Sungrow Power Supply Co., Ltd.

2024 Annual Report

April 2025

2024 Annual ReportSection I Important Notes, Contents and Definitions

The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the Company hereby guarantee thatthe information presented in this annual report is truthful, accurate and integrate, free of any false records, misleadingstatements or material omissions, and assume individual and joint legal liabilities thereof.Cao Renxian as the President of the Company, Tian Shuai as the Chief Accountant, and Li Pan as the head of accountingdepartment (accounting supervisor) hereby guarantee the truthfulness, integrity, and accuracy of financial statements in thisannual report.All directors have attended the board meeting to review this report.Contents in this report concerning future plans, performance forecasts, and etc., do not constitute any commitment made bythe Company to any investor or related party. Investors and related parties should maintain adequate risk awareness andunderstand the possible difference between plans, forecasts, and commitments. The risks that may exist in the operation of theCompany and the countermeasures in the "XI. Prospects for the Future Development of the Company" section of the"Management Discussion and Analysis" in Section III of this report, which investors are kindly advised to pay attention toinvestment risks.The board meeting has reviewed and approved the following profit distribution proposal: Based on the share capital of2,047,096,561 shares after excluding the repurchased shares in the repurchased shares special securities account, a cashdividend of CNY10.80 per 10 shares (tax inclusive) will be distributed to all shareholders, with the total amount of cashdistributed amounting to CNY2,210,864,285.88 (tax inclusive) .2024 The Company will not implement the transfer of sharecapital to capital reserve and will not distribute bonus shares. In 2024, no share capital increase by capital reserve or bonusshare distribution will be implemented by the company. The profit distribution proposal still needs to be submitted to theshareholders' meeting of the Company for review.

Contents

Section I Important Notes, Contents and Definitions ...... 3

Section II Company profile and key financial indicators ...... 7

Section III Management’s Discussion and Analysis ...... 11

Section IV Corporate governance ...... 57

Section V Environment and Social Responsibilities ...... 75

Section VI Significant Events ...... 78

Section VII Changes in Shares and Information about Shareholders ...... 113

Section VIII Preference Shares ...... 124

Section IX Bonds ...... 125

Section X Financial reports ...... 126

Documents for Future Reference

1. Accounting statements signed and stamped by the Legal Respective, the Chief Accountant, and the head of the accounting

department of the Company.

2. The original Audit Report signed and stamped by the certified public accountants and stamped by the accounting firm.

3. The originals of company documents and announcements publicly disclosed on www.cninfo.com.cn during the reporting period.

4. Other relevant documents.

Definitions

Section II Company profile and key financial indicatorsI. Company Profile

II. Contacts and Contact Information

III. Information Disclosure and Place of the Report

IV. Other relevant informationAccounting firm engaged by the Company

Sponsor institution engaged by the Company for continuous supervision during the reporting period

?Applicable □ Not applicable

Financial advisor engaged by the Company for continuous supervision during the reporting period

□Applicable? Not applicable

V. Key accounting data and financial indicators

Whether the Company performed a retroactive adjustment or restatement of previous accounting data? Yes □ NoReason for retroactive adjustment or restatementChanges in Accounting Policies

Reasons for changes in accounting policies and correction of accounting errors

The Ministry of Finance of the People's Republic of China issued Accounting Standards for Business Enterprises ApplicationGuidance Compendium 2024 in March 2024 and Accounting Standards for Business Enterprises Interpretation No. 18 on December6, 2024. These regulations stipulate that warranty-type warranty expenses should be incorporated into operating costs. In light of therevision of the above-mentioned accounting standards, the Company made corresponding adjustments to its previously adoptedrelevant accounting policies. For specific details, please refer to Section X. V36, Changes in Significant Accounting Policies andAccounting Estimates.In accordance with the annual equity distribution plan for 2023, the Company transferred 4 shares for every 10 shares from thecapital reserve to all shareholders. the Company recalculated the earnings per share for the comparable period based on the adjustednumber of shares.The lower of the Company's total audited profit, net profit, or net profit after extraordinary gains and losses for the most recent fiscalyear is negative

□Yes? No

The lower of net profit including extraordinary and net profit excluding extraordinary is negative

□Yes? No

VI. Quarterly key financial indicators

(in CNY)

Whether there are significant differences between above financial indicators or their sums and the relevant financial indicators in thequarterly and half-year reports disclosed by the Company

□Yes? No

VII. Differences in Accounting Data between Chinese and Overseas Accounting Standards

1. Differences in the net profits and net assets disclosed in the financial statements as per the international accounting

standards and China accounting standards

□ Applicable ? Not Applicable

There is no difference in the net profits and net assets disclosed in the financial statements as per the international accounting standardsand China accounting standards.

2. Differences in the net profits and net assets disclosed in the financial statements as per the local (overseas) accountingstandards and China accounting standards

□ Applicable ? Not Applicable

There is no difference in the net profits and net assets disclosed in the financial statements as per the local (overseas) accountingstandards and China accounting standards.VIII. Non-recurring Items and Their Gains/Losses?Applicable □ Not applicable

(in CNY)

Details of other gains or losses that fit in the definition of extraordinary items:

□ Applicable ? Not Applicable

There are no other gains or losses in the Company that fit in the definition of extraordinary items.Explanation on defining the extraordinary items listed in the Explanatory Announcement No. 1 on Information Disclosure forCompanies Publicly Offering Securities - Extraordinary Items as recurring gains or losses?Applicable □ Not applicable

Section III Management’s Discussion and Analysis

I. Industry situation in the reporting periodFor the PV industry, in 2024, under the global low-carbon goals and driven by supportive policies, improved project economics, andtechnological advancements worldwide, the PV industry continues its growth momentum. According to third-party data, global newPV installations reached 460 GWac in 2024, marking a year-on-year increase of 27%. Major global PV markets maintained growthmomentum, with emerging markets such as Pakistan demonstrating remarkable progress, expected to become new growth drivers forthe PV market.For energy storage industry, in 2024, global energy storage demand sustained rapid growth, driven by increasing renewable energypenetration and declining storage costs. Third-party data indicates that global lithium battery energy storage installations reached 182GWh in 2024, reflecting a 72% year-on-year increase.II. Business Scope in the Reporting Period

Sungrow Power Supply Co., Ltd. is a national key high-tech enterprise specializing in R&D, manufacturing, sales and service of solarenergy, wind energy, energy storage, electric vehicles, and other new energy power supply equipment. With a wide range of productsincluding PV inverters, wind energy converters, energy storage systems, electric drive system for new energy vehicles, chargingequipment, floating PV systems, and smart energy operation and maintenance service, the Company is committed to providing world-class solutions for the full life cycle of clean energy.

1. PV inverters

Since the establishment in 1997, the Company has been focused on the R&D and manufacturing of PV system equipment, with PVinverters being the core product. Adhering to the mission of “Clean power for all”, the Company provides cutting-edge PV systemsolutions to users around the globe.PV inverter is one of the main components in a PV power generation system, which connects PV arrays to the grid and plays a criticalrole in ensuring the long-term and reliable operation of PV power stations and improving the project investment return. Sungrow’s PVinverter family, consisting of microinverters, residential inverters, string inverters, centralized inverters, and modular inverters, coversa power range from 0.45 kW to 8,800 kW, and is widely used in residential, industrial and commercial, large ground power station,among other application scenarios.Microinverters feature a compact design and high adaptability to low-light and high-temperature environments. With superior energygeneration, simplified installation, and naturally arc-free, they enable component-level intelligent operating and maintenance. Thesesystems are primarily applicated in scenarios such as balcony PV systems and rooftop PV installations.Residential PV inverters feature high power density, appealing exterior design, and simple installation and maintenance, which canautomatically adapt to complicated grid environment, prolong power generation, and effectively improve power generation revenue.With built-in lightning protection and high-precision leakage current protection, as well as energy storage interfaces and variouscommunication modes, they can meet various application requirements indoor and outdoor, and are widely used in residential PVpower generation systems on residential roofs or in courtyards.String PV inverters feature high power density and simple installation and maintenance, which are suitable for different indoor andoutdoor applications, hence are widely used in small and medium PV power generation systems in parking lots or on commercial roofs,as well as in large-scale ground power stations on complex terrains.Centralized PV inverters feature high conversion efficiency, safety and reliability, are highly grid-friendly and cost effective. They cancope with various environments such as extremely low temperature and high altitude, and are widely used in large and medium-sizedPV power generation systems in deserts, plateaus, and on commercial roofs.Modular inverters mark a new category in the industry. At a unit power of 1.1 MW, modules can be connected in parallel to form aflexible subarray configuration of 1.1 MW to 8.8 MW. Integrating the advantages of centralized inverters and string inverters, eachmodule features an independent MPPT design and operates independently, is built with higher tracking accuracy and plug-and-playoperation and maintenance, capable of addressing the diverse needs and application scenarios of different markets around the world.Sungrow Cloud: Capitalizing on the Internet of Things, artificial intelligence, big data, and blockchain technologies, Sungrow Cloud

enables group customers to collectively operate and manage solar energy, energy storage, charging poles and other energies, and createsa smart energy brain. It comprehensively satisfies the management needs of customers at different levels throughout the entire energylifecycle, and delivers four core values: stabilizing investment returns, guaranteeing asset safety, standardizing operation andmanagement, and assisting the group’s decision-making.According to the 2023 global PV inverter enterprise shipment list released by an authoritative data consulting organization S&P Global2024, Sungrow continues to be the world's No. 1. in the 2024 Inverter Bankability Survey Report released by Bloomberg New EnergyFinance (BNEF) in 2025, Sungrow was awarded the world's No. 1 in inverter bankability rankings, and has become the world's onlynew energy brand that has been ranked top in the inverter list for five times.

voltage below 60V, fundamentally eliminating arcfault risks while delivering ultimate safetyassurance.

2. Energy storage systems (ESS)

As one of the first companies involved in energy storage, Sungrow relies on the world-leading technology integration of powerelectronics, electrochemistry, and grid support to build professional energy storage systems. With a focus on the R&D, production,sales, and service of lithium battery ESS, the Company offers a range of ESS solutions for auxiliary new energy grid connection, powerfrequency and peak regulation, demand side response, micro-grid, and residential scenarios, and is acknowledged a world-class supplierof energy storage equipment and system solutions. According to the 2024 global cumulative installed capacity ranking for energystorage systems released by the authoritative consulting firm S&P Global, Sungrow was awarded the top position worldwide.Additionally, in the 2024 Global Bankability Ranking published by BNEF, Sungrow's energy storage systems and PCS both named asthe No. 1 global ranking.

3. New energy investment and development

In recent years, as the Group's dedicated platform for new energy project development and investment, Sungrow Renewables adheresto the philosophy of “Higher Yield, Greener Impact”, focusing on centralized PV/wind farms, residential/commercial PV systems,energy storage stations, and charging infrastructure. Driven by technology innovation and market needs, it has built a globallysynergistic business layout anchored in China and expanding overseas.Centralized PV power station: Full-scenario coverage, centralized PV power stations leverage advanced R&D capabilities andextensive project experiences to largely improve the ROI of PV power stations, creating greater value for customers. In the meanwhile,comprehensive development models such as agrivoltaics , soil remediation, saline-PV integration, mountain solar, desertificationcontrol, and floating PV systems, they enable synergistic utilization of wind, solar, and land resources, establishing benchmarks forland-use efficiency, regional ecological restoration, and new energy industry integration.Wind power station: Wind farms can fit in different operating environments such as high/low temperatures, high altitude, low windspeed, coastal areas, and are intended for plain wind power, mountain wind power, decentralized wind power, wind-PV complementarysystems and other healthy ecosystems and development patterns to meet the diverse needs of customers and maximize value.Residential PV power stations: During the reporting period, Sungrow's residential PV installations maintained rapid year-on-yeargrowth. The "Worry-Free Installation" service strategy continued to deliver high-quality plant services and operational empowermentfor users and partners, leading the industry into a new era of premium, value-driven service. Powered by smart and digital technologies,upgraded solutions for flat roofs, slope-converted roofs, sloped roofs, courtyards, and sunrooms have been widely adopted in the market.The newly launched "SunStyle" series – including Chinese and European aesthetic versions – features innovative exterior designs,

structural layouts, and module arrangements, offering households a seamless blend of lifestyle elegance and energy efficiency.Sungrow's proprietary iSolarRoof intelligent design software has been extensively utilized by channel partners. With its "'3Superiorities + 1 Speed' Advantage" – optimized module layout, superior system wiring, efficient rack cutting, and rapid designoutput – it boosts power station design efficiency by 400%.Sungrow home energy power stations: Sungrow Home Energy Power Station exclusively designed for premium villas and luxuryresidences in China, integrates architectural aesthetics, energy efficiency, and lifestyle sophistication through intelligent 3D scenario-based planning, combining self-developed "PV-Storage-Charging-Optimization-Cloud" technologies with 24/7 storage response and20% higher yield via multi-orientation roof adaptability to deliver a sleek design, high energy yield, enhanced safety, and AI-poweredintelligence via its proprietary HEMS (Home Energy Management System), which learns household consumption patterns to achieve100% solar self-consumption, seamlessly blending energy autonomy with refined living experiences.Industrial and commercial PV power stations: The Company capitalizes on its world-leading new energy technological strength as wellas innovative and efficient industrial and commercial PV power station products to provide enterprises with new energy full lifecyclesolutions covering consulting, development, investment, and delivery. In response to the surging demand for green energy acrossvarious industries, Sungrow continually explores the channel ecosystem and establishes a multi-win landscape for the brand, channeloperators, partners, industrial and commercial enterprises based on the core advantages of “technology + platform”. With in-depthinsights on energy consumption scenarios and characteristics of industries, Sungrow has developed innovative zero carbon solutionsfor automobiles, home appliances, cement, warehousing, logistics. With modules and tiles searching for optimal designs and innovativepatented tile models, which can be installed more quickly and generate more power, Sungrow's BIPV power stations has been risingcomprehensively to address the green energy demand and accelerate the zero carbon transformation of various industries.Sungrow charging stations: Sungrow charging stations provides one-stop solution from scientific site selection to intelligent design andconstruction to intelligent operation optimization. With the core algorithm, the integrated charging station realizes the smooth linkageof green power among PV, storage, charging and grid. The first "S2G" (Station to Grid) new model from station to grid whichsystematically aggregates PV, storage and charging not only provides demand-side response, but also participates in auxiliary servicessuch as power market trading to create more revenue. Sungrow charging stations intelligent evaluation and design software and"investment, construction and operation cloud platform" not only provide intelligent suggestions from scientific site selection, designand construction to operation, but also bring higher value to charging stations in terms of " precise attraction, intelligent operation andmaintenance, and convenient service" to bring a silky smooth energy replenishment experience to users.Multi-energy integration: Relying on the PowMart smart energy solution featuring independent intellectual property, Sungrowincorporates advanced system integration technology into the wind-PV-storage integration, wind-PV-hydrogen production, PV-storage-charging integration and other new energy integration application scenarios, establishes innovative examples in multi-energycollaboration, intelligent scheduling, grid friendliness, safety and reliability, and provides support for building a new type of powersystem running on new energies.

4、Wind power converter and transmission products

Sungrow’s Wind Energy Division is committed to promoting high-power and high-performance power electronic conversiontechnology and its engineering applications. It specializes in high-power energy conversion, high-performance grid-tie control, andhigh-power motor drive and control technologies, with a business scope covering wind power converters, wind power pitch, windpower aftermarkets, grid simulation power supplies, and drive frequency converters. In the future, Sungrow Wind Energy Division willkeep exploring high-power energy conversion and control, and aiming to establish global leadership in wind power conversion andelectromechanical transmission solutions.

by commutation failures. The equipment canreach a standalone capacity of 1 MVA to 15MVA and or a capacity of up to 130 MVA whenconnected in parallel.

5. Smart operation and maintenance

Sungrow Smart Maintenance, a new energy asset management service subsidiary under Sungrow, harnesses the group's 28 years ofexpertise in power electronics conversion and power station integration. Guided by the service philosophy of "Digital-IntelligenceConnectivity, Secure High Returns", it provides comprehensive value-added services for renewable energy assets, utilizing cutting-edge technologies to ensure stable customer returns and asset security.By the end of 2024, Sungrow Smart Maintenance had contracted over 46 GW of operational capacity, with domestic coverage across31 provinces in China and international operations spanning the Middle East, Central Asia, and Southeast Asia. Powered by its self-developed SolarEye 4.0 intelligent O&M platform and the station-level "iSolarHealth Full-Scope Diagnostics System", it rapidlyidentifies equipment anomalies across the entire energy chain, pinpoints root causes, and dynamically optimizes maintenance strategiesto maximize returns while safeguarding asset integrity.

