CSSC Steel Structure Engineering Co Ltd

The Shanghai Stock Exchange recently issued a regulatory inquiry letter regarding CSSC Science & Technology's 2025 annual report, focusing on the sharp fluctuations in revenue and gross margin of its wind turbine manufacturing segment. Data shows that revenue from wind turbines and components reached 6.749 billion yuan in 2025, but the gross margin fell from minus 12.07 percent in 2024 to minus 40.26 percent, with operating costs surging 134.39 percent year-on-year. Orders for main turbines received during the year grew by about 150 percent year-on-year. The company responded that it voluntarily incurred 2.152 billion yuan in repair and technical upgrade expenses in 2025. Excluding these expenses, the gross margin for main turbines was minus 15.84 percent, and the segment gross margin was minus 8.38 percent, significantly narrowing the gap with industry peers such as Goldwind Science & Technology and Mingyang Smart Energy, whose gross margins range from 4 to 9 percent. The five major loss-making orders were all received between 2022 and 2023. The company chose to fulfill them because the cost of terminating the orders would have been even higher, while gross margins for new orders received in 2025 have turned positive.

CSSC Science & Technology disclosed its earnings forecast, expecting a net loss attributable to shareholders of 510 million yuan in the first half of 2026, compared with a loss of 574 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 530 million yuan, compared with a loss of 595 million yuan a year earlier. The company stated that the domestic wind power market is highly competitive, with rising prices of some raw materials and components, putting significant operating pressure on its wind power equipment business. However, through lean operations and cost control, revenue from wind turbine sales increased compared with the same period last year, narrowing the year-on-year loss. CSSC Science & Technology's main businesses include the manufacturing and research and development of wind turbine equipment and key components, wind and solar resource development, engineering design, procurement, and services for wind and solar power stations, as well as general contracting, design consulting, and surveying for construction projects.