on the evening of April 25, Goodway (688390) disclosed its 2023 annual report and 2024 quarterly report, but there was a crisis under the beautiful annual report data.

From the perspective of operating conditions, in 2023, Goodway achieved operating income of 7.35 billion yuan, an increase of 56.10 percent over the same period last year; net profit of 0.852 billion yuan, an increase of 31.24 percent over the same period last year. The company said that the operating income of this year has increased compared with the same period of last year, mainly because the company continues to expand the domestic and foreign markets of photovoltaic products, and the expansion of sales scale drives the growth of the company's total operating income.

From the perspective of financial status, at the end of last year, the company's financial status was good, with total assets of 7.11 billion yuan, an increase of 22.63 over the end of the previous year; the owner's equity attributable to shareholders of listed companies was 2.98 billion yuan, an increase of 32.13 over the end of the previous year.

Goodway said that during the reporting period, benefiting from the broad development space of the photovoltaic market, the company continued to maintain a good growth trend in the first half of 2023. In the second half of the year, due to factors such as industry inventory, sales fell short of expectations. In 2023, the company continued to optimize supply chain management, while increasing R & D investment and technological innovation, maintaining product competitiveness, and maintaining sales growth, which led to a year-on-year increase in performance during the reporting period.

The annual report shows that in 2023, Goodway products have been sold in batches to Germany, the Netherlands, Australia, Italy, Sweden, Spain, the Czech Republic, Brazil, New Zealand, Greece, Poland, Belgium, Ireland and other countries and regions around the world.

during the reporting period, the company sold about 686300 inverters, of which 532200 were grid-connected inverters, accounting for about 77.54 percent, and 154100 were energy storage inverters, accounting for about 22.46 percent. The company's overseas inverter sales of about 443600 units, accounting for about 64.64, domestic inverter sales of about 242700 units, accounting for about 35.36 percent. In addition, the company's energy storage battery sales during the reporting period were approximately 341 MW, and domestic household distributed system sales were approximately 513 MW.

It is worth noting that in the fourth quarter of 2023, Goodway achieved revenue of 1.7 billion yuan, net loss of 40.736 million yuan, and non-net loss of 78.853 million yuan; in the previous three quarters, the company achieved profits.

In the first quarter of 2024, Goodway achieved operating income of 1.13 billion yuan, a year-on-year and month-on-month decrease of more than 30%; net loss of 28.821 million yuan, deducting non-net loss of 34.926 million yuan. This also means that Goodway has suffered net profit losses for two consecutive quarters, and the net cash flow from operating activities has also turned from positive to negative. As for the reason, or with the aforementioned "sales less than expected" related.

The reporter noted that the annual report shows that in 2023, the capacity utilization rate of Goodway inverters was 60.95 percent, and the capacity utilization rate of energy storage batteries was 28.66 percent. Goodway said that the company's inverter capacity utilization rates in 2020, 2021 and 2022 were 82.67, 80.76 and 84.78 respectively. In 2023, the inverter capacity utilization rate was 60.95 and the energy storage battery capacity utilization rate was 28.66. During the reporting period, due to the influence of industry inventory and other factors, the company's related sales volume fell short of expectations, and the decline in production led to a sharp decline in capacity utilization.

Talking about business risks, Goodway said that during the reporting period, the company's products were sold to the Netherlands, Poland, Spain, South Africa, India, Australia, Brazil, Mexico, Turkey, the United States and other countries and regions. Among the above-mentioned countries and regions, some countries and regions such as the European Union, India, and Turkey have initiated anti-dumping and countervailing investigations against products such as photovoltaic modules (not directly targeting photovoltaic inverters) exported from China. The tax objects of the "301 investigation" in the United States include photovoltaic inverters, while the United States is the second largest photovoltaic market in the world after China, with huge market space.

In addition to trade policies, Goodway's overseas sales are also affected by differences and changes in the market environment, legal environment, political environment, regulatory environment and other factors in various countries. In September 2022, the EU announced the proposal of "Regulations on Forced Labor Products in the EU Market" to prohibit the circulation of "forced labor products" in the EU market to restrict the sales of photovoltaic products in China. In March 2023, the EU announced the proposal of "Net Zero Industry Act (Net-ZeroIndustryAct)" to restrict the consumption proportion of strategic raw materials from a single third-party country to no more than 65%. If the relevant proposal can finally be implemented, it will be detrimental to the export of China's photovoltaic products.

Goodway stated that in the future, if the company's main overseas sales countries or regions initiate trade frictions and disputes over photovoltaic inverters and other products, or due to changes in the political and economic environment, relevant trade and tariff policies that are not conducive to the import and export of the company's products, Or the company cannot fully grasp and apply international trade rules in international trade, it will have an adverse impact on the company's overseas business development and overseas market sales.

annual report data show that in 2023, Goodway's domestic and overseas revenue was 2.97 billion yuan and 4.33 billion yuan, respectively, with gross profit margins of 12.41 percent and 43.25 percent, respectively.

Goodway said that photovoltaic inverters are a fully competitive market and the market competition pattern is relatively stable. With their leading technical advantages and rich product series, Huawei and Sungrow have been among the top two in the photovoltaic inverter industry since 2014, with a high market share and an upward trend. Compared with the above-mentioned enterprises, the market share of the company's products is relatively low and the sales scale is relatively small.

However, Goodway reminded Secondary specialized school the annual report that due to the comprehensive impact of domestic and foreign holidays, the company's revenue has certain seasonal characteristics, and the company's operating performance shows certain volatility in the entire fiscal year, so operating indicators And financial data are facing the risk of seasonal fluctuations. The company reminds investors that it is not appropriate to simply calculate the company's annual operating results based on quarterly data.

Regarding the 2024 business plan, Goodway stated that in order to achieve the goal of steady growth in business performance, the company has formulated plans for technology research and development, product development, market development, and talent development.