6. Electric control and power supply system for new energy vehicles

Leveraging its robust expertise in clean power electronics conversion technology and R&D strengths, Sungrow has expanded itsinverter applications into the electric vehicle industry, providing high-quality motor control systems and vehicle-mounted power supplysolutions for new energy vehicles.As a national high-tech enterprise specializing in the R&D, production, sales, and service of electric control systems and power supplyproducts for new energy vehicles, Sungrow Electric Power builds on over a decade of technological innovation, extensivemanufacturing experience, and a stable global supply chain. By assembling top-tier automotive electronics talent, Sungrow ElectricPower is committed to delivering premium electric control and power supply products for new energy vehicles. Since 2010, SungrowElectric Power has consistently provided services to leading passenger car, commercial vehicle, and construction machinerymanufacturers. Its platform-based product portfolio features high efficiency, exceptional reliability, and flexible compatibility. By theend of 2024, the products had been installed in over 2 million vehicles worldwide.Sungrow Electric Power holds certifications including IATF 16949, ISO 14001, and ISO 45001, along with ISO 26262 ASIL-D processcertification for automotive functional safety, establishing a product development and management system compliant with the highestfunctional safety standards. The company operates multiple automated production lines for electric control and power supply systems,with an annual capacity of 1.5 million units. Recognized for its technical expertise, product reliability, and stable delivery capabilities,it has earned prestigious accolades such as the Red Dot Best Design Award, the First Prize of Science and Technology from the ChinaElectrotechnical Society, the First Prize of Scientific Progress from the China Power Supply Society, and a spot in the "2024 Top 100Core Components for Intelligent Electric Vehicles in China." Additionally, Sungrow Electric Power has been designated as a national-level specialized and sophisticated "Little Giant" enterprise and recognized as both an Anhui Provincial Enterprise R&D Center andAnhui Provincial Enterprise Technology Center.

7. Floating PV system

Sungrow FPV is a national high-tech enterprise specializing in floating PV system solutions. The Sungrow FPV is committed to creatingeco-friendly, reliable, and efficient floating PV systems, and delivering one-stop floating PV system solutions suitable for differentwater bodies.Specializing in R&D, design, and manufacturing of floating systems for water surface PV power stations, Sungrow FPV has fosteredan R&D team with extensive R&D experience and strong innovation capabilities. The team has mastered key technologies of floatingpower stations, including system design, materials, product structure and arrays, mooring & anchoring system, made more than 280patent applications, led and participated in the formulation of multiple standards related to floating systems, and their products havebeen certified and tested by a number of international certification bodies including T?V, DNV, WARS, and CGC.The production base for floating PV systems is built with a fully intelligent management system, advanced raw material R&D andproduct mechanical performance testing laboratories, and intelligent production workshops. Its annual production capacity can meetthe requirements of building GW-level floating PV power stations.Sungrow FM had received a wide range of honors, including 2024 China's Most Influential Floating PV Enterprise Award ,2023 China'sLeading Enterprise in Floating PV Systems, 2022 Anhui Province’s Small- and Medium-Sized SRDI (Specialized, Refined,Differential and Innovative) Enterprises, 2021 Asian Photovoltaic Innovative Enterprise, 2019 China's Largest Floating Power StationProject Award, and 2017 China PV+ Floating Bodies Gold Award. As of December 2024, the cumulative application of Sungrow’sfloating PV systems worldwide exceeded 3.7 GW, and making Sungrow FPV the world's first GW-level floating PV system supplier.According to the S&P Global , Sungrow FPV accounts for the largest market share globally for seven consecutive years.

8. Charging equipment

Building on Sungrow’s 28 years of R&D innovation and application experience in outdoor high - performance power electronicsproducts, Sungrow Charging Technology Co., Ltd. (hereinafter called "Sungrow Charging") actively drives technologicalbreakthroughs in electric vehicle charging equipment and solutions, dedicated to helping charging operators enhance investment returnsand asset security. Guided by the core principles of "Reliable, Efficient, and Intelligent," Sungrow Charging has developed a series ofEV charging products, including DC and AC charging poles. Pioneering the industry-first "Isolated Air-Cooling" technology, theproducts achieve superior protection, exceptional reliability, maintenance-free operation, and extended lifespan. Currently, the productshave been sold in batch to over 30 countries and regions worldwide, including Germany, France, the UK, and Australia, earningwidespread acclaim from vehicle owners and operators.In the reporting period, Sungrow Charging launched and delivered in batch its groundbreaking 480 kW isolated air-cooled ultra-fast

charger globally, creating a new charging experience characterized by "rapid charging, unbreakable durability, and high returns," whilecontinuing to lead innovation in charging technology. Simultaneously, charging poles integrate seamlessly with Sungrow’s PV andenergy storage systems, delivering an integrated PV-storage-charging solution for charging stations. This enables new energy vehiclesto be powered by renewable energy, accelerating progress toward the dual-carbon goals.

9. Hydrogen energy equipment

As one of China’s earliest renewable energy enterprises to enter the hydrogen sector, Sungrow Hydrogen is committed to delivering"efficient, intelligent, and safe" flexible renewable energy hydrogen production systems and solutions. The company possessesintegrated R&D, manufacturing, and delivery capabilities for critical system components, including PWM hydrogen power supplies,ALK and PEM electrolysis cell, electrolysis cell digital management systems, gas-liquid separation and purification equipment, andsmart hydrogen energy management systems. It has also developed hydrogen production solutions for off-grid, grid-connected, andmicrogrid scenarios.In the reporting period, Sungrow Hydrogen obtained certifications for pressure piping component manufacturing, pressure vesseldesign, pressure piping design, and construction/installation. The company has secured certifications including ISO 9001/14001/45001,ASME, GC2, T?V, and CNAS. It has implemented TPM/TQM management practices and ESG system development, earning titlessuch as National High-Tech Enterprise, Anhui Provincial Specialized and Sophisticated SME, Anhui Provincial Innovative SME, andAnhui Industrial Innovation Center. Sungrow Hydrogen has continuously optimized the structure and critical material components oflarge-scale ALK electrolysis cell, achieving industry-leading energy efficiency, operational power, and load range. Sungrow Hydrogenlaunched its 2000+ Nm?/h large-scale alkaline water electrolysis cell and innovatively developed the SMS1000 Electrolysis CellDigital Management System, leading the electrolysis cell industry into a new era of digital intelligence. It also introduced a 300 Nm?/h PEM electrolysis cell with significantly enhanced performance, hydrogen output, and lifespan. Additionally, Sungrow Hydrogenupgraded its Smart Hydrogen Energy Management System and conducted empirical studies on AC/DC-coupled hydrogen productionsystems to strengthen flexible hydrogen production technologies. Notably, its 1000 Nm?/h ALK electrolysis cell and 250 Nm?/h PEMelectrolysis cell obtained CE certification, while both its alkaline water electrolysis (ALK) and proton exchange membrane (PEM)water electrolysis systems received carbon footprint evaluation certificates from the China Hydrogen Alliance. Sungrow Hydrogencompleted the construction of its No. 2 Smart Manufacturing Center, with the commissioning of China’s first automated electrolysiscell assembly line, increasing the park’s total production capacity to 3 GW and boosting efficiency by 60%. The first 30 MW electrolytichydrogen production demonstration based Chinese has operated stably for over 14,000 hours, providing rigorous data to advancehydrogen production technologies.

The Company needs to comply with the requirements on the disclosure of PV industry chain related business specified in the ShenzhenStock Exchange’s No. 4 Regulatory Guidelines for Listed Companies—Information Disclosure of GEM-Listed Companies.

1. PV inverters’ conversion efficiency

The indicator “conversion efficiency” refers to the ratio of inverters converting input DC power to AC power, which is inverter’s outputpower / inverter’s DC input power × 100%.By utilizing new semiconductor materials and highly efficient magnetic devices, optimizing circuit design, improving MPPT algorithm,and optimizing the heat dissipation system, the Company continuously drives inverters’ efficiency to go up. The maximum efficiencyof Sungrow’s full range of inverters has reached 99% at the moment.

2. Levelized Cost of Electricity of the Company's PV system

The Levelized Cost of Electricity (LCOE) represents the ratio of the total investment cost of a PV system—including initial capitalexpenditures and lifecycle operation and maintenance (O&M) expenses—to its total energy output over its operational lifespan, directly

reflecting the per-unit energy generation cost, where a lower LCOE translates to higher system profitability.Through continuous technological innovation and system optimization, the company reduces investment costs and enhances energyyield, thereby lowering LCOE and improving customer return on investment (ROI). Tailored to regional characteristics of PV stations,the company offers 3-9MW sub-array configurations, combining string-type and modular product architectures with innovativetechnical designs to achieve site-specific scientific layouts that minimize sub-array costs and reduce both initial investments and O&Mexpenses. For single-sided and bifacial module systems, its intelligent tracking technology boosts energy yield by over 1% comparedto conventional solutions, while enhanced voltage tolerance of critical components supports longer module strings to effectively lowersystem costs. Pioneering system-level breakthroughs, the company developed the world’s first 2000V high-voltage PV system,validated through small-scale pilots to further improve PV stations economics. By adopting a modular design philosophy fromcomponent to system levels, O&M costs are reduced, and equipment availability rates increased to maximize energy generation.Additionally, its smart medium-voltage shutdown solution leverages intelligent algorithm coordination among inverters, collectorcircuit breakers, and step-up transformers to eliminate transformer standby losses, elevating customer ROI.

3. PV system’s grid friendliness

With the large-scale deployment of PV systems and the continuous increase in PV penetration rates, inverters—serving as criticalenergy transfer interfaces directly connected to the grid—are facing escalating demands for grid-friendly performance.Sungrow inverters are equipped with low voltage ride-through (LVRT), zero voltage ride-through (ZVRT), and high voltage ride-through (HVRT) capabilities, ensuring reliable grid support during grid faults and facilitating rapid system stabilization. Integratedwith a fast power control module, they achieve sub-20ms response times for active and reactive power dispatch, delivering superiorgrid regulation. Through impedance reshaping and multi-loop collaborative control, the inverters effectively mitigate negative dampingto suppress wide-frequency oscillations. Additionally, the dynamic virtual voltage source grid-forming technology rapidly suppressesgrid voltage and frequency fluctuations, further enhancing the stability of PV and PV-storage power stations, thereby supporting higherrenewable energy penetration. Featuring an integrated DC energy storage interface, Sungrow inverters support bidirectional charging.On the generation side, energy storage integration enables multi-energy complementary solutions for peak shaving and outputsmoothing, improving grid stability. On the consumption side, smart PV-storage microgrids leverage storage to balance peak-valleyloads, enhance PV consumption capacity, and enable precise energy supply. As renewable energy penetration rises, grid short-circuitratio (SCR) decreases, increasing risks of inverter disconnections. Sungrow addresses this challenge with adaptive control algorithmsthat accurately sense grid strength, achieving certification for ultra-weak grids (SCR=1.02). These innovations advance the era of "grid-friendly" renewable integration, accelerating progress toward dual-carbon goals.

4. PV system safety

With the annual increase in PV installations, safety concerns in PV power stations have gained significant attention. Committed toensuring the safety, Sungrow has further enhanced system design security.Sungrow inverter systems feature real-time detection for series and parallel DC arcs, certified to relevant protection standards. Utilizingintelligent arc detection algorithms, they identify faults and execute millisecond-level shutdowns to eliminate arc hazards. Integratedwith AC/DC insulation monitoring systems, the inverters adapt to diverse environments, rapidly locate insulation faults, and enableautomatic cable fault protection to prevent electric shocks and fire risks, ensuring 24/7 safety. Equipped with intelligent protectioncontrol algorithms and integrated isolators, the systems leverage big-data analytics to accurately detect reverse polarity, short circuits,and other faults, achieving shutdown within 10ms to prevent fault escalation. Triple-layer data protection technology, compliant withIEC 62443 standards, safeguards stations cybersecurity. AI-driven management actively detects air duct blockage levels, triggersautomatic alerts and dust removal, and optimizes airflow health. The fault pressure relief design employs dual protection with patentedexplosion-proof locks and pressure relief doors, ensuring personnel and asset safety. Overcoming ten major challenges—including heatdissipation, arc suppression, insulation, and lightning protection in high-altitude environments—the systems operate stably at ultra-high altitudes up to 5,300 meters, setting a world record and pioneering new benchmarks for high-altitude PV plants.

5. Unit production cost of the Company's PV inverters

Due to wide range of the Company's PV inverters and different power ratings, the unit production cost varies from CNY 0.06 to CNY

0.15 per watt at the moment.

III. Analysis of core competenciesIn the nearly two decades of rapid development, the Company has been committed to the independent innovation of power electronicsand electric energy conversion technology in the new energy field, with a number of technologies reaching the world-leading level. In

recent years, the Company successively deployed a range of new businesses, such as key components of new energy vehicles, micro-grid energy storage, smart energy, and new energy hydrogen production, and gained considerable growth.

1. Brand Advantage

Since its establishment in 1997, Sungrow has focused on the R&D, production, sales, and services of new energy power equipmentacross solar, wind, energy storage, hydrogen, electric vehicles, and charging infrastructure. PV inverters, as the Company’s core product,are sold to more than 170 countries and regions worldwide. Sungrow ranks No. 1 globally in PV inverter shipments, No. 1 in cumulativeenergy storage system installations (Source: S&P Global), No. 1 in PV inverter bankability, and holds dual No. 1 rankings in energystorage system and PCS bankability (Source: BNEF). It stands as the only new energy brand to top the global inverter rankings fivetimes. The company’s brand reputation continues to rise, earning accolades such as the China Industry Grand Award, NationalManufacturing Single Champion Demonstration Enterprise, National Intellectual Property Demonstration Enterprise, Global Top 500New Energy Enterprises, Forbes China Top 50 Innovative Companies, Fortune China 500, and Asia’s Best Employer Award. TheCompany operates key national R&D platforms, including a Postdoctoral Research Station, National High-Tech Industrialization Base,National Enterprise Technology Center, National Industrial Design Center, and National Green Factory, solidifying its position as aglobal leader in renewable energy industry. In 2024, Sungrow’s brand value surpassed CNY 100.84 billion according to the China’s500 Most Valuable Brands report by World Brand Laboratory.

2. R&D innovation capability

Since its establishment in 1997, the Company has been focusing on the new energy power generation sector to advance the researchand development of core technologies while maintaining market oriented and innovation based. To transform technological advantagesinto product advantages, benefits advantages, and competitive advantages, the Company has fostered a professional R&D team withsolid R&D experiences and strong innovation capabilities. The Company has set up six R&D centers in Hefei, Shanghai, Nanjing,Shenzhen, Germany, and the Netherlands, providing leading technological support for building globally competitive new energyequipment. In order to explore cutting-edge technologies, the Company has set up the Central Research Institute that is responsible formaking high-value intellectual property plans in advance and addressing critical technical challenges, hence to provide efficientplatform services and innovation management for the Company's product and technology development, and foster R&D andmanagement professionals to build core technological competitiveness. In the meantime, each division has set up an independent R&Dtask-force for close interaction with the market and customers. In 2024, the Company invested CNY 3,164 million in research anddevelopment, an increase of 29.26% year-on-year. As of the end of the reporting period, the Company boasted an R&D headcount of6,989, accounting for about 40% of the total head count, including 65 doctorate holders and 2,004 master's degree holders. TheCompany has successively undertaken more than 20 national key science and technology programs, and led the drafting of multiplenational standards, making it one of the few enterprises in the industry that boast multiple independent core technologies. The Companyalso attaches great importance to the accumulation of intellectual properties in technological innovation achievements and closelyfollows the evolution of various new technical standards. As of the end of the reporting period, the Company has cumulatively applied9,401 patent rights, including 5,081 inventions, 3,708 utility models, and 612 exterior designs, and plays a leading role in promotingnew quality productive forces in the industry with advanced technologies and innovation capabilities.The Company has introduced the IPD process to guide the technological reserve and product development efforts according to customerdemand analysis, technology development analysis, and competitive strategy analysis. From concept, planning, development,verification, trial production to mass production, staged quality indicators are set for each step of new product development to ensurethe quality of products. The Company has invested in a world-leading electromagnetic compatibility laboratory that is equipped withhigh-performance large-capacity low-voltage ride-through facilities as well as a variety of power supplies and power grid simulators,which is capable of providing the most demanding test condition. The Company continues to establish and optimize the ISO9001:2015,ISO14001, OHSAS18001 management systems, and strictly promote the integrated quality, environment, occupational health andsafety management system. The Company's products have passed a number of authoritative international certifications including UL,T?V, CE, Enel-GUIDA, AS4777, CEC, CSA, and VDE.

3、Global marketing, channels and service network

At the very beginning, the Company has identified a global development strategy, and established by now an oversea productioncapacity of 25 GW with the India and the Thailand plant. As of today, the Company has set up 20+ oversea subsidiaries, 5 serviceregions around the globe, 520+ service outlets and hundreds of important channel partners, with products being sold to more than 180countries. At the end of the reporting period, the Company boasted 1,774 employees overseas, an increase of 16.86% year-on-year. Inthe future, the Company will continue to explore the global market, orderly promote the global deployment of inverters, energy storage,charging, power stations, and floating system businesses, prioritize the improvement of global marketing, service, financing, and otherkey capabilities, thereby reinforcing the global support capability system and strengthen the global influence.

