Global Company Analysis| March 5, 2021

Sungrow Power Supply (300274 CH/Buy/Initiate)

Global leader in solar PV inverters

Yongdai Park [email protected]

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the US
PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.
Sungrow Power Supply (300274 CH)
Global leader in solar PV inverters

Investment points
Rating Buy (Initiate)
• Leading player in the global PV inverter market
- In 2020, Sungrow Power Supply (Sungrow) overtook Huawei to become the no. 1 player in the global PV
Target price CNY103.0 inverter market (24% M/S based on shipment volume).

Current price
• Beginning of the inverter replacement cycle
CNY72.49 - New solar PV capacity installations have expanded rapidly worldwide since 2015; we believe the inverter
(3/4/21)
replacement cycle began last year.

Country China • Growth potential of the ESS business

- Sungrow is a leading player in China’s energy storage system (ESS) market, which is expected to grow
dramatically, driven by a rise in new installations related to renewable energy power generation.
Exchange Shanghai
Valuation
Expected return 42.1% • We derived our target price of CNY103 by applying a P/E of 50x to our 2021F EPS
• Although Sungrow is the market leader, our target P/E reflects a 25% discount to the average multiple of global
PV inverter peers to account for the ”China discount.”
EPS growth (21F, %) 59.2
Risk factors
P/E (21F, x) 35.2
• 1) Lower-than-expected global solar power demand; 2) US-China trade dispute
Market P/E (21F, x) 40.4

Dividend yield (%) 0.2

800 Sungrow FY (Dec.) 2017 2018 2019 2020F 2021F 2022F
Market cap (CNYbn) 105.6 SHASHR Index
Revenue (CNYmn) 8,886 10,369 13,003 20,720 28,917 34,790
Market cap (Wtr) 18.53
600 OP (CNYmn) 1,145 912 1,048 2,176 3,470 4,523
Shares outstanding (mn) 786.6
OP margin (%) 12.9 8.8 8.1 10.5 12.0 13.0
52-week low (CNY) 9.39 400 NP (CNYmn) 1,024 810 893 1,883 2,999 3,906
52-week high (CNY) 122.18 EPS (CNY) 0.72 0.58 0.63 1.29 2.06 2.68
200
ROE (%) 15.8 10.9 10.8 19.6 25.3 26.0
(%) 1M 6M 12M P/E (x) 25.9 15.5 16.7 56.3 35.2 27.0
Absolute -37.1 231.2 480.4 0
18.1 18.7 19.1 19.7 20.1 20.7 21.1 P/B (x) 3.8 1.6 1.7 10.1 8.0 6.3
Relative -29.5 217.3 349.7
Source: Company data, Mirae Asset Daewoo Research

2 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters
Investment point 1: • In 2020, Sungrow overtook Huawei to become the no. 1 player in the global PV inverter market (M/S of 24%
Leading player in the based on shipment volume).
global PV inverter • Management is targeting a global market share of 30% through overseas capacity expansions.
market • We project that the global PV inverter market will expand at a 2020-25 CAGR of 15%.
• President Xi’s pledge to reach carbon neutrality by 2060 should stimulate solar PV market growth in China,
leading to a steady rise in inverter demand. And export opportunities should also increase on the back of robust
global solar PV demand.
• Sungrow is rapidly extending its global reach, especially in the US and the EU. The revenue contribution of
exports grew to 29% in 1H20.

