Concord New Energy forecasts over 80% dip in profit for FY2025
This comes on the back of a decline in revenue and gross margin from its power generation business
[SINGAPORE] Concord New Energy announced on Friday (Feb 20) that it expects a drop of more than 80 per cent in unaudited profit attributable to equity holders for the financial year ended Dec 31, 2025, compared with the year before.
This comes on the back of a decline in revenue and gross margin from its power generation business.
“The curtailment rate for wind and solar power increased due to wind and solar resources being weaker than expected, as well as limited grid absorption capacity in certain regions within the Chinese Mainland, resulting in actual electricity sales volume falling short of expectations,” the company said in a bourse filing.
Meanwhile, intensified competition in market-based electricity trading drove down the average comprehensive electricity price year on year. The group also made a one-time reversal of part of subsidy revenue recognised in prior years, following the Chinese government’s further clarification on its review of renewable energy subsidies.
In addition, losses were incurred on certain financial assets measured at fair value and impairment was recognised on long-term equity investments, due to changes in industry and market value of the assets during the period.
In FY2024, the company recognised a significant non-recurring gain from the refund and reversal of withholding tax following the re-obtaining of Hong Kong tax residency status. However, no such gain occurred in the current financial year, said the group.
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Despite the decrease in profit, there was a year-on-year increase in cash generated from operating activities in FY2025, compared with the previous year.
The Singapore-headquartered group is engaged in the investment and operation of wind and solar power, energy storage projects, and the provision of technical services and integrated solutions.
It debuted on the Singapore Exchange (SGX) on Jan 6, as the bourse’s first listing of the 2026.
Founded in 2006, Concord New Energy was first listed on the Hong Kong Stock Exchange, and has a business presence in North America, Europe and Asia.
Shares of Concord New Energy ended Friday 1.6 per cent or S$0.001 down at S$0.061.
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