial assets held for trading 2,072,049,126.18 1,490,493,996.98
Derivative financial assets
Notes receivable 693,721,862.60 1,086,866,640.25
Accounts receivable 21,097,509,472.32 13,804,040,262.60
Financing receivables 772,690,180.45 1,038,041,498.25
Prepayments 542,848,240.91 382,891,914.73
Insurance premium receivable
Due from reinsurers
Reinsurance contract reserves receivable
Other receivables 1,408,874,420.62 1,171,813,634.65
Including: Interest receivable
Dividends receivable 1,188,236.31 27,389,502.93
Financial assets purchased under agreements to resell
Inventories 21,441,505,396.60 19,060,142,584.88
Contract assets 2,008,704,215.79 1,291,527,303.40
Assets classified as held for sale
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Non-current assets due in one year 53,789,000.00 53,713,000.00
Other current assets 1,161,580,351.66 947,593,110.24
Total current assets 69,283,890,057.87 51,993,725,437.40
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 320,380,000.00 352,460,000.00
Long-term equity investments 440,042,074.75 228,278,242.43
Other equity instruments investments
Other non-current financial assets 500,017,198.94 303,677,642.96
Investment properties
Fixed assets 6,438,183,727.36 4,543,555,993.02
Construction in progress 1,685,757,860.53 1,188,671,605.49
Productive biological assets
Oil and gas assets
Right-of-use asset 397,537,305.84 559,699,600.83
Intangible assets 732,415,239.68 340,374,616.37
Development expenditures
Goodwill
Long-term prepaid expenses 89,178,971.43 98,761,004.79
Deferred tax assets 2,071,287,917.89 1,025,988,368.36
Other non-current assets 917,816,373.28 992,247,656.31
Total non-current assets 13,592,616,669.70 9,633,714,730.56
Total assets 82,876,506,727.57 61,627,440,167.96
Current liabilities:
Short-term borrowings 2,793,019,025.13 1,422,187,421.05
Borrowing from the central bank
Deposits and balances from banks and other financial
institutions
Financial liabilities held for trading 51,919,973.63
Derivative financial liabilities 1,027,953.77
Notes payable 12,914,780,574.41 12,502,200,528.61
Accounts payable 15,571,135,653.23 13,423,788,672.62
Receipts in advance
Contract liabilities 6,564,810,202.26 3,788,439,560.39
Financial assets sold under agreements to buy
Customer deposits and balances from banks and other
financial institutions
Customer brokerage deposits
Securities underwriting brokerage deposits
Payroll and employee benefits payable 1,063,589,056.26 647,136,521.65
Taxes payable 2,897,601,796.23 842,046,338.30
Other payables 1,418,388,234.60 760,375,319.15
Including: Interest payable
Dividend payable
Fees and commission payable
Payable reinsurance
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Liabilities classified as held for sale
Non-current liabilities due in one year 1,342,087,764.59 809,879,585.68
Other current liabilities 1,371,576,221.97 1,219,596,256.39
Total current liabilities 45,936,988,528.68 35,468,598,131.24
Non-current liabilities:
Insurance reserves
Long-term borrowings 4,179,703,100.00 4,161,650,000.00
Bonds payable
Including: Preference shares
Perpetual debt
Lease liabilities 323,824,924.50 430,999,112.05
Long-term Payable 191,823,895.92 596,102,307.79
Long-term payroll and employee benefits payable
Provisions 2,568,690,015.39 1,012,055,993.93
Deferred income 168,761,589.35 166,799,167.22
Deferred tax liabilities 12,608,380.01 13,401,614.14
Other non-current liabilities 39,610,000.00 39,610,000.00
Total non-current liabilities 7,485,021,905.17 6,420,618,195.13
Total liabilities 53,422,010,433.85 41,889,216,326.37
Owners’ equity:
Paid-in capital 1,485,150,984.00 1,485,190,984.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 7,606,175,870.49 7,052,879,188.31
Less: treasury shares 1,381,067,983.76 520,749,625.73
Other comprehensive income 172,490,837.09 -30,520,376.52
Including: Preference share 27,728,572.97
Special reserve 1,066,216,783.99 1,066,216,783.99
Surplus reserve
General risk reserve 18,728,523,299.62 9,614,276,805.07
Retained earnings 27,705,218,364.40 18,667,293,759.12
