Ningbo Deye Technology Co.,Ltd.: Sustained Business Growth with Strong Performance in Commercial & Industrial Energy Storage and Battery Pack Business

Deep News09-10

The company disclosed that in the first half of 2025, it achieved revenue, net profit attributable to parent company, and adjusted net profit of RMB 5.535 billion, RMB 1.522 billion, and RMB 1.462 billion respectively, representing year-over-year growth of 16.58%, 23.18%, and 25.74%. For Q2 alone, revenue, net profit attributable to parent company, and adjusted net profit were RMB 2.969 billion, RMB 817 million, and RMB 849 million respectively, with year-over-year increases of 4%, 2%, and 15%.

Summary

1. First Half 2025 Performance Overview. The company released its 2025 interim report, showing first-half revenue, net profit attributable to parent company, and adjusted net profit attributable to parent company of RMB 5.535 billion, RMB 1.522 billion, and RMB 1.462 billion respectively, up 17%, 23%, and 26% year-over-year. Q2 single-quarter revenue, net profit attributable to parent company, and adjusted net profit attributable to parent company were RMB 2.969 billion, RMB 817 million, and RMB 849 million respectively, up 4%, 2%, and 15% year-over-year. The first-half comprehensive gross margin was 37.48%, up 0.33pct year-over-year; net profit margin was 27.49%, up 1.46pct year-over-year. Total expense ratios were 7.4%, down 0.67pct year-over-year, with financial expense ratio at -3.12%, mainly due to significant foreign exchange gains. Asset-liability ratio was 49.48%, up 12.03pct from the beginning of the period, mainly due to increased bill discounting. Total interest-bearing debt amounted to RMB 4.5 billion, corresponding to cash on hand and trading financial assets totaling RMB 8.7 billion, demonstrating solid balance sheet strength.

2. Inverter Business Continues Upward Trend with Outstanding Commercial & Industrial Energy Storage Performance. In the first half of 2025, the company's inverter revenue was RMB 2.644 billion, up 14% year-over-year. Total inverter shipments in the first half reached 763,800 units, including 272,700 residential energy storage units, 42,900 commercial and industrial energy storage units, and 468,200 grid-tied inverters and micro-inverters. The company's inverter business demonstrates strong comprehensive competitiveness, focusing on exploring emerging market application scenarios with certain first-mover advantages. In the first half, the commercial and industrial energy storage segment grew rapidly, mainly exported to European regions with good profitability.

3. Rapid Growth in Energy Storage Batteries. The company's energy storage battery revenue was RMB 1.422 billion, up significantly by 85.8% year-over-year. Leveraging energy storage inverter channels, the company actively expanded downstream into energy storage battery pack business, with battery pack supporting rates continuing to rise. First-half dehumidifier revenue was RMB 408 million, down 10% year-over-year; heat exchanger revenue was RMB 868 million, down 18% year-over-year, mainly affected by weather conditions and downstream demand contraction.

For specific profit forecasts and ratings, please refer to the formal report.

Risk Warnings: Industry demand volatility risk, industry inventory destocking falling short of expectations, energy storage support policies falling short of expectations.

I. 2025 Interim Report Analysis

Risk Warnings: 1) Industry demand volatility risk 2) Industry inventory destocking falling short of expectations 3) Energy storage support policies falling short of expectations

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