Concord New Energy’s H1 2016 net profit rises 10% y/y

Chinese firm Concord New Energy Group Ltd (HKG:0182) said Wednesday its attributable net profit for the first half of 2016 has increased by 10.13% on the year to HKD 278.7 million (USD 35.9m/EUR 32.7m).

The company, previously known as China WindPower Group, makes tower tube equipment and operates, maintains and invests in wind and photovoltaic (PV) power plants. During the reporting period, its total output grew by 38.4% on the year, thus improving the performance of Concord New Energy’s downstream segment.

Concord New Energy saw its pre-tax profit grow to HKD 286.4 million from HKD 277 million.

First-half unaudited revenues fell by 51.62% to HKD 1.05 billion, due to a substantial decrease in contributions from the company's engineering, procurement, construction (EPC) and equipment manufacturing division. Sales to external customers in that segment dropped to HKD 584.1 million from HKD 1.87 billion a year back.

The decline in revenue at the particular division is blamed on certain national policy changes that urged the company to expand the ration of its “build and sell” business while cutting the scale of the EPC operations, Concord New Energy explained.

At the end of June 2016, Concord New Energy had stakes in 52 grid-connected wind and solar parks of 2,372 MW in total. Capacity attributable to the company was 1,401 MW. It also had wind and PV power resources reserves of over 28 GW and 8 GW, respectively.

The power plants operated by the company produced 1,096.85 GWh in the period under review. Wind power output was 697.46 GWh, while solar power generation amounted to 417.39 GWh.

(HKD 1.0 = USD 0.129/EUR 0.117)

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