CONCORD NE (00182) announced that the group anticipates a more than 80% decrease in unaudited profit attributable to equity holders for the fiscal year ending December 31, 2025, compared to the same period last year (2024: approximately RMB 800 million). Despite the profit reduction, cash generated from operating activities during the reporting period increased compared to 2024. The decline in unaudited profit attributable to equity holders is primarily due to the following factors: (1) A decrease in revenue and gross profit margin from the power generation business: Wind and solar resources in certain regions of China were below expectations, and grid absorption constraints led to a year-on-year increase in curtailment rates, resulting in an overall decline in power generation. Simultaneously, intensified competition in market-based electricity trading led to a decrease in the average comprehensive electricity price. The company also made a one-time adjustment to reduce previously recognized subsidy income based on further clarified green power subsidy verification results from the Chinese government. (2) Losses and impairments on certain assets: During the reporting period, some financial assets measured at fair value incurred losses due to market value changes in related industries and assets, while long-term equity investments were subject to impairment provisions. (3) Tax-related impacts: The same period last year included higher non-recurring gains from tax refunds and reversals of withholding tax due to the company re-establishing its status as a Hong Kong tax resident, with no such gains occurring in the current reporting period.

The company has actively responded to the severe and complex external environment and operational pressures by implementing a series of countermeasures, which have yielded initial results: It has advanced business and personnel structure optimization and continuously promoted cost reduction and efficiency enhancement. By the end of the reporting period, the group's full-time employees had decreased by over 30% compared to the end of 2024, with ongoing optimization efforts. Strengthened operational and production management has improved equipment availability and operational efficiency. The company is actively promoting project expansion and asset deployment, having signed multiple long-term power purchase agreements (PPAs) for photovoltaic projects in the United States with globally renowned enterprises. In China, it jointly established an equity fund with a major insurance capital entity to explore new channels for service business and completed the signing of relevant asset transfer documents. Furthermore, the successful completion of a secondary listing in Singapore has further expanded international financing channels, creating new opportunities for global business布局.