IV. Main business analysis

1. Overview

A. Overview of core business analysisIn 2024, amid complex global dynamics and intensified industry competition, Sungrow adhered to its guiding principles of "Innovation-Driven Collaboration, Comprehensive Global Expansion, Digital Acceleration, and Customer First", focusing on core sectors includingPV, wind energy, energy storage, electric vehicles & charging, and hydrogen. The Company continued to increase R&D investments,advance product innovation, deepen global market penetration, accelerate digital transformation, and further solidify its globalleadership, achieving sustained revenue growth.In the reporting period, Sungrow recorded CNY 77,857 million in operating revenue, a year-on-year increase of 7.76%, with operatingcosts reaching CNY 54,545 million, a year-on-year increase of 3.67%. The gross margin rose to 29.94%, a year-on-year increase of

2.76%, driven by brand premium, product innovation, and economies of scale. Net profit attributable to shareholders surged to CNY11,036 million, marking a 16.92% year-on-year growth. Sales expenses grew to CNY 3,761 million, a year-on-year increase of 30.95%,primarily due to increased labor costs, including salaries and equity incentives, amid business expansion. R&D expenses climbed toCNY 3,164 million, a year-on-year increase of 29.26%, reflecting heightened investments in R&D projects and related personnel costs.Financial expenses rose sharply to CNY 290 million, largely attributable to reduced net foreign exchange gains amid currency volatility.Net cash flow from operating activities soared to CNY 12,068 million, a year-on-year increase of 72.85%, bolstered by improvedpayment collection efficiency.B. Overview of core business in the reporting periodIn the reporting period, the Company made the following attempts related to the core business:

(1) Business development

a. PV invertersIn the reporting period, Sungrow strengthened R&D innovation, vigorously pushed forward the global brand strategy, and deeplyexplore key segmented markets. Leveraging its global marketing, service, and supply chain strengths, the company expandedoperations in Europe, the Americas, Asia-Pacific, the Middle East & Africa, and China, with products exported to over 180 countriesand regions. The global service network grew to 520+ locations, enhancing worldwide competitiveness and influence. In 2024,Sungrow’s global PV inverter shipments reached 147 GW.The high-power string inverter SG320HX and 1+X modular inverters were widely deployed across diverse global scenarios. Sungrowdelivered a benchmark off-grid project for Saudi Arabia’s ultra-luxury Amaala resort complex, integrating 165 MW PV inverters anda 160 MW/760 MWh energy storage system. The Company also supplied inverters for the 5,300-meter-altitude PV plant—the world’shighest—in China’s Yunnan Diqing Huaneng Nagu project.Collaborating with China Energy Investment Group, Sungrow launched the “Advanced 2,000V PV System Key EquipmentDevelopment and Technology Research” project in Ordos, Inner Mongolia, targeting coal mining subsidence areas. Following thesuccessful grid connection of the 2023 Mengjiawan PV Project in Yulin, Shaanxi, this marks Sungrow’s second large-scale applicationof 2,000V systems, accelerating grid parity and market-driven growth. The company also unveiled its 2,000V PV-storage high-voltagesystem technology, driving industry-wide transition from 1,500V to 2,000V architectures to reduce costs and enhance efficiency.For domestic commercial and industrial users, Sungrow launched the next-generation SG150CX-CN high-power string inverter andSGT-P2-CN residential inverter, designed with “high efficiency, long-term reliability, and simplicity”. The SG150CX-CN boostscommercial inverter power to 150 kW, fully compatible with mainstream PV modules, ensuring safer, more convenient, and higher-yield operations.To address rapidly growing global markets for balcony PV and residential green energy applications, Sungrow debuted its firstmicroinverter series, initiated batch deliveries of MLPE products (microinverters, rapid shutdown devices, optimizers), and introducedthe iHomeManager Smart Energy Hub. These innovations, characterized by flexibility, intelligence, and efficiency, are redefining smartand simplified green energy solutions for households worldwide.b. Energy storageIn the reporting period, Sungrow’s world-first 10 MWh “AC-DC Integrated” fully liquid-cooled energy storage system PowerTitan 2.0and the commercial & industrial (C&I) liquid-cooled system PowerStack 200CS gained widespread global adoption. Additionally, the

Company launched the PowerStack 835CS, its first liquid-cooled C&I energy storage system tailored for 10/20 kV large industrialscenarios, pioneering scenario-based customization in the C&I storage sector. In 2024, Sungrow’s energy storage systems achievedglobal shipments of 28 GWh.The PowerTitan 2.0 liquid-cooled energy storage system, based on the philosophy of “3-in-1 integration” and an “intelligence andstorage integrated”, utilizes 314Ah battery cells and embedded PCS to achieve AC-DC integration (AC-coupled storage), with astandard 20-foot container capacity of 5 MWh. Equipped with Stem Cell Grid Technology, the system enhances efficiency, safety, andgrid compatibility. It has been deployed in landmark projects such as the Taizhou Hailing Independent Energy Storage Plant, KunshanLongteng Special Steel User-Side Storage Station, Wuhu Chery’s First Automotive Industry Storage Station, and Shandong TaiyangGrid-Side Storage Station.Addressing global grid disparities, Sungrow upgraded its Stem Cell Grid Technology Architecture and introduced customized gridsolutions to safeguard grid stability. This technology aided the UK grid in rapid frequency recovery, preventing widespread blackouts.In March 2024, Sungrow partnered with State Grid Gansu Electric Power Research Institute and SPIC Gansu Branch to conduct theindustry’s first full-scenario grid-forming test for PV-storage systems, achieving success in a single on-site trial. Furthermore,Sungrow’s energy storage PCS obtained the worldwide first grid-forming certification from China Quality Certification Center (CQC),securing full market access for “Grid-Forming Energy Storage”. Sungrow is also the first company globally to pass grid-formingcertification for both string and centralized storage PCS. This technology has been applied in projects like the Guangxi Weizhou IslandOff-Grid Storage Station, Saudi NEOM—the world’s largest multi-energy complementary grid-forming project (wind-PV-storage-hydrogen), and Phase II of Tibet Naidong Caipeng PV-Storage Station.To advance energy storage with high quality, Sungrow completed two large-scale combustion tests—the world’s largest of their kind—demonstrating the extreme safety of its PowerTitan series. The company also launched ArcDefender? DC Arc Elimination Technologyand the iSolarBPS Cell Pre-Diagnosis System, establishing comprehensive safety safeguards.In the C&I storage market, Sungrow’s PowerStack solutions gained popularity across steel, metallurgy, textiles, and transportationsectors. Through its “One-Stop Information Resource Platform” and robust sales network, the Company consistently recruit qualitydistributors to support energy storage deployment in thousands of industries. The PowerStack 200CS earned China’s first NFPA68certificate combining simulation and real-world testing from T?V Rheinland, validating its leading pressure relief capabilities.Sungrow’s storage systems are widely deployed in mature markets like Europe, the Americas, the Middle East, and Asia-Pacific,deepening wind-PV-storage integration. All projects have maintained a zero-safety-incident record, with extensive experience infrequency regulation, renewable integration, microgrids, C&I and residential storage. Notable agreements include a 7.8 GWh MiddleEast flagship project with Algihaz, 4.4 GWh—Europe’s largest storage contract with Fidra Energy, 880 MWh—Latin America’s largestindependent storage station with Atlas, and 1.5 GWh battery storage in the Philippines with CREC, underscoring Sungrow’s role as aglobal integrated solutions provider.c. New energy investment and developmentIn the reporting period, Sungrow Renewables—a subsidiary of Sungrow focused on new energy investment and development—advanced its vision of “Becoming a Global Leader in New Energy Power Station Technology” and its value proposition of “HigherYield, Grid-Friendly Solutions”. The company intensified R&D in new energy system technologies, optimized power station products,expanded its channel ecosystem, and enhanced service capabilities. By the end of the reporting period, Sungrow Renewables’operations spanned 30 provinces, autonomous regions, and municipalities in China, with international markets deepening across Beltand Road Initiative regions. Globally, Sungrow Renewables has cumulatively developed and constructed 54 GW of PV and wind powerstations.Sungrow Renewables solidified its differentiated competitive edge through power station technology innovation. It launched theMagicCube Technology Platform, integrating High-Efficiency Generation & Consumption, AI-Optimized Design, and Scenario-Specific Integration to showcase technological breakthroughs and redefine industry standards, continuously increasing investment inhard technology for power stations, leading the upgrading and advancement of the innovative ideology. Driven by robust technology,products such as Sungrow Home Energy Power Stations, Sungrow Charging Stations, and BIPV Solutions saw surging installations.Innovations like the PV and Energy Storage Master and iSolarSim PV Power Simulation Software—the first in China to enable real-scenario PV generation modeling—achieved 2.5% higher accuracy for mountainous stations and 2% for rooftop stations compared toindustry standards, reaching world-leading levels. Upgraded digital tools, including iSolarBP, iSolarRoof, and iSolarTool, enabledrapid design, smart optimization, and cost-effective solutions for higher energy yields.Focusing on new energy development and guided by the value proposition of “More Power Generation in a Friendlier Way”, SungrowRenewables openly embraced major national energy strategies such as the large-scale wind power and PV base, and the county-widePV/wind power development, continuously enhanced project reserves and resource conversion. Domestically, it secured landmark

projects such as the 200 MW wind station in Lujiang, Anhui, 300 MW PV station in Weifang, Shandong, and 120 MW PV project inDongxing, Guangxi. Internationally, Sungrow Renewables made parallel breakthroughs in PV and wind power sectors, and it addedthe 100 MW wind project in Kazakhstan, 96 MW PV plant in the Philippines, and Sanxenxo Energy Storage Station in Spain,reinforcing its global growth momentum.In the field of industrial and commercial PV systems, Sungrow Renewables fully leveraged the advantages of “technology + platform”dual drive to incubate products that can generate more power and intelligent software, hence assisting channel partners’ rapid growth.The Company introduced a series of platforms, including the technology service platform, the partner platform, the financial platform,the supply chain platform, and the information management platform, with the PV and Energy Storage Master and iSolarBP distributedintelligent evaluation and design software, offering all-around platform-based services across the entire lifecycle to channel partners.In the reporting period, the newly launched BIPV—featuring optimized module-tile integration and patented designs—achieved fasterinstallation and higher yields. Collaborative projects with Tongwei, Anta, Xtep, Baosteel, FAW, Yanjing Beer, and Hisense Hitachi hasimplemented and further solidified Sungrow Renewables market leadership.For EV charging stations, Sungrow charging stations provides one-stop solution from scientific site selection to intelligent design andconstruction to intelligent operation optimization. With the core algorithm, the integrated charging station realizes the smooth linkageof green power among PV, storage, charging and grid. The first "S2G" (Station to Grid) new model from station to grid whichsystematically aggregates PV, storage and charging not only provides demand-side response, but also participates in auxiliary servicessuch as power market trading to create more revenue. Sungrow charging stations intelligent evaluation and design software and"investment, construction and operation cloud platform" not only provide intelligent suggestions from scientific site selection, designand construction to operation, but also bring higher value to charging stations in terms of " precise attraction, intelligent operation andmaintenance, and convenient service" to bring a silky smooth energy replenishment experience to users. Sungrow Renewables providesa full portfolio of charging solutions, including PV-charging, storage-charging, and PV-storage-charging hybrid stations, enablingflexible energy configurations. A prime example is the Yuexi Forward Road PV-Storage-Charging Station in Anhui Province, whichsupports simultaneous charging for 30 EVs and stands as an innovative benchmark for county-level charging infrastructuredevelopment.Targeting luxury villa markets, Sungrow Home Energy combine aesthetic appeal, high energy yield, enhanced safety, and smartintelligence with integrated PV-storage-charging capabilities, leading the trend toward intelligent, low-carbon, and green home energysolutions. Featuring all-black modules, concealed wiring, and Red Dot Award-winning minimalist designs, Sungrow Home Energyseamlessly blends technology with architectural elegance. Its fully self-developed "PV-Storage-Charging-Optimization-Cloud"ecosystem boosts energy generation by 3% and reduces shading losses by up to 20% through independent optimizers, ensuring optimalperformance across multi-orientation installations. With 24/7 backup power, 10ms interruption-free switching, and five-layer systemprotection, it withstands extreme weather while ensuring reliability. The innovative HEMS (Home Energy Management System)employs AI to learn user habits, optimizing energy generation, storage, and consumption strategies to achieve 100% self-sufficiency ingreen power and significantly lower electricity costs. Promoting the ethos of “Zero-Carbon Tech, Refined Living”, Sungrow HomeEnergy has cultivated a wide following among villa owners, renowned designers, and premium hospitality brands. In Yunnan, SungrowHome Energy powers the Songtsam Group’s Cizhong Lodge—a globally renowned luxury outdoor retreat—with 100% clean energy.In the residential PV market, Sungrow Residential PV strengthened brand building, product innovation, and service upgrading. The“Rest-assured installation” service strategy promised to offer rest-assured installation and use with transparent processes, guaranteedsafety and revenue, and worry-free post-sales response. The Company made the commitment to grow channel partners through one-on-one assistance and point-to-point operational support as well as guaranteed settlement in time. By expanding channel models, thecompany built a community of shared interests among manufacturers, and offered comprehensive market support to businesses throughtechnical guidance, financial support, training, and market promotion. Leveraging its product and technological strengths, SungrowRenewables launched new SolarRoof designs in Chinese and European styles, featuring refreshed aesthetics, structural upgrades, andoptimized layouts to deliver a seamless blend of lifestyle elegance and energy efficiency for homeowners.While rapidly expanding its business, Sungrow Renewables continues to prioritize technological innovation. The company hosted aPower Station Technology Launch Event, unveiling the MagicCube Technology Platform—built on three pillars: High-EfficiencyGeneration & Consumption, AI-Driven Optimization, and Scenario-Specific Integration—to propel the industry from device-level toplant-level innovation. The second annual SUN·Day 2024 Light-Chaser Festival attracted 3,500+ industry representative onsite,marking a leap in scale, engagement, and hybrid participation. As a socially responsible enterprise, Sungrow Renewables activelysupports China’s rural revitalization strategy, fully committed to social welfare through its positive energy projects like Sunlight SmartClassrooms and Sunlight Senior Care Centers to benefit villages, farmers, children, and the elderly.Sungrow Renewables proactively embraced changes in policies and market environment while adhering to the strategic positioning ofbeing a proven player in new energy system technologies. With compressive efforts made in brand, products, channels, and service,Sungrow Renewables developed and built power station products featuring “More Power Generation in a Friendlier Way”, helping

achieve higher power generation efficiency and lower unit electricity cost, and leading the quality development of the new energyindustry.d. Wind power converter and transmission businessIn the reporting period, Sungrow’s wind converters achieved global shipments exceeding 44 GW, a 37.5% year-on-year increase. Thecompany marked a milestone with the rollout of its self-developed 1,800V-16MW doubly-fed wind converter prototype, showcasingits leap in high-power wind energy conversion technology. The 10MW doubly-fed wind converter, renowned for its robust performance,achieved mass production and widespread integration into major wind projects, solidifying its role as an industry cornerstone.Concurrently, the 26MW full-power offshore wind converter prototype was successfully launched, while the 18MW offshore windconverter entered batch deployment, reinforcing Sungrow’s leadership in offshore wind equipment manufacturing and setting newindustry benchmarks. Notably, Sungrow pioneered the large-scale application of grid-forming wind converters in the muti-scenariowind farms, offering tailored solutions to enhance grid integration stability with its excellent performance. Additionally, the batchdeployment of low-frequency offshore wind converters accelerated the exploration of mid-to-deep sea areas, propelling China’soffshore wind industry into deeper waters.In the reporting period, the company also launched its next-generation high-power pitch control system—the fully integrated single-cabinet pitch system—which has been mass-adopted by domestic turbine manufacturers and deployed in multiple wind farm retrofitprojects.In 2024, Sungrow intensified strategic investments in wind energy, prioritizing R&D innovation to lead advancements in wind powerconversion and electromechanical drive technologies. By expanding synergies across wind converter and control system businesses,Sungrow strengthens its brand influence and delivers superior wind energy solutions globally, partnering with stakeholders to drivehigh-quality growth in the wind industry.e. Hydrogen energy equipmentIn 2024, according to TrendBank statistics, Sungrow Hydrogen ranked No. 1 in market share by contracted projects, securing landmarkgreen hydrogen demonstration initiatives such as China Energy Engineering Corporation’s Songyuan Green Hydrogen-Ammonia-Methanol Integration Project, Datang Duolun 150 MW Wind-PV-Hydrogen Integration Project, and Liaoyuan Tianying Wind-PV-Storage-Hydrogen-Ammonia-Methanol Integration Project. In June and August 2024, Sungrow Hydrogen won bids for the world’slargest green hydrogen-ammonia-methanol integrated project—the Songyuan Hydrogen Industrial Park Demonstration Project—claiming the largest contract segment and emerging as the only company to supply both hydrogen power supplies and electrolysis cellfor the project. In November 2024, Sungrow Hydrogen signed the Tianying Wind-PV-Storage-Hydrogen-Ammonia-MethanolIntegration Project, delivering 16 sets of 1,000 Nm?/h ALK Flexible Hydrogen Production Systems to enable localized green energyproduction and consumption. Sungrow Hydrogen’s flexible hydrogen systems, adaptable to energy, industrial, and transportationapplications, have been widely deployed in renewable hydrogen projects across Jilin, Ningxia, Inner Mongolia, Gansu, and Hubei. InSeptember 2024, its 1,200 Nm?/h alkaline electrolysis cell achieved successful trial runs at National Energy Group Yulin ChemicalCo., Ltd., with a DC energy consumption below 4.3 kWh/Nm?, advancing the “Key Technology Research and Demonstration of CoalChemical-New Energy Coupling” project led by National Energy Group’s Low-Carbon Institute.In the reporting period, Sungrow Hydrogen ensured stable simultaneous delivery of multiple projects, further shortening delivery cycles.In May 2024, 12 sets of 1,000 Nm?/h alkaline electrolysis hydrogen production systems arrived at the Daan Wind-PV-Green Hydrogen-Ammonia Integration Demonstration Project, making Sungrow Hydrogen the first supplier to complete delivery for the project. InSeptember 2024, the Phase II workshop of Sungrow Hydrogen’s Smart Manufacturing Center commenced operations, with China’sfirst advanced electrolysis cell robotic assembly line going live. By integrating “Digital + Smart Manufacturing”, “Digital + EmpiricalTesting”, and “Digital + Intelligent Operations”, the company achieved a 60% increase in production efficiency, enhanced qualitytraceability, and optimized flexible management, providing robust support for large-scale green hydrogen project delivery. SungrowHydrogen also deepened its global market expansion, actively collaborating with international clients. Its flexible hydrogen productiontechnology and intelligent equipment production lines have been widely acclaimed by overseas partners.In the reporting period, Sungrow Hydrogen was recognized as a National High-Tech Enterprise, Anhui Provincial Specialized andSophisticated SME, Anhui Provincial Innovative SME, and Anhui Industrial Innovation Center. The company also received prestigiousindustry honors including the “2023 Influential Hydrogen Enterprise” from the Hydrogen Energy Committee of the China EnergyConservation Association, “2024 Most Influential Hydrogen Industry Enterprise” from the Jiangsu Renewable Energy IndustryAssociation, “2024 Green Hydrogen Industry Leader” from Xiangchenghui, “2024 Top 10 Hydrogen Energy Brands” and “2024 Top10 Electrolysis Cell Brands” from International Energy Net, as well as the “Golden Hydrogen Award” from Hydrogen Frontier forLeading Alkaline Electrolysis Cell, PEM Electrolysis Cell, and Hydrogen Power Supply Provider of the Year. Additionally, SungrowHydrogen was named to the “Hydrogen Industry TOP 100” by GGII, awarded the “TrendBank Future Award”, and listed on the “2024Hurun China New Energy Potential 100”.

