Q4 Performance “Waterloo”: After Sunshine Power released its annual report, its market value fell by 48.7 billion yuan

Ask AI · What are the deeper reasons behind Yangguang Electric Power’s fourth-quarter performance decline?

On the evening of March 31, leading photovoltaic and energy storage company Yangguang Electric Power (300274) officially disclosed its 2025 annual report. Although the company’s full-year revenue and net profit both reached historical highs, the sharp drop in performance in the fourth quarter felt like a bucket of cold water thrown on market enthusiasm. After the annual report was released, main funds continued to net outflow, and the company’s market capitalization evaporated by 48.7 billion yuan in two days. Market trading data shows that Yangguang Electric Power’s stock price cumulatively fell by 15.59% from April 1 to April 2, and cumulatively fell by 23.34% over the past five trading days.

From the full-year figures, Yangguang Electric Power’s 2025 results do not seem bad. During the reporting period, the company achieved operating revenue of 89.184 billion yuan, up 14.55% year over year; net profit attributable to shareholders was 13.461 billion yuan, up 21.97% year over year. However, when breaking down the quarterly data, the reasons why performance fell short of expectations came from last year’s final quarter. In the fourth quarter of 2025, the company’s operating revenue was 22.782 billion yuan, down 18.37% year over year, and down slightly by 0.38% quarter over quarter. What drew even more attention was that its net profit attributable to shareholders was only 1.580 billion yuan, down 54.02% year over year, and down a substantial 61% quarter over quarter as well. This figure was far below market expectations, and some investors even described the fourth quarter’s performance as a “performance face change.”

The capital market reacted quickly and sharply. On the second trading day after the annual report was released (April 2), Yangguang Electric Power saw a net outflow of 2.045 billion yuan of main funds. This was the 6th consecutive trading day of net outflow. Over the past five trading days, cumulative net outflows totaled 8.415 billion yuan, and over the past 30 trading days, cumulative net outflows reached as high as 11.175 billion yuan.

This “performance face change” is not simply due to seasonal fluctuations, but rather the combined result of multiple factors, such as the concentrated delivery of low–gross-margin new energy development projects, delayed transmission of carbonic lithium price increases, and changes in regional structure. In an institutional research meeting summary, one institution asked: “Is the reason why the revenue scale in Yangguang Electric Power’s fourth quarter of 2025 is contrary to historical patterns related to the project confirmation timeline, and what is the outlook for revenue in the first quarter of 2026?”

“Revenue volatility in the fourth quarter of last year was mainly due to the delivery schedule of major projects, such as Middle East projects being delivered in a specific quarter, which led to fluctuations between quarters.” Regarding the above questions, relevant personnel from Yangguang Electric Power explained, “The company’s first-quarter revenue structure is still being compiled; the continuation of project delivery may bring fluctuations, but it falls within the normal project delivery schedule.”

Based on the latest annual report data disclosed by the company, Yin Shenglu, an analyst at Kaiyuan Securities, said: “Considering the pressure on the company’s fourth-quarter 2025 performance, we have lowered our profit forecasts for 2026 to 2027, and added a profit forecast for 2028. We expect the company’s net profit attributable to shareholders for 2026 to 2028 to be 15.473 billion yuan, 19.347 billion yuan, and 23.084 billion yuan, respectively.” However, the institution still maintains a “buy” rating for the company.

Research analyst Li Mengqiang at Ping An Securities affirmed the company’s efforts in shareholder returns, noting that in 2025 the company implemented its first semi-annual dividend, and increased both the frequency and intensity of dividends. But at the same time, he reminded investors to pay attention to several risks: first, the risk that demand in the energy storage market may not grow as expected; second, the uncertainty of overseas trade policies may affect demand in regional markets; third, competition in the global photovoltaic inverters and energy storage segments may intensify, potentially triggering a price war and affecting the company’s profitability. Reporter Zhang Zhao