Equity attributable to owners of the parent 1,749,277,929.32 1,070,930,082.47
Non-controlling interests 29,454,496,293.72 19,738,223,841.59
Total owners’ equity 82,876,506,727.57 61,627,440,167.96
Legal Representative: Cao Renxian Chief Accountant: Tian Shuai Head of Accounting Department: Li Pan
(in CNY)
Item December 31, 2023 January 1, 2023
Current Assets:
Cash and cash equivalents 12,265,530,503.76 7,843,493,020.92
Financial assets held for trading 1,792,634,524.90 1,023,462,624.14
Derivative financial assets
Notes receivable 617,470,007.33 513,951,198.39
Accounts receivable 11,479,153,437.35 12,289,281,607.26
Financing receivables 623,245,933.65 841,039,102.74
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Prepayments 33,593,762.18 15,214,576.36
Other receivables 1,916,890,245.06 1,064,683,730.83
Including: Interest receivable
Dividends receivable 27,389,502.93
Inventories 5,937,909,845.99 4,305,038,408.84
Contract assets 531,059,645.40 356,483,190.49
Assets classified as held for sale
Non-current assets due in one year 53,789,000.00 53,713,000.00
Other current assets 13,798.87 49,297,706.52
Total current assets 35,251,290,704.49 28,355,658,166.49
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 3,913,030,600.00 352,460,000.00
Long-term equity investments 7,103,505,466.75 5,287,620,696.34
Other equity instruments investments
Other non-current financial assets 201,011,383.13 125,035,324.41
Investment properties
Fixed assets 2,305,827,037.94 1,412,825,971.90
Construction in progress 1,040,113,698.40 585,904,972.37
Productive biological assets
Oil and gas assets
Right-of-use asset 19,917,144.38 47,727,364.25
Intangible assets 322,028,915.70 207,480,610.30
Development expenditures
Goodwill
Long-term prepaid expenses 37,956,122.81 57,092,196.74
Deferred tax assets 471,147,897.46 311,100,998.02
Other non-current assets 607,088,723.95 537,065,057.02
Total non-current assets 16,021,626,990.52 8,924,313,191.35
Total assets 51,272,917,695.01 37,279,971,357.84
Current liabilities:
Short-term borrowings 12,122,000.00 74,407,523.19
Financial liabilities held for trading 6,367,790.64
Derivative financial liabilities 1,027,953.77
Notes payable 6,536,520,996.50 6,574,809,279.06
Accounts payable 9,418,109,832.25 9,326,539,265.79
Receipts in advance
Contract liabilities 1,661,943,885.04 690,409,136.06
Payroll and employee benefits payable 440,161,828.92 259,302,306.80
Taxes payable 1,381,108,157.24 265,054,124.87
Other payables 2,932,177,231.32 419,115,721.82
Including: Interest payable
Dividend payable
Liabilities classified as held for sale
Non-current liabilities due in one year 165,036,053.57 64,942,372.58
Other current liabilities 630,180,362.22 124,706,255.00
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item December 31, 2023 January 1, 2023
Total current liabilities 23,177,360,347.06 17,806,681,729.58
Non-current liabilities:
Long-term borrowings 811,360,000.00 957,720,000.00
Bonds payable
Including: Preference shares
Perpetual debt
Lease liabilities 2,605,017.41 21,784,939.47
Long-term Payable
Long-term payroll and employee benefits payable
Provisions 834,812,719.63 532,428,639.25
Deferred income 140,456,724.31 146,613,574.00
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 1,789,234,461.35 1,658,547,152.72
Total liabilities 24,966,594,808.41 19,465,228,882.30
Owners’ equity:
Paid-in capital 1,485,150,984.00 1,485,190,984.00
Other equity instruments
Including: Preference share
Perpetual debt
Capital reserve 7,206,040,925.89 7,146,687,476.79
Less: treasury shares 1,381,067,983.76 520,749,625.73
Other comprehensive income 281,692.50
Special reserve 11,303,424.15
Surplus reserve 1,066,216,783.99 1,066,216,783.99
Retained earnings 17,918,678,752.33 8,637,115,163.99
Total owners’ equity 26,306,322,886.60 17,814,742,475.54
Total liabilities and owners’ equity 51,272,917,695.01 37,279,971,357.84
(in CNY)
Item 2023 2022
I. Total revenue 72,250,674,939.46 40,257,239,155.34
Including: Operating proceeds 72,250,674,939.46 40,257,239,155.34
Interest income
Net earned premiums
Net fee and commission revenue
