Ningbo Deye Technology Group Co (605117) Q4 2025 earnings summary

Executive summary

• Achieved revenue of RMB 12.22 billion in 2025, up 9.08% year-over-year, with net profit attributable to shareholders of RMB 3.17 billion, up 7.11% year-over-year.

• New energy business, especially storage inverters and battery packs, drove growth; environmental appliances faced headwinds.

• Maintained high profitability through cost control and efficiency measures; cash flow from operations increased 18.4% year-over-year.

• Significant global expansion, especially in Europe, Middle East, and Asia, with new manufacturing bases and after-sales centers.

Financial highlights

• Revenue: RMB 12.22 billion (+9.08% YoY); net profit attributable to shareholders: RMB 3.17 billion (+7.11% YoY).

• Gross margin for new energy: 41.63% (down 4.16pp YoY); for environmental appliances: 19.65% (down 0.75pp YoY).

• Operating cash flow: RMB 3.99 billion (+18.4% YoY); R&D investment: RMB 562 million (4.6% of revenue).

• Basic and diluted EPS: RMB 3.51; weighted average ROE: 32.66% (down 6.58pp YoY).

• Cash dividend payout ratio: 86.43% of net profit; total cash dividends and buybacks in three years: RMB 6.10 billion.

Outlook and guidance

• Will continue to invest in R&D, expand product lines, and accelerate product iteration.

• Plans to deepen market penetration in new energy and environmental appliances, with focus on global expansion and digital transformation.

• Identifies risks in technology iteration, trade policy, raw material price volatility, and supply chain constraints.