Sungrow Hong Kong IPO Preview: World’s Largest Inverter Maker Eyes Dual Listing
Sungrow’s PowerTitan 2.0 utility-scale battery energy storage system. Photo Credit: Sungrow
The world’s largest solar inverter manufacturer is coming to Hong Kong. Sungrow Power Supply Co., Ltd. (Shenzhen: 300274) filed an application proof with the Hong Kong Stock Exchange (HKEX) in October 2025, seeking a main board listing of H-shares sponsored by China International Capital Corporation (CICC).1 The offer size remains subject to regulatory review and was redacted in the application proof; based on the 2,052,524,361 A-shares outstanding and the closing price of RMB 150.46 disclosed in the filing, the company’s existing Shenzhen market capitalization was approximately RMB 309 billion (USD 43 billion) at the time of filing.
The strategic rationale is larger than the capital raise suggests. With overseas revenues surpassing domestic China sales for the first time in the first half of 2025, and energy storage now its fastest-growing business, Sungrow is positioning itself to tap international capital markets and deepen brand credibility with global institutional investors. The Hong Kong listing follows a string of record-breaking contracts, including a 7.8 GWh battery storage supply deal that was reported as the world’s largest grid-scale storage order at the time of signing.
The application proof is in draft form and contains redacted pricing and share count details pending regulatory review. This article is based solely on the application proof filed with HKEX and the company’s 2024 Annual Report.
Key Points
- Sungrow (Shenzhen: 300274) is seeking a dual listing on the Hong Kong Stock Exchange, adding H-shares to its existing A-share listing on the Shenzhen Stock Exchange’s ChiNext board. The offer is sponsored by China International Capital Corporation (CICC); pricing and share count details were redacted in the application proof as is standard for a draft filing.
- H1 2025 revenue reached RMB 43.4 billion, up +40.3% year-on-year, with net profit of RMB 7.8 billion (up +55.2%). Overseas revenues reached 58.4% of total sales, exceeding domestic China for the first time.
- Energy storage system (ESS) revenues surged +127.8% year-on-year in H1 2025 to RMB 17.8 billion, making ESS the company’s largest revenue segment for the first time.
- Sungrow holds the world’s #1 ranking in PV inverter bankability (Bloomberg NEF, 2024), cumulative inverter shipments exceeding 595 GW across 100+ countries, and a 25.2% global inverter market share by shipment volume.
- Use of proceeds is directed toward R&D for next-generation PV and storage products, construction of overseas manufacturing bases, and digital transformation initiatives.
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Company overview
Founded in 1997 by Cao Renxian, then a researcher at the University of Science and Technology of China, Sungrow Power Supply Co., Ltd. has grown from a university spin-out into the world’s largest manufacturer of photovoltaic (PV) inverters and a leading global producer of battery energy storage systems. The company is headquartered in Hefei, Anhui Province, China, and has been listed on the Shenzhen Stock Exchange’s ChiNext board since 2011 under the ticker 300274.
Sungrow’s core mission, “Clean Power for All,” reflects its position at the heart of the global energy transition. As of June 30, 2025, the company had shipped PV inverters to over 100 countries and regions, with cumulative installed capacity exceeding 595 GW. Its energy storage systems had reached cumulative shipments of 70 GWh globally. The company had 18,217 full-time employees as of June 30, 2025, with 7,120 in research and development roles, representing approximately 39% of total headcount.
The Hong Kong listing represents the next step in Sungrow’s international expansion strategy. The company has been explicit that the dual-listing is intended to diversify its funding sources, enhance international brand visibility, and strengthen its competitiveness in global markets at a time when overseas revenues now exceed domestic China sales.
“We view brand as the concentrated expression of a company’s long-term business philosophy and value proposition. Our power conversion devices and energy storage systems are not merely functional products. They encompass long-cycle service attributes including grid simulation, solution design, grid connection and delivery and ongoing operation and maintenance.”Sungrow Power Supply Co., Ltd., Application Proof, Hong Kong Stock Exchange, October 2025
Products and services
Sungrow operates across six principal product lines, with PV inverters and energy storage systems constituting the majority of revenues. The company’s integrated power electronics platform underpins a product portfolio spanning residential rooftop systems through to grid-scale utility projects.