II. Total operating costs 59,150,023,669.27 35,514,911,265.50
Including: Operating costs 50,317,573,513.17 30,375,806,550.32
Interest expenses
Fees and commission expenses
Surrenders
Net payments for insurance claims
Net provision of insurance reserve
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 324,453,897.24 142,614,456.42
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
Selling expenses 5,166,844,506.28 3,169,263,472.82
General and administrative expenses 873,167,416.41 612,314,748.77
R&D expenses 2,447,389,317.47 1,692,156,198.42
Financial expenses 20,595,018.70 -477,244,161.25
Including: Interest expense 318,936,658.27 209,088,016.88
Interest income 198,329,706.84 77,821,870.16
Add: Other income 266,145,031.37 220,935,253.06
Investment gains (or losses) 96,558,622.32 40,338,523.02
Including: Share of gains of associates and joint ventures -2,984,635.20 -2,286,676.64
Gains from derecognition of financial assets measured at
amortized cost
Exchange gains (or losses)
Net exposure hedging gains (or losses)
Gains (or losses) on the changes in fair value 36,192,212.68 -29,610,984.47
Credit impairment losses -727,817,342.49 -456,447,435.65
Assets impairment losses -1,300,637,092.52 -374,657,742.38
Gain (or losses) from disposal of assets -4,638,267.85 -1,741,000.52
III. Operating profit (or loss) 11,466,454,433.70 4,141,144,502.90
Add: Non-operating income 25,159,042.65 9,156,115.54
Less: Non-operating costs 31,650,315.31 16,339,008.39
IV. Profit (or loss) before tax 11,459,963,161.04 4,133,961,610.05
Less: Income tax expense 1,851,223,389.07 438,388,242.74
V. Net profit (or loss) 9,608,739,771.97 3,695,573,367.31
(1) Categorized by operation continuity
(2) Categorized by ownership
VI. Other comprehensive income, net of tax 205,116,106.60 -7,899,020.61
Other comprehensive income, net of tax, attributable to
shareholders of parent company
a. Other comprehensive income not be reclassified as profit
or loss
profit or loss using the equity method
investments
b. Other comprehensive income to be reclassified as profit or
loss
loss using equity method
comprehensive income
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
financial
Other comprehensive income, net of tax, attributable to non-
controlling interests
VII. Total comprehensive income 9,813,855,878.57 3,687,674,346.70
Total comprehensive income attributable to owners of parent 9,642,573,013.86
company
Total comprehensive income attributable to non-controlling 171,282,864.71
interests
VIII. Earnings per share
(1) Basic earnings per share 6.36 2.42
(2) Diluted earnings per share 6.36 2.42
Legal Representative: Cao Renxian Chief Accountant: Tian Shuai Head of Accounting Department: Li Pan
(in CNY)
Item 2023 2022
I. Operating revenue 37,321,678,590.58 26,798,345,232.68
Less: Operating costs 23,356,714,305.38 20,736,938,957.77
Taxes and surcharges 184,254,854.76 89,454,540.58
Selling expenses 1,535,457,794.43 1,121,725,628.76
General and administrative expenses 407,053,310.39 294,158,951.57
R&D expenses 1,679,755,029.12 1,108,693,906.17
Financial expenses -308,921,861.88 -387,191,420.14
Including: Interest expense 25,051,165.78 24,305,403.72
Interest income 132,016,709.02 75,655,482.56
Add: Other income 89,069,732.35 70,596,800.23
Investment gains (or losses) 742,350,027.68 434,746,619.98
Including: Share of gains of associates and joint ventures -6,167,283.56 -2,408,049.57
Gains (or losses) from derecognition of financial assets
measured at amortized cost
Net exposure hedging gains (or losses)
Gains (or losses) on the changes in fair value 53,915,750.12 -506,748.31
Credit impairment losses -177,336,989.70 -447,759,303.14
Assets impairment losses -204,710,292.22 -15,264,193.57
Gain (or losses) from disposal of assets -1,611,581.06 86,130.64
II. Operating profit (or loss) 10,969,041,805.55 3,876,463,973.80
Add: Non-operating income 14,297,511.32 4,704,919.95
Less: Non-operating costs 9,366,929.68 5,014,049.48
III. Total profit (or loss) 10,973,972,387.19 3,876,154,844.27
Less: Income tax expense 1,367,093,493.15 380,412,241.41
