A 200 billion A-share giant, stock price plummeted over 10%! Last year's Q4 performance declined both year-over-year and quarter-over-quarter.

Today, the stock price of Sungrow Power Supply (300274) saw a sharp drop, showing a plunge right at the open. During the day, it fell to 131 yuan, with the decline once surpassing 13.1%. By the time of the midday close, the decline had reached 10.72%, and its market capitalization was 279.1 billion yuan.

As for this intense stock-price adjustment, the direct trigger was the company’s 2025 annual report released after the market close on March 31. The report shows that Sungrow Power Supply maintained steady growth in its full-year performance. However, in the fourth quarter of last year, both single-quarter revenue and net profit fell sharply. Its profitability performance was significantly below market expectations, becoming the core factor dragging the stock price lower.

Looking at the company’s standalone 2025 fourth-quarter core performance figures, the company’s quarterly earnings showed a clear slump: both year-over-year and quarter-over-quarter growth rates turned negative, in stark contrast to the growth trend seen in the first three quarters. The data shows that in the fourth quarter of 2025, Sungrow Power Supply achieved revenue of 22.782 billion yuan, down 18.37% year over year. Quarter over quarter, revenue dipped slightly by 0.38%, and the overall revenue scale contracted. Attributable net profit was 1.58 billion yuan, down 54.02% year over year, nearly halved; and quarter over quarter, it dropped by as much as 61.90%. Meanwhile, the single-quarter gross margin fell to 22.95%, down 4.53 percentage points year over year, and down 12.91 percentage points quarter over quarter. Net profit margin also declined in tandem to 6.93%, falling 5.75 percentage points and 11.11 percentage points year over year and quarter over quarter, respectively.

For full-year performance, Sungrow Power Supply’s overall operations in 2025 still maintained a growth trend. Full-year revenue reached 89.184 billion yuan, up 14.55%, and attributable net profit was 13.461 billion yuan, up 21.97%. Both revenue and net profit grew positively, demonstrating the resilience of the leading enterprise’s “basic business” fundamentals. However, the fourth-quarter performance pulled down the full-year overall growth rate, breaking the market’s expectations of the company’s sustained high growth.

Based on the information disclosed in the company’s annual report, the sharp year-over-year decline in fourth-quarter performance is the result of multiple factors working together, including the industry environment, the timing of market demand, and accounting provisions, among others.

In the overseas market, the United States had previously announced a policy to raise tariffs, prompting overseas customers to pull forward installations and shipments in the third quarter of 2025 to avoid risks of rising costs. This significantly depleted demand for the U.S. market in the fourth quarter, leading to a marked quarter-over-quarter drop in the company’s overseas shipment volume. At the same time, in the fourth quarter of 2024, the company recognized revenue in a concentrated way from large-scale energy storage projects in Saudi Arabia, the UK, and others, creating a relatively high comparison base and further intensifying the pressure from the year-over-year decline in the same period of 2025.

In the domestic market, the fourth quarter is traditionally a seasonal off period for the energy storage industry. On top of that, adjustments to policies related to photovoltaic power stations also caused domestic project start-up rates to decline. Domestic business revenue fell accordingly. Additionally, some large overseas projects had their income not confirmed in the fourth quarter due to delays in logistics transportation and inspection and acceptance procedures, with the revenue deferred to the first quarter of 2026, further shrinking the revenue scale for that quarter.

Proofread by: Ran Yanjing