On the evening of August 3, Chenfeng Technology Co Ltd (603685.SH) announced that its controlling grand-subsidiary, Liaoning North Grid New Energy Power Technology Co Ltd, as the lead member of a consortium, formally signed a General Contract for the Construction of the Guotian Energy Erenhot 200MW/800MWh Grid-Side Independent New Energy Storage Power Station Project with Guotian North Grid. The contract amount is 712 million yuan (including tax).
Transitioning from "Selling Lights" to "Selling Electricity"
Founded in 2001 and listed on the main board of the Shanghai Stock Exchange in 2017, Chenfeng Technology was once a leading company in the domestic LED lighting structural components sector. In 2023, the company introduced a management team with extensive experience in the new energy industry, rapidly building a dual-core business model of "new energy + LED lighting" through control transfer, asset acquisitions, and private placement fundraising. Currently, the company's main businesses include the R&D, production, and sales of lighting product structural components, as well as the operation of incremental distribution grids and the development and operation of wind and solar power stations. Its new energy projects are primarily located in areas rich in wind and solar resources, such as Tongliao and Chifeng in Inner Mongolia. By the end of 2025, the company had 191.17MW of new energy installations in operation and 183.81MW under construction; the Naiman Banner project was also the first incremental distribution grid project to be connected and operational in eastern Inner Mongolia.
Accelerating Deployment in the Energy Storage Track
In the energy storage sector, Chenfeng Technology accelerated its layout in May 2026, announcing plans to invest in the construction of two energy storage projects: the Kailu Energy Storage Station and the Zuozhong Energy Storage Station, with a total investment of approximately 1.315 billion yuan. These projects use lithium iron phosphate battery energy storage systems, each with a construction scale of 200MW/800MWh. The newly signed Erenhot Energy Storage Station project also has a construction scale of 200MW/800MWh. The total energy storage capacity of these three projects is 1.6GWh, with a total investment exceeding 2 billion yuan. Adding the 1.18 billion yuan wind power project investment announced by the company in July, Chenfeng Technology's investment scale in the new energy sector is now quite substantial.
Transition Pains Amidst Earnings Divergence
In terms of financial performance for 2025, Chenfeng Technology reported operating revenue of 1.129 billion yuan, a year-on-year decrease of 10.78%; net profit attributable to the parent company was 22.0422 million yuan, a year-on-year increase of 173.96%. The discrepancy between the revenue decline and the significant profit increase was supported by 33.4494 million yuan in non-recurring gains and losses; excluding these, the company actually recorded a loss of 11.4072 million yuan. The decline in traditional lighting business revenue was the main factor in the revenue decrease, with LED bulb heat sink revenue falling by 8.47% and printed circuit board revenue dropping even more, by 51.29%. However, the new energy business became a key growth driver, with 2025 new energy business revenue reaching 236 million yuan, a year-on-year increase of 42.21%, and its share of total revenue rising to 20.87%; among this, power distribution and sales business revenue grew by 87.73% year-on-year. In 2026, profitability continued to strengthen. In the first quarter, the company achieved operating revenue of 242 million yuan, a year-on-year decrease of 6.38%, but net profit attributable to the parent company was 9.9692 million yuan, achieving a turnaround to profitability.