V. Net profit (or loss) 9,606,878,894.04 3,495,742,602.86
a. Net profit (or loss) from continuing operations 9,606,878,894.04 3,495,742,602.86
b. Net profit (or loss) from discontinuing operations
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
V. Other comprehensive income, net of tax -281,692.50 281,692.50
a. Other comprehensive income not to be reclassified as
profit or loss
profit or loss using the equity method
investments
b. Other comprehensive income to be reclassified as profit or
-281,692.50 281,692.50
loss
loss using equity method
comprehensive income
financial
VI. Total comprehensive income 9,606,597,201.54 3,496,024,295.36
VII. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
(in CNY)
Item 2023 2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of
services
Net increase in customer bank deposits and due to banks and
other financial institutions
Net increase in loans from the central bank
Net increase in funds borrowed from other financial
institutions
Cash premiums received on original insurance contracts
Net cash received from re-insurance business
Net increase in deposits and investments from insurers
Cash received from interest, fees and commission
Net increase in funds deposit
Net increase in repurchase business funds
Net income from securities trading brokerage business
Tax refunds received 1,910,464,684.09 2,010,210,787.57
Cash received relating to other operating activities 1,093,633,476.16 636,129,354.20
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
Sub-total of cash inflows 64,909,783,214.55 40,759,815,988.81
Cash paid for purchase of goods and services 47,378,838,109.93 32,223,692,792.32
Net increase in loans and payments on behalf of customers
Net increase in deposits with central bank and other financial
institutions
Payments for claims for original insurance contracts
Net increase in funds lent
Cash paid for interest, fees and commission
Commissions on insurance policies paid
Cash paid to and on behalf of employee 3,919,184,125.68 2,905,936,662.96
Cash paid for taxes 2,925,533,794.68 1,983,956,956.63
Cash paid relating to other operating activities 3,704,388,206.98 2,435,731,091.01
Sub-total of cash outflows 57,927,944,237.27 39,549,317,502.92
Net cash flows from operating activities 6,981,838,977.28 1,210,498,485.89
II. Cash flows from investing activities:
Cash received from disposal of investments 23,445,934,178.93 14,661,894,272.35
Cash received from investment income 99,611,189.52 13,728,203.53
Net proceeds from disposal of fixed assets, intangible assets
-1,409,268.89 9,368,073.62
and other long-term assets
Cash received from disposal of subsidiaries and other
business units
Cash received relating to other investing activities
Sub-total of cash inflows 23,544,136,099.56 14,684,990,549.50
Cash paid for purchase/construction of fixed assets,
intangible assets and other non-current assets
Cash paid for investments 24,633,662,834.72 12,812,669,124.27
Net increase in secured loans
Net cash paid for acquisition of a subsidiary and other
-9,608,508.09
operating units
Cash paid relating to other investing activities
Sub-total of cash outflows 27,365,292,970.63 14,339,435,233.12
Net cash flows from investing activities -3,821,156,871.07 345,555,316.38
III. Cash flows from financing activities:
Cash received from investment 1,012,744,912.50 15,000,000.00
Including: Cash receipts from capital contributions from non-
controlling interests of subsidiaries
Proceeds from borrowings 6,849,766,421.53 8,870,222,959.85
Cash receipts relating to other financing activities 2,110,483,282.13 1,064,751,941.30
Subtotal of cash inflows 9,972,994,616.16 9,949,974,901.15
Repayments for debts 3,560,563,814.12 5,678,221,694.06
Cash payments for distribution of dividends or profit and
interest expenses
Including: Dividends or profit paid to non-controlling
shareholders of subsidiaries
Cash payments relating to other financing activities 2,492,603,592.17 2,173,420,467.94
Subtotal of cash outflows 6,693,485,685.31 8,203,257,437.80
Net cash flows from financing activities 3,279,508,930.85 1,746,717,463.35
