New stock preview | How deep is the barrier of Guirewat's radical transformation into the "champion of household energy storage"?

On June 16th, Growatt Technology Co., Ltd, a global leading provider of photovoltaic storage solutions, submitted its listing application to the Hong Kong Stock Exchange for the third time, with Huatai International as the exclusive sponsor. Against the backdrop of accelerating the global net-zero carbon target, distributed energy is experiencing a historic explosion. According to the prospectus, Growatt Technology has established itself as the world's third largest residential energy storage inverter provider and the largest residential energy storage inverter provider in the Americas, with a sales network covering approximately 190 countries and regions. From a fundamental perspective, after experiencing the industry destocking and price wars in 2024, Growatt Technology has demonstrated strong performance recovery and structural optimization capabilities. The company's revenue for 2023, 2024, and 2025 were 5.363 billion RMB, 4.476 billion RMB, and 5.233 billion RMB respectively. Although the net profit briefly bottomed out in 2024, it rebounded strongly to 413 million RMB in 2025. Performance Roller Coaster According to the prospectus, Growatt Technology achieved a strong revenue rebound in 2025, but the stability of its profit quality and the competitiveness of its core business remain core financial challenges in its IPO journey. In terms of profit volatility, Growatt Technology's net profit performance is extreme. In 2023, the company achieved a net profit of 843 million RMB, which seemed impressive; however, in 2024, this number plummeted by 97.6% to only 19.874 million RMB. Although net profit rebounded to 413 million RMB in 2025, it was still less than half the size of 2023. This drastic fluctuation is not a result of the normal fluctuations in operating cash flow, but rather reflects its excessive sensitivity to external market conditions and non-recurring gains and losses. The company attributed its profit collapse in 2024 to the normalizing demand in the European market leading to a sharp drop in revenue (from 2.397 billion RMB to 1.361 billion RMB) and a contraction in gross profit margin due to promotional pricing. Additionally, a key non-operating factor - fair value changes in financial instruments issued to investors - contributed 362 million RMB in income in 2023, but turned into losses of 29.081 million RMB and 67.417 million RMB in 2024 and 2025 respectively, greatly distorting actual operating results. Even with adjusted net profits (5.02 billion RMB in 2023, 489.55 million RMB in 2024, and 482 million RMB in 2025), the trough in 2024 is still alarming. Furthermore, in terms of business structure transformation effectiveness and cost, Growatt Technology is undergoing a profound transformation from "photovoltaic inverters dominance" to "driven by energy storage systems." In 2025, revenue from energy storage systems increased by 99% compared to the previous year, reaching 3.315 billion RMB, accounting for 63.4% of total revenue, while revenue from traditional photovoltaic inverters continued to decline for two consecutive years, dropping by 39.8% in 2025 to 1.557 billion RMB. This structural change drove the overall gross profit margin from 20.3% in 2024 to 22.5%, as energy storage batteries and other products have relatively higher profit margins. However, this transformation comes with new risks: a sharp increase in customer concentration. In 2025, the revenue from the top five customers accounted for 23.6%, with the largest single customer contributing 679 million RMB, or 13% of total revenue. The company explained that this was mainly due to a surge in orders from large customers in the US market (revenue from the US market increased by 419% to 828 million RMB). This rapid reliance on a single region and client, while providing a growth engine in the short term, fundamentally increases the fragility of the revenue structure. Any fluctuations in major customer demand or changes in international trade policies could directly impact the company's performance.