(Bloomberg) — The shares of Sungrow Power Supply Co., one of the world’s biggest renewable energy equipment makers, tumbled after the Chinese company reported a sharp drop in first-half profit.

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The inverter and energy storage giant’s stock dropped as much as 8.4% in Shenzhen on Monday, to the lowest in more than a year. That took its decline this quarter to more than 40%.

Intensifying competition among Chinese renewable equipment makers has made life tougher for companies like Sungrow. Overseas markets, which contributed to almost three-quarters of the company’s revenue in the first half, are also becoming more challenging due to mounting trade barriers in the US and European Union.

Net income fell 32% in the six months through June from a year earlier, the company reported after the market closed on Friday. The gross profit margin for energy storage was just over 32%, compared with almost 40% a year earlier.

“Sungrow’s first-half results missed expectations, with reductions from both inverters and energy storage systems,” Citigroup Inc. analysts including Pierre Lau said in a note. “Geographically, these cuts were from China, which has seen lower solar installations, as well as the Middle East due to a high base and conflict there.”

Citi sees Sungrow profits returning to year-on-year growth in the current six-month period due to a lack of solar installations in the second half of 2025 that followed a policy-driven rush that ended earlier in the year.

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