Net profit increases by 22% but still falls short of expectations. Is Sungrow Power Supply relying on energy storage to make up the difference?

Sungrow Power Supply (SZ300274) released its 2025 annual report after the market close on March 31. In 2025, the company achieved revenue of approximately RMB 89.184 billion, representing year-over-year growth of 14.55%. Net profit attributable to shareholders of listed companies was approximately RMB 13.461 billion, up 21.97% year over year. Non-recurring gain and loss adjusted net profit was approximately RMB 12.829 billion, up 19.98% year over year. Basic earnings per share were RMB 6.55, up 23.12% year over year. The company plans to distribute a cash dividend of RMB 6.9 per 10 shares to all shareholders (including tax), based on the share capital after excluding shares already repurchased from the repurchase-specific securities account.

Vertically, this is the first time Sungrow Power Supply (300274) has surpassed the RMB 80 billion and RMB 13 billion thresholds in revenue and net profit attributable to the parent, respectively, within a single accounting year. By quarter, in Q4 2025, Sungrow Power Supply achieved revenue of RMB 22.782 billion, down 18.37% year over year, and down 0.38% quarter over quarter; net profit attributable to the parent company was RMB 1.58 billion, down 54.02% year over year, and down 61.9% quarter over quarter.

Worth noting is that on April 1, Sungrow Power Supply’s closing share price was RMB 134.45 per share, with a decline of 10.82%.

Energy storage business revenue up nearly 50%

According to data compiled from Wind Financial Terminal, the consensus forecasts from 22 institutions for Sungrow Power Supply’s revenue and net profit attributable to the parent company for 2025 are approximately RMB 97.171 billion and RMB 15.333 billion, respectively. Therefore, based on the performance disclosed by Sungrow Power Supply, both were below analysts’ consensus expectations: the company’s announced revenue and net profit attributable to the parent were 8.22% and 12.21% lower than the institutions’ consensus expectations, respectively, and its revenue and net profit attributable to the parent were below the forecast values of all 22 institutions.

The annual report shows that in 2025, Sungrow Power Supply achieved a gross margin of 31.83%, up 1.89 percentage points year over year, mainly due to factors including the company’s brand premium, product innovation, and scale effects. At the same time, net cash flow from operating activities reached RMB 16.918 billion, up 40.18% year over year, and its increase exceeded the increase in net profit attributable to the parent company.

In 2025, with revenue growing 14.55%, Sungrow Power Supply’s selling expenses increased 28.49% year over year to RMB 4.832 billion; administrative expenses increased 42.79% year over year to RMB 1.715 billion.

A reporter from the Economic Daily News (hereinafter, “Each-DAILY reporter”) noted that Sungrow Power Supply’s energy storage system business performed strongly in 2025. The business achieved revenue of approximately RMB 37.287 billion, up 49.39% year over year, and its share of total revenue increased from 32.06% in 2024 to 41.81%. The company’s global shipments for energy storage systems for the full year reached 43GWh (gigawatt-hours).

During the reporting period, Sungrow Power Supply rolled out efforts across both large-scale and industrial and commercial storage. The company released the world’s largest-capacity PowerTitan 3.0 AC intelligent storage platform (energy density over 500kWh/m3), and achieved full coverage of voltage levels from 400V to 35kV (kilovolts) in the industrial and commercial energy storage market. Meanwhile, its pioneering “stem cell grid technology” was applied in multiple grid-forming energy storage projects.

At the same time, the company launched the MegaFlex “factory as product” green hydrogen one-stop solution, and secured projects overseas in countries such as Oman, Italy, and Brazil, making its international competitiveness increasingly evident.

Photovoltaic business revenue down 7%

Although the energy storage system business performed impressively, Sungrow Power Supply’s photovoltaic inverters faced pressure from both declining shipments and revenue. As a traditional core business, the photovoltaic industry generated operating revenue of RMB 44.55 billion in 2025, down 7% year over year. Global shipments of photovoltaic inverters were 143GW (gigawatts), down 2.72% from the previous year’s 147GW.

Each-DAILY reporter also noted that the company’s new energy investment and development business achieved revenue of RMB 16.559 billion, down 21.16% year over year. The business’s gross margin fell 4.9 percentage points year over year to 14.5%.

In the face of “price wars” and competition, Sungrow Power Supply’s strategy is “low-cost innovation” and “technology moat.” The annual report shows that in 2025, the company’s R&D expenses increased 31.97% year over year to RMB 4.175 billion. At the same time, the company is推进 AIDC (intelligent computing data center) power business layout, and has globally pioneered a 10kV/2MW (megawatt) medium-voltage energy router demonstration run.

Sungrow Power Supply also explicitly pointed out in its risk warnings that international trade barriers and geopolitical risks are further intensifying, the global supply chain continues to be fragmented, and simultaneously domestic export tax rebates are gradually phased out. This is an external challenge that cannot be ignored for Sungrow Power Supply, whose overseas regions account for as much as 60.54% (approximately RMB 53.992 billion) of its revenue.

The annual report also mentioned that, to further deepen its global strategy, enhance its international brand image, and diversify its financing channels, Sungrow Power Supply has initiated, during the reporting period, the relevant work for its H-share issuance and listing on the Hong Kong Stock Exchange. The proceeds will be used for global localized deployment, R&D investment, digital transformation, and so on.

（责任编辑：张洋 HN080）

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