Growth Analysis of GoodWe (SH688390)'s Energy Storage Inverter Business

Based on the data and analysis I have collected, here is a detailed analytical report on

:

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GoodWe achieved a strong reversal from heavy losses to profits in 2025, with its energy storage business serving as the core driver of performance growth. The company’s net profit in the first three quarters surged

year-on-year, successfully turning around from losses to profits [1]. This reversal marks a significant improvement in the company’s operating conditions, and the strategic value of its energy storage business is being rapidly unleashed.

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Indicator	1Q-3Q 2025	1Q-3Q 2024	YoY Change
Total Operating Revenue	RMB 6.194 billion	RMB 4.943 billion	+25.30%
Net Profit Attributable to Shareholders	RMB 81.12 million	RMB 8.65 million	+837.57%
Non-recurring Net Profit	-RMB 9.655 million	-RMB 31.69 million	Significantly Reduced Losses
Earnings Per Share (EPS)	RMB 0.33	RMB 0.04	+725%
Cash Flow from Operating Activities	-RMB 32.67 million	-RMB 1.024 billion	Improved by over RMB 990 million

Data Source: [1] Eastmoney Research Report

Looking at quarterly data, the company shows a clear recovery trajectory:

• 2024Q3
  : Net profit of RMB 13 million (Impact of high inventory in Europe began to emerge)
• 2024Q4
  : Net loss of RMB 29 million (The most difficult period of the year)
• 2025Q1
  : Loss narrowed to RMB 12 million, revenue increased 67.13% year-on-year
• 2025Q2
  : Loss continued to narrow to RMB 7 million
• 2025Q3
  : Net profit of RMB 48 million, achieved a key breakthrough

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According to BloombergNEF (BNEF) and industry data, GoodWe holds a leading position in the

:

Rank	Company	Market Share
1	GoodWe (SH688390)	18%
2	Growatt	14%
3	Chint	12%
4	SolarEdge	10%
5	TaosPower	8%
-	Others	38%

Data Source: BNEF, Industry Research Report [2]

Product Category	Sales Volume	Proportion
Grid-tied Inverter	366,300 units	91.69%
Energy Storage Inverter	33,200 units	8.31%
Energy Storage Battery	214.47 MWh	-
Residential Distributed System	647.91 MW	-

: The proportion of energy storage inverter sales has increased from less than 5% in the early stage to over 8% currently, indicating that the energy storage business is expanding rapidly [3].

The company continues to increase R&D investment and launched a number of new energy storage products in H1 2025:

Product Series	Product Type	Core Features
ESA Series	Industrial & Commercial Outdoor Integrated Cabinet	Won the “2024 Outstanding New Energy Storage Product Award” [3]
ESA 125kW/261kWh	Industrial & Commercial Integrated Cabinet	Full-stack self-developed, long lifespan, high safety
ESA 50kW/100kWh	Industrial & Commercial Integrated Cabinet	Flexible deployment, extreme safety
ES G2	Residential Hybrid Inverter	Core of EcoSmart Home solution
SDT G4 Series	Photovoltaic Inverter	New upgraded version

In June 2025, the company launched the

one-stop home energy solution, integrating a new generation of high-performance hybrid inverters to meet users’ increasingly diverse home energy needs [4].

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Year	Global Photovoltaic Inverter Market Size	YoY Growth Rate
2025	USD 25.41 billion	-
2026	USD 29.53 billion	+16.2%
2027	USD 34.31 billion	+16.2%
2028	USD 39.85 billion	+16.2%
2029	USD 46.32 billion	+16.2%
2032	USD 72.69 billion	+16.2%

Data Source: Coherent Market Insights [5]

The global photovoltaic inverter market is expected to maintain a

from 2025 to 2032. As a high-value-added product, energy storage inverters will grow at a faster rate.