| Product / Segment | Description | % of Revenue (H1 2025) |
|---|---|---|
| Energy Storage Systems | Utility-scale and C&I battery energy storage systems; flagship PowerTitan 2.0 product | 41.0% |
| PV Inverters & Power Conversion | String, centralized, modular, residential and microinverters; 0.45 kW to 8.8 MW range | 35.3% |
| New Energy Investment & Development | DBT and EPC services for utility-scale solar and wind power stations | 19.3% |
| Other (Wind, NEV, FPV, Hydrogen, AIDC) | Wind converters (165 GW cumulative), NEV electric drives, floating PV, green hydrogen equipment, AI data centre power supplies | 4.4% |
The flagship energy storage product, PowerTitan 2.0, is a liquid-cooled system supporting a configuration capacity of 2.5 MW/5 MWh per standard 20-foot cabinet. In 2024, Sungrow completed two safety milestones: the world’s first large-scale combustion test on an energy storage system (PowerTitan 1.0), and the world’s largest and longest-duration real-life combustion non-spreading test on a 20 MWh PowerTitan 2.0 system, certified by DNV. This safety validation is increasingly material for project finance lenders and insurance underwriters globally. By 2025, Sungrow had also launched PowerTitan 3.0, with its Plus version offering 3.125 MW/12.5 MWh per cabinet.
A newer strategic expansion is the company’s entry into AI data centre (AIDC) power supply, offering full-stack power solutions from medium-voltage grid level to chip level. This segment targets next-generation AI data centres leveraging the company’s High Voltage Direct Current (HVDC) and Solid State Transformer (SST) technologies, an emerging commercial opportunity as hyperscaler power demand accelerates globally.
“We are committed to offering highly reliable, high-efficiency and high-power density full-stack power solutions for next-generation AI data centers. Our product portfolio covers end-to-end power products from medium-voltage grid level to chip level, with a particular focus on HVDC-related product series.”Sungrow Power Supply Co., Ltd., Application Proof, Hong Kong Stock Exchange, October 2025
Financial performance
Sungrow’s financial trajectory over the Track Record Period (2022 to H1 2025) reflects a company scaling rapidly across both volume and margin. Revenue grew from RMB 40.1 billion in 2022 to RMB 77.7 billion in 2024, a compound annual growth rate of approximately 39%. Gross margin expanded from 20.4% in 2022 to 29.0% in 2024, and further to 32.9% in H1 2025, driven by the mix shift toward the higher-margin energy storage segment. All financial data is reported under International Financial Reporting Standards (IFRS).
| Metric (RMB millions) | FY 2022 | FY 2023 | FY 2024 | H1 2025 |
|---|---|---|---|---|
| Revenue | 40,109 | 72,159 | 77,704 | 43,437 |
| YoY Revenue Growth | — | +79.9% | +7.7% | +40.3% vs H1 2024 |
| Gross Profit | 8,195 | 18,369 | 22,501 | 14,289 |
| Gross Margin | 20.4% | 25.5% | 29.0% | 32.9% |
| R&D Expenses | 1,692 | 2,447 | 3,164 | 2,037 |
| Profit Before Tax | 4,134 | 11,460 | 13,544 | 9,368 |
| Net Profit | 3,696 | 9,609 | 11,264 | 7,830 |
| Net Margin | 9.2% | 13.3% | 14.5% | 18.0% |
The pivot toward energy storage is the defining financial theme of 2025. In H1 2025, ESS revenues reached RMB 17.8 billion, surpassing PV inverter revenues (RMB 15.3 billion) for the first time, with ESS constituting 41% of total revenue compared to 25% in full-year 2023. The segment’s gross margin expansion is particularly notable: ESS gross margins reached approximately 40% in H1 2025, versus approximately 36% for PV inverters, as disclosed in the application proof.
The geographic mix has also shifted materially. Overseas revenue reached RMB 25.4 billion in H1 2025, representing 58.4% of total revenue and up +88.4% year-on-year. This marks the first period in which international sales exceeded China domestic sales. PV inverter shipments reached 76 GW in H1 2025 (versus 65 GW in H1 2024), while ESS shipments reached 19.5 GWh (versus 7.8 GWh in H1 2024), a year-on-year increase of 150%.
