High-quality project reserves and professional management, CONCORD NE (00182.HK,SEG.SG) has a clear path for sustainable development.

After the deep adjustment in 2025, the renewable energy industry still faces uncertainty in the new year. On one hand, the industry is bidding farewell to the rapid growth of the past few years and entering a more challenging "deep-water zone"; on the other hand, the huge demand for electricity generated by the outbreak of AI technology is accelerating the modernization process of the power grid, bringing both new opportunities and significant challenges. In such a complex new stage of the industry, "prudent operations and accumulation of momentum" has become the main theme of CONCORD NE (00182.HK,SEG.SG) in response to the downturn. The company's recently released 2025 financial report shows that despite the pressure on its performance in the industry downturn, its fundamentals remain solid, demonstrating a steady perseverance through the cycle: substantial progress has been made in cost reduction and efficiency improvement, and the overseas business is showing the embryonic form of a second growth curve. In the face of industry headwinds, steady operations build a solid foundation for long-term development In 2025, relevant departments successively issued the "Notice on Deepening the Marketization Reform of Feed-in Tariffs for New Energy to Promote High-quality Development of New Energy" (referred to as "Document 136") and the "Guiding Opinions on Promoting New Energy Consumption and Regulation", clarifying that all new energy full electricity volume equally participates in market transactions. Under the new policy of market-oriented reform, the relationship between electricity prices and market supply and demand has become increasingly close. By the end of the year, the country's cumulative installed capacity of electricity generation reached 3.89 billion kilowatts, an increase of 16.1% year-on-year. The installed capacity growth rates for wind power and CECEP Solar Energy were 22.9% and 35.4% respectively, while the year-on-year increase in total social electricity consumption was only 5%. In addition to the insufficient adjustment capacity of the power grid and the limited carrying capacity of inter-regional transmission channels, the contradictions between supply and demand of new energy electricity are becoming increasingly prominent. Faced with the dual pressure of increasing wind and solar curtailment rates and declining electricity prices, new energy generation companies are generally facing profitability challenges, and CONCORD NE is no exception. The company's 2025 annual report recently disclosed a year-round operating income of 2.544 billion yuan (RMB, the same below), with attributable net profit to equity holders of 140 million yuan, basic earnings per share of 1.78 cents, both showing varying degrees of decline. But on the other side of the financial report, the company has maintained a steady operating trend in the face of headwinds, and has pushed forward project construction progress through the differentiation strategy of upholding the "prudent principle". In the domestic market, the company efficiently organizes the construction of projects that meet revenue standards to achieve on-grid power generation on schedule and locks in the qualification for mechanism electricity prices, while for projects that do not meet revenue standards, it adopts strategies such as slow or halt construction to resolutely avoid the accumulation of inefficient assets. In overseas markets such as the United States, South Korea, New Zealand, and Singapore, the company has selected a number of high-quality photovoltaic projects that have signed long-term power purchase agreements and have high revenue certainty, and is orderly promoting their construction. By the end of 2025, the company's equity installed capacity of wind power and photovoltaic power plants connected to the grid reached 4,928 MW, an increase of 6.78% over the previous year; the equity capacity of newly commissioned projects in the year was 391 MW, including 340 MW of wind power and 51 MW of photovoltaic power. The equity capacity of completed and commissioned projects for sale was 78 MW. By continuously optimizing project quality, CONCORD NE has continuously enhanced its profitability and operational stability, providing a solid foundation for resisting industry fluctuations. Multi-dimensional efforts, significant achievements in quality and efficiency With a focus on both "revenue growth" and "cost reduction," CONCORD NE achieved multiple cost reductions and efficiency improvements in 2025, demonstrating strong operational resilience. Through strengthening equipment management and promoting various technological upgrades, the company achieved improvements in multiple core production indicators against the trend: the utilization rate of wind farms reached 98.8%, an increase of 0.8 percentage points year-on-year; the average repair time of wind turbine failures shortened by 11 hours year-on-year, and the average recovery time of collector line failures shortened by 26 hours; the electricity loss rate of wind power equipment decreased by 1.1 percentage points year-on-year. In the face of electricity market reform, the company strengthened talent training for the electricity trading team and optimized incentive mechanisms. During the reporting period, two-thirds of the provincial level markets achieved trading