Heungkong New Energy has reported a remarkable 220.31% year-on-year increase in revenue for the fiscal year 2024, establishing itself as a new growth engine in the renewable energy sector. The company released its annual financial report at the end of the first quarter, revealing a total revenue of 4.776 billion yuan and a net profit attributable to shareholders of 10.2961 million yuan, marking a turnaround from losses to profitability.
Notably, the revenue from Heungkong New Energy’s renewable energy business surged by over 500% compared to the previous year. In March 2020, the company announced a plan to transfer a total of 209 million shares (approximately 18.73% of its total share capital) to Guangdong Midea Air Conditioning Equipment Co., Ltd. Following this transaction, Midea Air Conditioning gained 23.73% voting rights, becoming the controlling shareholder, with Midea Group as the indirect controlling entity.
After Midea took over Heungkong New Energy, it gradually shut down non-core business operations and redirected funds and research resources towards three main areas: green energy solutions, home energy storage, and photovoltaic grid-connected inverters. The management team was also replaced with executives from Midea to ensure alignment with the new strategic direction.
Photovoltaic EPC Business Booms – The company’s EPC (Engineering, Procurement, and Construction) business for photovoltaic systems experienced a staggering 521.04% increase in revenue. The financial report indicates that Heungkong New Energy’s green energy solutions encompass three categories: home photovoltaic EPC, commercial photovoltaic EPC, and Midea Green Electricity Solutions. In 2024, revenue from the photovoltaic EPC segment reached 3.778 billion yuan, accounting for 79.10% of total revenue.
The photovoltaic EPC business involves comprehensive contractual responsibilities for project design, procurement, construction, and trial operation. Previously, this segment primarily catered to Midea Group’s needs, focusing on commercial scenarios. However, after taking over, the company decided to pivot towards residential applications, establishing appropriate organizational structures and digital operational systems. This initiative includes installing photovoltaic power stations on residential rooftops and yards to convert solar energy into electricity, enabling households to sell excess power back to the grid.
Heungkong New Energy has developed several solutions tailored to different residential types, including the Chinese-style Yangxi residence, co-built rooftops, small commercial photovoltaic basketball courts, and corridors. Additionally, leveraging Midea’s sales channels, the company introduced a green electricity solution for villas, integrating power supply, heating, energy storage, and charging stations into a single clean energy system, featuring a smart operation and maintenance system.
After restructuring its home photovoltaic EPC business, Heungkong New Energy relaunched its commercial photovoltaic EPC operations in September 2024. Currently, revenue from Midea now accounts for only about 10% of this segment, with over 90% of income generated from external orders.
Home Energy Storage Becomes a Key Focus – Aside from photovoltaic EPC, Heungkong New Energy also reported significant growth in its home energy storage segment, achieving 137 million yuan in revenue, a year-on-year increase of 302.83%. The company is focusing on home energy storage and photovoltaic inverters, developing a wide range of products such as home storage integrated machines, PCS, BMS, EMS, battery packs, photovoltaic grid-connected inverters, micro-inverters, and charging stations, thereby building a vertically integrated research and production capability.
The company stated that it insists on an independent R&D and production model for home energy storage and photovoltaic inverters. The photovoltaic grid-connected inverter products authorized under the “Midea” brand are set to launch in the first quarter of 2025. Currently, the home energy storage products are primarily aimed at overseas markets, representing a strategic focus for the future.
Heungkong New Energy has established two production bases in China—one in Beijing for high-voltage inverters, home energy storage, and photovoltaic grid-connected inverters, and another under construction in Anqing for home storage and photovoltaic inverter manufacturing. In 2024, R&D investment reached 320 million yuan, reflecting a 117.22% increase compared to the previous year. In response to overseas customer demands, the company developed the first-generation self-developed single-phase integrated home storage machine and the first-generation three-phase stacked integrated machine, featuring a modular stacking design for flexible installation and expansion. These products have achieved the highest global safety certification.
Additionally, Heungkong New Energy has successfully launched its 800W balcony photovoltaic solution, equipped with self-developed micro-inverters and utilizing flexible photovoltaic components, offering advantages in installation versatility and efficient power generation. The company’s recent strategic focus has transformed it from an industrial automation entity into a renewable energy-centric organization, with plans for more extensive future developments in this sector.