Shifts in global PV inverter market rankings Global PV inverter M/S breakdown (2019)

2016 2017 2018 2019

1 Huawei (24%) Huawei (26%) Huawei (22%) Huawei

2 Sungrow (14%) Sungrow (17%) Sungrow (15%) Sungrow (14%)

3 SMA (10%) SMA (9%) SMA (8%) SMA

4 ABB (6%) ABB (6%) Power Elec. (6%) Power Elec.

5 TMEIC (6%) Sineng (5%) ABB (5%) Fimer

6 Sineng TBEA SunOasis Sineng Sineng

7 TBEA SunOasis Power Elec. Goodwe SolarEdge

8 Power Elec. TMEIC SolarEdge Growatt

9 Kstar Schneider Ingeteam TMEIC

10 Schneider SolarEdge TBEA SunOasis Ginlong Solis

Source: Wood Mackenzie, Mirae Asset Daewoo Research Source: Wood Mackenzie, Mirae Asset Daewoo Research

3 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters

Newly installed global solar PV capacity Global PV inverter market size

(GW) (US$bn)
APAC Europe Americas Africa/Middle East North America Europe APAC Other
250 20
17.6
21
200 19
15 36 15 2020-25F CAGR: +15%
2019-24F CAGR: +13% 9 39
41
150 39 51
3 44 10
6 29 33 40 8.6
100 4 23
2
15 16 22
2 12 25
18 10 5
1 8 108 116 122
50 11 103
9 70 70 72 83
36 51
0 0
2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F
Source: SolarEdge, IHS, Mirae Asset Daewoo Research Source: Industry data, MarketsandMarkets, Mirae Asset Daewoo Research

Sungrow: PV inverter shipment volume Sungrow: Domestic vs. overseas revenue

Domestic Overseas
(GW)
40 Domestic Overseas 100% 6%
9% 8% 8% 12% 13%
25% 29%
80%
30
60%
23
20 91% 94% 92% 92% 88% 87%
40% 75% 71%
3 5
9
10 1 20%
1
10 12 12 12
8 8 0%
0 2013 2014 2015 2016 2017 2018 2019 1H20
2015 2016 2017 2018 2019 2020
Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

4 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters
Investment point 2: • Sungrow stands to benefit from not only new demand but also growing replacement demand.
Beginning of inverter • While a solar farm typically has a life span of 20-25 years, solar inverters are usually warrantied for five to 15
replacement cycle years.
• New solar PV capacity installations, both in China and globally, have expanded rapidly since 2015. Given this, we
believe the inverter replacement cycle began last year (with some warranty periods beginning to expire).
• It should also be noted that the global PV inverter market is undergoing consolidation. Accordingly, large, well-
established players are expanding their market shares by forcing out or taking over less competitive players.

Newly installed solar PV capacity (2009-20): Global vs. China Major M&As in the global PV inverter market

(GW)
120 Global China

100

80

60

40

20

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: IRENA, Mirae Asset Daewoo Research Source: www.pointthegap.com, Mirae Asset Daewoo Research

5 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters
• We forecast revenue from ESS to expand at a three-year CAGR of 36%.
Investment point 3: • For 2020, management guided ESS revenue of CNY1bn (+100% YoY).
Growth potential of ESS • We expect ESS demand to grow steadily, driven by a rise in new ESS installations related to renewable energy
business power generation.
• The Chinese government is committed to fostering the ESS sector.* Some grid companies are calling for ESS to
be introduced into new solar PV/wind power generation projects.
• Sungrow plans to collaborate with lithium battery manufacturers and export ESS through its existing inverter
customer networks. As the market grows, we believe Sungrow is poised to benefit from its early lead in ESS.
* “Guiding Opinions on Integration of Wind-Solar-Hydro-Thermal-Storage and Integration of Generation-Grid-Load-Storage”

Sungrow: ESS revenue growth Chinese ESS market rankings based on newly installed capacity (2019)

(CNYmn) (MW)
Revenue (L) YoY growth (R)
3,000 100% 100

2,500 80
80%

2,000
60
60%

1,500
40
40%
1,000
20
20%
500
0

Shanghai
Dynavolt Tech
Sungrow

CLOU

Narada

Zhiguang
HyperStrong

Cubenergy

Ray Power

NR Electric
Guoxuan

Storage
Electric

Energy
0 0%
2017 2018 2019 2020F 2021F 2022F 2023F

Source: Company data, Mirae Asset Daewoo Research Source: CNESA Global Energy Storage Database, Mirae Asset Daewoo Research

