GCL New Energy 2025 Results: Revenue Dips 4.08%, Net Loss Widens to RMB1.34 Billion on One-Off Provisions

GCL New Energy Holdings Limited released its audited results for the year ended 31 December 2025.

Revenue and Profitability • Revenue slipped 4.08 % year-on-year to RMB1.06 billion, primarily reflecting lower electricity sales after the 2024 disposal of a 83 MW U.S. solar asset, partly offset by a larger contribution from solar O&M services. • Net loss attributable to shareholders expanded to RMB1.34 billion from RMB424.04 million. The widening loss was driven mainly by: – RMB810.86 million of accrued compensation linked to historical solar-plant disposals (electricity-sales loss, on-grid guarantees and land-use taxes). – RMB297.23 million impairment under the expected-credit-loss model, including RMB253.73 million for tax-indemnity exposures. – RMB10.40 million net exchange loss versus a RMB3.83 million gain a year earlier.

Segment Performance • Solar O&M and supporting services revenue grew 17.23 % to RMB337.36 million as contracted capacity rose to about 20 GW (2024: 12.5 GW). • Electricity sales and tariff adjustments fell 41.78 % to RMB52.44 million, with subsidiary grid-connected capacity unchanged at roughly 50 MW. • LNG trading revenue declined 7.85 % to RMB672.77 million on lower volumes and price volatility.

Margins and Costs • Overall gross profit improved to RMB146.07 million (2024: RMB127.44 million), pushing gross margin to 13.75 % (2024: 11.51 %). • Administrative expenses dropped 21.17 % to RMB212.15 million following asset-light restructuring and cost controls. • Finance costs decreased 13.01 % to RMB44.74 million on lower solar-plant borrowings.

Balance Sheet and Liquidity • Net current assets totalled RMB538.03 million (2024: RMB1.57 billion). • Cash and cash equivalents stood at RMB278.83 million; total borrowings were RMB808.10 million, all secured. • Gearing (total liabilities/total assets) rose to 38.48 % from 20.78 % due to the recognition of compensation and related payables. • Interests in joint ventures climbed to RMB1.08 billion after acquiring a stake in Rudong LNG receiving terminal.

Dividend • The Board proposed no dividend for 2025 (2024: nil).

Post-Year Event • On 7 January and 12 March 2026, the company agreed to issue up to 183.48 million new shares at HK$1.05 each to Pharos Network Technology Limited in exchange for US$24.74 million of Web 3.0-related investment instruments; completion will be phased and conditional.

Outlook (per announcement) Management will continue expanding digital-intelligent O&M services, advance LNG terminal-trading integration and explore Web 3.0 energy-asset applications, while focusing on cost discipline and balance-sheet repair.