Understanding the Market | CEB GREENTECH rises over 10% and has received more than 2 billion yuan in renewable energy subsidies
CEB GREENTECH's stock price rose by more than 10%, with an increase of 10.31% as of the time of publication, trading at HKD 1.07, with a transaction volume of HKD 6.1633 million. The company has received additional subsidy funds from the State Grid Corporation for biomass comprehensive utilization, photovoltaic power generation, and wind power projects, totaling approximately RMB 2.064 billion, which is expected to improve cash flow and reduce liabilities, positively impacting future operations. China International Capital Corporation is optimistic about the company's profit recovery in biomass power generation
According to Zhitong Finance APP, CEB GREENTECH (01257) has risen over 10%, with a current increase of 10.31%, priced at HKD 1.07, and a transaction volume of HKD 6.1633 million.
In terms of news, on September 5th, CEB GREENTECH announced that from July 1, 2025, to August 31, 2025, its 33 subsidiaries involved in biomass comprehensive utilization, photovoltaic power generation, and wind power projects have received a settlement notice regarding additional subsidy funds from the State Grid Corporation of China (the notice). According to the notice, the total amount of additional subsidy funds is approximately RMB 2.064 billion, which the group has fully received as of the date of this announcement.
The recovery of the above additional subsidy funds will improve the company's cash flow from biomass comprehensive utilization, photovoltaic power generation, and wind power projects, reduce the group's liabilities, and have a positive impact on the group's future operations in these areas. The additional subsidy funds received have been recognized as electricity revenue for the corresponding fiscal year upon electricity sales.
In addition, CICC pointed out that the company has established cogeneration as the main direction for comprehensive operational development after the subsidy expires. As of the end of 1H25, the company's heating scale has reached 2.18 million tons/year, and it is expected to reach 2.5 million tons by the end of 2025. The company is also actively expanding virtual power plants and zero-carbon parks, with 136 manufacturers signed for the virtual power plant. Considering that the company's heating business has already achieved scalable profit contributions, the firm is optimistic about the recovery of biomass power generation profits for the entire year
