Concord New Energy Group (182) investor relations material

Executive summary

• Revenue for 1H2026 was RMB 1,257.8 million, down 10.2% year-over-year, with net profit attributable to owners at RMB 100.6 million, a 64.3% decline, mainly due to higher curtailment, weaker resources, lower tariffs, and the end of tax incentives.

• Basic and diluted EPS were RMB 1.29 cents, compared to RMB 3.58 cents in 1H2025.

• Net assets rose to RMB 8,700.1 million as of June 30, 2026, with net assets per share at RMB 1.10.

• Strategic transformation advanced with global project deployment, AI data center initiatives, and professional services expansion.

• The Group faced headwinds from lower tariffs, higher curtailment, and the phase-out of tax incentives.

Financial highlights

• Gross profit for 1H2026 was RMB 583.7 million, down from RMB 669.0 million in 1H2025.

• Administrative expenses dropped 30% year-over-year to RMB 112.6 million due to strict cost controls.

• Operating cash flow improved to RMB 1,306 million in 1H2026.

• Comprehensive financing rate declined to 3.43%, below China’s 5-year-plus LPR for the first time.

• Cash and bank balances increased to RMB 1,988.2 million from RMB 1,290.8 million at year-end 2025.

Outlook and guidance

• Focus on capturing AI-driven growth, advancing globalization, and scaling professional services.

• Continued asset optimization, cost control, and leveraging AI for operational efficiency.

• Emphasis on broadening financing sources and lowering funding costs.

• Industry headwinds in China expected to stabilize as new policy measures take effect.