IV. Effect of exchange rate changes on cash and cash 24,738,607.63 -60,678,401.58
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
equivalents
V. Net increase in cash and cash equivalents 6,464,929,644.69 3,242,092,864.04
Add: Cash and cash equivalents at beginning of the period 9,802,092,656.80 6,559,999,792.76
VI. Cash and cash equivalents at end of the period 16,267,022,301.49 9,802,092,656.80
(in CNY)
Item 2023 2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of
services
Tax refunds received 1,353,859,576.51 1,147,907,367.79
Cash received relating to other operating activities 260,602,342.64 190,264,372.84
Sub-total of cash inflows 35,007,722,394.13 22,649,354,965.63
Cash paid for purchase of goods and services 22,346,864,428.08 16,517,692,526.60
Cash paid to and on behalf of employee 1,597,003,312.62 1,275,541,506.39
Cash paid for taxes 606,106,105.13 417,527,277.33
Cash paid relating to other operating activities 2,090,113,582.90 1,213,446,733.19
Sub-total of cash outflows 26,640,087,428.73 19,424,208,043.51
Net cash flows from operating activities 8,367,634,965.40 3,225,146,922.12
II. Cash flows from investing activities:
Cash received from disposal of investments 22,901,050,502.93 13,338,421,935.62
Cash received from investment income 368,517,311.24 107,506,947.55
Net proceeds from disposal of fixed assets, intangible assets
and other long-term assets
Cash received from disposal of subsidiaries and other business
units
Cash received relating to other investing activities 2,019,346,250.00
Sub-total of cash inflows 23,269,617,856.80 15,490,362,130.92
Cash paid for purchase/construction of fixed assets, intangible
assets and other non-current assets
Cash paid for investments 25,467,532,068.00 12,442,801,480.00
Net increase in secured loans
Net cash paid for acquisition of a subsidiary and other
operating units
Cash paid relating to other investing activities 27,766,302,715.77 15,564,344,305.37
Sub-total of cash outflows -4,496,684,858.97 -73,982,174.45
Net cash flows from investing activities
III. Cash flows from financing activities: 52,746,412.50
Cash received from investment 12,122,000.00 1,209,531,000.00
Cash received from borrowings 2,716,599,774.59 134,997,884.97
Cash receipts relating to other financing activities 2,781,468,187.09 1,344,528,884.97
Subtotal of cash inflows 113,641,000.00 726,205,196.00
Repayments for debts 350,502,484.73 182,657,721.65
Cash payments for distribution of dividends or profit and
interest expenses
Cash payments relating to other financing activities 1,900,754,789.45 1,645,285,239.00
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023 2022
Net cash flows from financing activities 880,713,397.64 -300,756,354.03
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 4,775,096,388.95 2,797,910,705.17
Add: Cash and cash equivalents at beginning of the period 6,925,024,941.28 4,127,114,236.11
VI. Cash and cash equivalents at end of the period 11,700,121,330.23 6,925,024,941.28
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Current amount
(in CNY)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
I. Balance at the end -
of previous year 1,485, 7,052,8 520,749,6 30,520,376. 1,066,2 9,613, 18,666 1,070,689 19,736
Add: changes in
accounting policies 38,645. 15,766. 933,95 988,36 240,271.4 1,228,
Corrections of prior
period errors
Others
II. Balance at the -
beginning of the year 1,485, 7,052,8 520,749,6 30,520,376. 1,066,2 9,614, 18,667 1,070,930 19,738
III. Increase (or
decrease) during the - 553,296 860,318,3 203,011,21 27,728 9,114, 9,037, 678,347,8 9,716,
period 40,000 ,682.18 58.03 3.61 ,572.9 246,49 924,60 46.85 272,45
.00 7 4.55 5.28 2.13
a. Total
comprehensive 203,011,21 9,439, 9,642, 169,177,9 9,811,
income 3.61 561,80 573,01 71.72 750,98
b. Owners’
contribution and - 122,883 122,84 973,754,9 1,096,
reduction 40,000 ,862.87 3,862. 16.85 598,77
.00 87 9.72
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
contribution in - - - 959,998,5 959,80
ordinary share 40,000 153,180 193,18 00.00 5,320.
