China Renewable Energy Investment Limited (CRE) reported a challenging first half of 2026, with turnover down 25.00% year-on-year to HK$70.74 million, dragged by weaker wind resources and a sharp rise in curtailment.
Gross profit contracted 84.00% to HK$5.30 million, while the bottom line moved from a HK$32.48 million profit a year earlier to a HK$8.27 million loss attributable to shareholders, translating into a loss per share of HK0.33 cents (1H 2025: earnings per share of HK1.30 cents).
Key earnings pressure points: • Average wind speeds across key provinces such as Henan, Hebei and Inner Mongolia fell by up to 19%, cutting total power dispatched to 739.30 GWh (-13% YoY). • Group-wide curtailment rose to 8.7% (1H 2025: 6.0%) as grid absorption lagged new renewable capacity additions. • Tariff subsidies for the Danjinghe and Changma wind farms ceased after both projects hit the 30,000-hour cap, while a VAT-refund policy ended in late 2025, lowering effective tariffs. • Net profit contribution from associates slid 51% to HK$10.28 million.
Cost controls partially cushioned the decline. Finance costs eased 18.60% to HK$3.98 million after loan repayments, and finance income more than doubled to HK$6.38 million on higher cash balances. Still, operating loss reached HK$16.41 million versus a HK$19.87 million operating profit a year earlier.
Balance-sheet highlights show total bank borrowings trimmed to HK$194.80 million (31 Dec 2025: HK$204.70 million), while cash and bank deposits stood at HK$374.15 million (31 Dec 2025: HK$429.27 million), preserving a net cash position and a net gearing ratio of ‑10% (31 Dec 2025: ‑12%). Capital expenditure remained limited at HK$6.56 million, reflecting a cautious stance on new builds.
Directors declared no interim dividend, after distributing a final and special dividend totalling HK$87.72 million in June 2026.
Looking ahead, management signalled that additional investment will hinge on clear evidence of lower curtailment and stable market tariffs. Near-term priorities include potential repowering of existing assets—most notably the Mudanjiang wind farm—and monitoring government moves to accelerate ultra-high-voltage transmission and bolster renewable consumption targets.