Concord New Energy (CNE) has issued a major profit warning, stating that its unaudited profit for the 2025 fiscal year is expected to fall by more than 80% compared to the previous year. In the last fiscal year, the company reported a profit of around RMB 800 million. The sharp decline reflects mounting challenges in China’s renewable energy sector.
The company said one of the main reasons for the drop is increased curtailment of wind and solar power in some parts of mainland China. Curtailment happens when electricity generated from renewable sources cannot be fully delivered to the grid because of transmission limits or lower demand. As a result, a portion of the clean energy produced is wasted, directly affecting revenue.
CNE is also facing lower average electricity prices due to growing competition in the power market. With more renewable energy projects coming online, pricing pressure has intensified, reducing margins for power producers. In addition, the company reported a one-off reversal of renewable subsidy income after a government review, which further impacted earnings.
Other financial pressures include losses on certain financial assets and impairment charges related to long-term equity investments. The company also noted that it did not benefit this year from a non-recurring tax gain that had supported profits in the previous fiscal year.
Despite the difficult financial outlook, CNE reported some positive developments. Cash flow from operating activities increased compared to last year, indicating stable operational performance. manage costs, the company has taken steps to improve efficiency and streamline operations. By the end of 2025, it had reduced its full-time workforce by more than 30% as part of its restructuring efforts.
At the same time, CNE continues to expand internationally. Its subsidiary, Blue Heron Solar, has placed a $56.6 million order with Trina Energy Storage Solutions for battery storage equipment. The equipment will be used in a 146MW/292MWh energy storage project in the United States, with delivery expected in August 2025. The total order includes about $13.4 million in tariffs.
The company plans to finance the US project through internal funds and bank loans. CNE expects to release its final audited results for the 2025 fiscal year by the end of March 2026.
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