(2) Operations management and others

a. Corporate cultureIn the reporting period, Sungrow further refined its corporate culture management system through a dedicated consulting project,compiling the Sungrow Corporate Culture Management Guidelines to clarify its cultural framework of "Core Culture-Business Culture-Professional Culture" and define the responsibilities of cultural organizations across the group. The Company released the globallyapplicable Sungrow Core Values and Code of Conduct, organized multiple Global Team Culture Workshops, and established the"Annual Global Cultural Excellence Award" to foster cross-cultural exchange, understanding, and alignment. The Company launchedSungrow TV and hosted signature global cultural events such as the annual gala, International Women’s Day celebrations, SungrowTrek, Family Day, and Skills Competitions, cultivating a diverse, open, and dynamic organizational culture. The self-developed digitalplatform “YangXiaoGuang Mall”, created in collaboration with the IT team, enhanced cultural engagement and employee experience.In employer branding, the 4th University Innovation Competition attracted elite students from 15 universities, while the “Join Sungrow”campaign drove a 24,801 increase in official account followers in 2024. New initiatives like “Office Tour”, “Campus Talks”, and“Employee Voices” were planner, and continuous innovation practice was carried out. with video content surpassing 260,000 views.Globally, Sungrow’s branches earned “Great Place To Work Certification” and accolades including the “2024 DEI Employer Award”,“Most Wanted Employer 2024”, “Top Employer for Women”, and “Globalization Best Employer Award”, significantly elevating itsinternational employer brand influence.b. Digital transformationTo enhance operational efficiency, maintain competitive leadership, and achieve high-quality sustainable development, Sungrowvigorously advanced its digital transformation in the reporting period. Guided by business strategy and driven by data-centricapproaches, the company leveraged digital technologies and artificial intelligence (AI) to build an agile organization with online, shared,and efficient process that empowers business growth. Sungrow upgraded its digital strategy, adopting a dual-track approach of digitizingcore processes and rapidly deploying scenario-based applications. A total of 213 projects were implemented to accelerate digitalinfrastructure development, including the Global Digital Marketing Platform, Digital R&D Platform, and Global Smart ManufacturingPlatform, enabling end-to-end transparency and intelligence across operations to reduce costs and improve efficiency. Simultaneously,the Company expedited overseas digital initiatives to bolster global operations. In data management, Sungrow enhanced foundationalplatforms such as data lakes, data governance, and master data management, establishing an integrated data operations frameworkcovering data generation, collection, processing, services, and application. By consolidating global data streams, the Company built adigital financial management and reporting system to support precise decision-making. In 2024, Sungrow achieved breakthroughs indigital and AI technologies, developing an AI algorithm platform and deploying on-premises large language models (LLMs) to explorepractical AI applications. The Company introduced 21 digital employees and 20 AI applications across R&D, production, sales, service,and management, significantly boosting operational efficiency, decision-making capabilities, and accelerating its intelligenttransformation.c. Social responsibility and sustainabilitySungrow adheres to its mission of "Clean Power for All" and creates enduring value with stakeholders. Guided by the sustainabledevelopment philosophy of "Green Mission, Better Future," the Company remains dedicated to advancing clean energy, bridging greenecosystems with quality living, and has established five strategic goals: "Excellence in Governance, Progress Toward Net Zero,Ecological Stewardship, Collaborative Partnerships, and Diversity & Inclusion." Anchored by these priorities, Sungrow rigorouslyimplements ESG practices and aligns with the United Nations Sustainable Development Goals (SDGs). In 2024, the Company furtherenhanced its sustainability governance by establishing an ESG Development Center, integrating the Strategic and SustainableDevelopment Committee and the Sustainable Development Office to centralize ESG management. During the year, Sungrow wasrecognized in the UN Global Compact's "20 Years, 20 Best Cases" compilation for corporate sustainability in China, named to ForbesChina's "ESG 50" list, awarded "Outstanding Responsible Enterprise of the Year" by Southern Weekly, "Best EnvironmentalResponsibility Award (E)" at Sina Finance's Golden Responsibility Awards, HR Asia's "Asia's Best Employer Gold Award," and "GreatPlace to Work" certification, while maintaining an MSCI ESG Rating of AA.Through continuous innovation and practical applications, Sungrow delivers long-term sustainable value to clients. By the end of thereporting period, the Company’s cumulatively installed capacity of power electronic converters across the world has been above 740GW, avoiding approximately 470 million tons of CO? emissions annually with our customers.Sungrow integrates low-carbon and green principles into its production and operations, striving to minimize environmental impactsfrom both its own activities and supply chain. The Company rigorously and transparently discloses carbon emissions data whileexpanding the coverage of carbon inventory. In 2024, the proportion of green electricity usage increased to 70%, with the launch of anenergy and carbon management system saving approximately 2,525 MWh of electricity annually. Energy consumption per unit ofproduct decreased by 11% compared to 2020, advancing progress toward achieving operational carbon neutrality by 2028.

Collaborating with partners, Sungrow fosters a low-carbon supply chain. Its Supplier Relationship Management (SRM) system nowincludes a carbon footprint module, collecting carbon emissions data for approximately 6,000 materials and conducting organizationalcarbon inventory for 139 suppliers. The Company enhances product lifecycle management, with PV inverters such as the SG250HX,SG350HX, SG3125HV, and 1+X series obtaining product carbon footprint certifications. Additionally, the SG350HX and 1+X seriesinverters received the Italian EPD, underscoring their environmental credentials.Sungrow prioritizes the rights and developmental opportunities of both its employees and those of its partners, ensuring the cleanenergy transition benefits a broader range of stakeholders. The Company offers diverse benefits and cultural activities for its globalworkforce, with an average of 90 training hours per employee. It continues to strengthen global team-building efforts, achieving alocalization hiring rate of 98.4%. In collaboration with partners, Sungrow fosters a responsible supply chain, with 96.93% of supplierssigning the Supplier Code of Conduct and nearly 800 hours of ESG training conducted for suppliers annually. Additionally, theCompany actively contributes to society through initiatives in ecological conservation, community development, and science education.In September 2024, Sungrow partnered with the Anhui Provincial Charity Federation to launch the "Sun Bridge – New BeginningProgram," pledging a donation of CNY 5 million over three years to support nearly 1,000 underprivileged students majoring in powerelectronics, with total charitable contributions for 2024 amounted to CNY 20.7803 million.d. R&D, intellectual propertyIn the reporting period, the Company continued to ramp up R&D investment and actively pursued the summarization and filing of self-owned intellectual property. In 2024, it filed 2,177 new patent applications, including 306 international filings (282 invention patents,3 utility model patents, and 21 design patents) and 1,871 domestic filings (833 invention patents, 883 utility model patents, and 155design patents), further strengthening its independent innovation capabilities and solidifying its core competitiveness.As of the reporting period, the Company has cumulatively filed 9,401 patents, comprising 5,081 invention patents, 3,708 utility modelpatents, and 612 design patents. Leveraging its industry-leading technological reserves, Sungrow has actively promoted the formulationand optimization of industry standards and has organized the drafting of multiple Chinese national standards.e. Share repurchase for equity incentivesDemonstrating confidence in the Company’s future growth and recognition of its value, and to establish a long-term incentivemechanism that aligns shareholder, corporate, and employee interests, Sungrow initiated a share repurchase program in 2024 usinginternal funds. The repurchase, executed via the centralized bidding method on the Shenzhen Stock Exchange, aims to implementfuture employee stock ownership plans (ESOP) or equity incentive plans for core and key employees. By the end of the reportingperiod, the company had repurchased approximately 5.86 million shares at a total cost of CNY 501 million.f. Launch of offshore GDR issuanceTo meet the capital needs for business development, enhance financial strength, and improve profitability, the company launched anoverseas issuance of Global Depositary Receipts (GDRs) in the reporting period, with newly added underlying A-shares in the domesticmarket. The proceeds from the GDR offering will be allocated to energy storage equipment manufacturing projects, overseas expansionof inverter and energy storage product capacities, digital transformation initiatives, and the Nanjing R&D Center construction project,enabling the company to capitalize on strategic opportunities in the global energy storage market, consolidate its global leadership inthe energy storage sector, optimize global production capacity to enhance delivery capabilities and flexibility for mitigatinginternational trade risks, accelerate digital transformation to empower business development holistically, and increase R&D innovationinvestments to strengthen core competitiveness.g. Honors and awards received in the reporting period

2. Income and cost analysis

(1) Composition of operating income

The Company needs to comply with the requirements on the disclosure of “PV industry chain related business” specified in theShenzhen Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies—Information Disclosure of GEM-Listed Companies:

Overview of operating income

(in CNY)

(including HongKong, Macao andTaiwan)

Sales to major revenue-contributing countries

(in CNY)

Basic situation of PV power stationsa. Basic situation of centralized PV power stationsSince there are a large number of centralized PV power station projects in the reporting period, the basic information of top tencentralized PV power stations by revenue is disclosed here item by item, and the rest is listed as a whole by business pattern.

versus the estimated cost of the contract. The Company re-estimated the progress of completion or the labor serviceprovided on the date of the balance sheet, so that it could reflectchanges in the contract performance.

b. Basic situation of distributed PV power stationsSince there are a large number of distributed PV power station projects in the reporting period, the basic information of top tendistributed PV power stations by revenue is disclosed here item by item, and the rest is listed as a whole by business pattern.

(2) Industries, products, geographies, and sales models that account for more than 10% of the Company's operating incomeor operating profit?Applicable □ Not applicable

(in CNY)

Note: The Compilation of Application Guidance for Enterprise Accounting Standards 2024 issued by the Ministry of Finance of Chinain March 2024 and Interpretation No. 18 of Enterprise Accounting Standards released on December 6, 2024, stipulate that warrantyexpenses of assurance-type should be included in operating costs. In accordance with these regulations, the company has retrospectivelyadjusted relevant information such as gross margin for comparable periods.

Where the statistical caliber for the Company's core business data was adjusted in the reporting period, the adjusted core business datain the last year at the end of the reporting period

□Applicable? Not applicable

(3) Whether the Company's physical sales revenue is greater than the labor revenue

?Yes □ No

Reasons for year-on-year changes greater than 30%?Applicable □ Not applicableInventory of PV inverters increased by 45.45% year-on-year, mainly due to the company’s proactive stockpiling to meet anticipateddemand.

(4) Performance of major sales contracts and purchase contracts entered by the Company up to the reporting period

□Applicable? Not applicable

(5) Composition of operating cost

By sector

(in CNY)

(6) Whether the scope of consolidation changed in the reporting period

?Yes □ NoFor details, please refer to part IX. Changes in the Scope of Consolidation in Section X Financial Reports.

(7) Significant changes or adjustments to the Company's business, products or services in the reporting period

□Applicable? Not applicable

(8) Major Customers and Major Suppliers Major customers

Sales to major customers

Top 5 customers

Other information about major customers

□Applicable? Not applicable

Major suppliers

Purchase from top 5 suppliers

Other information notes for major vendors

□Applicable? Not applicable

3. Costs

(in CNY)

4. R&D Investment

?Applicable □ Not applicable

Statement of R&D staff

R&D investment size and percentage in operating proceeds in the past three years

Reasons for substantial changes in R&D staff and their impacts

□ Applicable ? Not Applicable

Reasons for substantial change in percentage of total R&D investment in operating income as compared with the previous year

□ Applicable ? Not Applicable

Reasons for substantial changes in the capitalization rate of R&D investment and the justifications

□ Applicable ? Not Applicable

5. Cash flow

(in CNY)

Explanation on main contributors to the significant YoY change in relevant data? Applicable □ Not ApplicableNet cash flow from operating activities increased by 72.85% year-on-year, mainly due to the increase in sales returns;Cash inflow from investment activities increased by 197.37% year-on-year, mainly due to the significant increase in the recovery offinancial products;Cash outflow from investment activities increased by 195.51% year-on-year, mainly due to the significant increase in the purchase offinancial products;Net cash flow from investment activities decreased by 184.03% year-on-year, mainly due to the significant increase in purchasedfinancial products;Cash inflow from financing activities increased by 33.72% year-on-year, mainly due to the increase in borrowings obtained;Cash outflow from financing activities increased by 95.37% year-on-year, mainly due to the increase in debt repayment;Net cash flow from financing activities decreased by 92.11% year-on-year, mainly due to the significant increase in repayment ofmatured borrowings during the period.Explanation on reasons for the significant difference between the net cash flow from operating activities and the net profit of the yearduring the reporting period

□Applicable? Not applicable

V. Status of Non-Core Business

□Applicable? Not applicable

VI. Analysis of Assets and Liabilities

1. Significant changes in the composition of assets

(in CNY)

High percentage of overseas assets

□Applicable? Not applicable

2. Assets and liabilities measured at fair value

?Applicable □ Not applicable

(in CNY)

Other changesOther income mainly includes gains from wealth management products expanded through the merger with Taihe Intelligence anddivestment of financial assets..Significant changes in the measurement attributes of the Company's main assets in the reporting period

□Yes? No

3. Restricted asset rights as of the end of the reporting period

VII. Investment Analysis

1. Overview

?Applicable □ Not applicable

2. Significant equity investments received in the reporting period

?Applicable □ Not applicable

(in CNY)

3. Significant non-equity investment in progress in the reporting period

□Applicable? Not applicable

4. Financial asset investment

(1) Securities investment

□Applicable? Not applicable

The Company made no securities investment in the reporting period.

(2) Derivatives investment

?Applicable □ Not applicablea. Derivatives investment for hedging purpose in the reporting period?Applicable □ Not applicableFor details, please refer to VII. Notes to Consolidated Financial Statement, 2. Trading Financial Assets in Section X.b. Derivatives investment for speculative purpose in the reporting period

□Applicable? Not applicable

The Company made no derivatives investment for speculative purpose in the reporting period.

5. Use of raised funds

?Applicable □ Not applicable

(1) General use of raised funds

?Applicable □ Not applicable

(in 10K CNY)

(2) Projects commitments of raised funds

?Applicable □ Not applicable

(in 10K CNY)

(3) Projects with changes in raised funds

□Applicable? Not applicable

There were no projects with changes in raised funds in the reporting period.VIII. Sale of Major Assets or Equity

1. Sale of major assets

□Applicable? Not applicable

The Company did not sell any major assets in the reporting period.

2. Sale of major equity

□Applicable? Not applicable

IX. Analysis of Major Controlling and Holding Companies?Applicable □ Not applicableMajor subsidiaries and holding companies that contribute 10% and above to net profit

(in 100 million CNY)

Subsidiaries acquired or disposed in the reporting period?Applicable □ Not applicableFor details, please refer to IX. Changes in the Scope of Consolidation 2. Changes in the scope of consolidation due to other reasonsin Section X Financial Reports.