6 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters

Earnings and forecasts

(CNYmn) 2017 2018 2019 2020F 2021F 2022F

Revenue 8,886 10,369 13,003 20,720 28,917 34,790
Solar PV 8,598 9,650 11,855 18,968 26,556 31,867
ESS 64 383 543 1,086 1,629 2,118
Other 224 336 605 666 732 805
COGS (6,464) (7,791) (9,907) (15,436) (21,109) (25,049)
GP 2,422 2,578 3,096 5,284 7,808 9,741
SG&A (1,157) (1,028) (1,314) (2,072) (2,892) (3,479)
R&D (192) (482) (636) (1,036) (1,446) (1,740)
Other operating income/expenses 72 (155) (98) 0 0 0
EBIT 1,145 912 1,048 2,176 3,470 4,523
Non-operating income/expenses 16 10 (16) 10 10 10
PBT 1,162 923 1,032 2,186 3,480 4,533
Tax (147) (105) (120) (262) (418) (544)
PAT 1,014 817 912 1,923 3,062 3,989
Minority interests (10) 8 19 40 64 83
NP 1,024 810 893 1,883 2,999 3,906

Revenue (YoY) 48% 17% 25% 59% 40% 20%

GP (YoY) 64% 6% 20% 71% 48% 25%
PBT (YoY) 74% -21% 12% 112% 59% 30%
NP (YoY) 85% -21% 10% 111% 59% 30%
Gross margin 27% 25% 24% 26% 27% 28%
SG&A/revenue 13% 10% 10% 10% 10% 10%
R&D/revenue 2% 5% 5% 5% 5% 5%
Net margin 12% 8% 7% 9% 10% 11%
Source: Company data, Mirae Asset Daewoo Research

7 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters
Valuation • At a 2021F P/E of 35x and 2022F P/E of 27x, Sungrow is trading well above the five-year average (18x) and at a
premium to global solar PV equipment suppliers (29x and 21x, respectively).
• After rising to CNY122 amid a broad rally in the renewable energy sector, Sungrow’s stock is now undergoing a
correction.
• We derived our target price of CNY103 by applying a fair P/E of 50x (25% discount to 2021F global PV inverter
peer average of 65.7x).
• Although Sungrow is the no. 1 player in the global PV inverter market, our target multiple reflects a discount to
the global peer average to account for the ”China discount.”

Sungrow: P/E valuation table

(CNYmn) 2017 2018 2019 2020F 2021F 2022F

Net profit 1,024 810 893 1,883 2,999 3,906

YoY 85% -21% 10% 111% 59% 30%

EPS 0.72 0.58 0.63 1.29 2.06 2.68

YoY 85% -21% 10% 105% 59% 30%

P/E (x) 25.9 15.5 16.7 56.3 35.2 27.0

12MF EPS (CNY) 2.06

Target P/E (x) 50

Target price (CNY) 103

Source: Company data, Mirae Asset Daewoo Research

8 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters

Peer valuation table

Price (local Market cap P/E (x) P/B (x) ROE (%) EPS growth (%)
Company Ticker
currency) (US$mn) 21F 22F 21F 22F 21F 22F 21F 22F
Sungrow 300274 CH 72.5 16,324 35.2 27.0 8.0 6.3 25.2 26.0 59.2 30.2

