Selling shares at peak prices to secure profits and buying at lows for bargain opportunities represents an ideal investment strategy. As Sungrow Power Supply Co., Ltd. (300274) delivered industry-leading Q3 2025 earnings and saw its market capitalization surpass the historic RMB 400 billion mark, its executives have initiated share reduction plans.
On October 27, Sungrow announced a pre-disclosure notice regarding share reductions by certain directors and senior management. The notice revealed that Vice Chairman and Senior Vice President Gu Yilei, Director and Senior Vice President Wu Jiamao, Vice President Deng Dejun, and Vice President Wang Lei plan to reduce their holdings by a combined 424,900 shares (0.0207% of total shares) via block trades or centralized bidding between November 19, 2025, and February 18, 2026.
According to the filing, Gu Yilei holds 700,000 shares, Wu Jiamao holds 577,500 shares, Deng Dejun holds 559,551 shares, and Wang Lei holds 72,800 shares. The planned reductions include 157,500 shares by Gu, 131,200 by Wu, 128,500 by Deng, and 7,700 by Wang. At the current share price of RMB 197.70, the total reduction amounts to RMB 84 million, with Gu’s portion valued at RMB 31.14 million and Wang’s at RMB 1.52 million.
Notably, the same four executives had announced a similar reduction plan on July 11, totaling 424,900 shares, but terminated it early. At that time, Sungrow’s shares traded around RMB 74.10, valuing the planned reduction at RMB 31.49 million. On September 26, the company disclosed that the executives had withdrawn their earlier plan to avoid short-term trading violations, reserving the right to submit a new reduction plan under regulatory limits.
Beyond these four executives, five other senior managers also planned share reductions. On July 25, Sungrow disclosed that Employee Director and Senior Vice President Zhao Wei, Vice Presidents Chen Zhiqiang, Peng Chaocai, Lu Yang (also Board Secretary), and Tian Shuai (also CFO) intended to sell up to 329,700 shares (0.0161% of total shares) between August 18 and November 17, 2025. At the time, the reduction was valued at RMB 24.98 million based on a share price of RMB 75.78. If still pending, the current price of RMB 197.70 would raise the potential reduction value to RMB 65.18 million.
Sungrow’s soaring market capitalization is backed by robust fundamentals. Its Q3 2025 report showed stellar performance: operating revenue surged 32.95% YoY to RMB 66.4 billion, net profit rose 56.34% to RMB 11.88 billion, and gross margin stood at 34.88%. However, the company faces challenges with high accounts receivable (RMB 27.18 billion) and inventory (RMB 29.93 billion), leading to significant impairment provisions of RMB 1.28 billion for the first nine months of 2025.
As of 14:10, Sungrow’s shares traded at RMB 197.01, with a market cap of RMB 408.4 billion.
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