Behind the Double Growth in Revenue and Net Profit in 2025: Sungrow's Net Profit Attributable to Parent in Q4 Last Year Declined Quarter-over-Quarter

On the evening of March 31, the 2025 annual report released by Sungrow Power Supply (300274.SZ) showed that the company generated RMB 89.184 billion in revenue for the full year, a year-on-year increase of 14.55%. It achieved net profit attributable to shareholders of RMB 13.461 billion, up 21.97% year on year.

In terms of business structure, in 2025, there were three business lines accounting for more than 10% of Sungrow Power Supply’s revenue—energy storage systems with RMB 37.287 billion, power-electronic conversion equipment such as photovoltaic inverters with RMB 31.136 billion, and new-energy investment and development with RMB 16.559 billion. Their respective shares were 41.81%, 34.91%, and 18.57%. Worth noting is that the energy storage system business not only hit a new revenue high, but its revenue share also first exceeded 40%, becoming Sungrow Power Supply’s main revenue source.

Industry insiders believe that the change in revenue structure reflects that in 2025, Sungrow Power Supply’s two major businesses—photovoltaics and energy storage—along with its profitability, are undergoing a trend shift. The traditional photovoltaic business is gradually shrinking, while the energy storage business is making large strides forward.

However, by quarter, in 2025’s fourth quarter Sungrow Power Supply recorded revenue of RMB 22.782 billion, down 18.37% year on year, and down 0.38% quarter on quarter. In the same period, net profit attributable to shareholders was only RMB 1.58 billion, the lowest quarterly figure since the second quarter of 2023.

In response to the company’s performance in the fourth quarter of last year being significantly below market expectations, Sungrow Power Supply said in a conference call that, on one hand, it was due to changes in the revenue mix: the delivery of major projects in the new-energy investment and development business was concentrated in the fourth quarter, which increased that business’s revenue contribution and in turn dragged down the overall gross margin. On the other hand, the energy storage business’s gross margin in the fourth quarter of last year was around 24%, down by roughly 17 percentage points quarter on quarter. This was mainly because income from overseas high-gross-margin projects confirmed in the company’s third quarter of last year resulted in a higher gross margin, and additionally, carbonated lithium prices rose to some extent in the fourth quarter of last year, while pricing for existing projects could not be passed through in time.

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