Solar and wind farm operator Concord New Energy Group Ltd. (0182.HK) announced on Friday that it expects to report its profit plunged by more than 80% last year to roughly 160 million yuan ($22 million) from about 800 million yuan in 2024, even as its cash generated from operating activities increased.
The company attributed the slump to weaker-than-expected wind and solar conditions in parts of China, power curtailment, and intensifying competition in market-based electricity pricing, which collectively squeezed its generation volumes, revenue and margins. It also booked losses on certain financial assets and impairment charges on some of its long-term equity investments.
Concord said it has stepped up cost-cutting and business restructuring efforts, with its full-time workforce reduced by more than 30% by the end of last year from the end of 2024. The company is also accelerating overseas solar project development and has completed a secondary listing in Singapore to broaden its international financing channels.
Shares of Concord New Energy opened lower on Monday and closed at HK$0.325 by the midday break, down 5.9%. The stock is down about 22% over the past six months.
By Lee Shih Ta
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