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Huawei is the world’s largest manufacturer of photovoltaic inverters in terms of shipments!


        PV inverter or solar inverter refers to a converter that can convert variable DC voltage generated by photovoltaic solar panels into AC power at mains frequency.

        As the core components of photovoltaic power generation systems, the current hot future energy system, for ordinary people, it is natural to think that this high-end equipment market must be dominated by companies in developed countries such as Europe, America, Japan, and South Korea.

        However, let’s take a look at the ranking of global photovoltaic inverter manufacturing companies in 2019. The first place is impressively written with the name of Huawei. Yes, it is the Huawei that makes mobile phones, tablets, and base stations.

 

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        Looking at the changes in the global market share of photovoltaic inverters in the past few years, Huawei has firmly occupied the top spot since 2015, and its position is even more stable than its base station market. What’s more frightening is, guess when did Huawei start to enter the photovoltaic inverter market? ——The answer is 2013.

 

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        Moreover, the reason why Huawei’s global share of photovoltaic inverters is so high is not because of the huge market share in China. From the perspective of market segments on all continents, except for the US market, Huawei has hardly entered, Huawei has the largest share in all other markets such as Japan, Europe, Latin America, and India.

 

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Source: Forward-looking Economist

 

        On June 7, Huawei invested 3 billion yuan to register and set up Huawei Digital Energy Technology Co., Ltd., which made many headlines in the media. After the establishment of Huawei Digital Energy Technology Co., Ltd., its registered capital even surpassed the famous HiSilicon, becoming the largest of the 25 wholly-owned subsidiaries of Huawei. From the perspective of its business scope, it can be said that it includes all aspects of the energy field.

        Many onlookers may think that Huawei’s entry into the energy field is a “new entrant”, but in fact, in the energy industry, Huawei can be described as an out-and-out veteran.

        In addition to the photovoltaic field mentioned above, Huawei has already begun to combine its own main business to develop a series of energy product research and development, including base station power supply, data center power supply and vehicle power supply.

        In fact, while starting its own communications equipment business, Huawei also began a career in the energy field.

        In the 1990s, with the outbreak of the domestic communications market, Huawei gradually rose. The number of communications equipment sold every year was tens of millions. At that time, there were few companies in the country that could manufacture power supplies for Huawei communications equipment. The communication power source that Huawei wants cannot be supplied on such a large scale.

        As a result, Huawei decided to do a good job on its own. Around 1995, the company established a subsidiary that had nothing to do with power supply-Mobec (the name is said to be taken from the three patriarchs of the communications industry: Morse, Bell, and Ma). Kenny) was transformed into a company specializing in the production of power equipment, and in 1996 it achieved revenue of 216 million yuan and profit of 50 million yuan.

        After that, Huawei changed the name of Mobek to the more fluent Huawei Electric. By 2000, Huawei Electric had become the largest manufacturer of communication power supplies in China and contributed a lot of profits to Huawei.

 

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        However, after the telecommunications market experienced rapid development throughout the 1990s, it stagnated with the bursting of the global Internet bubble around 2000, and Huawei was of course implicated along with it. To make matters worse, when the entire market entered the freezing point, Huawei made mistakes in the choice of communication standards.

        Facing the moment of life and death, Huawei decided to divest its non-core business and specialize in its main business-communications equipment. As a result, Huawei Electric (later renamed Sheng’an Electric) was sold at this node. The receiver was Emerson, a world-renowned electric company. The transaction price was an unprecedented $750 million in that era.

 

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        The story of Huawei Electric did not stop there. After Huawei Electric was sold to Emerson, many management or technical backbones quit their jobs and started businesses. In the end, they created more than a dozen listed companies in the energy and industrial control fields, including Dinghan Technology (300011), INVT (002334), and Zhongheng Electric ( 002364), Inovance Technology (300124), Blue Ocean Huateng (300484), Invic (002837), Megmeet (002851), Hewang Electric (603063), Shenghong Co., Ltd. (300693), Xinrui Technology ( 300745) and so on, and the company created by these old Huawei Electric will be called “Huadian (Huawei Electric)-Emerson Entrepreneurship Department”. This “faction” is also the entrepreneurial group that has created the most A-share listed companies.

        Among them, the most famous company is Inovance Technology, which has a market value of more than 100 billion yuan and makes industrial automation control products. Its founder and current chairman Zhu Xingming once served as the product director of Huawei Electric.

        In short, Huawei used to be very strong in the energy field, so strong that it can continue its main business after selling Huawei Electric, and so strong that the original talents in the electrical department can occupy half the sky in the industry when they go out and start businesses.

        However, Huawei later signed an agreement with Emerson because it wanted to sell Huawei Electric. Instead of entering the relevant fields for many years, it had to purchase Emerson products.

        But after all, the foundation is there, and Huawei has become more and more prosperous in the following years. After returning to the energy market, Huawei will soon regroup again.

        What does it mean for Huawei to establish a digital energy company and expand and strengthen its energy business?

        On the one hand, Huawei’s main business communication equipment and data center itself need to use all kinds of energy products. In addition, the core of Huawei’s new energy vehicle field is battery motor electronic control. Therefore, to carry out relevant energy product business around its main business is to comply with the trend.

        In addition, clean energy is definitely a trillion-level market, and it is a market that will maintain high growth for a long time in the future. According to forecasts, by 2030, my country’s clean energy (wind, light, water, nuclear) power generation will account for 36.0%, and the scale will gradually approach the traditional thermal power. Huawei, which has already established a world in the photovoltaic market, Combining one’s own strengths in digital technology, of course, has great potential to capture more territories in the clean energy market.

 

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Source: Industry Information Network

 

        The most important point is that in the field of energy, especially in the field of clean energy, the situation of our country being stuck is not much better than the situation in the ICT field.

        For example, in the photovoltaic field, according to the operating income of upstream and downstream enterprises in the entire industrial chain of the photovoltaic industry, in 2020, among the top 20 photovoltaic companies in the world, Chinese companies occupy 15 seats, taking the top five. Longji shares even said: Solar photovoltaic technology, in terms of the entire industry chain, we do not have any link in trouble.

 

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Source: 365 Photovoltaics

 

        For another example, in the field of wind power, Chinese companies occupy 6 seats in the global wind power complete machine manufacturer market share ranking in 2020 (2, 4, 6-10 in the figure below).

 

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Source: Bloomberg New Energy Finance

 
        Not to mention the dominant position of Chinese technology enterprises in the global new energy vehicle market. In addition to countless vehicle manufacturers, in the latest statistics of global electric vehicle battery market share from January to April 2021, Chinese enterprise catl occupies 32.5% of the market, leaving Korean enterprise LG behind.

 

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        Huawei, which has been killed by chip cards in the field of ICT, has contributed the most 5g patents, but it is not even allowed to use 5g mobile phone chips in the United States. It’s obviously easier to do something big in an environment where the energy sector is surrounded by compatriots. Even if we completely transform the digital energy enterprises, we will not have a worse life than now. After all, Ningde era has only won one market segment, and its current market value has reached trillions. If we make an energy Huawei like Huawei in today’s ICT field, It’s hard to imagine how big enterprises can do in the future.