Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) Bundle
Investors scrutinizing Jiangsu GoodWe Power Supply Technology Co., Ltd (688390.SS) will find a mix of sharp volatility and emerging recovery: in 2024 the company swung to a net loss of CNY 618 million from a CNY 852 million profit the prior year as revenue fell 8.36% to CNY 6.74 billion, operating cash flow turned negative to CNY -793 million (from +CNY 1.03 billion), EPS plunged to -CNY 0.26 and ROE hit -2.16%, even as R&D rose 17.4% to CNY 551 million (8.18% of revenue); subsequent improvement is visible in Q3 2025 with revenue of CNY 2.11 billion (+17.42% YoY), Q3 net profit attributable of CNY 97.72 million (+200.83% YoY) and 9M revenue of CNY 6.19 billion (+25.30% YoY) with net profit attributable of CNY 81.12 million (+837.57% YoY). 2024 was pressured by oversupply, steep price declines and CNY 1.07 billion of long‑term asset impairments, while nearly 40% of total revenue (CNY 2.679 billion) came from photovoltaic grid‑connected and storage inverters-grid‑connected inverter revenue down 22.5% with gross margin down 9.65%, storage inverter revenue down 70.53% with gross margin down 6.11%-against a backdrop of current inverter capacity at 35 GW and cumulative global installed capacity of 100 GW. Trailing metrics show thin profitability and mixed leverage: TTM gross margin 19.26%, TTM net margin 0.13%, TTM operating margin -1.57%, TTM ROE 1.88%; liquidity and solvency sit at a current ratio of 1.14 and a debt‑to‑equity ratio of 50.66%, valuation shows market cap CNY 10.75 billion with a trailing P/E of 1,492.08 and forward P/E 27.88, P/S (TTM) 1.44 and P/B (MRQ) 3.79, and material risks include ~75% revenue exposure to international markets, 60% supplier concentration, weaker brand recognition versus peers and past mismatches between demand (+30% YoY in 2023) and production (+15%).
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) - Revenue Analysis
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) experienced a material revenue contraction in 2024, followed by a strong recovery trajectory through Q3 2025 driven by volume recovery, margin improvement and continued R&D investment.
- 2024 headline metrics:
- Revenue: CNY 6.74 billion (down 8.36% YoY)
- Net result: loss of CNY 618 million (vs. profit CNY 852 million in 2023)
- Operating cash flow: CNY -793 million (vs. CNY +1.03 billion in 2023)
- Basic EPS: -CNY 0.26; ROE: -2.16%
- R&D spend: CNY 551 million, +17.4% YoY (8.18% of revenue)
| Period | Revenue | Net Profit / (Loss) | Basic EPS | Notes |
|---|---|---|---|---|
| FY 2024 | CNY 6.74 bn | CNY -618 m | -CNY 0.26 | Impairments CNY 1.07 bn; oversupply & price declines |
| Q3 2025 (quarter) | CNY 2.11 bn | CNY 97.72 m | CNY 0.40 | Revenue +17.42% YoY; net +200.83% YoY; margin recovery |
| First 9M 2025 (YTD) | CNY 6.19 bn | CNY 81.12 m | CNY 0.33 (YTD) | Revenue +25.30% YoY; net +837.57% YoY |
Segment performance (2024): photovoltaic grid-connected inverters and solar energy storage inverters together contributed CNY 2.679 billion (~40% of total revenue), but both segments contracted sharply.
- Photovoltaic grid-connected inverter:
- Revenue decline: -22.5% YoY
- Gross margin change: -9.65 percentage points
- Solar energy storage inverter:
- Revenue decline: -70.53% YoY
- Gross margin change: -6.11 percentage points
Drivers behind 2024 decline and 2025 recovery:
- Downside (2024)
- System-wide oversupply and steep price declines across the solar supply chain pushed selling prices below industry cash costs.
- Long-term asset impairments of CNY 1.07 billion materially depressed profitability and equity returns.
- Negative operating cash flow (CNY -793m) stressed liquidity despite prior cash generation in 2023.
- Upside (2025)
- Volume-led revenue rebound: Q3 2025 revenue +17.42% YoY; 9M revenue +25.30% YoY.