X. Structured Entities Controlled by the Company

□Applicable? Not applicable

XI. Prospects of the Company’s Future Development

(1) Planned Prospects

Focusing on the clean energy sector, the Company commits to deepening strategic development, intensifying R&D and innovationefforts, strengthening global market presence through enhanced localization capabilities, lean operations, and advanced digitaltransformation. By widely adopting and deeply integrating AI technologies, aiming to solidify technological leadership and elevatebrand influence, thereby expanding the Company’s global competitive edge and achieving high-quality sustainable growth.

(2) Operating Plan

Under the global consensus on carbon neutrality, the green energy industry is poised for sustained growth, driven by factors such asthe continuous decline in renewable energy generation costs, falling interest rates in European and American markets, thediversification of emerging markets, and the integration of generation, grid, load, and storage systems. However, the industry also facesrisks including escalating international trade barriers, intensifying competition, and increased uncertainty in returns on new energyprojects due to accelerated domestic electricity marketization. Guided by the annual principle of "Innovation-Driven Excellence,Digital-Intelligent Empowerment, Global Market Focus, and Customer First," the Company is proactively capitalizing on futureopportunities. By adhering to low-cost innovation and strategic expansion, we aim to strengthen global marketing management,enhance localization capabilities, optimize lean operations, and deepen digital-intelligent enpowerment. These efforts will elevate ourbrand influence, solidify our global leadership, and achieve high-quality sustainable growth.

To accomplish the Company’s annual operational objectives, the following key initiatives will be implemented:

a.Strengthen R&D innovation to consolidate technological and product leadership. Drive dual optimization of management andtechnological innovation to foster cross-domain collaboration, process excellence, and digital empowerment, building an efficient R&Decosystem. Focus on next-generation power systems, advance cutting-edge research in power electronics and grid-forming technologies,and deepen the integration of AI into R&D and core product development, delivering continuously leading and competitive solutionsfor customers.b.Expand product portfolio and enhance integrated solution capabilities. Broaden coverage of global niche markets with an enrichedproduct lineup. Leverage the Company’s multi-sector expertise in PV, wind, energy storage, power and hydrogen to develop scenario-adaptive solutions for microgrids, generation-grid-load-storage integration, and other applications, promoting global collaborationswith partners and creating sustained value for clients.c.Deepen global market presence and improve localization capabilities. Strengthen competitive moats in core markets while expandinginto emerging regions. Build country/regional operational units to deepen institutional client relationships and elevate localizationlevels. Enhance overseas factory operations, fortify supply chain systems, and promote global partner collaboration to establish long-term sustainable competitiveness.d.Accelerate digital project implementation and expand AI integration. Drive digital transformation by establishing multi-dimensionaldata-driven decision-making frameworks. Strengthen the adoption and innovation of emerging digital technologies, models, andalgorithms. Build a digital talent development system and a core value-stream digital business platform to internalize and enhance thecompany’s digital capabilities.e.Build a leading ESG management system and strengthen ESG competitiveness. Increase ESG innovation and investment, integrateESG principles deeply into business operations, and elevate global ESG influence to communicate brand values. Establish industrybenchmarks for ESG-driven value creation.f.Enhance risk awareness and strengthen compliance management. Improve risk early-warning mechanisms and trade compliancecontrols. Deepen the compliance management system to mitigate risks, particularly in overseas markets, and bolster organizationalresilience.g.Strengthen organizational capabilities and global cultural integration. Attract and nurture global talent while advancing overseaslocalization. Expand the international reach of the employer brand and foster global cultural alignment, communication, and synergy.

(3) Possible risks and countermeasures

a. Policy-related risksAlthough the global levelized cost of electricity (LCOE) for renewable energy continues to decline, costs in certain regions remainhigher than those of fossil fuels. Coupled with challenges such as renewable intermittency, electricity market liberalization, gridintegration constraints, land costs, and tax volatility, government policy support remains critical. While the global low-carbon transitionremains irreversible, significant shifts in government policies in specific markets could disrupt industry growth trajectories. To mitigaterisks from single-market policy fluctuations, the company will further diversify its global footprint and deepen its presence in keymarkets to ensure resilience..b. Gross margin reduction due to intensified competitionAmidst intensifying competition in the new energy sector, where product prices continue to decline and industry gross margins facedownward pressure, the company remains committed to innovation-driven growth. We will strengthen brand building and marketpenetration, increase R&D investments, accelerate product upgrades, and develop integrated multi-scenario solutions. By deepeningAI technology research and applications, we aim to meet evolving customer demands, deliver superior experiences, and maximizevalue for clients, ensuring our sustained market leadership.c. Risk of collecting accounts receivablesWhile the Company continues to expand its sales scale, the characteristics of its power station investment and development businessas well as energy storage operations—such as large project values and extended payment cycles—have led to a rapid increase inaccounts receivable and associated collection risks. To mitigate credit risks and accelerate capital turnover, the Company hasimplemented a stringent credit management system, gradually standardizing and reducing sales on credit, while proactively leveraginglegal measures to minimize bad debt exposure.d. Risk of international trade frictions

Certain countries, aiming to bolster domestic manufacturing, have imposed trade barriers such as restrictions on imports of PV andenergy storage products and increased tariffs. This poses risks for Chinese new energy manufacturers in accessing international markets.To address these challenges, the Company has developed scenario-based contingency plans and dynamic response strategies, deepeningour presence in global markets, enhancing localization capabilities, and strengthening supply chain management to mitigate the adverseimpacts of trade frictions.e. Risk of exchange rate fluctuationsUSD, EUR and AUD are the major currencies used for the Company's overseas business. Fluctuations in the RMB exchange rate maydirectly impact gross profit margins due to changes in revenue denominated in local currency. Furthermore, foreign exchange gains orlosses arising from accounts receivable between revenue recognition and settlement will also affect financial performance. To mitigateexchange rate risks, the company employs hedging strategies, continuous monitoring, and timely settlement and conversion of foreigncurrencies, all grounded in normal operations and aligned with specific business activities, to reduce potential losses and controloperational risks.f. Risks of new energy investment and development projectsNew energy projects with large investment amounts and long construction periods face the risk of fluctuating electricity prices, and theuncertainty of project returns increases the difficulty of transactions. In this regard, the Company will follow the project maturitymanagement mechanism, increase the feasibility study of the project, strengthen lean operation, and carefully select high-qualityprojects with better grid-connection conditions, high demand for electricity, good consumption, and high rate of return to reduce therisk of investment and development.XII. Events Register for Research Visits, Communication, and Interviews in the Period?Applicable □ Not applicable

XIII. Implementation Status of Market Value Management System and ValuationEnhancement PlanWhether the company has a market value management system.?Yes □ NoWhether the company has disclosed plans for valuation enhancement.

□Yes? No

On April 25, 2025, the company adopted the Proposal on Establishing the "Market Value Management System" during the 17thMeeting of the Fifth Board of Directors.XIV. Implementation Status of the Quality and Return Dual Enhancement Action PlanWhether the Company disclosed the Quality and Return Dual Enhancement Action Plan.?Yes □ NoTo implement the guidelines on “revitalizing the capital market and boosting investors’ confidence" put forward at the Central PoliticalBureau conference and "vigorously improving the quality and investment value of public companies, and “taking robust and effectivemeasures to stabilize the market and investors’ confidence" at the State Council executive meeting, the Company developed the Qualityand Return Dual Enhancement Action Plan and disclosed it in Announcement on the Quality and Return Dual Enhancement ActionPlan on February 26, 2024 on www.cninfo.com.cn (Announcement No. 2024-015).In the reporting period, the Company actively advanced its Quality and Return Dual Enhancement Action Plan. Guided by theoperational philosophy of " Innovation-Driven Collaboration, Comprehensive Global Expansion, Digital Acceleration, and CustomerFirst " the Company focused on strengthening its core business to achieve high-quality sustainable development. In the reporting period,the Company achieved operating revenue of CNY 77.857 billion, representing a year-on-year increase of 7.76%, and realized a netprofit attributable to shareholders of CNY 11.036 billion, marking a year-on-year rise of 16.92%, demonstrating steady business growth.With R&D investment reaching CNY 3.164 billion, up 29.26% year-on-year, the Company continued to prioritize innovation throughsustained increases in R&D expenditure, driving its high-quality development.In terms of investor returns, the Company implemented the 2023 profit distribution plan, distributing a cash dividend of CNY 9.65 per10 shares to all shareholders, with total dividends amounting to CNY 1.419 billion. Additionally, it issued 4 bonus shares per 10 sharesthrough a capitalization of capital reserves. Furthermore, the Company completed its 2024 share repurchase program, repurchasingshares worth CNY 501 million.The Company highly prioritized investor relationship management, and constantly optimized the working mechanism and content ofinvestor relationship management, in order to achieve the goals of respecting, rewarding, and protecting investors. As the Companyattracted wider attention, the communication with investors was further enhanced, the frequency, profundity, and relevance ofcommunication were increased. In the reporting period, The Company held multiple investor communication activities and maintainedsound interaction with investors through performance briefing, online exchange, phone communication, among other channels. TheCompany established an investor relations platform on the official website to update periodical reports, sustainability reports, and stockinformation on a timely basis, so that investors could access such information conveniently. In the future, the Company will continueto actively convey its long-term investment values to the market, improve the efficiency and transparency of information, promotemutual understanding, and advance healthy communication with investors.

Section IV Corporate governanceI. Basic Situation of Corporate GovernanceDuring the reporting period, the Company strictly followed the Company Law, the Securities Law, the Governance Guidelines forListed Companies, the Rules for GEM Stock Listing at Shenzhen Stock Exchange, Shenzhen Stock Exchange’s No. 2 RegulatoryGuidelines for Listed Companies—Standardized Operation of GEM-Listed Companies as well as other laws and regulations toconstantly improved the corporate governance structure, strengthened internal control systems, and further standardized operations. Byrigorously enhancing information disclosure practices and investor relations management, the Company consistently elevated itsgovernance standards.During the reporting period, the Company revised its Articles of Association, Rules of Procedure for Shareholders’ Meetings, Rules ofProcedure for the Board of Directors, Rules of Procedure for the Board of Supervisors, Independent Director Working Guidelines,Information Disclosure Management Regulations, Audit Committee Operating Rules, Remuneration and Evaluation CommitteeOperating Rules, Strategy and Sustainability Committee Operating Rules, Nomination Committee Operating Rules, Regulations onShareholding and Trading by Directors, Supervisors, and Senior Management, Investor Relations Management Regulations, InsiderInformation Confidentiality and Registration System, and Fundraising Management Measures, while formulating new policiesincluding the Special Meeting Guidelines for Independent Directors and the Confidentiality and Archival Management System forOverseas Securities Issuance and Listing. As of the end of the reporting period, the Company maintained standardized operations,strong independence, and compliant information disclosure, with its governance practices fully aligning with the legal, regulatory, andnormative requirements issued by the China Securities Regulatory Commission (CSRC) and the Shenzhen Stock Exchange.a.About shareholders and the shareholders’ meetingThe company strictly complies with relevant laws and regulations, including the Company Law, Rules for Shareholders’ Meetings ofListed Companies, Articles of Association, and the Rules of Procedure for Shareholders’ Meetings, as well as regulatory documentsand internal policies, to convene and conduct shareholders’ meetings in a standardized manner, ensuring equal treatment of allshareholders and maximizing facilitation of their participation.During the reporting period, all shareholders’ meetings were convened by the Board of Directors, with legal counsel providingattestation services and issuing legal opinions. These meetings guaranteed shareholders’ full rights to express views, access information,participate in decision-making, and exercise voting power on significant corporate matters, thereby enabling the lawful exercise ofshareholder rights. The Company rigorously adhered to legal requirements, regulatory guidelines, and supervisory standards, ensuringthat all major issues subject to shareholders’ review were submitted for deliberation following proper authorization procedures. Therewere no instances of bypassing shareholders’ meetings or implementing decisions prior to formal review.b. About the Company and the controlling shareholderThe Company’s controlling shareholder, Mr. Cao Renxian, strictly abides by the Governance Guidelines for Listed Companies, theRules for GEM Stock Listing at Shenzhen Stock Exchange, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for ListedCompanies—Standardized Operation of GEM-Listed Companies, and the Articles of Association to regulate his behavior. He makesno actions that directly or indirectly interfere with the Company's decision-making and business activities beyond the shareholders’meeting, nor jeopardizes the interests of the Company and other shareholders. There is no occurrence of the controlling shareholdertaking up the Company's funds or the Company providing guarantees for the controlling shareholder. The Company owns independentand complete business and is capable of operating independently. The Company is independent from the controlling shareholder interms of business, assets, personnel, organization and finance; the Company's Board of directors, Board of Supervisors, and internalorganizations operate independently.c. About directors and the Board of DirectorsThe Board of Directors is composed of 8 directors, including 3 independent directors. The number of directors and the composition ofthe Board of Directors are in line with the relevant laws, regulations and the Articles of Association. Directors perform their duties inaccordance with the Rules for Independent Directors at Listed Companies, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelinesfor Listed Companies—Standardized Operation of GEM-Listed Companies, and the Rules of Procedure for the Board of Directors,attend Board meetings, specialized committee meetings on schedule, faithfully fulfill their duties, actively participate in corporatemanagement and decision-making, and safeguard the interests of the Company and all shareholders.The Board of Directors has established four specialized committees—the Strategy and Sustainability Committee, NominationCommittee, Remuneration and Evaluation Committee, and Audit Committee—to provide scientific and professional insights thatsupport informed decision-making by the Board of Directors.

d. About supervisors and the Board of SupervisorsThe Board of Supervisors is composed of 3 supervisors, including 2 employee supervisors. The number of supervisors and thecomposition of the Board of Supervisors are in line with the requirements of laws and regulations. Supervisors perform their duties inaccordance with the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies—Standardized Operation ofGEM-Listed Companies and the Rules of Procedure for the Board of Supervisors, and supervise the Company’s major transactions,related-party transactions, financial status, and the legitimacy and compliance of directors’ and executives’ job performance. The Boardof Supervisors actively fulfill the due role to safeguard the legitimate rights and interests of the company and its shareholders.e. About performance evaluation and the incentive and restraint mechanismThe Company has established and progressively refined fair and transparent performance evaluation standards and incentive-disciplinemechanisms for directors, supervisors, and senior management, with the appointment of senior executives fully complying withrelevant laws, regulations, and the Articles of Association. The Remuneration and Evaluation Committee is set up under the Board ofDirectors, which has formulated the Working Rules of the Remuneration and Evaluation Committee, established and implemented theperformance evaluation system, and defined a scientific system of indicators. The various centers, product lines, and departments makefull use of the performance management tools to ensure objectives and performance plans are under control. The manager-in-chargeholds the primary accountability for realizing annual objectives and performance plans of the respective department. Each departmentfurther breaks down the work plan into monthly and weekly tasks, and strives to achieve performance indicators on time, in qualityand quantity, hence to ensure the delivery of the Company's annual objectives. All accountable organizations and all employees aresubject to regular performance evaluation and objective assessment, and the evaluation results are used as the grounds for determiningemployees’ remuneration, promotion/demotion, appraisal and job transfer.f. About information disclosure and transparencyIn strict accordance with the Administrative Measures on Information Disclosure by Listed Companies, the Rules for GEM Stock Listingat Shenzhen Stock Exchange, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies—StandardizedOperation of GEM-Listed Companies, the Shenzhen Stock Exchange’s No. 5 Regulatory Guidelines for Listed Companies—

Information Disclosure, as well as the requirements in the Information Disclosure Management Procedures and the Investor RelationsManagement Procedures, the Company fairly discloses the relevant information in a truthful, accurate, timely, and complete manner.The Company's Board Secretary is responsible for organizing and coordinating information disclosure and investor relations, receivinginvestors’ visits, and replying investors' inquiries. The Company has designated www.cninfo.com.cn as the website for disclosingcompany information, China Securities Journal, Securities Times, Securities Daily and Shanghai Securities News as the newspapersfor disclosing the Company’s periodical reports, hence to ensure that all shareholders of the Company are informed of with equalopportunities.g. About stakeholdersThe Company fully values and safeguards the legitimate rights and interests of relevant stakeholders, attaches great importance to theCompany's social responsibilities, actively collaborates with relevant stakeholders, and enhances communication and exchange withall parties, in order to coordinate and balance the interests of shareholders, employees, society and other parties, so that they jointlypromote the sustainable and healthy development of the Company.Whether there is a material difference between the actual situation of corporate governance and laws, administrative regulations andthe CSRC regulations on the governance of listed companies

□Yes? No

There is no material difference between the actual situation of corporate governance and laws, administrative regulations and the CSRCregulations on the governance of listed companies.II. Specific Measures Taken by the Controlling Shareholders and Actual Controllers to Ensurethe Independence of the Company's Assets, Personnel, Finance, Organization and Business.The Company strictly complies with the Company Law, Securities Law, and other relevant laws and regulations, as well as its Articlesof Association, to ensure standardized operations. A robust corporate governance structure has been established and refined,maintaining strong independence from its controlling shareholders, actual controllers, and other affiliated entities in termsof assets, personnel, finance, organizational structure, and business operations. This independence safeguards the Company’s regulatedand autonomous functioning, underpinning its independent and integrated business system and market-oriented operational capabilities.

