GINLONG (300763.SZ) is accelerating its global expansion.
GINLONG primarily focuses on the research, development, and sales of photovoltaic grid-tied inverters and energy storage inverters. According to the 2022 financial report, the company's annual revenue reached 58.9 billion yuan, a year-on-year growth of 77.8%, with a net profit of 10.6 billion yuan, a year-on-year growth of 123.7%. Industry data from other sources indicates that GINLONG holds a market share of approximately 7.6% and ranks third in the inverter industry.
As one of the leading companies in the inverter industry, GINLONG not only boasts rapid growth but also possesses unique advantages in product development, supply chain systems, and brand building.
On November 8th, GINLONG will participate in the 2023 Global Inverter Trends Summit. Technical Director Xue Changrui will attend the summit, deliver a speech, and showcase the latest products.
The CHAODIAN had an exclusive interview with GINLONG, unveiling its impressive secrets.
Q1 CHAODIAN: In recent years, energy storage has seen rapid growth, especially with the surge in the European market. How does GINLONG view the specific demands of the local European market?
A1 GINLONG: The energy storage market in Europe has been growing rapidly, primarily driven by renewable energy and supportive energy transition policies. It's a market with stable and high-demand growth. Last year, due to the Russia-Ukraine conflict and energy crises, there was a significant increase in demand for inverters in the latter half of the year, and this demand has been sustained.
We see that Europe has a high demand for efficient, reliable, and sustainable energy storage solutions. Therefore, Jinlang is committed to increasing investments in the European market and providing customized products and solutions that align with local demand characteristics.
Q2 CHAODIAN: Looking at the actions of leading companies, investment and expansion have become the main theme of this year. Does GINLONG have specific plans and actions in these areas?
A2 GINLONG: We actively monitor market dynamics and make plans and take actions according to market demands. Our 5GW manufacturing facility in Vietnam, built to meet growing demand, began releasing its production capacity in the third quarter of this year. The 950,000 unit private placement project is currently in planning and construction at our global headquarters.
By the end of this year, Jinlang's total production capacity will reach 80GW, further enhancing our product supply capability and responsiveness to customer deliveries. Simultaneously, we will expedite the overall layout of our overseas marketing network, seeking suitable partners and channels to strengthen our sales and service network in international markets.
Q3 CHAODIAN: For energy storage companies, global expansion is a trend, but many players lack resources in overseas sales, warehousing, installation, and after-sales support. Does GINLONG face similar challenges? What are the effective solutions?
A3 GINLONG: We attach great importance to global expansion and recognize that there are challenges in overseas sales, warehousing, installation, and after-sales support.
To address these challenges, we are continuously strengthening our localization services. From the very beginning of Jinlang's establishment, we have focused on international markets. Therefore, our human resource deployment takes a localized approach, including local employees, local technical and service centers, and strategic partnerships with leading local companies. This approach allows us to rapidly respond to customer needs, providing localized solutions and support. Currently, Jinlang has established 28 service centers worldwide. Additionally, we are enhancing supply chain management to ensure timely and reliable product supply, meeting customer demands.
Q4 CHAODIAN: In a highly competitive market, how does GINLONG build and strengthen its core competencies?
A4 GINLONG: We consistently prioritize technological innovation as a driver of our development, increasing our investment in research and development to enhance product technological content and performance. We also emphasize quality control and continuous improvement to ensure product reliability and stability.
Furthermore, we focus on close collaboration with partners, creating synergies to drive industry development. In the intensely competitive market, Jinlang has been at the forefront of global advancements in technological innovation, quality management, and core technology breakthroughs.
Q5 CHAODIAN: Recent insights from the CHAODIAN's series on dismantling star inverter products of leading brands reveal that, although Chinese brands have experienced rapid growth, their core components are primarily supplied by overseas manufacturers from the US and Germany. What challenges does GINLONG see in achieving domestic substitution? When can we expect Chinese supply chain companies to rise comprehensively?
A4 GINLONG: The main challenges in achieving domestic substitution lie in the maturity of core component technologies and the supply chain. Currently, domestic supply chain companies are increasing their research and development and production investments, gradually enhancing their independent innovation capabilities and core technology levels. With time and extensive real-world reliability validation of products, we believe that Chinese supply chain companies will comprehensively rise in the near future.
Q6 CHAODIAN: Regarding performance growth, what are GINLONG's "small goals" for this year?
A6 GINLONG: The "small goal" for the company this year is to further increase market share and achieve sustained high-quality development to contribute to the national "dual carbon" goals.
We will continue to increase research and development investments, introduce more industry-leading innovative products, expand our market presence, reach more domestic and international customers, strengthen customer services, and provide superior pre-sale and after-sale support to ensure customer satisfaction.
