For the first time in nearly four years, quarterly profit and revenue both fell for the second consecutive quarter, and Sungrow Power Supply’s market value dropped by more than 300 billion yuan in a single day.

As of the close on April 1st, Sungrow Power Supply Co., Ltd. (300274.SZ) stock price fell by 10.82%, with the total market value dropping to 278.7 billion yuan. Meanwhile, at the previous trading day’s (March 31st) close, the company’s total market value was 312.6 billion yuan.

This means that within one day, Sungrow’s market value evaporated by over 30 billion yuan.

The market generally believes that the direct trigger for this stock price plunge was the company’s underwhelming performance in 2025. Its full-year net profit attributable to shareholders was 7% lower than the consensus forecast by Wind (Wind’s consensus forecast was approximately 15.33 billion yuan).

Looking at the full-year data, the company’s performance still showed growth: revenue reached 89.18B yuan, up 14.55% year-on-year; net profit attributable to shareholders was 13.46B yuan, up 21.97% year-on-year.

However, breaking it down into individual quarters, in Q4 2025, the company achieved revenue of 22.78B yuan and net profit of 1.58 billion yuan, down 18.37% and 54.02% respectively year-on-year.

This is the first time since Q4 2021 that the company experienced a decline in both quarterly revenue and net profit in nearly four years.

From a business structure perspective, in 2025, Sungrow’s energy storage system business revenue reached 37.29B yuan, a 49.39% increase year-on-year, accounting for 41.81% of total revenue, becoming the company’s largest source of income.

During the same period, revenue from photovoltaic inverters and other power conversion equipment was 31.14B yuan, up 6.90%. Revenue from new energy investment and development was 16.56B yuan, down 21.16%. Revenue from photovoltaic power station generation and other businesses was 1.31 billion yuan and 2.89B yuan respectively.

The annual report shows that Sungrow achieved a gross profit margin of 31.83% in 2025, an increase of 1.89 percentage points year-on-year, mainly due to brand premium, product innovation, scale effects, and other factors.

The gross profit margins of different products varied. In 2025, the gross margin for photovoltaic inverters and other power electronic conversion devices was 34.66%, up 3.76 percentage points year-on-year; while the gross margin for energy storage systems was 36.49%, down 0.2 percentage points. Additionally, the gross margin for power station investments was 14.50%, down 4.9 percentage points year-on-year.

Regarding shipment volume, according to the company’s earnings conference, in 2025, overseas markets accounted for over 80% of energy storage shipments (36 GWh exported overseas, 7 GWh domestically). Management expects that in 2026, energy storage shipments will exceed 60 GWh, representing a year-on-year increase of 40% to 50%.

Furthermore, the annual report also mentioned that to deepen its global strategic layout, enhance international brand image, and expand diversified financing channels, Sungrow has initiated the issuance of H-shares and listing on the Hong Kong Stock Exchange during the reporting period. The raised funds will be used for global localization, R&D investment, and digital transformation.

(This article is from First Financial)