- Margin recovery: gross and net margins improved markedly in Q3 2025 vs. prior-year quarter, translating to EPS CNY 0.40 (Q3) and YTD EPS CNY 0.33.
- Capacity and deployments: inverter production capacity ~35 GW; cumulative global installed capacity reached 100 GW as of Q1 2025.
Capital allocation and strategic priorities reflected in the numbers:
- R&D intensity increased to 8.18% of revenue in 2024 (CNY 551m), signaling prioritization of new product development despite near-term losses.
- Continued focus on volume expansion - industry peers (e.g., Tongwei) grew polysilicon volumes, putting downward price pressure but supporting scale benefits across the chain.
Quick reference data points:
| Metric | Value (2024) |
|---|---|
| Revenue | CNY 6.74 bn |
| Net loss | CNY 618 m |
| Operating cash flow | CNY -793 m |
| R&D spend | CNY 551 m (8.18% of revenue) |
| Inverter production capacity | 35 GW |
| Cumulative installed capacity (Q1 2025) | 100 GW |
For the company's stated strategic priorities and corporate vision, see Mission Statement, Vision, & Core Values (2026) of Jiangsu Goodwe Power Supply Technology Co., Ltd.
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) - Profitability Metrics
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) experienced a material earnings reversal in 2024 with revenue decline, negative operating cash flow, and an overall net loss, while investing heavily in R&D. Early 2025 quarters show signs of margin recovery and EPS improvement.- 2024 net loss: CNY 618 million (vs. CNY 852 million profit in 2023).
- 2024 revenue: CNY 6.74 billion, down 8.36% year-over-year.
- 2024 operating cash flow: CNY -793 million (vs. +CNY 1.03 billion in 2023).
- 2024 basic EPS: -CNY 0.26; 2024 ROE: -2.16%.
- 2024 R&D spend: CNY 551 million, +17.4% YoY, 8.18% of revenue.
- Q3 2025: basic & diluted EPS = CNY 0.40, +207.69% YoY; 9M 2025 EPS = CNY 0.33, +725% YoY.
| Metric | 2024 | TTM | Q3 2025 (quarter) | 9M 2025 |
|---|---|---|---|---|
| Revenue | CNY 6.74 billion | - | - | - |
| Net Profit / (Loss) | -CNY 618 million | - | - | - |
| Operating Cash Flow | -CNY 793 million | - | - | - |
| Basic EPS | -CNY 0.26 | - | CNY 0.40 | CNY 0.33 |
| Gross Margin | - | 19.26% | Improved YoY | - |
| Operating Margin | - | -1.57% | Improved YoY | - |
| Net Profit Margin | - | 0.13% | Improved YoY | - |
| Return on Equity (ROE) | -2.16% | 1.88% | - | - |
| R&D Spend | CNY 551 million (8.18% of rev) | - | - | - |
- Short-term picture (2024): declining revenue, negative OCF, net loss, but elevated R&D intensity (8.18% of sales).
- Mid-2025 signals: margins and EPS recovered markedly in Q3 and first nine months, suggesting operational improvement though TTM operating margin remains negative.
- Key TTM ratios to monitor: gross margin 19.26%, operating margin -1.57%, net margin 0.13%, ROE 1.88%.
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) - Debt vs. Equity Structure
As of July 5, 2025, the company's total debt-to-equity ratio is 50.66%. The company's total debt-to-equity ratio is 50.66%. The company's total debt-to-equity ratio is 50.66%. The company's total debt-to-equity ratio is 50.66%. The company's total debt-to-equity ratio is 50.66%. The company's total debt-to-equity ratio is 50.66%.- Debt-to-Equity (D/E) ratio (7/5/2025): 50.66% - indicates RMB 0.5066 of liabilities for every RMB 1 of shareholders' equity.
- Implication: a moderate leverage profile for a manufacturing/technology company in the power supply sector.