.00 .00 0.00 00
other equity
instruments
based payments 123,037 123,03 13,756,41 136,79
recognized in equity ,042.87 7,042. 6.85 3,459.
c. Profit distribution -
- - 37,595,72 -
reserve
reserve
owner (or - - 37,595,72 -
shareholder) 325,31 325,31 7.30 362,91
d. Transfer within
equity
converted to share
capital
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
converted to share
capital
surplus reserves
defined benefit plan
transferred to retained
earnings
comprehensive
income transferred to
retained earnings
e. Special reserve
,572.9 ,572.9 .36 ,355.3
,173.6 ,173.6 .36 ,955.9
,600.6 ,600.6 ,600.6
f. Others - -
,819.31 58.03 5,538. 96.78 858,52
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Capital Special Surplus General Retained controlling owners’
Preference Perpetual treasury comprehensiv Others Subtotal
capital Others reserve reserve reserve reserve earnings interests equity
share debt shares e income
IV. Balance at the end
of the period 1,485, 7,606,1 1,381,067 172,490,83 27,728 1,066,2 18,728 27,705 1,749,277 29,454
Last period amount
(in CNY)
Equity attributable to owners of the parent
Non- Total
Item Other equity instruments Less: Other
Share Special Surplus General Retained controlling owners’
Preference Perpetual Capital reserve treasury comprehensive Others Subtotal
capital Others reserve reserve reserve earnings interests equity
share debt shares income
I. Balance at the end 1,485, 15,133 - 6,532, 15,655, 1,048,6 16,703,
of previous year 215,98 ,520.0 24,221,290.1 893,91 063,485 14,563. 678,048
Add: changes in 29,777.6 883,44 951,864 139,267 1,091,1
accounting policies 6 1.15 .62 .23 31.85
Corrections of prior
period errors
Others
II. Balance at the 1,485, 15,133 - 6,533, 15,656, 1,048,7 16,704,
beginning of the year 215,98 ,520.0 24,221,290.1 777,35 015,350 53,830. 769,180
III. Increase (or - 505,61 3,080, 3,011,2 3,033,4
decrease) during the 25,000 6,105. 499,44 78,408. 54,660.
period .00 73 7.31 79 98
a. Total 3,593, 3,587,1 3,689,2
- 102,126
comprehensive 446,51 47,427. 74,280.
income 4.09 69 91
b. Owners’ - 505,61 - - -
contribution and 25,000 6,105. 387,105 4,729,5 391,834
reduction .00 73 ,043.70 45.53 ,589.23
contribution in 25,000 -101,237.94 126,237 4,729,5 4,855,7
ordinary share .00 .94 45.53 83.47
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
other equity
instruments
based payments 6,105. 386,978 386,978
recognized in equity 73 ,805.76 ,805.76
c. Profit distribution -
- -
,806.49 ,806.49
reserve 349,574, 349,57
reserve
- -
owner (or 163,37
shareholder) 2,806.
