Q4 performance "explodes" unexpectedly! Sungrow Power Supply drops over 10%, market value evaporates over 30 billion yuan

Influenced by positive macroeconomic news, all three major indices of the A-shares market rose sharply today, with over 4,000 stocks across the market gaining.

However, Sunshine Power (300274.SZ) stock price sharply declined against the trend, opening with a plunge, with intraday drops exceeding 13% at one point. By the close, the company’s stock price fell by 10.82%, erasing over 30 billion yuan in market value.

The direct trigger for the significant decline in the company’s stock price was the annual report for 2025 released after yesterday’s trading hours.

In 2025, the company’s operating revenue reached 89.18B yuan, an increase of 14.55% year-on-year; net profit attributable to shareholders was 13.46B yuan, up 21.97% year-on-year.

Specifically, gross profit margin was 31.83%, up 1.89 percentage points year-on-year, mainly due to brand premium, product innovation, scale effects, and other factors;

Sales expenses totaled 4.83B yuan, up 28.49% year-on-year, mainly due to increased personnel and other costs to meet the company’s expanding scale and ongoing global deployment;

R&D expenses were 4.18B yuan, up 31.97% year-on-year, mainly because the company continuously innovates products and increases personnel and other costs to maintain competitiveness.

Overall, Sunshine Power’s 2025 performance did not encounter major issues and maintained steady growth. However, it was still far below market expectations.

According to Wind data, 22 institutions’ consensus forecasts for Sunshine Power’s 2025 revenue and net profit attributable to shareholders are approximately 97.17B yuan and 15.33B yuan, respectively.

The main reason for this discrepancy is the sharp decline in the company’s Q4 2025 performance.

In Q4 2025, Sunshine Power’s revenue was 22.78B yuan, down 18.37% year-on-year and slightly down 0.38% quarter-on-quarter; net profit attributable to shareholders was 1.58 billion yuan, a significant drop of 54.02% year-on-year and a 61.90% plunge quarter-on-quarter; gross profit margin fell to 22.95%, down 4.53 percentage points year-on-year and 12.91 percentage points quarter-on-quarter.

This performance sharply contrasts with the steady growth in the first three quarters and was also well below market expectations.

So, what exactly caused the company’s poor Q4 performance?

According to the company’s response during the March 31 conference call, the pressure on Q4 results mainly stemmed from a “revenue structure drag” and “core energy storage business drag”—a dual impact.

First, the relatively low-margin new energy investment and development business saw its revenue share increase by about 10% due to large project deliveries concentrated in Q4, which lowered overall gross margin.

Second, the drag from the core energy storage business.

In Q4, energy storage revenue was 8.49 billion yuan, down 22% year-on-year and 23% quarter-on-quarter; gross profit margin was about 24%, down 17 percentage points quarter-on-quarter, significantly below market expectations.

In terms of shipments, energy storage system deliveries in Q4 were about 14 GWh (12 GWh overseas, 2 GWh domestic), up approximately 40% quarter-on-quarter; regarding prices, according to Dolphin Research estimates, the unit price of energy storage systems plummeted to about 0.6 yuan/Wh in Q4, a roughly 45% drop from 1.1 yuan/Wh in Q3.

Additionally, the sharp rise in raw material costs also impacted the company’s energy storage profit margins. As a core raw material for energy storage batteries, lithium carbonate prices rebounded unexpectedly in Q4 2025.

Overall, although energy storage systems maintained rapid shipment growth in Q4, the “double decline” in unit price and gross profit margin not only dragged the company’s Q4 results into a quagmire but also shook market confidence in its “overseas high-premium moat.”

The decline in Q4 performance essentially served as a stress test on operational resilience. It exposed the company’s current core issues and pointed out directions for improvement and adjustment.

As an industry leader, Sunshine Power’s advantages in technological accumulation, market position, and global deployment remain solid. The real test lies in whether the company can turn this “storm” lesson into concrete actions to continue consolidating long-term competitiveness amid industry volatility.

Source: Manager Network

Editor: Cao Zian

Proofreader: Zhi Yan