Enphase Energy ENPH US 149.9 19,338 76.0 56.9 23.9 17.1 41.6 43.3 33.5 42.1
SolarEdge SEDG US 256.3 13,218 53.9 42.5 9.9 8.2 20.9 21.9 26.7 28.7
SMA Solar Technology S92 GR 48.7 2,022 67.1 55.7 3.9 3.4 6.6 6.3 20.4 41.9
Avg. of PV inverter players 65.7 51.7 12.5 9.6 23.0 23.8 26.9 37.5
LONGi Green Energy Technology 601012 CH 98.1 57,189 44.1 33.1 10.5 8.2 24.6 25.3 33.2 22.6
Tongwei 600438 CH 38.8 26,988 38.6 30.8 6.9 5.8 19.6 19.8 25.0 25.2
Xinyi Solar 968 HK 13.1 14,918 16.9 15.3 3.8 3.3 24.6 23.7 10.8 17.7
Tianjin Zhonghuan Semi. 002129 CH 26.6 12,479 58.0 38.8 4.7 4.2 8.1 10.8 49.5 31.2
Flat Glass Group 601865 CH 30.8 9,417 40.4 25.3 9.0 7.0 24.8 28.2 60.0 26.8
Daqo New Energy DQ US 110.3 6,883 18.0 16.4 2.2 2.0 13.0 13.1 9.7 9.5
Wacker Chemie WCH GY 44,700.0 6,523 13.1 11.7 1.1 1.0 8.8 9.0 11.6 (15.6)
Hanwha Solutions 009830 KS 86.1 5,985 42.0 18.2 8.4 4.6 22.5 31.6 130.6 14.7
Canadian Solar CSIQ US 127,000.0 2,670 22.3 16.9 1.2 1.1 5.3 6.7 32.3 34.2
OCI 010060 KS 41.5 2,448 25.2 20.8 1.5 1.3 6.8 9.1 21.1 38.0
JinkoSolar JKS US 14.1 1,969 19.4 10.5 1.5 1.3 7.3 12.1 85.3 36.6
Risen Energy 300118 CH 40.9 1,914 13.1 9.6 1.0 0.9 8.6 10.9 37.1 1.2
Avg. of solar PV equipment players 29.3 20.6 4.3 3.4 14.5 16.7 42.2 20.2
CATL 300750 CH 325.6 117,219 146.1 98.9 13.5 12.0 10.1 12.8 47.6 32.6
NARI Technology 600406 CH 28.4 20,316 25.3 21.4 3.8 3.4 15.2 16.0 18.3 17.2
Shanghai Putailai 603659 CH 90.3 6,925 53.0 38.2 7.1 6.1 16.6 18.0 39.0 29.2
Hongfa Technology 600885 CH 51.1 5,887 36.6 29.9 5.9 5.1 16.5 17.3 22.5 24.0
Avg. of other notable players 65.3 47.1 7.6 6.6 14.6 16.0 31.9 25.7
Source: Bloomberg, Mirae Asset Daewoo Research

9 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters

Sungrow: 12-month forward P/E band chart Sungrow: 12-month forward P/B band chart

(CNY) (CNY)
120 120 12.5x
50x 100 10x
90
40x 80
7.5x
60 60
30x
5x
40
20x
30 2.5x
20
10x
0
0
2016 2017 2018 2019 2020 2021
2016 2017 2018 2019 2020 2021
Source: Bloomberg, Mirae Asset Daewoo Research Source: Bloomberg, Mirae Asset Daewoo Research

Sungrow:12-month forward P/E ±2 SD Sungrow: 12-month forward P/B ±2 SD

(x) (x)
60 15

50 12
40
9
+2 SD
30
+1 SD 6 +2 SD
20
5Y avg. +1 SD
10 3 5Y avg.
-1 SD
-1 SD
0 -2 SD 0
2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021
Source: Bloomberg, Mirae Asset Daewoo Research Source: Bloomberg, Mirae Asset Daewoo Research

10 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters
Company overview • Sungrow is one of the world’s most trusted manufacturers of PV inverters.
• Founded in 1997 by Cao Renxian, Sungrow has supplied solar PV inverters with cumulative capacity of over
154GW to about 150 countries.
• Sungrow’s businesses include PV inverters (commercial, residential, and utility-scale), ESS, and floating solar PV.
• Sungrow has over 1,800 employees, and its in-house test center is certified by UL, CSA, and TÜV Rheinland.