profits higher than the market settlement average, significantly enhancing the company's electricity marketing capability. At the same time, green energy trading and green certificate sales have become new sources of profit growth. In 2025, the company completed green energy trading volume of 1.253 billion kilowatt-hours, a year-on-year increase of 54.5%; the annual new signed green certificate sales contract amount was 38.8 million yuan, many of which were long-term agreements signed with globally renowned companies, effectively locking in future green certificate income. In terms of management, through measures such as optimizing business layout, streamlining organizational structure, and strengthening budget management, unnecessary expenses were reduced, with management expenses decreasing by 20% year-on-year and the number of employees decreasing by 31% year-on-year. In terms of financing, through a series of financial optimization measures such as reviewing existing debts and adjusting repayment schedules, the average financing cost for new withdrawals during the reporting period decreased from 3.43% in the same period last year to 3.26%, and the comprehensive financing cost decreased to 3.51%, resulting in a year-on-year increase in net cash flows from operating activities. With major economies entering an interest rate reduction cycle, future financial pressures are expected to be further alleviated. Global deployment accelerates, clear path for future development In the context of the general pressure in the domestic market, CONCORD NE's globalization pace is accelerating, and the layout of its overseas business is gradually becoming an important support for hedging cyclic fluctuations. From a global perspective, countries are increasing their investment in power grids, combined with the increased demand for electricity driven by the development of the AI industry, providing a development window for renewable energy companies. The North American power grid continues to expand to meet the surge in demand for electricity from AI data centers; the European Commission has issued "Forward-looking Guidelines for Grid Investment," promoting medium to long-term grid planning; ASEAN is actively promoting cross-border power interconnection and green energy trading, with energy demand expected to continue growing rapidly with industrialization and urbanization. Actively capturing global industrial development opportunities, CONCORD NE's global deployment is accelerating. To date, the company has made significant progress in project development in mature international markets, with a sufficient project reserve and high profit certainty, providing strong support for the continuous advancement of its global business. It is understood that CONCORD NE has made substantial breakthroughs in international business development, with a total of 502 MW projects completing grid connection agreements and long-term power purchase agreements in 2025. Among them, three photovoltaic projects in the United States have signed long-term power purchase agreements with leading global technology companies to supply power to their data centers, with a total capacity of 469 MW; three photovoltaic projects in South Korea, New Zealand, and Singapore have also signed new power purchase agreements, with a total capacity of 33 MW; these projects have locked in electricity prices through multi-year agreements, avoiding market volatility risks, and are expected to bring continuous and stable cash flow to the company. In addition, the company has completed grid connection agreements for 394 MW of photovoltaic projects and 299 MW of energy storage projects in the U.S. market, and is seeking to sign long-term power purchase agreements with electricity users. In the domestic market, the company focused on the implementation of preconditions for project development in 2025, accelerating the transformation of development results. During the reporting period, a 360 MW project achieved early results transformation, and a new 600 MW wind power project obtained an annual construction target; subsequent grid connection and approval work will be carried out in succession. In addition, the company completed the approval for secondary listing on the mainboard of the Singapore Exchange in 2025 and officially listed on January 6, 2026. This strategic move will broaden international financing channels, enhance global brand influence, and provide a more powerful platform support for the advancement of global business. Conclusion Looking back at the performance throughout the year, in the context of the general pressure in the new energy industry, CONCORD NE, although its short-term performance has been impacted, has built a deep moat to withstand industry fluctuations with its solid fundamentals, proactive cost reduction and efficiency improvement, and forward-looking global deployment. Recently, Guotai Junan International released a research report pointing out that the current negative news has been fully priced into the stock price, and it is suggested that investors pay attention to the recovery potential in 2026. Only through trials and tribulations can true gold be revealed. The industry downturn is a touchstone for testing the quality of an enterprise. In the trend of green and low-carbon transformation, when the industry warms up, CONCORD NE is expected to lead in value reevaluation with its long-term strategic strength and high-quality asset reserves.