The solar inverter sector experienced a significant drop at the market open on July 1st.

By the close of trading, Sungrow Power Supply Co., Ltd shares had fallen nearly 14%, with Ginlong Technologies Co., Ltd, Hope Electric Co., Ltd, and GoodWe Technologies Co., Ltd also among the top decliners.

Media reports suggest the downturn may be linked to recent actions by the U.S. government.

Chinese manufacturers hold a dominant position in global photovoltaic inverter exports.

A review of financial reports from several companies shows that most do not separately disclose their inverter export revenues to the United States or Europe.

On July 1st, a representative from Ginlong Technologies' securities department stated that the company's U.S. business revenue last year was over 100 million yuan, constituting a relatively small proportion of total income.

A representative from Chint Power Systems' securities department noted that the company's inverter shipments to Europe for 2025 were several hundred megawatts, while shipments to the U.S. were approximately 2 gigawatts.

They added that as the news is still in its early stages, further confirmation with the business department is needed, making it difficult to assess the specific impact on the company at this time.

Sudden Downturn in the Solar Inverter Sector

Media reports indicate that adverse news concerning inverters emerging from the United States is likely the primary driver behind the sector's decline.

On July 1st, stocks including Sungrow Power Supply Co., Ltd, Ginlong Technologies Co., Ltd, and GoodWe Technologies Co., Ltd opened lower across the board.

Sungrow Power Supply Co., Ltd experienced a high-volume sell-off, with its intraday decline exceeding 18% at one point.

By the market close, Sungrow Power Supply Co., Ltd was down 13.9%, Ginlong Technologies Co., Ltd fell 8.67%, and GoodWe Technologies Co., Ltd dropped 7.34%.

The overall photovoltaic inverter index declined by 3.54%.

Public data shows that several listed Chinese companies export inverter products to the U.S. and European markets.

Sungrow Power Supply Co., Ltd holds a leading position in the U.S. market for photovoltaic inverters, ranking second globally in terms of shipment volume.

Public data indicates that in 2025, Sungrow's revenue from power electronic conversion equipment, including photovoltaic inverters, exceeded 30 billion yuan, second only to its energy storage systems business.

Simultaneously, the company's overseas revenue approached 54 billion yuan, achieving double-digit growth and accounting for over 60% of total revenue.

In 2025, the company's global photovoltaic inverter shipments reached 143 gigawatts.

Chint Power Systems focuses on businesses including photovoltaic inverters and energy storage systems, with operations spanning Asia, North America, Europe, Africa, and Latin America.

Its controlling subsidiary, Power System America, reported a net profit of nearly 67 million yuan in 2025.

Ginlong Technologies Co., Ltd has core businesses in photovoltaic inverters and distributed photovoltaic power generation, with its main products being string inverters, categorized as grid-tied and energy storage string inverters.

The company stated that, according to Wood Mackenzie statistics, it ranked third in the global inverter market from 2022 to 2024, maintaining a stable position among the world's leaders in market share.

In 2025, the company's overseas revenue accounted for nearly half of its total revenue, and it maintains offices and technical after-sales service centers in the United States.

In the field of photovoltaic power generation, Hope Electric Co., Ltd provides comprehensive system solutions, including medium/small-power string photovoltaic systems and large-power centralized photovoltaic systems, covering both grid-following and grid-forming operational modes.

By region, the company's total operating revenue in 2025 was 4.168 billion yuan, of which overseas revenue was only 369 million yuan, constituting less than 10%.

Listed Firms Indicate Minimal U.S. Exposure, Deeming Impact Assessment Premature

Beyond the aforementioned news, domestic inverter manufacturers have faced increased trade uncertainties globally this year.

Restrictions on Chinese new energy companies have expanded from tariff barriers to include funding access.

In May of this year, media reports cited EU officials stating that projects using inverters from "high-risk countries" like China would be prohibited from receiving EU funding support.

At that time, a spokesperson for China's Ministry of Commerce pointed out that the EU side, without any concrete evidence, had for the first time labeled China as a so-called "high-risk country" and used this as grounds to ban funding for projects using Chinese inverters.

This was described as a stigmatizing act against China and constituted unfair, discriminatory treatment of Chinese products.

On July 1st, the representative from Ginlong Technologies' securities department reiterated that in 2025, the company's business revenue share in the EU market was higher than that in the U.S. market.

The person stated that U.S. business has a relatively limited impact on the company overall, noting, "In fact, our business proportion in the U.S. is very small, with estimated revenue in the first half of the year being only tens of millions of yuan. Of course, data for June may not yet be fully accounted for."

The representative from Chint Power Systems' securities department confirmed that the company's inverter shipments to the European market were several hundred megawatts, primarily to Eastern Europe and parts of Western Europe, with U.S. market shipments around 2GW.

Additionally, the company mainly sells photovoltaic inverters, with energy storage inverters (PCS) rarely sold separately.

Regarding production capacity, the company primarily relies on factories in China and Southeast Asia.

When discussing the potential impact, the representative stated that due to the timeliness of the information, further communication and confirmation with the business department are currently required.

The company's production, operations, and sales activities remain stable, making it difficult to quantify the specific impact.

Referencing similar experiences or clauses in other sectors, they noted that most require reaching the draft stage before their substantive binding force can be assessed.

Furthermore, attempts to contact a representative from Sungrow Power Supply Co., Ltd were met with a response indicating the company would hold a briefing on the matter, which interested parties could follow.