From "quantity" to "quality", CONCORD NE (00182) creates a high-quality development path.

The electricity price continues to decline, the abandonment rate is increasing, and the situation of regional power restrictions is becoming more severe... Facing multiple challenges, the domestic new energy power industry is presenting a "two worlds" picture of ice and fire. Data for the first half of 2025 shows, on one hand, wind and solar installations continue to surge forward, with national wind power new installations in the first 6 months increasing by 98.9% year-on-year to 51.39 GW, and CECEP Solar Energy's new installations increasing by 107.1% to 212.21 GW, maintaining a high growth trend; on the other hand, there is a setback in the rush to install, with a sharp drop in wind and solar new installations in June, with wind power and CECEP Solar Energy new installations decreasing by 15.9% and 38.4% year-on-year respectively, and by 80.6% and 84.5% month-on-month, making this the first month of year-on-year decline in solar installations this year, bringing a clear "chill" to the industry. In the uncertain industry environment, some related listed companies are also under pressure. According to recent semi-annual reports, HUANENG POWER (00902) saw a 5.7% year-on-year decrease in operating income for the first half of the year, and CONCORD NE (00182) saw a slight decrease in operating revenue in the first half of the year, with a continuous operating income of 1.4 billion yuan, a decrease of 6.6% from the same period last year, and a net profit attributable to shareholders of 282 million yuan. It is worth noting that despite the downturn in the industry, some companies still have bright spots in their fundamentals. The total equity capacity has increased to 4778 MW, with the equity installed capacity of wind power plants growing by 10.9% to 3844 MW, and the wind power equity generation reaching 4155 GWh; financing costs have been significantly optimized, with a 35-basis-point decrease in comprehensive financing costs; and the performance of green electricity and green certificate trading and other businesses has been impressive, with a key breakthrough in the internationalization of green electricity strategy. Currently, the new energy power industry is in a phase of capacity clearance, accelerated elimination of outdated capacity, and the industry's profits in the second half of the year are expected to see a recovery. For industry leaders like CONCORD NE, the industry reshuffling process is also an opportunity for companies to increase market share and performance, and the "quality over quantity" asset strategy will effectively mitigate industry volatility risks and continue to expand competitive advantages. Focus on global high-quality assets, significant cost reduction and efficiency improvement results In the uncertain domestic industry environment, CONCORD NE has shown strong strategic resilience, implementing a project development strategy that focuses more on investment efficiency and strong return certainty for high-quality development projects. While being cautious about project development, the company has also expanded its focus to the broader global market. By strategically positioning high-quality assets with strong return certainty globally, the company has achieved asset diversification and regional diversification, improving the stability of its operations. During the reporting period, the company steadily increased wind and solar project reserves, with 600 MW of new wind and CECEP Solar Energy investment projects acquired domestically in the first half of the year, and 152.5 MW of solar projects and 300 MW of energy storage projects acquired outside of China; 190 MW of newly commissioned project equity capacity, including 140 MW of wind power and 50 MW of solar power. As of June 30, 2025, CONCORD NE's total grid-connected wind and solar power plant equity installed capacity reached 4778 MW, an 18% increase compared to the same period in 2024; wind power plant equity installed capacity was 3844 MW, a 10.9% year-on-year increase, and solar power plant equity installed capacity was 934 MW, a 60% year-on-year increase. While consolidating its leading market position, the asset structure with wind power accounting for over 80% has effectively increased the company's overall risk resistance. During the reporting period, the company optimized its organizational structure, significantly reduced financing costs, and achieved significant cost reduction and efficiency improvement. Due to business adjustments and organizational structure optimization, the company's key personnel efficiency indicators showed a positive trend, with a 10.4% year-on-year increase in per capita revenue. Based on the capital requirements of new construction projects and the refinancing plans for existing projects, the company evaluated and selected financing schemes that combined cost-effectiveness with business alignment, resulting in an average financing cost of 3.15% for new withdrawals, and a comprehensive financing cost reduction of 35 basis points to 3.63%, both at relatively low levels. The decline in various cost expenses will be reflected in future performance improvements, continuing to enhance performance. In addition, according to announcements, CONCORD NE initiated a secondary listing in Singapore in February this year, further expanding its financing channels and enhancing the company's international influence. National electricity demand continues to grow, green electricity and green certificate trading becoming new performance highlights Recently, policies such as the "Special Action Plan for Optimizing Power System Regulation Capability (2025-2027)" and the "Notice on Deepening the Marketization Reform of Renewable Energy On-grid Electricity Prices" have been introduced, proposing a target of adding 200 million kilowatts of new energy installed capacity annually by 2027, implementing innovative market mechanisms such as extending the price limit range, optimizing bidding rules, and establishing price difference settlement mechanisms. Fitch's report points out that although the rate of wind and solar curtailment will continue to rise as the capacity of renewable energy installations increases, the long-term increase is still controllable, and the construction of new ultra-high voltage lines, energy storage, and grid upgrades should gradually enhance China's ability to accommodate more renewable energy generation. Looking ahead, with policy dividends continuing to be released and the acceleration of ultra-high voltage construction, electricity demand is expected to continue to rise, providing a certainty support for the industry's medium to long-term development. As the transformation of the new electricity system and the marketization reform of electricity prices accelerate, green electricity and green certificate trading are becoming new performance highlights for CONCORD NE. By constructing long-term trading models, spot pricing models, and other digital tools, CONCORD NE has significantly improved the accuracy of its electricity trading decisions; with a leading trading team and brand in the industry, and deep analysis of green certificate policies and market supply and demand, the company has developed efficient sales strategies, with outstanding profitability in the green certificate business. Financial reports show that the company settled 424 million kWh of green electricity in the first half of the year, a 26% increase from the same period last year, achieving an additional revenue of 5.48 million yuan compared to the market comparable average price; the average price of green certificate sales was 2.07 times the average price disclosed by the North Exchange. It is understood that in June of this year, the company signed a 30-year power purchase agreement (PPA) for the 21 MW solar project in Korea with Hyundai E&C. This collaboration is the company's first global RE100 certified project. Public records show that the agreement ensures that the purchased power must be 100% renewable energy, and through a long-term commitment to locking electricity prices, effectively hedging against long-term price fluctuations. The stability and premium capability of the agreement far surpass typical green electricity transactions, and due to the higher solar power prices in Korea compared to China, the expected return on investment for the project is expected to be significantly higher than similar projects in China. Overall, despite short-term performance pressures faced by the company due to the macro industry environment, its core business has maintained stable operations, demonstrating strong operational resilience; significant growth in green electricity and green certificate businesses has also brought expectations for future profit improvements. With gradual improvements in the industry environment, the future growth potential of CONCORD NE is worth looking forward to. Translated by Somenath Sen.