Key takeaway

The company's 1Q26 profit improved significantly QoQ, mainly driven by the confirmation of US IEEPA tariff refunds. Meanwhile, energy storage system shipments reached 2.6GWh, up 206% YoY, serving as the core support for earnings. The module business remains at the industry bottom, but the company prioritizes profit and focuses on high-value markets. Coupled with cost-reduction technologies such as low silver consumption, HJT, and TOPCon, this is expected to drive a gradual recovery in profitability. The energy storage business benefits from US large-scale energy storage and AI data center electricity demand. The full-year shipment target is 14-17GWh, and it remains a key growth driver for the company to navigate the cycle. The company plans to buy back RMB400mn-600mn for employee incentives, demonstrating long-term business confidence.

Event

The company released its 2025 annual report and 1Q26 report. In 2025, the company's revenue was RMB40.256bn, down 12.80% YoY; net profit attributable to shareholders of the parent company was RMB1.016bn, down 54.80% YoY. In 4Q25, the company's revenue was RMB8.985bn, down 25.04% YoY and down 12.07% QoQ; net profit attributable to shareholders of the parent company was RMB27mn, down 90.82% YoY and down 89.60% QoQ. In 1Q26, the company's revenue was RMB7.129bn, down 16.96% YoY and down 20.65% QoQ; net profit attributable to shareholders of the parent company was RMB519mn, up 999.10% YoY and up 1,835.38% QoQ.

Risks

1. Risk of over-reliance on a single market. Leveraging its channel advantages in European and US markets, the company's management team has secured a substantial number of orders in these high-price, high-margin markets. Should the competitive landscape or policy environment in these markets change, the company's orders and operating revenue could be adversely affected.

2. Risks related to overseas operations and internal control management arising from numerous subsidiaries. The company has a relatively high level of international operations, with overseas subsidiaries located around the world. On one hand, the company's overseas revenue may be affected by changes in trade policies, industrial policies, legal policies, political and economic conditions, and other factors. On the other hand, regulatory requirements and political cultures vary among subsidiaries. If the company's management cannot maintain an efficient management level, adverse impacts may arise from management loopholes and inadequate internal controls.

3. Risk of low shareholding ratio of the company's actual controller. As of June 30, 2024, the company's actual controller, Qu Xiaohua, directly and indirectly held 13.17% of the company's shares. If other shareholders further increase their shareholdings in the future, leading to a decline in the actual controller's shareholding ratio, this may result in uncertainty for the company's future business development.