Following a significant industry adjustment in 2025, the outlook for the renewable energy sector remains uncertain. The industry is transitioning away from the rapid growth of previous years into a more challenging phase that tests operational strength. Concurrently, the explosion of AI technology is driving massive electricity demand, compelling grid modernization. This presents new opportunities alongside significant challenges. In this increasingly complex environment, "prudent operation and strategic accumulation" have become the guiding principles for CONCORD NE (00182.HK, SEG.SG) to navigate the cyclical downturn. The company's recently released 2025 financial report indicates that while its performance was pressured during the industry's difficult period, its fundamental strengths remain solid, demonstrating resilience to weather cycles. Substantial progress was made in cost reduction and efficiency improvements, and overseas operations are beginning to form a second growth curve.
Despite industry headwinds, the company's sound operations have fortified its long-term foundation. In 2025, relevant authorities issued policies clarifying that all new energy generation must participate in power market trading without distinction. Under these new market-oriented reforms, electricity prices are more closely linked to market supply and demand. By year-end, China's total installed power generation capacity reached 38.9 billion kilowatts, a year-on-year increase of 16.1%. Within this, wind and solar power installation growth rates were 22.9% and 35.4% respectively, while overall electricity consumption increased by only 5%. Coupled with insufficient grid flexibility and limited inter-regional transmission capacity, the supply-demand imbalance for new energy power became more pronounced. Facing the dual pressures of rising curtailment rates and declining electricity prices, new energy power generators generally encountered profitability challenges, and CONCORD NE was no exception.
The company's 2025 annual report shows revenue from continuing operations of RMB 2.544 billion and a profit attributable to equity holders of RMB 140 million, with basic earnings per share of 1.78 fen, all registering declines. However, the report also highlights the company's steady operational stance amidst adversity, adhering to a "prudent principle" by differentially managing project construction progress. Domestically, the company efficiently organized construction for projects meeting return standards to achieve grid connection on schedule and lock in existing feed-in tariff mechanisms; for projects not meeting standards, it adopted strategies of delay or suspension to avoid inefficient asset accumulation. In overseas markets such as the US, South Korea, New Zealand, and Singapore, the company selected a batch of high-quality solar projects with signed long-term power purchase agreements offering higher revenue certainty, advancing them in an orderly manner. By the end of 2025, the company's equity-installed capacity of grid-connected wind and solar power stations reached 4,928 MW, a year-on-year increase of 6.78%. Newly operational projects added 391 MW of equity capacity during the year, comprising 340 MW from wind and 51 MW from solar, while equity capacity from completed projects sold amounted to 78 MW. By continuously optimizing project quality, CONCORD NE has strengthened its profitability and operational stability, laying a solid foundation to withstand industry volatility.
The company achieved significant cost reductions and efficiency gains across multiple fronts in 2025, demonstrating strong operational resilience. Through enhanced equipment management and technological upgrades, several core production indicators improved against the trend: the wind farm availability rate reached 98.8%, up 0.8 percentage points year-on-year; average turbine fault repair time shortened by 11 hours; and collection line fault recovery time reduced by 26 hours. The wind power equipment energy loss rate decreased by 1.1 percentage points. In response to power market reforms, the company strengthened its power trading team and optimized incentive mechanisms. During the reporting period, it achieved trading revenues above the market settlement average in two-thirds of the 17 provincial markets where it participated, indicating significantly enhanced power marketing capabilities. Meanwhile, green electricity trading and green certificate sales became new profit growth points. In 2025, the company's green electricity transaction volume reached 1.253 billion kWh, a 54.5% year-on-year increase. It signed new green certificate sales contracts worth RMB 38.8 million for the year, including long-term agreements with several globally renowned companies, effectively locking in future green certificate revenue. Management-wise, by optimizing its business layout, streamlining organizational structure, and strengthening budget management, the company reduced non-essential expenditures. Annual administrative expenses decreased by 20% year-on-year, and employee numbers fell by 31%. Financially, through measures such as restructuring existing debt and adjusting repayment schedules, the average financing cost for new drawdowns decreased to 3.26% from 3.43% a year earlier, and the comprehensive financing cost dropped to 3.51%. Net cash generated from operating activities increased year-on-year. With major economies entering interest rate cut cycles, future financial pressure is expected to ease further.
Against a backdrop of widespread pressure in the domestic market, CONCORD NE is accelerating its global expansion, with overseas operations gradually becoming a key support to hedge against cyclical fluctuations. Globally, increased grid investment by various countries, combined with rising electricity demand driven by AI industry development, is creating a growth window for new energy power enterprises. North America is continuously expanding its grid to cope with surging demand from AI data centers; the European Commission has issued guidelines to promote medium-to-long-term grid planning; and ASEAN is actively promoting cross-border power interconnection and green electricity trading, with regional energy demand expected to grow steadily alongside rapid industrialization and urbanization. Seizing these global industrial opportunities, CONCORD NE is rapidly advancing its global layout. To date, the company has achieved significant results in project development within international mature markets, boasting a sufficient project pipeline with high-profit certainty, providing solid assurance for the continued progress of its global business. In 2025, the company secured grid connection agreements and long-term power purchase agreements for 502 MW of projects internationally. This includes three US solar projects totaling 469 MW that signed long-term agreements with leading global tech firms to power their data centers, and three solar projects in South Korea, New Zealand, and Singapore totaling 33 MW that also secured new power purchase agreements. These projects lock in electricity prices via long-term contracts, mitigating market volatility risks and are expected to generate stable, ongoing cash flow. Additionally, the company has secured grid connection agreements for a further 394 MW of solar projects and 299 MW of energy storage projects in the US market and is seeking end-users for long-term power purchase agreements. Domestically, in 2025 the company focused on fulfilling pre-construction conditions and accelerating the conversion of development achievements. During the reporting period, 360 MW of projects were converted ahead of schedule, and it obtained annual construction quotas for 600 MW of new wind power projects, which will subsequently progress through grid connection and approval processes. Furthermore, the company completed approval for a secondary listing on the Mainboard of the Singapore Exchange in 2025 and officially commenced trading on January 6, 2026. This strategic move will broaden international financing channels, enhance global brand influence, and provide a stronger platform for global business advancement.
In summary, despite short-term performance impacts amid broad industry pressure, CONCORD NE has built a robust defense against industry volatility through its solid fundamentals, active cost-efficiency measures, and forward-looking global strategy. A recent research report noted that negative factors appear priced in, suggesting investors focus on the potential for recovery in 2026. Challenging times test a company's mettle. Under the overarching trend of green, low-carbon transition, as the industry recovers, CONCORD NE is well-positioned for a potential value re-rating, leveraging its long-term strategic focus and high-quality asset portfolio.
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