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Shares of the Chinese solar energy equipment manufacturer saw a notable increase following news that the company secured an order from a European client, which is expected to have a positive influence on future operations, alongside a reduction in its net loss for the previous quarter.
As of late morning in Shanghai, the stock climbed approximately 5.5 percent, reaching CNY20.62 (around USD2.90) per share.
The company’s energy storage division announced it had signed a contract to deliver over one gigawatt-hour of energy storage equipment to a client in Europe. Details about the contract’s value, the client’s identity, and delivery timelines were not disclosed.
This project involves the use of the company’s latest flexible energy storage battery cabinet, Elementa 2 Pro, which boosts energy density by 12 percent. The system also features an AI-powered liquid cooling mechanism that maintains temperature variations within 2.5 degrees Celsius, further decreasing the operational costs of the stored energy.
On the same day, the company’s financial results revealed a 6.6 percent reduction in net loss, narrowing to CNY1.3 billion (USD182.8 million) for the quarter ending September 30, compared to the previous year. Meanwhile, operating revenue declined by 6.3 percent to CNY18.9 billion (USD2.6 billion). The net loss also decreased by nearly 20 percent compared to the second quarter.
The better-than-expected third-quarter performance was primarily driven by stabilized and rising prices of core solar modules, along with the gradual fulfillment of energy storage orders.
For the first nine months of the year, the company recorded a net loss of CNY4.2 billion on nearly CNY50 billion in operating revenue, representing a 21 percent decline from the same period last year.
The industry has been experiencing a significant impact from falling product prices, prompting widespread adjustments within China’s photovoltaic sector, which has led to a decrease in earnings for industry leaders.
The company’s energy storage segment, centered on integrated solar-storage applications, generated CNY2.3 billion last year, accounting for just 2.1 percent of total revenue, according to its annual financial report.
A report from Securities Times in early June indicated that shipments of energy storage equipment surpassed 4.3 GWh in 2024.
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