Overseas revenue (including Hong Kong, Macao, and Taiwan) totaled RMB 22.690 billion in H1 2026, down 10.59% year-on-year. However, its share of total revenue increased significantly from 58.30% to 73.40%. Revenue from mainland China fell 54.71% year-on-year to RMB 8.222 billion, accounting for 26.60% of the total.
Sungrow made its highest-ever BESS shipments and sequential improvement in gross margins, despite the year-on-year drop in revenues, which it attributed to weaker sales in domestic and Middle Eastern markets, noting the significant impact of deliveries from a major Saudi project during the same period last year. Looking ahead, Sungrow projects that the European storage market will grow by more than 50% next year.
Regarding its storage segment’s pricing and profitability, Sungrow noted that gross margins have fluctuated quarter-over-quarter in recent years. This volatility is primarily driven by three factors: storage duration, regional sales mix, and upstream lithium carbonate prices.
The global shift toward longer-duration storage exerts downward pressure on margins. Additionally, margins vary significantly across geographies, with distinct gaps between China, Europe, the Asia-Pacific, and the Middle East. The varying revenue recognition mixes across regions each quarter also impact gross margin.