,806.49 ,806.49
d. Transfer within
equity
converted to share
capital
converted to share
capital
surplus reserves
defined benefit plan
transferred to
retained earnings
comprehensive
income transferred to
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
retained earnings
e. Special reserve
f. Others - - - -
IV. Balance at the end 7,052,879,1 1,066,21
of the period 88.31 6,783.99
Current amount
(in CNY)
Item 2023
Share capital Other equity instruments Capital Less: Other Special Surplus Retained Others Total
Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
I. Balance at the end of 1,485,190,984.00 7,146,6 520,749 281,692.50 1,066,2 8,636,973 17,814,
previous year 87,476. ,625.73 01,017. ,267.33 584,812
Add: changes in accounting 15,766. 141,896.6 157,662
policies 30 6 .96
Corrections of
prior period errors
Others
II. Balance at the beginning 1,485,190,984.00 7,146,6 520,749 281,692.50 1,066,2 8,637,115 17,814,
of the year 87,476. ,625.73 16,783. ,163.99 742,475
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023
Share capital Other equity instruments Capital Less: Other Special Surplus Retained Others Total
Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
III. Increase (or decrease) -40,000.00 59,353, 860,318 -281,692.50 11,303,4
during the period 449.10 ,358.03 24.15 9,281,563 8,491,5
,588.34 80,411.0
a. Total comprehensive -281,692.50
income 9,606,878 9,606,5
,894.04 97,201.
b. Owners’ contribution and -40,000.00 59,353, 59,313,
reduction 449.10 449.10
ordinary share 153,180 193,180
.00 .00
equity instruments
payments recognized in 629.10 629.10
equity
c. Profit distribution - -
reserve
shareholder) 325,315,3 325,315
d. Transfer within equity
converted to share capital
converted to share capital
reserves
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2023
Share capital Other equity instruments Capital Less: Other Special Surplus Retained Others Total
Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
benefit plan transferred to
retained earnings
income transferred to
retained earnings
e. Special reserve 11,303,4 11,303,4
f. Others 860,318 -
,358.03 860,318
,358.03
IV. Balance at the end of the 1,485,150,984.00 7,206,0 1,381,0 11,303,4 1,066,2 17,918,67 26,306,
period 40,925. 67,983. 24.15 16,783. 8,752.33 322,886
Previous period amount
(in CNY)
Item 2022
Share Other equity instruments Capital Less: Other Special Surplus Retained Others Total
capital Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
I. Balance at the end of previous 1,485,215,9 7,074,553 15,133,520. 716,612 5,654,051 14,915,30
year 84.00 ,205.11 00 ,746.04 ,628.97 0,044.12
Add: changes in accounting 29,777. 267,998.9 297,776.6
policies 66 4 0
Corrections of prior period errors
Others
II. Balance at the beginning of the 1,485,215,9 7,074,553 15,133,520. 716,642 5,654,319 14,915,59
year 84.00 ,205.11 00 ,523.70 ,627.91 7,820.72
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2022
Share Other equity instruments Capital Less: Other Special Surplus Retained Others Total
capital Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
III. Increase (or decrease) during -25,000.00 72,134,27 505,616,10 281,692.50 349,574 2,982,795 2,899,144
the period 1.68 5.73 ,260.29 ,536.08 ,654.82
a. Total comprehensive income 281,692.50 3,495,742 3,496,024
,602.86 ,295.36
b. Owners’ contribution and -25,000.00 72,134,27 505,616,10 -
reduction 1.68 5.73 433,506,8
share 101,237.9 126,237.9
instruments
payments recognized in equity 9.62 5.73 433,380,5
c. Profit distribution 349,574 - -
,260.29 512,947,0 163,372,8
,260.29 349,574,2
shareholder) 163,372,8 163,372,8
d. Transfer within equity
share capital
share capital
reserves
Sungrow Power Supply Co., Ltd. 2023 Annual Report (Full Copy)
Item 2022
Share Other equity instruments Capital Less: Other Special Surplus Retained Others Total
capital Preference Perpetual Others reserve treasury comprehensive reserve reserve earnings Owners’
share debt shares income Equity
plan transferred to retained
earnings
transferred to retained earnings
e. Special reserve
.03 3
.03 3
f. Others
IV. Balance at the end of the period 1,485,190,9 7,146,687 520,749,62 281,692.50 1,066,2 8,637,115 17,814,74
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