Sunpower Group (5GD) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 declined 11.2% year-over-year to RMB808.8 million, mainly due to price adjustments and lower construction service revenue from BOT projects.

• Gross profit decreased 6.9% to RMB242.2 million, but profit before tax rose 1.8% to RMB134.6 million, driven by lower finance costs and higher other operating income.

• Net profit attributable to equity holders was RMB65.8 million for Q2 2025, nearly flat year-over-year; for the six months, net profit rose 13.2% to RMB138.0 million.

Financial highlights

• Six-month revenue fell 7.8% year-over-year to RMB1,601.9 million.

• Gross profit for six months was stable at RMB469.5 million.

• Finance costs dropped 21.6% to RMB107.1 million for the half-year, reflecting lower interest on convertible bonds.

• Basic EPS for six months was 17.34 RMB cents, up from 15.32 RMB cents a year ago.

• Net cash from operating activities for six months was RMB251.5 million; cash and cash equivalents at period end were RMB692.7 million, down from RMB1,193.8 million at year-end 2024.

Outlook and guidance

• Management expects stable economic growth in China for 2H2025, with potential for a coal price rebound but limited upside.

• The group will focus on AI-empowered energy services, expanding into renewable and alternative energy, and leveraging new government policies supporting direct green electricity supply.