(Bloomberg) -- Sungrow Power Supply Co., China’s largest solar equipment manufacturer by market capitalization, reported a surge in its profit in the first half of the year as the country’s stellar renewable power expansion continues to fuel demand.
Net income increased 13.9% from a year earlier to 4.96 billion yuan ($695 million) during the January-June period, the company said in a stock exchange filing Friday.
China is set to see another year of record solar installation as the nation pushes for a massive renewable buildout mainly in its interior. It’s set to expand the solar capacity by as much as 220 gigawatts this year, which would boost market demand for key equipment.
The Asian country’s world-leading solar industry is being forced to consolidate as producers suffer massive losses due to oversupply. The glut is expected to persist in the coming months and the sector has begun to see smaller companies falling into bankruptcy or getting bought out by bigger firms.
Sungrow, however, is facing less financial pressure as its main product — inverters — is doing comparatively well in a market that is yet to suffer from severe oversupply. The company is the world’s second-largest maker of the key equipment that convert direct current electricity generated by solar panels into the alternating current, which is used in most power grids.
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