Sungrow: Company history Cao Renxian: Professor turned CEO

1997 2012 2015 2020

Founded as a Expanded into solar Inverter efficiency Cumulative supply
manufacturer of PV integration exceeded of PV inverters
PV inverters and projects in 99%; no. 1 globally exceeded 154GW
wind converters collaboration with in terms of
China Three Gorges inverter shipment
Renewables volume

2011 2014 2018

Listed on the Established an Established first
Shenzhen ESS joint overseas plant in
Stock venture with India
Exchange Samsung SDI

Source: BP, Mirae Asset Daewoo Research Source: Tsinghua University, Mirae Asset Daewoo Research

11 | Sungrow Power Supply Mirae Asset Daewoo Research

Global leader in solar PV inverters

Sungrow: Revenue by business Sungrow: Revenue by product

(CNYbn) (CNYbn) Other PV power stations

14 ESS PV inverters/other PCE
14
Solar PV ESS Other PV power plant system integration
12
12
10 10
7.9
8 8
5.9
6 4.7
6 11.9 3.6
8.6 9.6 4 3.3
4
5.8 6.1 3.7 3.9
2 3.8 2.7
2 2.6
0 0
2016 2017 2018 2019 1H20 2016 2017 2018 2019 1H20

Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

Sungrow: Production capacity Sungrow: Ownership structure

2018 2019 2020F 2021F 2022F 2023F

PV inverters 18.5 21.5 23 50.5 71.5 95

Industrial Park I 18 20 20 30 40 50

Industrial Park II 10 20 30
30.96% 5.21% 1% 62.83%
Indian factory 0.5 1.5 3 10 10 10
Xinjiang
SE Asia factory 0.5 1.5 5 Cao Renxian Shangge Zheng Guibiao Other
Equity Inv.
ESS 3 3 5 10 15 20

Wind converters 7 8 10 15 20 25
10.44%
Total 28.5 32.5 38.0 75.5 106.5 140.0

Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

12 | Sungrow Power Supply Mirae Asset Daewoo Research

Financial data

Income statement (summarized) Balance sheet (summarized)

2019 2020F 2021F 2022F 2019 2020F 2021F 2022F

Current assets 18,429 26,242 33,125 40,732
Revenue 13,003 20,720 28,917 34,790
Cash & equivalents 4,040 4,975 5,374 6,468
Cost of revenue -9,907 -15,436 -21,109 -25,049 Accounts & notes receivable 8,156 11,614 14,660 18,027
GP 3,096 5,284 7,808 9,741 Inventories 3,339 5,900 6,994 8,519
Operating expenses -2,049 -3,108 -4,338 -5,219 Non-current assets 4,390 6,251 7,890 9,702
PP&E 3,044 4,870 6,474 8,248
OP 1,048 2,176 3,470 4,523
LT investments & receivables 693 727 764 802
EBITDA 1,268 2,417 3,736 4,815 Total assets 22,819 32,493 41,015 50,435
Net non-operating income -16 10 10 10 Current liabilities 12,193 19,182 23,679 28,751
PBT 1,032 2,186 3,480 4,533 Payables & accruals 6,634 13,223 17,280 21,869
Tax -120 -262 -418 -544 ST bank & other borrowings 3,997 4,396 4,836 5,319
PAT 912 1,923 3,062 3,989 Non-current liabilities 1,871 2,829 4,106 4,872
LT bank & other borrowings 1,596 2,554 3,830 4,597
Minority interests 19 40 64 83
Total liabilities 14,064 22,011 27,784 33,623
NP 893 1,883 2,999 3,906 Shareholders’ equity 8,755 10,481 13,231 16,812

Cash flow statement (summarized) Key metrics (summarized)

