Goodwe Technologies Co.,Ltd. (SH: 688390) released its 2026 interim results on August 27, demonstrating a successful turnaround driven by robust growth in its energy storage battery and inverter businesses, which offset declining residential system sales. The company returned to profitability during the reporting period, with operating cash flow improving markedly, while maintaining leading market share in key overseas markets such as Australia, underscoring the effectiveness of its global expansion strategy.
Financial data shows the company generated revenue of RMB 6.25 billion in the reporting period, a year-on-year increase of 52.96%. Net profit attributable to shareholders reached RMB 286 million, reversing from a loss of RMB 17 million in the same period last year. Deducted non-recurring profit and loss net income also turned positive at RMB 284 million. Net cash flow from operating activities improved significantly to RMB 152 million, compared with a negative RMB 44 million a year earlier. Total assets grew 37.35% from the end of last year to RMB 12.94 billion. The simultaneous rebound in both revenue and profit, along with restored core profitability and positive operating cash flow, signals high-quality earnings growth.
From a business structure perspective, the company specializes in PV grid-tied inverters, energy storage inverters, and energy storage batteries. The core driver behind this earnings reversal lies in an optimized product mix: although domestic residential system sales declined year-on-year, substantial increases in energy storage battery and inverter sales propelled overall revenue growth of over 50%. Specifically, inverter sales reached approximately 540,200 units during the period, with energy storage inverters accounting for about 33.63%. Energy storage battery sales amounted to roughly 2,401.49 MWh.
Overseas markets emerged as a key growth engine, with inverters sold internationally comprising 66.46% of total sales. In Australia, the company secured multiple market share leadership positions, further enhancing brand recognition. Additionally, Goodwe launched its WE-AI native energy operating system, advancing intelligent energy management and reinforcing its technological moat. The turnaround was primarily attributed to economies of scale from expanded revenue and a higher proportion of high-margin energy storage products.
Although operating costs rose 41.80% in line with revenue growth, this pace lagged behind top-line expansion. The company continued to increase selling and research and development expenses to support global expansion and technological iteration. Notably, financial expenses shifted from a gain in the prior-year period to an expense of RMB 185 million, mainly due to increased exchange losses, which partially eroded profits but failed to offset the substantial improvement in core earnings.
As the PV industry enters a phase of rational consolidation with domestic new installations declining sharply year-on-year, global energy transition and storage demand remain robust. Leveraging its integrated "source-grid-load-storage-intelligence" strategy and comprehensive global sales network, the company is well-positioned to benefit from the high prosperity of overseas energy storage markets. However, Goodwe faces risks including rising trade protectionism, increased costs from export tax rebate policy adjustments, raw material price fluctuations, and exchange rate volatility.