The maker of string inverters has reported its strongest quarter yet with the third quarter revenues up 82% year-over-year. Moreover, the company’s focus on string inverter technology allows it to meet customer needs across all segments of the solar industry
November 04, 2019. By Huned
String inverter maker Ginlong Technologies marked its best quarter since its founding in 2005, bringing in USD 52 million during its third quarter alone – more revenue than the Chinese company recorded during 2014, 2015, and 2016 combined. As the only publicly-traded company focused exclusively on PV string inverters, Ginlong Technologies’ performance speaks about the growth of its global operations and its key role within the string inverter category in the PV market. These results attest to the growing market share enjoyed by its Solis string inverters.
The highlights from the reported results for the third quarter ended August 31, 2019 mention that the revenues grew to USD 52 million, representing an 82% increase year-over-year and net income of USD 6.8 million was up 53% over 2018. According to the financial report, Ginlong Technologies’ total assets were USD 196 million, while cash flows from operating activities came in at USD 7.7 million. Sales and management expenses reached USD 12.9 and USD 6.6 million respectively.
The company credits its revenue and profit achievements this year to both its market development operations and orders for inverters and other products. In addition to ramping up its production capabilities and marketing efforts, Ginlong Technologies also revamped accounts receivable collection, boosting net cash flow generated by operating activities by nearly 230%. The company has built its core business around string inverters right from the beginning. The company’s founders began pursuing inverter technology research and development in the United Kingdom in 2003 when the global PV market was in its infancy.
In 2005, they returned to China to establish an industrial base in Ningbo. Now, 14 years later, inverters account for more than 95% of Ginlong Technologies’ total revenue. The company’s public debut on the Shenzhen Stock Exchange in March gave it the funds and net cash flow needed to finance an increase in production capacity, optimise manufacturing processes, and boost global sales and marketing. As the world’s only publicly-traded company focused exclusively on string inverters, Ginlong Technologies used this influx of funds to further its competitive advantage.
This financial expansion has helped the company attract talented new research and development engineers, as well as offer more training to core team members and young recruits who one day will form the company’s backbone. Dedicated to innovation, Ginlong Technologies continues to invest in the evolution of its Solis inverter line, adding a new energy storage system to its portfolio in 2017. Currently selling in Europe, Asia and other continents, the intelligent hybrid PV inverter brings industry-defining reliability to solar-plus-battery systems.
Designed for flexibility and performance, the storage inverter – soon to be available in the US – allows residential customers to maximise self-consumption while boosting efficiency and overall returns. The storage solution received strong market acceptance in Asia with revenues increasing 100 times from 0.02% in 2018 to 2% this year, and received the 2019 Best PCS Supplier Award in China. Expanding beyond its high-performing, ultra-reliable Solis core business, Ginlong Technologies recently invested USD 8.6 million to create a wholly-owned subsidiary – Ginlong Smart Energy Co. Ltd. – dedicated to PV plant construction, operation, and ownership in China. The investment increases its position in utility-scale assets by 113% year-over-year.
Focused on utility-scale project development as well as engineering, procurement and construction (EPC), the new division represents the company’s forward-looking approach to the Chinese market as it becomes more than a product supplier and moves upstream into utility plant deployment. Entering utility asset construction and ownership in China marks a pivotal shift for Ginlong Technologies. The strategy is to leverage its cost-effective, cutting-edge manufacturing capabilities downstream. This plant-level experience will contribute to faster product development of its existing utility-scale string inverter technology.
Expanding the Solis Brand Globally
The global inverter market has matured with high costs of entry for new players. Ginlong Technologies entered Europe, the US and Australia early on, securing a strong foothold in these stable PV markets. As one of the oldest and earliest inverter manufacturers to enter the American market in 2009, it has made big strides in the US market. Its successes include strategic partnerships with leading national installers in the residential space, collaboration with top commercial developers, and the launch of its utility-scale string inverter solution. Ginlong Technologies has since advanced into Latin America, extending its Solis brand throughout the region.
Counting on a Bankable Partner
The company’s focus on string inverter technology allows it to meet customer needs across all segments of the solar industry. Well-suited to residential, commercial and industrial, and utility applications, Solis inverters are known for their reliable performance and long system life. Independent validations – including its third-place ranking among Asian brands in Bloomberg NEF’s 2019 Inverter Bankability Report – attest to its reliability, product quality, and solid financial performance.
Despite a contracting global market that is challenging companies throughout the industry, Ginlong Technologies continues to expand and grow. Such industry turmoil can be a double-edged sword – a disaster for some competitors but an opportunity for others ready to act. The company has positioned itself ideally to continue meeting market demand despite China’s significant changes to its domestic PV incentive policy in May 2018. Armed with a global supply chain as well as world-class research and development and manufacturing capabilities, it has established a solid foundation for expansion well into the future.
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