2019 2020F 2021F 2022F 2019 2020F 2021F 2022F

NP 893 1,883 2,999 3,906 P/E (x) 16.7 56.3 35.2 27.0
Depreciation & amortization 220 242 266 293 P/B (x) 1.7 10.1 8.0 6.3
Non-cash items 271 271 271 271 EV/EBITDA (x) 13.5 44.5 29.2 22.7
Chg. in working capital 977 -823 -2,387 -2,535 EPS (CNY) 0.63 1.29 2.06 2.68
Operating cash flow 2,360 1,573 1,149 1,935
BPS (CNY) 6.19 7.19 9.08 11.54
Capex -697 -700 -700 -700
DPS (CNY) 0.07 0.13 0.21 0.27
Other -902 0 0 0
Payout ratio 11.1% 10.0% 10.0% 10.0%
Cash from investing activities -1,599 -700 -700 -700
Dividend yield 0.1% 0.2% 0.2% 0.3%
Dividends -92 -188 -300 -391
Debt raised 132 250 250 250 ROAA 4.3% 6.8% 8.2% 8.5%
Equity raised 40 0 0 0 ROAE 10.8% 19.6% 25.3% 26.0%
Cash from financing activities 94 62 -50 -141 Current ratio (x) 1.5 1.4 1.4 1.4
Net chg. in cash 864 935 399 1,094 Quick ratio (x) 1.2 1.1 1.1 1.1
Beginning cash 3,176 4,040 4,975 5,374 Net debt/equity 17.7% 18.8% 24.9% 20.5%
Ending cash 4,040 4,975 5,374 6,468 Net debt/EBITDA (x) 1.2 0.8 0.9 0.7
Source: Company data, Mirae Asset Daewoo Research Source: Company data, Mirae Asset Daewoo Research

13 | Sungrow Power Supply Mirae Asset Daewoo Research

Appendix 1

14 | Sungrow Power Supply Mirae Asset Daewoo Research

Compliance notice
Ratings distribution and investment banking services
Buy Trading Buy Hold Sell
Ratings distribution 78.43% 11.76% 8.50% 1.31%
Investment banking services 66.67% 22.22% 11.11% 0.00%
* Based on recommendations in the last 12 months (as of December 31, 2020)

Disclosures
As of the publication date, Mirae Asset Daewoo Co., Ltd. and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.

Analyst certification
The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean securities regulations. They are neither registered
as research analysts in any other jurisdiction nor subject to the laws or regulations thereof. Each Analyst responsible for the preparation of this report certifies that (i) all views expressed in this report
accurately reflect the personal views of the Analyst about any and all of the issuers and securities named in this report and (ii) no part of the compensation of the Analyst was, is, or will be directly or
indirectly related to the specific recommendations or views contained in this report. Mirae Asset Daewoo Co., Ltd. (“Mirae Asset Daewoo”) policy prohibits its Analysts and members of their households
from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director, or advisory board member of the subject companies. Except as otherwise
specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this
report. Like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business units, the
institutional equities, investment banking, proprietary trading, and private client divisions. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material
conflict of interest of the Analyst or Mirae Asset Daewoo except as otherwise stated herein.

Disclaimers
This report was prepared by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information and opinions contained herein have been
compiled in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty,
express or implied, as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein or of any translation into English from the Korean language. In case of an
English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report.
The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws, and accounting principles,
and no person whose receipt or use of this report would violate any laws or regulations or subject Mirae Asset Daewoo or any of its affiliates to registration or licensing requirements in any jurisdiction
shall receive or make any use hereof.
This report is for general information purposes only and is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The
report does not constitute investment advice to any person, and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account
the particular investment objectives, financial situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and
opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate
or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae
Asset Daewoo, its affiliates, and their directors, officers, employees, and agents do not accept any liability for any loss arising out of the use hereof.
Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions,
views, and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report.
Mirae Asset Daewoo, its affiliates, and their directors, officers, employees, and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or
offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset Daewoo
and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making, or other financial services as are
permitted under applicable laws and regulations.
No part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo. For further
information regarding company-specific information as it pertains to the representations and disclosures in this Appendix 1, please contact [email protected] or +1 (212) 407-1000.

