阳光电源:2023年年度报告(英文简版)

Sungrow Power Supply Co., Ltd.
2023 Annual Report
April 2024

2023 Annual Report
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
innew energy availability, aswell aslandandtaxation, policy support andencouragement fromgovernments arestill 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
policieswill affectthegrowthpaceof theindustry and theCompany’s profitability toa certainextent. Tothis end, theCompany
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

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 mom