Central New Energy Holding Group (1735) H1 2025 earnings summary

Executive summary

• Strategic shift toward renewable energy, scaling back green construction, and focusing on high-efficiency PV battery and component production, with major capacity expansions completed and further projects planned through 2026.

• Five business segments: new energy and EPC, green building, smart energy management, health and wellness, and F&B supply chain, with new energy and health/wellness now driving growth.

• Revenue rose 59.9% year-over-year to HK$4,048.9 million, driven by strong growth in new energy and health and wellness segments.

• Net profit attributable to owners fell to HK$23.3 million from HK$40.6 million, mainly due to higher administrative and operating expenses.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$4,048.9 million (up from HK$2,531.9 million year-over-year), led by new energy and health/wellness.

• Gross profit doubled to HK$86.4 million, with gross margin improving from 1.7% to 2.1%.

• Net profit declined to HK$50.0 million from HK$60.1 million due to higher administrative and operating expenses.

• Basic and diluted EPS was HK0.55 cents, down from HK0.96 cents year-over-year.

• Cash and bank balances decreased to HK$129.0 million from HK$265.9 million at year-end 2024.

Outlook and guidance

• Ongoing expansion in PV battery and component production, with new projects in Ningxia City expected to be operational by end-2026.

• Continued pursuit of new energy opportunities, including decarbonisation and sustainable aviation fuel, leveraging Belt and Road initiatives.

• Continued scaling down of green building and construction segment over 5–10 years.