III. Horizontal Competition

□Applicable? Not applicable

IV. Information on the Annual Shareholders’ Meeting and the Extraordinary GeneralMeeting(s) Held in the Reporting Period

1. Shareholders’ meeting in the reporting period

2. The extraordinary general meeting(s) requested by preference shareholders with restored voting rights

□Applicable? Not applicable

V. The Company’s Voting Rights Difference Arrangement

□Applicable? Not applicable

VI. Corporate Governance with the Red-Chip Architecture

□Applicable? Not applicable

VII. Directors, Supervisors and Executives

1. Basic situation

Resignation of directors/supervisors or dismissal of executives within the term of office during the reporting period

□Yes? No

Changes in directors, supervisors and executives of the Company?Applicable □ Not applicable

2. Incumbents overview

The professional background, main work experience and job responsibilities of current directors, supervisors and executives of theCompany

(1) Directors

Mr. Cao Renxian, Chinese national with no permanent residency overseas, born in July 1968, master degree, and researcher, is currentlya delegate of the 14th National People's Congress and the chairman of the China Photovoltaic Industry Association. Mr. Cao Renxianwas one of the faculty of Hefei University of Technology from June 1993 to 1998, and worked in Sungrow Power Supply Co., Ltd.from July 1998 to July 2001. He served the role of Executive Director and General Manager of Sungrow Power Supply Co., Ltd. fromJuly 2001 to August 2007, followed by the role of Chairman and President from August 2007 to date.Mr. Gu Yilei, Chinese national with no permanent residency overseas, born in February 1978, Ph.D. He has successively worked inZhongda Simike Electronics Co., Ltd. (Delta Group), Shenzhen Kangdawei Electronic Technology Co., Ltd., Santak Electronics(Shenzhen) Co., Ltd., and Eaton (China) Investment Co., Ltd. He joined Sungrow in September 2015, and successively served the rolesof Vice Director of the Sungrow Research Institute, Director of the Central Research Institute. He is currently Vice Chairman andSenior Vice President of Sungrow and President of the Solar Storage Division.Mr. Zhang Xucheng, Chinese national with no permanent residency overseas, born in June 1972, master degree. He served the roles ofVice Procurement Manager, Logistics Manager, Human Resources Manager and Senior Vice President of Sungrow. He is currently adirector in the Sungrow Board, Chairman and President of Sungrow Renewables Development Co., Ltd., Chairman of Hefei TaiheIntelligent Technology Group Co., Ltd.Mr. Zhao Wei, Chinese national with no permanent residency overseas, born in December 1973, Ph.D., senior engineer. He served theroles of Vice Director and Vice General Manager of Sungrow R&D Center, and is currently Director and Senior Vice President ofSungrow and Chief Scientist of the Sungrow Group.Mr. Wu Jiamao, Chinese national with no permanent residency overseas, born in September 1972, master degree. He worked for AnhuiNingguo Shuangjin Group previously and joined Sungrow in March 2005. He successively served the roles of Sales Manager ofSungrow and General Manager of Sungrow Shanghai Company, is currently Director and Senior Vice President of Sungrow andDirector, Global Sales and Marketing of the Solar Storage Division.Ms. Gu Guang, Chinese national with no permanent residency overseas, born in July 1963, master degree, certified public accountantof China (non-practicing member). She graduated from the Department of Economics of Anhui University in 1986, and has beenteaching at the university ever since, having served the roles of Vice Director and Director of the Accounting Department of the Schoolof Business, Anhui University, Director of the MPAcc Education Center, Associate Professor and Master's Supervisor in accounting atthe School of Business, Anhui University. Currently, she is an independent director of Atech Automotive Co., Ltd., and Sungrow PowerSupply Co., Ltd.Mr. Li Mingfa, Chinese national with no permanent residency overseas, born in February 1963, Ph.D., Level 2 professor and doctoralsupervisor of Anhui University. He was Director of the Law School of Anhui University and Executive Vice Director of the GraduateSchool of Anhui University. He is currently Executive Director of the Civil Law Research Association of the China Law Society, ViceDirector-General of the Anhui Civil and Commercial Law Research Association, and an independent director of Wuhu Sanlian ForgingCo., Ltd., Anhui Estone Materials Technology Co., Ltd., and Sungrow Power Supply Co., Ltd.Mr. Zhang Lei, Chinese national with no permanent residency overseas, born in December 1980, bachelor degree. He started serviceand research in the power supply industry at the China Power Supply Society since 2005, and served the roles of Director of theExhibition Department, Director of the General Office, and Deputy Secretary General. He is currently the Secretary General of theChina Power Supply Society and an independent director of Sungrow.

(2) Supervisors

Mr. Tao Gaozhou, Chinese national with no permanent residency overseas, born in March 1971, master degree, senior engineer. Hewas Manager of Structure Department and a Supervisor of Sungrow, and is currently the Chairman of Sungrow’s Board of Supervisorsand Director of the Institute of New Materials and Advanced Manufacturing.Mr. He Wei, Chinese national with no permanent residency overseas, born in October 1975, master degree. He was Business PlanningManager and Logistics Assurance Manager of Sungrow, and is currently an Employee Representative Supervisor of Sungrow andGeneral Manager of the Administrative Service Center.Mr. Zhang Hui, Chinese national with no permanent residency overseas, born in October 1974, bachelor degree. He served the roles ofSupervisor of Technical Support Department, Manager of Engineering Technology Department, and Manager of Equipment and PowerDepartment of Sungrow. He is currently an Employee Representative Supervisor of Sungrow and Director of Equipment and PowerDepartment.

(3) Executives

Mr. Cao Renxian, President. Refer to the introduction in “(1) Directors” for details.Mr. Gu Yilei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.Mr. Zhao Wei, Senior Vice President. Refer to the introduction in “(1) Directors” for details.Mr. Wu Jiamao, Senior Vice President. Refer to the introduction in “(1) Directors” for details.Mr. Chen Zhiqiang, Chinese national with no permanent residency overseas, born in April 1980, graduated from the University ofScience and Technology of China in 2020 with a master degree, and a certified quality engineer of China. He served the roles of QualityControl Supervisor, Quality Control Manager, Management Representative, Quality Director, Employee Supervisor, and Chairman ofthe Board of Supervisors of Sungrow. He is currently Vice President of Sungrow.Mr. Peng Chaocai, Chinese national with no permanent residency overseas, born in December 1977, master degree. He worked forShangqiu Experimental Middle School, Sinoma Technology Wind Power Blade Co., Ltd., and Delta Electronics (Shanghai) Co., Ltd.before joining Sungrow as President of the Wind Energy Division. He is currently Vice President of Sungrow and President of theWind Energy Division.Mr. Deng Dejun, Chinese national with no permanent residency overseas, born in September 1976, bachelor degree. He worked forMaanshan Iron and Steel Co., Ltd., Foxconn Technology Group, Philips Electronics, and Great Wall Development Technology Co.,Ltd. previously. After joining Sungrow in January 2011, he successively served the role of Production Planning Manager, ProductionPlanning Manager and Vice General Manager of the Gansu Division, Manufacturing Director of the Production Center and ProductionPlanning Manager, Vice General Manager of the Production Center, and General Manager of the Production Center. He is currentlyVice President of Sungrow and General Manager of the Production Center.Mr. Lu Yang, Chinese national with no permanent residency overseas, born in October 1982, master degree. He worked previously forState Nuclear Power Technology Corporation, Beijing Zhenglue Junce Management Consulting Co., Ltd., and ENN Group Co., Ltd.He joined Sungrow in August 2016 and successively served the roles of Strategic Planning Manager, Strategic Planning Director, andGeneral Manager of the Strategy Center. He is currently Vice President and Board Secretary of Sungrow.Mr. Tian Shuai, Chinese national with no permanent residency overseas, born in November 1983, master degree, CMA (CertifiedManagement Accountant). He worked previously for Sany Heavy Industry Co., Ltd., Huawei Technologies Co., Ltd., Hunan HuinongTechnology Co., Ltd., and Honor Device Co., Ltd. He joined Sungrow in September 2021 and successively served the roles of ViceGeneral Manager of the Finance Center and General Manager of the Finance Center. He is currently Vice President and Finance Directorof Sungrow.Ms. Wang Lei, Chinese national with no permanent residency overseas, born in December 1979, master degree, Senior HumanResources Manager and Economist. She joined Sungrow in June 2003 and served the roles of Manager of the Human Resources Center,General Manager of the Human Resources Center, and Vice President of the Solar Storage Division. She is currently Vice President ofSungrow.Positions in organizations as a shareholder

□Applicable? Not applicable

Positions in other organizations?Applicable □ Not applicable

Penalties imposed by securities regulators in the past three years on incumbent directors, supervisors, executives and those departedin the reporting period

□Applicable? Not applicable

3. Remuneration of directors, supervisors and executives

The procedure for determining remuneration for directors, supervisors and executives, the ground for determination, and the actualpaymentProcedure for determination: The remuneration plans for directors are reviewed and approved by the Remuneration and EvaluationCommittee of the Board of Directors before being submitted to the Board of Directors and Shareholders’ Meeting for deliberation. Theremuneration plans for senior management are reviewed and approved by the Remuneration and Evaluation Committee and thensubmitted to the Board of Directors for deliberation. The remuneration plans for supervisors are submitted to the Board of Supervisorsand Shareholders’ Meeting for deliberation.Grounds for determination: The remuneration for directors, supervisors, and executives is determined and disbursed based onevaluations of their operational performance, professional competence, position hierarchy, and other relevant criteria. The Companydoes not provide additional remuneration for serving as Directors or Supervisors during their terms. Independent Directors receive anannual fixed allowance of CNY 80,000.Actual payment: Remuneration of directors, supervisors and executives has been paid in full according to the predefined standard.Remuneration of Directors, Supervisors and Executives of the Company during the reporting period

(in 10K CNY)

Note: Senior Vice President Mr. Li Shun resigned during the reporting period. The remuneration listed above indicated the total

remuneration before tax they received from the Company from January to April 2024.Notes on other facts

□Applicable? Not applicable

VIII. Directors' Performance of Duties During the Reporting Period

1. Board meetings in the reporting period

2. Directors’ presence at Board Meetings and Shareholders’ Meetings

3. Objections raised by directors to matters related to the Company

Whether there were objections raised by directors to matters related to the Company

□Yes? No

No directors raised any objection to matters related to the Company during the reporting period.

4. Other explanations on directors’ performance of duties

Whether suggestions made by directors were accepted?Yes □ NoExplanation on accepting or rejecting suggestions made by directorsDuring the reporting period, all directors of the Company strictly followed the Company Law, the Securities Law, the GovernanceGuidelines for Listed Companies, the Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies—StandardizedOperation of GEM-Listed Companies, as well as other relevant regulations and requirements in the Articles of Association and theRules of Procedure for the Board of Directors. All directors attended board meetings and shareholders’ meetings proactively, performedtheir duties in a diligent and conscientious way, and put forward relevant opinions on the Company's major governance and businessdecisions based on the actual situation, to ensure adequate discussion and science-based decision-making in a timely and efficient way,and safeguard the legitimate rights and interests of the Company and all shareholders.IX. Operation of Special Committees under the Board of Directors During the Reporting Period

X. Operation of the Board of SupervisorsWhether the Board of Supervisors identified any risks during the monitoring activities in the reporting period

□Yes? No

The Board of Supervisors had no objections to matters subject to supervision in the reporting period.XI. Employees

1. The number of employees and their professional and educational background

2. Remuneration policy

Competitive remuneration stimulates employees’ enthusiasm and creativity, and promotes the sustainable growth of the Company. Onperusal of the Company’s strategic development needs and based on the different stages of business development (mature business forprofit contribution and seeding business for rapid growth), the Company designed targeted incentive plans incorporating the medium-and long-term objectives, thereby promoting the sustainable development of the various businesses. The Company also maderemuneration adjustments according to the relevant national laws and regulations on human resources management, the market status,and employees' individual job performance, so as to allow employees to receive reasonable returns, and establish a remuneration andperformance management system that takes into account of internal fairness and external competitiveness.

3. Training plan

The Company consistently upholds its value proposition of "advancing employee development and realizing their aspirations",committing to systematic and scientific employee empowerment. To this end, the Company have established a three-tier trainingframework comprising Group-level programs (leadership development, onboarding, and general competencies), Business Unit-levelprograms (professional skill enhancement), and Department-level programs (role-specific technical training). Through the creation ofa virtual Learning Committee, the Company continuously extends professional training and methodological empowerment to a broaderemployee base, ensuring the effective implementation of this framework. By fostering a learning-oriented organizational construction,the Company integrate learning as a core component of corporate identity, unlocking tremendous potential and power to driveorganizational excellence and fuel sustainable business growth.In 2024, the Company continued to foster an innovative and efficient learning environment, empowering all employees through a seriesof talent and learning development initiatives, such as the "Sunflower Program" for campus recruits, the "Transition Program" for newmanagers, and the "Middle Management Launch" program for mid-level leaders. Aligned with strategic goals, the Company alsolaunched global talent development programs and digital competency enhancement initiatives, while introducing tools like theintelligent Q&A robot iKE and AI learning assistants to boost learning efficiency and engagement through digital technologies. Theseefforts further optimized the learning ecosystem, driving both employee growth and corporate advancement. Recognized for itsexcellence in talent development, the Company was honored with the 2024 China Talent Development Lighthouse Award –Outstanding Enterprise in Talent Cultivation and the Yunxuetang "Excellence in Digital Learning" Award.

4. Labor outsourcing

□Applicable? Not applicable

During the reporting period, the Company did not have a large number of labor outsourcing.

XII.Profit Distribution and Conversion of Capital Reserve into Share Capital

The formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy, during thereporting period?Applicable □ Not applicablePursuant to the 2023 Profit Distribution and Capital Reserves Capitalization Plan approved at the 7th Meeting of the 5th Board ofDirectors and the 6th Meeting of the 5th Board of Supervisors on April 22, 2024, and subsequently ratified at the 2023 Annual

Shareholders’ Meeting on May 28, 2024, the Company proposed a cash dividend of CNY 9.65 per 10 shares (tax-inclusive) based on1,468,642,351 shares (calculated by excluding 16,508,633 repurchased shares held in the special securities account from the total1,485,150,984 shares), resulting in total cash dividends of CNY 1,417,239,868.72 (tax-inclusive). The remaining retained earningswere carried forward to future periods. Concurrently, the Company issued 4 bonus shares per 10 shares through capitalization of capitalreserves, increasing the total shares from 1,485,150,984 to 2,072,607,924, with no additional stock dividends distributed for the fiscalyear. On June 13, 2024, the Company executed the plan, with the actual dividend payout reaching CNY 1,418,695,812.45 and theadjusted total shares post-capitalization amounting to 2,073,211,424.During the reporting period, the Company’s profit distribution policy remained unchanged. In strict compliance with the CompanyLaw, Securities Law, Regulatory Guidelines No. 3 for Listed Companies–Cash Dividends, and the Articles of Association, theCompany executed its profit distribution plan with clearly defined dividend standards and payout ratios, supported by robust decision-making procedures and mechanisms. Relevant proposals were reviewed and approved by the Board of Directors and the Board ofSupervisors before being submitted to the Shareholders’ Meeting for deliberation. Upon approval, the distribution plan wasimplemented within the stipulated timeframe, effectively safeguarding the interests of all shareholders.

The Company's profit distribution plan and capital reserve conversion plan for the reporting period were consistent with the relevantprovisions in the Articles of Association and the dividend management policy?Yes □ No □ Not ApplicableThe Company's profit distribution plan and capital reserve conversion plan for the reporting period were in line with the relevantprovisions in the Articles of Association.Profit distribution and conversion of capital reserve into share capital for the year

shares.The Company has consistently adhered to the philosophy of actively rewarding shareholders and sharing operational achievementswith them, maintaining a commitment to returning value to investors through cash dividends since its listing. Taking intocomprehensive consideration factors such as the company’s financial status, profitability, capital planning, and future businessdevelopment needs, and in alignment with the CSRC guidelines encouraging listed companies to distribute cash dividends and providestable, reasonable returns to investors, as well as relevant regulations under the Company Law and Articles of Association, the companyproposes the following 2024 Profit Distribution Plan:

Based on a share capital of 2,047,096,561shares (the existing total share capital of 2,073,211,424 shares minus 26,114,863 shares thathave been bought back in the special account for repurchase), the Company plans to distribute a cash dividend of CNY 10.80 (taxinclusive) for every 10 shares to all shareholders, with the total cash dividend amounting to CNY 2,210,864,285.88 (tax inclusive).The remaining undistributed profit will carry forward next year. No capitalization of capital reserves and bonus shares will be issuedthis year. In the event that the total share capital and the number of repurchased shares change in the period from the date of disclosureof this plan and the date of record for equity distribution, the total amount of cash dividend will be adjusted following the principle of“fixed ratio for cash dividend distribution” based on a share capital of total shares on the date of record minus shares that have beenbought back in the special account for repurchase.

