Inverter sector profitability divide: Sungrow and Sigenergy lead, while four rivals post losses

Stark profitability divide

Chinese inverter manufacturers are experiencing stark polarisation in their financial performance.

As a global leader in solar and storage, Sungrow boasts the industry’s largest operational scale, comprehensive application coverage and a mature global footprint. Its diverse portfolio—spanning PV inverters, storage systems and new energy project development—provides it with a distinct competitive advantage.

In H1 2026, Sungrow reported operating revenue of RMB30.912 billion (US$4.6 billion) and net profit attributable to parent shareholders of RMB5.259 billion.

Deye achieved robust growth in the first half of the year, driven by expanding global residential storage demand and strong market traction across Europe, Asia, Africa and Latin America. The company recorded operating revenue of RMB10.641 billion and net profit of RMB2.717 billion, representing year-on-year increases of 92.23% and 78.53% respectively.

Sigenergy, a rapidly emerging leader in residential storage, completed its Hong Kong IPO in April 2026. Fuelled by strong demand in Australia and Europe, the company generated H1 operating revenue of RMB 9.874 billion (up 261.2% Year-on-year) and attributable net profit of RMB 2.428 billion (up 201% Year-on-year), alongside a gross margin of 40.5%.

In contrast, Solis and GoodWe focus on decentralised solar and storage markets, maintaining a balanced domestic and international presence. Their core products include PV grid-tied inverters, storage inverters, residential PV and storage systems.

Solis recorded modest revenue growth to RMB3.882 billion in the first half, but its net profit fell 29.74% year-on-year to RMB423 million. From a product mix perspective, revenue from its PV grid-tied inverter segment dropped nearly 42% year-on-year, while its storage inverter business surged 106.70%, and its storage systems segment also saw significant expansion. The drop in profit decline was primarily driven by non-operating factors, including foreign exchange losses and increased share-based compensation expenses.

GoodWe reported H1 revenue of RMB6.250 billion, a 52.96% year-on-year increase. The company swung to profitability, with net income attributable to parent shareholders of RMB286 million, up from a loss of RMB17 million in the same period last year, achieving a net profit margin of 4.6%.

Chint Power generated operating revenue of RMB1.803 billion in the first half, up 5.53% year-on-year. However, net profit attributable to parent shareholders declined 29.80% to RMB68 million. Chint Power maintained modest revenue growth, demonstrating resilience in its order and shipment volumes.

Sineng Electric achieved H1 revenue of RMB2.858 billion, up 30.84% year-on-year, while net profit attributable to parent shareholders rose 7.96% to RMB216 million.

In contrast, APSystems, Solaxpower, Sofarsolar and Hoymiles all posted net losses in the first half.

APSystems, primarily a microinverter manufacturer with a strong presence in European and North American residential PV markets, is currently transitioning toward storage. However, the challenges of this transformation, combined with a market downturn, have continued to weigh on its performance. Following a loss in 2025, the company reported a net loss of RMB132 million in H1 2026 on revenue of just RMB300 million.

APSystems attributed the losses to several factors: declining new installations in traditional overseas PV markets led to a drop in microinverter sales, while a decrease in accepted and delivered domestic commercial and industrial storage projects resulted in insufficient business growth. Additionally, ongoing investments in R&D and overseas market expansion, coupled with foreign exchange losses from currency fluctuations, further squeezed profit margins.

Solaxpower is heavily concentrated in overseas markets, with core operations spanning PV grid-tied inverters, residential and commercial & industrial storage systems. Driven by dual growth engines in Europe and emerging markets such as Australia, Vietnam, and the Philippines, the company sustained top-line expansion. However, profitability remained under pressure, resulting in a net loss of RMB35 million in the first half.

Solaxpower attributed its weak performance to several factors. Lower selling prices in newly entered markets, combined with rising raw material costs and a reduced export tax rebate rate, compressed gross margins. Additionally, sharp currency fluctuations turned last year’s exchange gains into sizable exchange losses during this period, further widening the year-on-year profit decline.

Sofarsolar reported H1 revenue of RMB1.310 billion, a 17.72% year-on-year increase. However, net profit attributable to parent shareholders fell to -RMB72 million, a 179.04% year-on-year decline. Excluding non-recurring items, the adjusted net loss deepened to -RMB86 million.

Hoymiles posted H1 operating revenue of RMB1.780 billion, up 77.06% year-on-year, but net profit attributable to parent shareholders swung to a loss of -RMB 164 million, representing a 1,107.86% year-on-year drop.

Against the backdrop of polarisation in the inverter industry, Hoymiles achieved substantial growth in revenue scale, but its profit side came under pressure and fell into loss, a typical case of revenue growth without profit growth. The primary pressures included softening demand in overseas microinverter markets and an industry-wide price war that compressed gross margins. These headwinds were further compounded by increased overseas market expansion costs, sustained R&D spending and foreign exchange losses.

Compared with its peers, companies deeply embedded in the residential storage segment delivered substantial performance gains. In contrast, microinverter-focused manufacturers like Hoymiles and APSystems posted losses. This divergence highlights the dual impact of intensifying competition in the microinverter space and shrinking demand in overseas residential PV markets.

One dark cloud on the horizon for China’s inverter manufacturers is the potential impact of the ban recently implemented in the United States on foreign-produced inverters. Although this is a potentially disruptive move for inverter producers in China and elsewhere, as previously reported on PV Tech, because the ban applies to future inverter models, the immediate impact is expected to be minimal.