15 | Sungrow Power Supply Mirae Asset Daewoo Research

Compliance notice
Distribution
United Kingdom: This report is being distributed by Mirae Asset Securities (UK) Ltd. in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the
Order (all such persons together being referred to as “Relevant Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or
any of its contents.
United States: Mirae Asset Daewoo is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence
of research analysts. This report is distributed in the U.S. by Mirae Asset Securities (USA) Inc., a member of FINRA/SIPC, to “major U.S. institutional investors” in reliance on the exemption from registration
provided by Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934, as amended. All U.S. persons that receive this document by their acceptance hereof represent and warrant that they are a
major U.S. institutional investor and have not received this report under any express or implied understanding that they will direct commission income to Mirae Asset Daewoo or its affiliates. Any U.S.
recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with Mirae Asset Securities (USA) Inc. Mirae Asset Securities (USA) Inc. accepts
responsibility for the contents of this report in the U.S., subject to the terms hereof, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor. Under no circumstances
should any recipient of this research report effect any transaction to buy or sell securities or related financial instruments through Mirae Asset Daewoo. The securities described in this report may not
have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from
the registration requirements.
Hong Kong: This report is distributed in Hong Kong by Mirae Asset Securities (HK) Limited, which is regulated by the Hong Kong Securities and Futures Commission. The contents of this report have not
been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance
of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person.
All other jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset Daewoo or its affiliates only if distribution to
or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae Asset Daewoo and its affiliates to any registration or licensing requirement within such
jurisdiction.

16 | Sungrow Power Supply Mirae Asset Daewoo Research

Mirae Asset Daewoo International Network
Mirae Asset Daewoo International Network
Mirae Asset Daewoo Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd.
One-Asia Equity Sales Team Units 8501, 8507-8508, 85/F 41st Floor, Tower 42
Mirae Asset Center 1 Building International Commerce Centre 25 Old Broad Street,
26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 1 Austin Road West London EC2N 1HQ
Korea Kowloon United Kingdom
Hong Kong
Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000

Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM
810 Seventh Avenue, 37th Floor 555 S. Flower Street, Suite 4410, Rua Funchal, 418, 18th Floor, E-Tower Building
New York, NY 10019 Los Angeles, California 90071 Vila Olimpia
USA USA Sao Paulo - SP
04551-060
Brazil
Tel: 1-212-407-1000 Tel: 1-213-262-3807 Tel: 55-11-2789-2100

PT. Mirae Asset Sekuritas Indonesia Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC
Equity Tower Building Lt. 50 6 Battery Road, #11-01 7F, Saigon Royal Building
Sudirman Central Business District Singapore 049909 91 Pasteur St.
Jl. Jend. Sudirman, Kav. 52-53 Republic of Singapore District 1, Ben Nghe Ward, Ho Chi Minh City
Jakarta Selatan 12190 Vietnam
Indonesia
Tel: 62-21-515-3281 Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110)
Mirae Asset Securities Mongolia UTsK LLC Mirae Asset Investment Advisory (Beijing) Co., Ltd Beijing Representative Office
#406, Blue Sky Tower, Peace Avenue 17 2401B, 24th Floor, East Tower, Twin Towers 2401A, 24th Floor, East Tower, Twin Towers
1 Khoroo, Sukhbaatar District B12 Jianguomenwai Avenue, Chaoyang District Beijing 100022 B12 Jianguomenwai Avenue, Chaoyang District Beijing 100022
Ulaanbaatar 14240 China China
Mongolia

Tel: 976-7011-0806 Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300)

Shanghai Representative Office Ho Chi Minh Representative Office Mirae Asset Capital Markets (India) Private Limited
38T31, 38F, Shanghai World Financial Center 7F, Saigon Royal Building Unit No. 506, 5th Floor, Windsor Bldg., Off CST Road, Kalina,
100 Century Avenue, Pudong New Area 91 Pasteur St. Santacruz (East), Mumbai – 400098
Shanghai 200120 District 1, Ben Nghe Ward, Ho Chi Minh City India
China Vietnam

Tel: 86-21-5013-6392 Tel: 84-8-3910-7715 Tel: 91-22-62661336

17 | Sungrow Power Supply Mirae Asset Daewoo Research