IPO details
The application proof filed with HKEX in October 2025 contains redacted pricing and share count parameters, as is standard for an initial draft submission. The following details are derived from the non-redacted sections of the filing.
| Detail | Value |
|---|---|
| Exchange | Hong Kong Stock Exchange (HKEX), Main Board |
| Share Class | H-shares (new issue; existing A-shares remain listed on Shenzhen ChiNext, ticker 300274) |
| Shares Offered | [Redacted in application proof] |
| Offer Price / Target Raise | [Redacted in application proof] |
| Existing A-share Market Cap (Shenzhen) | Approximately RMB 309 billion (based on 2,052,524,361 shares at RMB 150.46 closing price as of Latest Practicable Date) |
| Sole Sponsor | China International Capital Corporation Hong Kong Securities Limited (CICC) |
| Use of Proceeds | R&D for next-generation PV and ESS products; overseas manufacturing base construction; digital transformation; working capital |
| Filing Status | Application Proof (draft form); pricing details subject to HKEX review |
The company’s operating cash flow reached RMB 12.1 billion in full-year 2024, and the primary benefit of the Hong Kong listing is a platform for international equity access and the credibility that comes with HKEX’s disclosure and governance standards.2
The proceeds earmarked for overseas manufacturing base construction are strategically significant. Sungrow had already built 50 GW of overseas PV inverter production capacity by June 30, 2025, providing a supply chain hedge against escalating trade barriers. Additional capital directed to this initiative signals a continued commitment to localised production in key markets including Europe, Southeast Asia, and potentially the Middle East.
Ownership and funding
Sungrow is founder-led. Cao Renxian, who co-founded the company in 1997 and serves as both Chairman and President, together with Ms. Su Yangjun jointly held approximately 30.63% of the company’s total share capital as of the Latest Practicable Date disclosed in the application proof. The filing identifies Mr. Cao and Ms. Su as the “Single Largest Shareholders Group.” This level of founder ownership provides strong strategic continuity but also represents a concentration of control that prospective H-share investors should weigh.
The Hong Kong offering consists entirely of newly issued H-shares; the application proof does not indicate any insider selling as part of the offering. Post-listing, Sungrow will have a dual share structure with A-shares (Shenzhen) and H-shares (Hong Kong), connected via the Shenzhen-Hong Kong Stock Connect program for cross-border trading.
Sungrow has not required venture or private equity backing to reach its current scale. The company has grown primarily through retained earnings and debt financing, underpinned by strong operating cash flow. The 2021 private placement (non-public A-share offering) raised approximately RMB 3.64 billion, primarily funding a 100 GW annual-capacity manufacturing base expansion, with RMB 3.26 billion of that raise deployed as of December 31, 2024.
Key risks
Trade barriers and tariff exposure. The prospectus explicitly flags that “our international business may be subject to complexities inherent in international operations, including operational risks, compliance and regulatory requirements, such as uncertainties associated with tariffs, international trade policies, trade protection measures, economic or trade sanctions, export control measures and outbound investment restrictions.” With overseas sales now comprising 58.4% of H1 2025 revenues and the United States representing a significant target market, escalation of tariffs on Chinese goods, or Sungrow’s designation under the Foreign Entity of Concern provisions affecting U.S. solar tax credits, could materially impair the international growth trajectory.
Energy storage margin sustainability. The ESS segment’s +127.8% revenue surge in H1 2025 and gross margins approaching 40% reflect current favourable pricing conditions. The global battery energy storage market is attracting substantial capital from both Chinese and international competitors. Price compression similar to what occurred in the PV module market over 2022 to 2024 represents a structural risk to the high margins currently underpinning Sungrow’s profit growth.
R&D execution risk. The prospectus acknowledges that “research and development activities are inherently uncertain and subject to various risks, including failure to achieve intended technical results, delays in development timelines and inability to keep pace with the technological advances in the industry.” With R&D expenses running at approximately 4.7% of revenues (RMB 2.0 billion in H1 2025 alone), and the company investing in grid-forming inverters, AIDC power supply, and green hydrogen simultaneously, execution across multiple technology bets carries risk.
New energy development project risk. Sungrow’s new energy investment and development segment (19.3% of H1 2025 revenues) involves large-scale power station construction with substantial upfront capital commitments, long construction periods, and exposure to electricity price volatility. The segment contracted 15.1% year-on-year in full-year 2024, highlighting the lumpiness of project-based revenue.
Working capital and receivables concentration. As of December 31, 2024, accounts receivable stood at RMB 27.6 billion, equivalent to 35.4% of annual revenues. The rapid growth in overseas business, where payment cycles may be longer and credit conditions less standardised, amplifies the risk of receivables impairment. Net impairment losses on financial and contract assets reached RMB 1.1 billion in FY 2024.