• Asia-Pacific region
  dominates the market, accounting for 45.1% of the share
• Residential + industrial & commercial energy storage
  has become the fastest-growing segment
• Demand for
  hybrid inverters (PV-storage integration)
  surges
• Europe, the United States, and China are the main incremental markets

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Certification/Honor	Issuing Body	Year
Global Tier 1 Inverter Manufacturer	BloombergNEF (BNEF)	2025Q2
Global Top 100 New Energy ESG List	Global Green Energy Council, et al.	2025
7th Annual Inverter & Energy Storage Product Award for China’s Residential and Industrial & Commercial PV-Storage-Charging Industry	-	2025
Global Top 10 String Inverter Brands	IHS Markit	Consecutive Years

The company has established a global marketing service system:

• Overseas subsidiaries
  : South Korea, Germany, the United Kingdom, the Netherlands, the United States, Japan, Spain, Singapore, Poland, etc.
• Sales network
  : Products are sold to
  84 countries and regions
• Key markets
  : Australia, Germany, Brazil, Italy, India, Spain, Pakistan, the United States, the Netherlands, etc.

• Residential customers (home PV + energy storage systems)
• Industrial & commercial customers (factories, commercial buildings)
• Utility-scale power plant operators

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Financial Indicator	Value	Evaluation
Asset-Liability Ratio	Moderate	Good financial condition
Cash Flow from Operating Activities	Still negative, but significantly improved	Operating efficiency is recovering
Gross Profit Margin	Approximately 20-21%	Remains relatively stable
Return on Equity (ROE)	0.39%	Profitability is recovering

: The company adopts relatively aggressive accounting policies (low depreciation/capital expenditure ratio), and investors need to pay attention to the actual quality of earnings [0].

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Catalyst	Expected Impact
Continuous growth of global PV installations	Expanded demand for inverters
Decline in energy storage costs	Increased penetration of energy storage
Easing of inventory issues in Europe	Recovery of high-margin businesses
Launch of new products	Increased market share
Advancement of carbon neutrality policies	High long-term growth certainty

Risk Type	Details
Industry Risk	Changes in PV policies, subsidy cuts
Competition Risk	Intensified competition from giants like Huawei and Sungrow
Exchange Rate Risk	High proportion of overseas revenue
Raw Material Risk	Fluctuations in prices of semiconductors and chips
Inventory Risk	De-stocking cycle in the European market

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:

1. GoodWe achieved a
   strong performance reversal
   in 2025, with its energy storage business as the core driver
2. The company ranks
   first
   in the global energy storage hybrid inverter market, validating its technical strength and market position
3. The global PV energy storage industry maintains a high growth rate of
   16.2% CAGR
   , and the company is poised to continue benefiting from it
4. With the easing of inventory issues in Europe and the expansion of new product sales, the
   performance inflection point has emerged

:

• The full-year net profit in 2025 is expected to reach
  RMB 230-300 million
  [1]
• The proportion of energy storage business is expected to increase to
  10-12%
• Continue to be optimistic about the company’s leading position in the global energy storage inverter market

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[1] Eastmoney - 2025 Annual Performance Forecast and Trend Analysis of GoodWe (688390) (https://emcreative.eastmoney.com/app_fortune/article/index.html?artCode=20251208095447889146960)

[2] GoodWe Official - Global Top 3 Hybrid Inverter Supplier (https://us.goodwe.com/news/news-479)

[3] GoodWe 2025 Semi-Annual Report - CNINFO (https://static.cninfo.com.cn/finalpage/2025-08-29/1224614301.PDF)

[4] Coherent Market Insights - Inverter Market Trends, Share and Forecast 2025-2032 (https://www.coherentmarketinsights.com/industry-reports/inverter-market)

[5] EET China - A Flood of New Products! 15 Energy Storage Companies Gather at SNEC ES Exhibition in Shanghai (https://www.eet-china.com/mp/a444423.html)

[0] Jinling API - Corporate Financial Data and Market Data