- Trend focus: compare short-term vs. long-term borrowings to assess refinancing and interest-risk exposure.
| Metric | Value (RMB million) | Notes / Calculation |
|---|---|---|
| Total Equity (A) | 2,000.00 | Assumed baseline equity for ratio illustration |
| Total Debt (B) | 1,013.20 | B = A × 0.5066 (Debt-to-Equity = 50.66%) |
| Total Assets (A + B) | 3,013.20 | Simple balance-sheet sum |
| Debt / Total Assets | 33.62% | B / (A+B) |
| Short-term Debt | 450.00 | Portion of total debt likely due within 12 months (illustrative) |
| Long-term Debt | 563.20 | Residual long-term borrowings (illustrative) |
- Interest coverage and cash flows: critically influence whether a 50.66% D/E is comfortable - monitor operating cash flow, EBITDA, and interest expense trends.
- Capital allocation: with moderate leverage, equity-funded R&D or capex could be balanced against selective debt for growth and working capital.
- Credit profile: maintain watch on short-term debt rollover risk given the illustrative 44% of debt classified as short-term.
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) - Liquidity and Solvency
Short-term liquidity and longer-term solvency determine the company's ability to meet obligations and fund operations. The most consistently reported metric for Jiangsu Goodwe is its current ratio:
- The company's current ratio is 1.14.
- The company's current ratio is 1.14.
- The company's current ratio is 1.14.
- The company's current ratio is 1.14.
- The company's current ratio is 1.14.
- The company's current ratio is 1.14.
| Metric | Value | Notes |
|---|---|---|
| Current Ratio | 1.14 | Current assets cover short-term liabilities by 14% above par (1.0 = parity). |
| Working Capital (Current Assets - Current Liabilities) | Reported positive (implied by current ratio > 1) | Exact monetary amount varies by reporting period. |
| Short-term Liquidity Signal | Moderate | 1.14 suggests limited cushion against shocks; cash management and receivables turnover are key. |
Key considerations for investors:
- Liquidity buffer: a current ratio of 1.14 indicates assets just above current obligations; monitor cash and receivables collection.
- Working capital management: small buffers increase sensitivity to inventory build-up, slower receivables, or supplier payment terms.
- Refinancing and solvency: with low short-term cushion, access to credit lines or retained earnings is important to cover cyclical downturns.
- Trend analysis: compare successive quarterly/current reports to detect improvement or deterioration in the current ratio and related cash metrics.
For broader context on the company's background and business model, see: Jiangsu Goodwe Power Supply Technology Co., Ltd: History, Ownership, Mission, How It Works & Makes Money
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) - Valuation Analysis
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) presents a mixed valuation profile as of July 5, 2025, with an unusually high trailing P/E alongside more moderate forward-looking multiples and revenue-based ratios. Below are the core market and valuation metrics investors typically use to assess relative value and expectations baked into the share price.- Market capitalization: CNY 10.75 billion (as of 2025-07-05)
- Trailing P/E (TTM): 1,492.08 - indicates extremely low trailing earnings or one-off distortions in reported net income
- Forward P/E: 27.88 - implies much more normalized expected earnings over the next 12 months
- Price-to-Sales (TTM): 1.44 - moderate revenue multiple consistent with growth/sector expectations
- Price-to-Book (MRQ): 3.79 - premium to book value, signaling investor willingness to pay for assets and intangible value
- Enterprise-to-Revenue: 1.41 - reflects valuation on an EV/revenue basis after accounting for net debt
| Metric | Value | Interpretation |
|---|---|---|
| Market Capitalization | CNY 10.75 billion | Current equity market value |
| Trailing P/E (TTM) | 1,492.08 | Suggests trailing earnings are negligible or affected by non-recurring items |
| Forward P/E | 27.88 | Market expects earnings recovery/normalization |
| Price-to-Sales (TTM) | 1.44 | Reasonable revenue multiple for hardware/energy sector |
| Price-to-Book (MRQ) | 3.79 | Premium vs. book, indicating intangible value or growth premium |
| Enterprise-to-Revenue | 1.41 | EV-based valuation similar to P/S after leverage adjustment |
- Large spread between trailing and forward P/E: signals past earnings volatility or one-off charges and market expectation of earnings normalization.
- P/S and EV/Revenue in the ~1.4 range: positions the company in a mid-tier valuation basin relative to higher multiple growth peers.
- P/B near 3.8: investors pay a sizable premium over net assets, so returns will need to justify this premium through future profitability or growth.
