Concord New Energy warns FY 2025 profit may fall over 80%

The group also orders $56.6m of batteries for a US storage project.

Concord New Energy said it expects unaudited profit attributable to equity holders for FY2025 to drop by more than 80% from about RMB800m in FY 2024.

The company said the decline reflects higher wind and solar curtailment in parts of mainland China, lower average electricity prices amid competition, and a one-off reversal of part of previously recognised renewable subsidy revenue after clarification of subsidy reviews.

It also cited losses on certain financial assets and impairment on long-term equity investments, plus the absence of a prior-year non-recurring withholding tax gain.

CNE said cash generated from operating activities increased year on year despite the profit fall, and it cut full-time headcount by more than 30% by end-2025 from end-2024 as it continued cost and operational optimisation.

Separately, a subsidiary, Blue Heron Solar, placed a purchase order after trading hours on 20 Feb. to buy storage equipment for a 146MW/292MWh energy storage project in the US.

The total consideration is about $56.61m, including a $43.22m purchase price and about $13.39m of tariffs, with delivery expected by 31 Aug. 

The supplier is Trina Energy Storage Solutions US, which the company described as an independent third party. 

CNE said the purchase constitutes a discloseable transaction under Hong Kong listing rules, and will be funded by internal resources and or borrowings.

The profit warning was based on a preliminary unaudited assessment, with annual results expected by end-March 2026.