Executive Summary
Sungrow Power Supply Co. Ltd. (SZ:300274) released its 2025 annual report on March 31, 2026. The company reported a record revenue of 891.84 billion CNY (≈ $133 billion) and a net profit attributable to shareholders of 134.61 billion CNY (≈ $20 billion), representing year‑on‑year increases of 14.55 % and 21.97 %, respectively.
Despite the impressive annual growth, the fourth‑quarter results fell short of expectations. Net profit in Q4 declined 54 % YoY and gross margin contracted by 13 basis points from the previous quarter. The market reacted sharply; on April 1 the share price dropped 10.82 % and the market capitalisation fell from 3126 billion CNY to 2787 billion CNY, a loss of over 300 billion CNY in a single day.
Financial Highlights (2025)
| Item | 2025 | YoY Growth |
|---|---|---|
| Revenue | 891.84 billion CNY | +14.55 % |
| Net profit (to shareholders) | 134.61 billion CNY | +21.97 % |
| Profit after extraordinary items | 128.29 billion CNY | +19.98 % |
| Basic EPS | 6.55 CNY | +23.12 % |
Key drivers:
- PV inverter and storage sales remained the core revenue sources, with the company’s storage systems becoming the leading business segment.
- Overseas demand surged, particularly from large‑scale projects in the Middle East; overseas revenue exceeded 60 % of total income for the first time.
Quarterly Performance
Fourth‑quarter results (Q4 2025)
- Revenue: 216.33 billion CNY (YoY +17.32 %)
- Net profit: 49.15 billion CNY (YoY –54 %)
- Gross margin: 23.0 % (down from 36 % in the previous quarter)
The sharp margin decline reflects pressure from the photovoltaic industry and lower profitability in the storage segment.
Market Reaction
- Share price fell 10.82 % on April 1, closing at 134.61 CNY per share.
- Market capitalisation fell from 3126 billion CNY to 2787 billion CNY.
- Trading volume: SunPower was the highest‑volume stock on the day, with a turnover of 225.41 billion CNY.
Investor sentiment turned negative following the Q4 performance. Main‑stream media reported that the market blamed the company’s failure to meet expectations for the quarter, citing falling gross margins and reduced profitability.
Trading Activity
| Metric | Value |
|---|---|
| Total market turnover (A‑shares) | 2.01 trillion CNY |
| SunPower’s turnover | 225.41 billion CNY (top) |
| Main‑stream funds: | |
| • Net outflow from the electric‑power‑equipment sector | 23 billion CNY |
| • Net inflow to telecom‑equipment sector | 54.8 billion CNY |
The day saw a net inflow of 173.43 billion CNY into the market, yet SunPower’s shares experienced a net sell‑out of over 23 billion CNY.
Strategic Implications
Storage Leadership – The 2025 results confirm that storage has become the largest business line. Continued expansion in overseas markets, especially in the Middle East, is likely to sustain revenue growth.
Margin Pressure – The Q4 decline in gross margin signals the need for cost optimisation and product mix adjustments. The company may need to strengthen its high‑margin PV and storage solutions.
Investor Confidence – The significant market‑capitalisation erosion suggests that analysts and institutional investors are scrutinising quarterly performance more closely. Transparent communication regarding margin drivers and cost controls will be essential to rebuild confidence.
Dividend Policy – The company announced a dividend of 6.90 CNY per 10 shares for 2025, indicating a commitment to returning value to shareholders despite margin challenges.
Conclusion
Sungrow Power Supply’s 2025 annual report showcases robust revenue and profit growth, underpinned by strong overseas demand and the ascendancy of its storage business. However, the fourth‑quarter downturn and margin compression triggered a sharp market sell‑off, eroding over 300 billion CNY in market value. The company’s future performance will hinge on its ability to manage cost pressures, maintain high‑margin product sales, and communicate effectively with investors about its strategic response to the sector’s cyclical nature.
