Sunwoda Q1 Net Profit Plunges Over 40% YoY, Energy Storage Margins Improve Sequentially

Gate News message, April 28 — Sunwoda Electric (300274.SZ), a global leader in photovoltaic inverters and energy storage systems, reported Q1 2026 earnings on April 27 evening. The company achieved operating revenue of 155.61 billion yuan, down 18.26% year-over-year, with net profit attributable to shareholders of 22.91 billion yuan, declining 40.12% compared to the same period last year.

This marks the second consecutive quarter of declining revenue and net profit for Sunwoda. Management attributed the earnings pressure to revenue structure shifts and foreign exchange headwinds. Q1 revenue was impacted by slower domestic residential solar project development following China’s 2025 “5-31” policy, delayed project initiation compared to the prior-year rush period, and timing of large energy storage project recognition (Q1 2025 included approximately 4 billion yuan from a major Saudi project). Additionally, uncertainty over U.S. tariff policies in mid-2025 delayed order placement and delayed shipments into Q1 2026. Foreign exchange losses also mounted, with euro and dollar depreciation resulting in losses exceeding 4 billion yuan year-over-year.

Energy storage has become Sunwoda’s largest and most profitable business segment. Q1 energy storage margins reached approximately 30%, up from around 24% in Q4 2025, primarily driven by improved regional revenue mix—particularly increased contribution from higher-margin European markets. Management noted that margins will likely face headwinds as price-sensitive markets in the Middle East, Eastern Europe, and Asia-Pacific scale up, and as lithium carbonate price increases pressure costs. The company expects overall energy storage installed capacity to grow 30%-50% annually over the next three years.

Q1 inverter revenue totaled approximately 50 billion yuan, down 15% year-over-year, with gross margins of around 40%, up 3 percentage points. The improvement reflected the company’s strategic pullback from lower-margin residential solar business. Management indicated inverter margins remain stable long-term, with quarterly fluctuations driven by regional revenue mix.

Sunwoda faces intensifying competition in energy storage from battery suppliers including CATL (300750.SZ; 03750.HK). The company emphasized it has no plans to enter upstream battery cell manufacturing due to capital intensity and operational risks, reaffirming its battery-agnostic strategy. Instead, management indicated closer collaboration with cell suppliers through strategic partnerships, supply chain cooperation, joint R&D, and potential cross-shareholding arrangements.

Sunwoda recently resubmitted its Hong Kong Stock Exchange main board listing application, with China International Capital Corporation as sole sponsor. The company previously filed in October 2025.

On April 28, Sunwoda shares opened lower, declining over 5% intraday before closing down 1.14% at 129.89 yuan.