The Company was profitable during the reporting period, the parent company made positive profits distributable to shareholders, butno cash dividend distribution plan was proposed

□Applicable? Not applicable

XIII.Progress of the Company's Equity Incentive Plan, Employee Stock Ownership Plan orOther Employee Incentive Measures?Applicable □ Not applicable

1. Equity incentives

The 2022 Restricted Stock Incentive Plan

(1) On April 22, 2024, the Company held the 7th Meeting of the Fifth Board of Directors and the 6th Meeting of the Fifth Board ofSupervisors, at which the Proposal on the Achievement of Vesting Conditions for the Second Vesting Schedule of the Initial Grant andthe First Vesting Schedule of the Reserved Grant in the 2022 Restricted Stock Incentive Plan and Relevant Matters were reviewed andapproved, the Board of Supervisors verified the list of incentive objects for the grant and issued verification opinions.

(2) On June 4, 2024, the second vesting period of the initial grant portion and the first vesting period of the reserved grant portion ofthe 2022 Restricted Stock Incentive Plan began to be listed and outstanding, with a total of 1,508,750 shares of vested stock, a total of453 vested persons, and a vesting price of CNY 35.21 per share.The 2023 Restricted Stock Incentive PlanOn September 30, 2024, the Company held the 10th Meeting of the Fifth Board of Directors and the 8th Meeting of the Fifth Board ofSupervisors, at which the Proposal on the Granting of Reserved Partial Restricted Shares to Incentive Participants under the RestrictedShare Incentive Plan for the Year 2023, and the Board of Supervisors verified the list of incentive objects for the grant and issuedverification opinions.Equity incentives granted to directors and executives?Applicable □ Not applicable

(in shares)

Evaluation mechanism and incentives for executivesThe Company’s executives are appointed by and reports to the Board of Directors. During the reporting period, the executives diligently performed their duties, fulfilled their responsibilitieswith dedication, and ensured the orderly execution of all production and operational activities. To evaluate and incentivize executives, the Company has established a comprehensive performanceevaluation system and a structured remuneration framework, with annual remuneration packages submitted to the Remuneration and Evaluation Committee and the Board of Directors for reviewand approval.

2. Implementation of the Employee Stock Ownership Plan

□Applicable? Not applicable

3. Other Employee Incentive Measures

□Applicable? Not applicable

XIV. Establishment and Implementation of the Internal Control System during the ReportingPeriod

1. Establishment and implementation of internal control

In accordance with the Basic Standards for Enterprise Internal Control and its supporting guidelines, as well as other regulatoryrequirements for internal control, the Company conducted a self-assessment of the design and operational effectiveness of its internalcontrol system as of December 31, 2024. During the reporting period, the Company established and effectively implemented internalcontrols for all businesses and matters within the evaluation scope, achieving its internal control objectives. No material weaknessesor significant deficiencies were identified in either financial or non-financial reporting controls. The Board of Directors confirms thatthe Company has maintained effective internal control over financial and non-financial reporting in all material aspects, in fullcompliance with the internal control framework for enterprises and relevant regulations.

2. Description of critical internal control deficiencies identified during the reporting period

□Yes? No

XV. Management and Control of the Company's Subsidiaries during the Reporting Period

XVI. Internal Control Self-Assessment Report or Internal Control Audit Report

1. Internal control self-assessment report

2. Internal control audit reports

?Applicable □ Not applicable

Whether the accounting firm has issued an internal control audit report with a non-standard opinion

□Yes? No

Whether the internal control audit report issued by the accounting firm is consistent with the opinion in the board of directors' self-assessment report?Yes □ NoXVII.Rectification of Problems Found in Dedicated Self-Examination Initiatives on CorporateGovernanceNot applicable.

Section V Environment and Social Responsibilities

I. Major Environmental IssuesWhether the Company and its subsidiaries are included in the list of key pollutant discharge organizations identified by theenvironmental authority

□Yes? No

Administrative penalties for environmental issues during the reporting periodThe Company was subject to no environment-related administrative penalties during the reporting period.Other environmental information disclosed as a key pollutant discharge unitNot applicable.Measures taken to reduce carbon emissions during the reporting period and their effects?Applicable □ Not applicableThe Company has implemented comprehensive low-carbon transformation initiatives across technology R&D, production andmanufacturing, supply chain management, logistics distribution, and product lifecycle management. Through practices such as carboninventory and carbon footprint accounting, the company continuously optimizes its own and its supply chain’s carbon emissionsperformance. Additionally, it innovates in new energy technologies, promotes hydrogen energy business development and carbontrading technologies, advances green logistics and packaging practices, actively participates in domestic and international carbonmarket transactions and policy-making, and continuously reduces environmental impacts across operations and the entire product chain.Conducting Internal Carbon Inventory: In 2024, the Company conducted an internal carbon inventory in accordance with ISO 14064and GHG Protocol standards, expanding the inventory boundary from 5 to 14 entities. The results of this inventory will help theCompany understand its carbon emissions profile, providing critical data for formulating carbon reduction strategies and implementinglow-carbon projects.Reducing Operational Carbon Footprint: The Company has established an efficient energy management system to reduce energyconsumption in its operational activities and optimize energy efficiency in production and operations. For unavoidable emissions, thecompany purchases carbon credits to offset its carbon footprint. In 2024, the Company purchased carbon credits for the first time inthe voluntary carbon market (VCS, Verified Carbon Standard), covering project types such as afforestation, wind power generation,and efficient cookstoves. These efforts offset 54.23% of its Scope 1 greenhouse gas emissions for the year.Promoting Carbon Reduction Across the Value Chain: The Company continues to deepen carbon management in its supply chain. In2024, it conducted organizational carbon inventories, product carbon footprint assessments, and green supply chain training. For threeconsecutive years, it has hosted the "Partner Summit – ESG Innovation and Development Forum," collaborating with partners todiscuss sustainable development pathways and assisting suppliers in building sustainable management awareness.Reasons for not disclosing other environmental informationThe Company and its subsidiaries are not included in the list of key pollutant discharge units identified by the environmental authority.The Company actively responds to the requirements of the national and local governments, strictly regulates noise, effluent, waste gas,and hazardous waste generated within the Company, formulates corresponding environmental protection rules and regulations, andmonitors noise, effluent, waste gas, and hazardous waste in strict accordance with the pollution discharge permit managementrequirements.II. Social Responsibility

For details, please refer to the Sungrow Power Supply Co., Ltd. 2024 Sustainability Report disclosed on www.cninfo.com.cn.

III. Efforts on Consolidating and Expand the Achievements of Poverty Alleviation and RuralRevitalization

The Company upholds the philosophy of "Gathering Goodwill, Co-creating a Better Future," leveraging its strengths and professionalexpertise to continuously carry out public welfare and volunteer initiatives in areas such as ecological and environmental protection,community development, science education and student assistance, and emergency disaster relief, and actively participates incommunity development across its global operations and strives to give back to society.In compliance with laws and regulations, including the Charity Law of the People's Republic of China, the company has establishedthe Regulations on External Donations Management to standardize its donation activities. In 2024, the company newly formulatedthe Volunteer Service Management Measures to strengthen the development of volunteer teams, standardize volunteer service practices,and promote the sustainable growth of its volunteer service initiatives. During the year, the company donated a total of CNY 20.7803million, with key efforts as follows:

1. Eco-friendly

In October 2024, Sungrow, in collaboration with The Nature Conservancy (TNC) and the Deyang Management Branch of the GiantPanda National Park, launched Phase 3 of the "Sunlight Forest" project. The initiative focuses on the Jiuding Mountain–TudilingCorridor within the Giant Panda National Park as a pilot area, aiming to provide systematic solutions for the protection and restorationof giant panda habitats. Diverse actions are included such as developing nature-based restoration plans tailored to the JiudingMountain–Tudiling Corridor, establishing a 100-mu (approximately 16.47 acres) habitat restoration and monitoring pilot site in criticalareas of the corridor to serve as a model for ecological restoration across the 30-square-kilometer corridor region, and constructing 6artificial nesting sites within the giant panda habitat to enhance living conditions for the Jiuding Mountain subpopulation of giantpandas and their cohabiting wildlife.The " Sunlight Forest" project was jointly initiated by Sungrow Power, TNC, and the Deyang Management Branch of the Giant PandaNational Park in 2022. Over a five-year period, the project plans to plant 500-mu (approximately 82.35 acres) of suitable native treesand edible bamboo species, rebuild ecological corridors, restore habitats, and advance the recovery of giant panda habitats.

2. Science education and student assistance

On September 5, 2024, during Charity Day, the Company donated CNY 5 million to the Anhui Provincial Charity Federation, jointlylaunching the public welfare initiative "Sunshine Bridge - Freshman Growth Program." Over the next three years, the program willsupport nearly 1,000 underprivileged students majoring in power electronics and related fields from ten universities in Anhui Province,helping them fulfill their academic dreams and contributing to the cultivation of talent in local higher education. Additionally, thecompany actively donated scholarships to Zhejiang University and Hefei University of Technology to support educational development,deepen industry-university-research collaboration, promote the industrialization of scientific and technological achievements, andinspire more students to pursue excellence.

3. Emergency disaster relief

In August 2024, due to a levee breach and backflow in Yaohai District, Hefei City, first-floor residents in surrounding communitiessuffered severe property damage. The Company allocated CNY 200,000 from the "Sungrow Power Charity Fund" established with theHefei City Charity Federation and donated it to the Yaohai District Charity Federation to assist in compensating affected householdsfor their losses. On January 7, 2025, a 6.8-magnitude earthquake struck Dingri County, Shigatse City, Tibet Autonomous Region,causing significant casualties and extensive damage to homes. Deeply concerned about the disaster-stricken areas, the Companydonated CNY 1 million to the Shigatse City Charity Federation. This contribution will be used to urgently procure relief supplies,support rescue operations, and help affected communities overcome the crisis alongside local residents.

4. Volunteer service

In 2022, the Company launched the "Global Volunteer Service Week" under the theme "Go For Nature," organizing ecological andenvironmental volunteer activities worldwide each year. By the end of 2024, the company had 2,431 registered volunteers, contributinga cumulative total of 8,303.5 volunteer service hours.From November 29 to December 5, 2024, Sungrow successfully held its third Global Volunteer Service Week. Volunteers in Hefei’sJingui Community cleaned up garbage, trimmed lawns, built wooden platforms, and transplanted greenery, transforming neglectedareas into scenic green spaces to enhance community life. Meanwhile, volunteers in Europe, the Middle East, the Americas, and theAsia-Pacific regions carried out diverse activities aligned with the theme. In the United States, Australia, Japan, and South Korea,volunteers cleaned parks, beaches, and other outdoor spaces. In India, volunteers visited orphanages to donate essential supplies andengage children in games. In the UAE, volunteers collaborated with the largest local animal shelter to walk stray dogs and donate

supplies. In Brazil and the Netherlands, volunteers assisted farms with cleanup and animal care. In Germany and South Africa,volunteers initiated tree-planting campaigns, sowing hope through saplings. These efforts collectively protected ecosystems andpromoted community development.Additionally, on November 29, the Company hosted its inaugural Global Volunteer Annual Conference, reviewing the extensivevolunteer practices of employees worldwide and recognizing outstanding volunteers to encourage broader participation and foster aculture of volunteerism.

Section VI Significant EventsI. Fulfillment of Undertakings

1. Undertakings made by the Company or its actual controller, shareholder, related parties and acquirers that are to be fulfilled in the reporting period, orundertakings not yet fulfilled by the end of the reporting period

?Applicable □ Not applicable

2. If there is a profit forecast on the Company's assets or projects and the forecast period contains the reporting period, provide an explanation on whetherassets or projects achieving the profit forecast and the reasons behind.

□Applicable? Not applicable

II. Non-Operating Appropriation of Funds by Controlling Shareholders or Other Related Parties

□Applicable? Not applicable

In the reporting period, there was no non-operating appropriation of funds by controlling shareholders or other related parties.

III. Illegal External Guarantees

□Applicable? Not applicable

In the reporting period, the Company made no illegal external guarantees.

IV. The Board of Directors’ Statement on the Most Recent Non-Standard Audit Report

□Applicable? Not applicable

V. Statement of the Board of Directors, the Board of Supervisors, and Independent Directors(if any) on the Non-Standard Audit Report Issued by the Accounting Firm in the ReportingPeriod

□Applicable? Not applicable

VI. The Board of Directors’ Statement on the Changes in Accounting Policies andAccounting Estimates and the Corrections to Significant Accounting Errors in the ReportingPeriod?Applicable□ Not applicable

(1) Significant Accounting Policy Changes

Implementation of Accounting Standards for Business Enterprises Interpretation No. 17On October 25, 2023, the Ministry of Finance issued Accounting Standards for Business Enterprises Interpretation No. 17 (Cai Kuai[2023] No. 21, hereinafter referred to as “Interpretation No. 17”), effective from January 1, 2024. The Company adopted the provisionsof Interpretation No. 17 starting January 1, 2024. The implementation of Interpretation No. 17 had no material impact on the financialstatements of the reporting period.Disclosures on Supplier Financing ArrangementsIn Note 7, “Notes to Consolidated Financial Statements,” section 66(4), “Supplier Financing Arrangements,” of the financial report,the Company has disclosed information related to supplier financing arrangements for the 2024 fiscal year in accordance with therequirements of Interpretation No. 17.Reclassification of Warranty CostsThe Compilation of Application Guidance for Accounting Standards for Business Enterprises 2024 issued by the Ministry of Financein March 2024, and Accounting Standards for Business Enterprises Interpretation No. 18 issued on December 6, 2024, stipulate thatwarranty costs related to assurance-type warranties shall be classified as operating costs.Starting in 2024, the Company has implemented this provision by reclassifying such warranty costs into operating costs. The applicationof this accounting treatment had a cumulative impact of 0 on retained earnings at the beginning of the earliest prior period presented.Adjustments to the comparative consolidated and parent company financial statements for 2023 are as follows:

(2) Significant Accounting Estimate Changes

There were no significant accounting estimate changes during the reporting period.

VII. Changes in the Scope of Consolidated Statements as Compared to the Financial Reportsof the Previous Year?Applicable □ Not applicable

1. Newly established subsidiaries

In this period, the Company newly established 7 wholly-owned subsidiaries, namely Sungrow Power (Hangzhou) Co., Ltd., SungrowPower (Xi’an) Co., Ltd., Sungrow Power (Jiangsu) Co., Ltd., Anhui Xuanyang Power Technology Co., Ltd., Shanxi Tongyang PowerCo., Ltd., Sungrow Power (Inner Mongolia) Co., Ltd., Sungrow Power (Zhuhai Hengqin) Co., Ltd. Additionally, the controlledsubsidiary Sungrow Renewables Development Co., Ltd. established 457 project subsidiaries for power plant operations, while othercontrolled subsidiaries established 12 new subsidiaries. None of the newly established subsidiaries are material to the Company.

2. Consolidated project companies in this period

To support its power plant business development, the Company’s controlled subsidiary Sungrow Renewables Development Co., Ltd.acquired 11 project companies during the year. None of the newly consolidated project companies are material subsidiaries.

3. Cancelled subsidiaries

Based on operational needs, the Company dissolved one wholly-owned subsidiary, Hefei Ruilang New Energy Investment Co., Ltd.Meanwhile, the controlled subsidiary Sungrow Renewables Development Co., Ltd. dissolved 224 subsidiaries that had not commencedactual operations, and other controlled subsidiaries dissolved 8 subsidiaries.

4. Transferred new energy project companies

In line with operational requirements, the controlled subsidiary Sungrow Renewables Development Co., Ltd. transferred 163 newenergy project companies during the period. These project companies were established solely for specific projects and subsequentlytransferred.

VIII. Engagement and Disengagement of Accounting Firms

Accounting firm currently engaged

Whether to replace the accounting firm or not

□Yes? No

Engagement of internal control auditing/accounting firms, financial advisors, or sponsors?Applicable □ Not applicableDuring the reporting period, the Company engaged RSM China (Special General Partnership) as the internal control audit institution,with internal control audit fees paid amounting to CNY 480,000.

IX. Statement on Delisting after the Disclosure of Annual Report

□Applicable? Not applicable

X. Matters Related to Bankruptcy Reorganization

□Applicable? Not applicable

No bankruptcy reorganization related matters happened to the Company in the reporting period.XI. Major Litigations and Arbitrations

1. Major litigations and arbitrations

□Applicable? Not applicable

No significant litigation or arbitration matters occurred during the reporting period.

2. Other litigations and arbitrations

?Applicable□ Not applicableDuring the reporting period, the total amount involved in other litigation and arbitration cases that did not meet the disclosure thresholdfor significant litigation or arbitration was CNY 297.68 million (of which the total amount involved in cases where the Company actedas the plaintiff/applicant was CNY 221.78 million, and the total amount involved in cases where the Company acted as thedefendant/respondent was CNY 75.90 million). As of the end of the reporting period, the total amount involved in the aforementionedcases that remained unresolved was CNY 200.09 million. These litigation and arbitration matters are not expected to have a materialadverse impact on the Company’s financial condition or ability to continue as a going concern.XII. Punishments and Rectification

□Applicable? Not applicable

The Company was subject to no significant punishment or rectification in the reporting period.