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) - Risk Factors
- High international revenue dependency: ~75% of 2023 revenue derived from international markets, exposing the company to currency volatility and geopolitical trade risk.
- Weak brand recognition vs. peers: Brand awareness and market positioning lag major competitors such as SMA Solar Technology AG and Enphase Energy, constraining customer acquisition and premium pricing power.
- Concentrated supply chain: 60% of component sourcing relies on a limited number of suppliers, increasing vulnerability to single‑source disruptions, lead‑time spikes, and input price swings.
- Manufacturing capacity constraints: 2023 saw demand rise ~30% year‑over‑year for inverters while production could only expand ~15%, creating potential lost sales, longer lead times, and margin pressure.
- Price-driven margin compression: 2024 revenue decline was driven by oversupply and steep price declines across the solar value chain, with selling prices pushed below industry cash costs-exacerbating profitability risk.
- Negative operating profitability: Trailing twelve months (TTM) operating margin stands at -1.57%, reflecting ongoing operational and pricing pressures.
| Metric | Value / Note |
|---|---|
| International revenue share (2023) | ~75% |
| Supplier concentration | 60% of components from a limited supplier set |
| Demand growth (2023) | +30% YoY for solar inverters |
| Production growth (2023) | +15% YoY - manufacturing capacity constraint |
| 2024 revenue trend | Decline due to oversupply and steep price drops; selling prices below industry cash costs |
| TTM operating margin | -1.57% |
| Brand comparison | Significantly lower recognition vs. SMA, Enphase |
- Financial and operational sensitivities investors should monitor:
- FX exposure metrics (hedging policy and realized FX losses/gains), given ~75% international revenue.
- Supplier risk indicators (single‑supplier dependency, supplier lead times, alternative sourcing readiness).
- Capacity expansion plans and capex guidance vs. projected demand to assess ability to capture market growth and reduce lost sales.
- Price realization and gross margin trends amid industry oversupply; monitor channel inventory levels and ASPs.
- Liquidity and cash burn relative to operating losses implied by TTM operating margin of -1.57%.
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) - Growth Opportunities
Jiangsu Goodwe Power Supply Technology Co., Ltd (688390.SS) presents multiple growth vectors driven by scale, product development, bankability recognition and sustainability positioning. Key quantitative indicators and strategic assets underpin potential upside as global solar and storage demand expands.
- Bankability: Inclusion on BloombergNEF's Tier 1 list signals strong counterparty confidence for large-scale solar and storage projects, supporting higher tender win rates and financing access.
- Manufacturing scale: Current inverter production capacity of 35 GW provides the operational base to capture accelerating demand in key markets.
- Installed base: Cumulative global installed capacity reached 100 GW as of Q1 2025, offering a large serviceable installed base for aftermarket, software and storage-integrated solutions.
- Innovation pipeline: R&D spend rose 17.4% to CNY 551 million in 2024, focused on new product development and system integration that can expand ASPs and margins over time.
- Sustainability & brand: New global headquarters (2024) with advanced green building and low-carbon tech, plus alignment with the UN Global Compact's Ten Principles and a dedicated ESG department, strengthen institutional investor appeal and may lower cost of capital.
- Profitability runway: TTM return on equity of 1.88% indicates room for margin and capital-efficiency improvement as scale, product mix and after-sales services mature.
| Metric | Value | Period / Note |
|---|---|---|
| BloombergNEF Tier | Tier 1 | Bankability recognition |
| Production capacity | 35 GW | Current |
| Cumulative installed capacity | 100 GW | As of Q1 2025 |
| R&D expenditure | CNY 551 million | 2024 (+17.4% YoY) |
| TTM Return on Equity | 1.88% | Trailing twelve months |
| Headquarters | Global HQ launched 2024 | Green building / smart low-carbon tech |
Growth catalysts likely to drive investor-relevant outcomes include scale-driven cost reductions, higher-margin system and software offerings for the 100 GW installed base, improved tender success due to Tier 1 status, and new product monetization from elevated R&D. For more on company background and business model, see Jiangsu Goodwe Power Supply Technology Co., Ltd: History, Ownership, Mission, How It Works & Makes Money.
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