CNE TECH CORP issues a profit warning, expecting a mid-term net profit increase of no less than 15%

According to the announcement from China Nuclear Technology (00611), it is expected that the group's net profit for the interim results for the period ending June 30, 2025, will increase by no less than 15% compared to the net profit for the period ending June 30, 2024. The increase is mainly attributed to the following factors: (i) The group continues to enhance the intelligent operation and maintenance level of power plants, continuously improving equipment utilization and power generation. The power generation segment is expected to have a positive impact on the group's overall performance, with the power plants it holds expected to generate continuously increasing revenue and profits. As of June 30, 2025, the group operates a total of 117 power plants, including 103 wind and solar power plants with an operational scale of 2,030MW (based on actual installed capacity); and 14 energy storage power plants with an operational scale of 551MWh; (ii) The company's indirectly wholly-owned subsidiary continues to increase its wind and solar power plant projects, with an additional 112MW of photovoltaic installed capacity added in the first half of the year. With the support of the largest shareholder, Shenzhen Xinnanshan Holdings (Group) Co., Ltd. (Nanshan Holdings), the group continues to promote cooperation with Nanshan Holdings' subsidiary, Baowan Logistics, through resource sharing, business collaboration, and other means. As of June 30, 2025, 14 rooftop distributed photovoltaic projects have been developed and implemented in the Baowan Logistics logistics park, with a total grid-connected capacity of 65MW. In addition, the acquisition of the Shaoguan Dingrong approximately 24MW ground-mounted distributed photovoltaic project has been completed. In the first half of the year, the wind and solar power generation reached 1.14 billion kWh, a year-on-year increase of 22.4%. The relevant business segment is expected to achieve an increase in net profit for the period ending June 30, 2025; (iii) The development of energy storage power plants has intensified, with the scale of developed and operational power plants in the first half of the year increasing by 775% compared to the same period last year, mainly reflected in the 200MW/400MWh independent energy storage project in Lincang, Yunnan; the first phase of the China National Nuclear Corporation Linxiang energy storage power plant, a 100MW/200MWh project, began operations in January 2025, and the second phase of the China National Nuclear Corporation Linxiang energy storage power plant, a 100MW/200MWh project, was fully grid-connected on May 28, 2025. These projects have brought considerable growth to the group's revenue in the first half of the year through capacity leasing services and electricity market peak-valley price energy trading. In addition, compared to the same period last year, the group is also expected to achieve an increase in net profit margin for the six months ending June 30, 2025. The board believes that the group's financial condition remains robust, and it is currently continuing to seek various investment opportunities