290k investors are crying in despair: The new energy super leader "Sunshine Power" is plummeting and has everyone stunned!

If you want to trade stocks, just rely on the Jin Qilin analyst reports—authoritative, professional, timely, and comprehensive—to help you uncover high-potential theme investment opportunities!

（Source: Pao Finance）

An A-share new energy flagship, Sungrow Power Supply（300274.SZ）, suffers a brutal plunge!

On April 1, Sungrow Power Supply sank 10.67%; on April 2 and April 3, it fell 5.28% and 3.04%, respectively. In just three trading days, its total market value shrank by nearly 56.9 billion yuan.

The company has 294k shareholders—what can they do but cry?

The sell-off is driven by bad news in the annual report:

On the evening of March 31, the company disclosed that in 2025 it achieved operating revenue of 294k yuan, up 14.55% year over year; and attributable net profit of 89.18B yuan, up 21.97% year over year.

However, in the fourth quarter, operating revenue was 13.46B yuan, down 18.37% year over year, and attributable net profit was 22.78B yuan, down 54.02% year over year.

So, why did Sungrow Power Supply’s performance in last year’s fourth quarter plunge so sharply? Does the company still have hope of returning to high growth later on?

The fourth quarter had two problems: higher prices for lithium carbonate and higher domestic project revenue

Sungrow Power Supply’s current main source of profit is energy storage. In 2025, the energy storage industry’s gross profit was 1.58B yuan; second is the photovoltaic industry, with gross profit of 13.6B yuan.

During an investor research meeting on March 31, when discussing the decline in gross margin for the energy storage business in the fourth quarter, Sungrow Power Supply stated:

“In Q4, lithium carbonate saw some price increases, and some of our existing project prices didn’t have time to pass through,” and “the increased share of domestic and South American income with lower gross margins in Q4 also affected our gross margin.”

Lithium carbonate is a key raw material for lithium batteries. Lithium batteries are divided into lithium batteries for new-energy vehicles (traction lithium batteries) and energy storage lithium batteries.

Since last year, lithium carbonate prices have been trending upward. The increase was especially clear in the fourth quarter last year, which is bound to create cost pressure for the energy storage industry.

iFinD shows that on October 10, 2025, the average price of battery-grade lithium carbonate was 73.8 thousand yuan per ton, and by December 31, 2025 it rose to 121.5 thousand yuan per ton—a gain of 64.63%.

In addition, Sungrow Power Supply’s gross margin for its domestic mainland business is indeed low.

In 2025, its gross margin for mainland China business (excluding Hong Kong, Macao, and Taiwan) was 18.75%; in the same period, its gross margin for overseas regions (including Hong Kong, Macao, and Taiwan) was 40.36%.

Looking ahead to 2026, maybe there’s no need to worry too much

You may not need to worry too much about 2026.

First, the further increase in lithium carbonate prices is expected to be limited, which is favorable for Sungrow Power Supply to pass down cost pressure to downstream customers.

In 2025, energy storage demand exploded, sharply boosting lithium carbonate demand. However, for global lithium carbonate, there is in fact large potential production capacity. As prices rise, some of this potential capacity may restart production this year.

That’s because in 2021 and 2022, lithium carbonate prices went crazy. As a result, the world added a large amount of new production capacity. After that, lithium carbonate prices then crashed again. Some of the capacity couldn’t withstand losses, so it chose to shut down.

But as long as prices rise again, these “dormant” capacities have every incentive to “wake up” and start making money again.

As long as the price environment is relatively stable, it will help Sungrow Power Supply smoothly pass cost pressure through to downstream customers.

In addition, this year overseas energy storage installations are likely to increase significantly, meaning Sungrow Power Supply will have an opportunity to secure more high-gross-margin businesses. Dongwu Securities expects that global energy storage installations will grow by more than 60% in 2026.

In the United States, the surge in demand from AI data centers (AIDC) has become the most core driver of growth. It is expected that by 2026, related installation demand will reach 80GWh, up 51% year over year; by 2030, this figure will grow to 391GWh, implying battery demand exceeding 500GWh. In the short term, domestic battery cell capacity for energy storage in the U.S. cannot meet demand by a wide margin. In the future, it will still rely heavily on China’s supply chain, bringing a rare historical opportunity to relevant domestic companies.

For Europe, escalating conflicts in the Middle East have intensified the energy crisis, further stimulating Europe’s demand for energy storage. In Europe’s power markets, natural gas prices are currently the “pricing anchor” for the power market. This conflict has pushed up natural gas prices, which will directly raise electricity prices. It is expected that the behind-the-meter (household/consumer) storage market is very likely to see another round of rapid growth.

Sungrow Power Supply’s business progress in the AIDC domain is worth watching. The company began planning its AIDC power supply business in 2025, focusing on developing solid-state transformers (SST) and end-to-end solutions. At present, it has already worked with international top cloud service providers and domestic leading internet companies to define product architecture. The company plans to achieve product deployment in 2026 and conduct small-batch deliveries, and to enter the mass supply stage in 2027.

A massive stream of information and precise interpretation—exclusively on the Sina Finance app