XIII. Integrity of the Company, its Controlling Shareholder and Actual Controller

□Applicable? Not applicable

XIV. Significant Related-Party Transactions

1. Related-party transactions involving daily operations

?Applicable □ Not applicable

2. Related-party transactions arising from the acquisition or sale of assets or equity

□Applicable? Not applicable

The Company did not make any related-party transactions arising from the acquisition or sale of assets or equity in the reporting period.

3. Related-party transactions of joint outbound investment

□Applicable? Not applicable

The Company did not make significant related-party transactions arising from the joint outbound investment.

4. Related credits and liabilities

□Applicable? Not applicable

There were no related credits and liabilities in the reporting period.

5. Transactions with related financial companies

□Applicable? Not applicable

There was no saving, loan, credit or other financial business between the Company and related financial companies or related parties.

6. Transactions between financial companies controlled by the Company and related parties

□Applicable? Not applicable

There was no saving, loan, credit or other financial business between financial companies controlled by the Company and relatedparties.

7. Other significant related-party transactions

□Applicable? Not applicable

There were no other significant related-party transactions in the reporting period.XV. Major Contracts and the Contract Performance

1. Trusteeship, contracting and leasing

(1) Trusteeship

□Applicable? Not applicable

There was no significant trusteeship in the reporting period.

(2) Contracting

□Applicable? Not applicable

There was no significant contracting in the reporting period.

(3) Leases

□Applicable? Not applicable

There was no significant leasing in the reporting period.

2. Major guarantees

?Applicable □ Not applicable

(in 10K CNY)

Description of specific circumstances of using composite guarantee methodsNot applicable

3. Cash Assets Management Entrusted to Others

(1) Entrusted financial management

?Applicable □ Not applicableOverview of entrusted financial management in the reporting period

(in 10K CNY)

Details of high-risk entrusted financial management with large amount, low security, or low flowability

□Applicable? Not applicable

Expected inability to recover the principal of entrusted financial management or other circumstances that may lead to impairment

□Applicable? Not applicable

(2) Entrusted loans

□Applicable? Not applicable

There were no entrusted loans in the reporting period.

4. Other major contracts

□Applicable? Not applicable

There were no other major contracts in the reporting period.XVI. Explanation on Other Significant Matters

□Applicable? Not applicable

There were no other significant matters to be explained in the reporting period.

XVII. Significant Matters of the Company's Subsidiaries?Applicable □ Not applicableOn October 18, 2024, the Company’s controlled subsidiary, Sungrow Renewables, proposed to acquire Hefei Taihe IntelligentTechnology Group Co., Ltd. and entered into relevant agreements with related parties. As of the end of the reporting period, SungrowRenewables has gained control over Taihe Intelligent’s board of directors, achieving de facto control of Taihe Intelligent. For details,please refer to the following announcements disclosed by the Company on the CNINFO website: Announcement on the Acquisition ofControl of Hefei Taihe Intelligent Technology Group Co., Ltd. by the Controlling Subsidiary and Execution of RelevantAgreements (Announcement No.: 2024-105) and Announcement on the Share Transfer for the Acquisition of Control of Hefei TaiheIntelligent Technology Group Co., Ltd. by the Controlling Subsidiary (Announcement No.: 2024-122).

Section VII Changes in Shares and Information about Shareholders

I. Changes in Share Capital

1. Changes in shares

(in shares)

Reasons for share changes?Applicable □ Not applicable

1. On June 13, 2024, the Company implemented the 2023 annual equity distribution plan. Based on the total share capital of 1,470,151,101 shares (after excluding repurchased shares held in thespecial securities account for repurchases) as of June 12, 2024, the Company distributed a cash dividend of RMB 9.65 per 10 shares (tax inclusive) to all shareholders. Additionally, the Companyconverted capital reserve into share capital, issuing 4 additional shares for every 10 shares held, resulting in a total capitalization of 588,060,440 shares. After this conversion, the total share capitalincreased to 2,073,211,424 shares.

2. Mr. Li Shun (Senior Vice President) and Mr. Xie Xiaoyong (Vice President) resigned from their senior management positions. As their resignation reporting period has exceeded six monthsduring the reporting period, and in accordance with relevant laws and regulations, their shares will continue to comply with the requirement that "25% of the shares held at the end of the previousyear will be released from lock-up restrictions annually" until the conclusion of their fifth-term tenure.Approvals for share changes?Applicable □ Not applicableOn April 22, 2024, the Company convened the Seventh Meeting of the Fifth Board of Directors and the Sixth Meeting of the Fifth Board of Supervisors, during which the Proposal on the 2023

Profit Distribution and Capitalization from Capital Reserves was reviewed and approved. Subsequently, on May 28, 2024, the 2023 Annual General Meeting of Shareholders was held, wherethe aforementioned proposal was formally ratified.Share transfers?Applicable □ Not applicableOn June 13, 2024, the Company implemented the 2023 Annual Equity Distribution Plan, with 588,060,440 shares issued through capital reserve capitalization directly credited to shareholders’securities accounts on the same date.The impact of changes in shares on financial indicators such as basic earnings per share, diluted earnings per share, net assets per share attributable to common shareholders in the last year andthe last period?Applicable □ Not applicableOn June 13, 2024, the Company implemented the 2023 Annual Equity Distribution Plan. Following the implementation of the plan, the basic earnings per share (EPS), diluted EPS, and net assetper share attributable to common shareholders all experienced a decline..Other contents the Company considers necessary or required by the securities regulatory authorities to disclose

□Applicable? Not applicable

2. Changes in restricted shares

?Applicable □ Not applicable

(in shares)

II. Issuance and Listing of Securities

1. Securities (excl. preference shares) issued during the reporting period

□Applicable? Not applicable

2. Changes in the Company’s total shares and shareholder structure, and changes in the Company’s asset and liability structure?Applicable □ Not applicable

At the beginning of the reporting period, the Company’s total share capital was 1,485,150,984 shares. On June 13, 2024, the Company implemented the 2023 Annual Equity Distribution Plan.Based on the adjusted share capital of 1,470,151,101 shares (calculated by excluding repurchased shares held in the special securities account for repurchases as of June 12, 2024), the Companydistributed a cash dividend of RMB 9.65 per 10 shares (tax inclusive) to all shareholders. Additionally, the Company converted capital reserves into share capital, issuing 4 additional shares forevery 10 shares held, resulting in a total capitalization of 588,060,440 shares. Following this conversion, the total share capital increased to 2,073,211,424 shares.

3. Existing employees’ shares

□Applicable? Not applicable

III. Shareholders and de facto controllers

1. Number of shareholders and shareholdings of the Company

(in shares)

Shareholders holding 5% or more of shares, top 10 shareholders and top 10 shareholders with unlimited shares in circulation participating in the lending of shares in the transfer and financingbusiness

?Applicable □ Not applicable

(in shares)

The top 10 shareholders and the top 10 holders of freely tradable shares have undergone changes compared to the previous reporting period due to securities lending and returning activitiesunder the securities margin trading mechanism.

□Applicable? Not applicable

Whether the Company has made arrangements for different voting rights

□Applicable? Not applicable

Whether the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictionsmade the buy-back transaction as agreed in the reporting period

□Yes? No

The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions did notmake the buy-back transaction as agreed in the reporting period.

2. Controlling shareholders of the Company

Nature of controlling shareholder: Natural personType of controlling shareholder: Natural person

Changes of controlling shareholder during the reporting period

□Applicable? Not applicable

The controlling shareholder of the Company did not change in the reporting period.

3. Actual controllers and persons acting in concert

Nature of actual controller: Domestic natural personType of actual controller: Natural person

Change of actual controller during the reporting period

□Applicable? Not applicable

The actual controller of the Company did not change during the reporting period.Block diagram of the property rights and control relationship between the Company and the actual controller

The actual controller controls the Company through trust or other asset management methods

□Applicable? Not applicable

4. The cumulative quantity of pledged shares of the Company’s controlling shareholder or the largestshareholder and its persons acting in concert account for more than 80% of the Company’s shares held bythem

□Applicable? Not applicable

5. Other legal person shareholders holding more than 10% of the shares

□Applicable? Not applicable

6. Share restrictions and reductions of controlling shareholder, actual controller, restructuring parties, andother undertaking entities

□Applicable? Not applicable

IV. Specific implementation of share buy-back during the reporting period

Progress of share buy-back?Applicable □ Not applicable

Progress of buy-back share reduction via centralized bidding

□Applicable? Not applicable

Section VIII Preference Shares

□Applicable? Not applicable

No preference shares exist in the Company during the reporting period.

Section IX Bonds

□Applicable? Not applicable

Section X Financial reportsI. Audit reports

Auditor’s Report

RSM-AR [2025] No.230Z0236To the Shareholders of Sungrow Power Supply Co., Ltd.OpinionWe have audited the financial statements of Sungrow Power Supply Co., Ltd. (hereafter referred to as the “Company”), whichcomprises the consolidated and the parent company’s statement of financial position as at 31 December 2024, the consolidated andthe parent company’s statement of profit or loss and other comprehensive income, the consolidated and the parent company’sstatement of cash flows, the consolidated and the parent company’s statement of changes in equity for the year then ended, and thenotes to the financial statements.In our opinion, the accompanying financial statements of the Company present fairly, in all material respects, the consolidated and thecompany’s financial position as at December 31, 2024, and of their financial performance and cash flows for the year then ended inaccordance with Accounting Standards for Business Enterprises.Basis for OpinionWe conducted our audit in accordance with Chinese Standards on Auditing (CSAs). Our responsibilities under those standards arefurther described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independentof the Company in accordance with the Code of Ethics for Professional Accountants of the Chinese Institute of Certified PublicAccountants, and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we obtained is sufficient andappropriate to provide a basis for our opinion.Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of the most significance in our audit of the financialstatements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, andin forming our opinion thereon, and we do not provide a separate opinion on these matters.I. Recoverability of Accounts Receivable

1. The Key Audit Matter

As described in the“Notes to the Financial Statements”

“V.11 Financial Instruments”and“VII.4 Accounts Receivable”, asat 31 December 2024, the carrying amount of accounts receivable amounted to CNY 27,640 million, after deducting the provision forbad debts of CNY 2,883 million which was estimated based on the recoverability of accounts receivable. The Management of theCompany (hereafter referred to as “the Management”) measures the carrying amount of accounts receivable by identifying impaireditem with objective evidence and assessing their present value based on expected future cash flows. As the recoverability of accountsreceivable is subjected to significant judgements and estimates of the Management, and the carrying amount of accounts receivable issignificant, we have identified the recoverablility of accounts receivable as a key audit matter.

2. How the matter was addressed in our audit

The audit procedures we performed in relations to recoverability of accounts receivable mainly included：

(1) We evaluated the design and tested the operating effectiveness of the internal controls relating to accounts receivable.

(2) We assessed the reasonableness of the provision for bad debts of accounts receivable on portfolio classification and relevantjudgment made by the management.

(3) We assessed the appropriateness of management dividing the accounts receivable to several group for impairment assessment inconsidering the actual bad debts in the past with the similar accounts receivable group and the factors such as customer credit andmarket conditions. For accounts receivable with bad debt recognised individually, we obtained audit evidence and reviewed the basisfor management's assessment of the expected future cash flows. For accounts receivable with bad debt provision recognised collectivelyby credit risk characteristics, we tested the reasonableness and accuracy of provision for bad debts in considering the expected creditloss rates and aging analysis.

(4) We assessed the collectability of accounts receivable with large amount, those accounts receivables with significant amount anddue more than one year or under litigation (selected samples) should be paid special attention. Through the investigation of customerbackground, business status, lawsuits, etc., interviews with lawyers and sales personnel, implementation of customer confirmation andchecking settlement of receivables after the reporting period to assess the reasonableness and sufficiency of provision for bad debtsmade by the management.II. Revenue recognition

1. The Key Audit Matter

As described in the“Notes to the Financial Statements”

“V. 27 Revenue”and“VII. 47 Revenue and Cost of Sales”, the operatingrevenue amounted to CNY 77,857 million in 2024. As revenue is one of the Company’s key performance indicators, there might beinherent risks that the Management manipulates revenue recognition to meet specific goals or expectations, we identified the revenuerecognition as a key audit matter.

2. How the matter was addressed in our audit

The audit procedures we performed in relations to revenue recognition mainly included：

(1) We evaluated the design and tested the operating effectiveness of the internal controls relating to sales of products and power stationconstruction.

(2) We performed analysis procedure on revenue and gross margin to identify whether there are significant or abnormal fluctuations.

(3) We conducted confirmation procedures on transactions and account balances with major customers.

(4) For revenue from sales of products, we checked supporting documents related to revenue recognition by sampling method, includingsales contracts, invoices, delivery lists, delivery notes, receipts, bills of clearance etc and we performed cut-off tests on the revenuerecognized around the balance sheet date, and assessed whether it was recognized in the appropriate period.

(5) For revenue from centralized power station construction, we checked and compared the actual cost incurred and total expected costto the satisfaction of that performance obligation on a sampling basis to assess the management’s experience and ability to make thisaccounting estimate. We obtained the major construction contracts, checked total contract revenue, reviewed key contract terms, andverified the accuracy of contract revenue. For major contracts with generation commitment, we checked the reasonableness of estimatedgeneration and accuracy of revenue recognition. For the actual cost of major projects, we checked supporting documents such asrelevant contracts, invoices, equipment receipts confirmations, and progress confirmations, and analyzed the gross profit margin of theproject to assess the authenticity and accuracy of actual cost incurred. we also selected some projects to perform onsite check to matchesthe progress towards complete satisfaction of performance obligation to actual.

(6) For revenue from the construction of distributed household power stations, we checked the share transfer agreements, sales contracts,grid-connected power generation situation of the power stations, etc., to assess the authenticity, accuracy and completeness of therevenue recognition.III. Impairment of inventories

1. The Key Audit Matter

As described in the“Notes to the Financial Statements”

“V.13 Inventories”and“VII. 9 Inventories”, as of December 31, 2024,the book balance of inventories amounted to CNY 31,107 million, with provision for bad debts of CNY 2,079 million, and the carryingamount amounted to CNY 29,028 million. As the amount of inventories is significant and determination of net realizable value involvessignificant judgments of the Management, we identified the impairment of inventories as a key audit matter.

2. How the matter was addressed in our audit

The audit procedures we performed in relation to impairment of inventories mainly included：

(1) We obtained internal controls related to inventories, management, assessed the design of these controls and tested whether theywere executed effectively.

(2) We attended physical inventory counting, with inspecting the inventory to ascertain its existence and evaluate its condition as wellas identifying obsolete, damaged or aging inventory; we requested confirmation from the third party as to the quantities and conditionof inventory for inventory under the custody and control of a third party..

(3) We obtained the inventories impairment calculation table prepared by the management, implemented the review procedures on theinventory impairment test, checked and analyzed the rationality of the net realizable value, and evaluated the accuracy of the provisionfor impairment and the write-off.

(4) We conducted a horizontal comparison of Sungrow Power's inventory turnover rate and the provision ratio of impairment, to analyzewhether the Company's inventory impairment deviates obviously from the average level of the same industry.

(5) We checked whether information related to inventories had been presented appropriately in the financial statements.Other informationThe Management is responsible for the other information. The other information comprises the information included in the Company’s Annual Report for the year of 2024, but does not include the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusionthereon.In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, considerwhether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are requiredto report that fact. We have nothing to report in this regard.Responsibilities of Management and Those Charged with Governance for the Financial StatementsThe Management is responsible for the preparation and fair presentation of the financial statements in accordance with AccountingStandards of Business Enterprises, and for the design, implementation and maintenance of such internal control as managementdetermines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraudor error.In preparing the financial statements, management is responsible for assessing Sungrow Power’s ability to continue as a going concern,disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management eitherintends to liquidate Sungrow Power or to cease operations, or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing Sungrow Power’s financial reporting process.Auditor’s Responsibilities for the Audit of the Financial StatementsOur Objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with CSAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonablybe expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CSAs, we exercise professional judgment and maintain professional skepticism throughout theaudit. We also:

i)Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and performaudit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.ii)Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

circumstances.iii)Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosuresmade by management.iv)Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidenceobtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Sungrow Power’sability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions maycause Sungrow Power to cease to continue as a going concern.v)Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements representthe underlying transactions and events in a manner that achieves fair presentation.vi)Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within SungrowPower to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regardingindependence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.From the matters communicated with those charged with governance, we determine those matters that were of most significance in theaudit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determinethat a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expectedto outweigh the public interest benefits of such communication.II. Financial statementsAll numbers in the financial statements are in CNY.

1. Consolidated balance sheet

Prepared by: Sungrow Power Supply Co., Ltd.

December 31, 2024

(in CNY)

Legal Representative: Cao Renxian Chief Financial Officer: Tian Shuai Finance Manager: Li Pan

2. Balance Sheet of Parent Company

(in CNY)

3. Consolidated Income Statement

(in CNY)

Legal Representative: Cao Renxian Chief Financial Officer: Tian Shuai Finance Manager: Li Pan

4. Income Statement of Parent Company

(in CNY)

5. Consolidated statement of cash flows

(in CNY)