Sungrow's Q3 revenue increased by 20.83% year-on-year, net profit grew by 57.04% | Earnings Report Overview
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In Q3, Sungrow achieved a revenue of 22.87 billion yuan, a year-on-year increase of 20.83%; net profit attributable to shareholders of the listed company increased by 57.04% to 4.15 billion yuan. In the first three quarters, the company’s asset impairment losses reached 957 million yuan, a year-on-year increase of 207.17%. The company explained in its financial report that this was mainly due to “an increase in the provision for inventory write-downs.”
On the 28th, Sungrow released its third quarter 2025 report:
Q3 revenue was 22.869 billion yuan, a year-on-year increase of 20.83%;Net profit was 4.147 billion yuan, a year-on-year increase of 57.04%.
Growth in Both Revenue and Profit, Significant Improvement in Cash Flow
According to the financial report, Sungrow’s growth momentum continued in the first three quarters of 2025. The company achieved cumulative revenue of 66.4 billion yuan, a year-on-year increase of 32.95%; and cumulative net profit of 11.88 billion yuan, a year-on-year increase of 56.34%.
The driving force of profit growth not only comes from the expansion of sales scale but also benefits from effective cost and expense control. Notably, the company’s financial expenses in the first three quarters were -122 million yuan, compared with 318 million yuan in the same period last year. The financial report attributed this to "an increase in exchange gains in the current period," showing that the company generated positive returns in a complex forex environment.
What is more closely watched by the market is the improvement in the company’s cash flow. As of September 30, net cash flow from operating activities soared from about 800 million yuan in the same period last year to 9.91 billion yuan, a surge of 1,133.14%. The company explained that this was “mainly due to an increase in sales scale and increased payments received.”
Surge in Inventory Impairment Losses, Cost Pressures Become Evident
Although overall performance is positive, the sharp increase in asset impairment losses is undoubtedly the most cautionary signal in this financial report. Impairment losses for the first three quarters reached 957 million yuan, more than triple last year’s 312 million yuan for the same period. The company explained in its financial report that this was mainly due to “an increase in the provision for inventory write-downs.” An increase in inventory write-downs usually means a decline in the market price of raw materials or finished products held by the company, with their net realizable value falling below book cost.
At the same time, the company’s operating costs are still rising. To maintain technological leadership and market expansion, Sungrow continues to increase its investment. In the first three quarters, R&D expenses were 3.14 billion yuan, a year-on-year increase of 32.16%; administrative expenses reached 1.27 billion yuan, up 56.53% year-on-year, mainly due to company expansion and increased remuneration for management staff. At the end of the reporting period, employee compensation payable increased by 81.09% compared to the beginning of the year, reaching 2.46 billion yuan.
As of the end of the reporting period, the company’s total assets were 120.67 billion yuan, an increase of 4.87% from the beginning of the year. On the liabilities side, non-current liabilities due within one year and long-term payables decreased significantly by 61.84% and 34.87% respectively from the beginning of the year, indicating the company is repaying maturing debts to ease short-term repayment pressure.
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