xFusion Server Shipments Plunge 18% in Q3; x86 Business Faces Du

Sugon Q3 Shipments Drop to 50,000 Units; Volume-Price Divergence

Core Overview: Shipments Freeze, Strategy Shifts to High Value Latest data from Sugon shows that domestic server shipments in Q3 2025 were 50.0 K, a significant reduction of 16.7% compared to the previous quarter's 60.0 K, and a slight decline (-2%) compared to the same period last year. This is also the first time single-quarter shipments have bottomed out to the 50,000-unit level since the end of 2022. Notably, this trend forms a strong contrast with the "37% YoY revenue growth in the China server market for Q3" indicated in the IDC report, suggesting that Sugon is undergoing significant market share adjustment or product mix restructuring. Key Details: Volume Shrinks While Price Rises, AI Product Line Becomes Mainstay Although shipment volume declined significantly, financial data observes that company revenue did not shrink synchronously but instead showed a growth trend. This reflects two key details: Soaring Average Selling Price (ASP): With the increasing proportion of AI servers and liquid cooling solutions, the shipment weight of traditional low-margin general-purpose servers has decreased, leading to the phenomenon of "volume shrinkage with price increase." Intensified Seasonal Fluctuations: Historical data shows that Q3 is often a slow season for government procurement (e.g., only 40K in Q3 2022), but this decline was higher than the historical average, implying potential delays in the acceptance or bidding schedules for public sector Xinchuang products. Deep Attribution: Strategic Transformation and Competitive Squeeze Analysts point out that Sugon's decline in shipments stems mainly from the company's proactive "strategic adjustment." According to market reports, the company is shifting from purely pursuing scale to "lean operations," focusing on high-margin liquid cooling data centers and localized AI computing facilities, while proactively abandoning some low-margin internet orders. Additionally, the aggressive expansion of competitors like Huawei Ascend in the domestic AI chip sector has also created a certain degree of crowding-out effect on Sugon's Hygon ecosystem, causing short-term pressure on market share. Outlook and Risks: The Double-Edged Sword of Policy Easing Short-term (1-2 months): Entering the traditional peak season of Q4, it is expected that the annual budget consumption of government and central state-owned enterprises will drive shipment volumes back to a level above 60,000 units, with orders for liquid cooling products likely to be released in concentration. Medium-term (3-6 months): The market needs to closely monitor US policy changes in early 2026. Recent news suggests the US Department of Commerce may relax export restrictions on Nvidia H200 to China, which poses significant uncertainty for Sugon: on one hand, it may ease supply chain tensions, but on the other hand, if Nvidia makes a strong return to the Chinese market, it will directly impact Sugon's core moat of "domestic substitution," forcing the company to face more severe tests regarding price-performance ratio. Web Search References https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHCyfFOzxOAFMs-18BIWzOufc6iDPMbvlij-Spztlg4OAzRyF8zi0EArPUGXjE8_UDhYzGPzvIe9_Lj6DPnWV35l0Dj-2j7ekbODMsnbiMB72dd6Mq3YAHp5q6SkunFbLYH61GGI_qkvYuP2ABGjnLml-i-4R3lQkY= https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFxt8SR2CQ8O8GlHAjn2FtHjs2u0z_2ZPH9sPl2TQornp6w0K92ShCYpUm0rDJD_D5gHAcXW0-i-lqJZfha-5kJhm1e0RolYo83GJlUxfZk_SH1bBDxPe64PSHtBR44-XgxulIapMo2ms8_ZuvLPGA8Uq-FTWcTPFV903AF7dUmvWJnC0-zux3WKOAVs06UJvoTgPcIdAHTp2b6ofAX3yyjKvVpk9YTg91MmKGvciTYuFCQ3cWiWpTMXmPUfhwA5xom0pSkMuTmluV5j-Vhou7Y2y5W3-FR_JP-kNw9zrcUhOQYhM1V-T7Jb3wBikjjplb9Mi-7irw627iiLzohz48S4wtQ7UW5ckNIq-8qIcgNefFLdAV6X8TlSOaoPhkuLeRE0SnNqMYZimcI-WTJNRkv5k6zr9ThV803P-AZNQNiew9bAXz9LiGKo17gou5FsU4fpttyWvoxI1kFCJCcHKE= https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEhSQOEzBa_WuuZuZ57imX8tyaXty6suq4JxQp4ndBANJ7Vyk_SfyLfTm2Rb77OaoAIBGOOGRM0TI2wQE90O1pM728vJTVkdUaYs0Jhv_BI4E5lYTOTSyxRo6kabAn1KyMFj_RpztLeF8IzGewqVA0MTA==