Upgrading from "Quantity" to "Quality", Converge New Energy (00182) Paves the Way for High-Quality Development
The electricity prices continued to decline, abandoned capacity increased, and regional power supply situation became increasingly severe... Facing multiple challenges, the domestic new energy power industry is presenting a picture of "ice and fire" at this moment.
Data from the first half of 2025 shows that on one hand, wind power and solar power installations continued to grow rapidly, with national wind power installation increasing by 98.9% year-on-year to 51.39 GW, and solar power installation growing by 107.1% year-on-year to 212.21 GW, maintaining a high-speed growth trend; on the other hand, the enthusiasm for installing new capacity has waned, with 6-month wind power and solar power installations experiencing a significant decline of 15.9% and 38.4%, respectively, compared to the previous month, which is also the first time this year that solar power installation has experienced a same-month year-on-year decrease, bringing a noticeable "cooling" effect to the industry.
In the midst of uncertainty in the industry, some relevant listed companies have felt the pressure. According to recent semi-annual reports, Huaneng International Power Corporation (00902) saw its revenue decrease by 5.7% year-on-year, while Converge New Energy (00182) experienced a small decline in revenue, with total operating income of RMB 14 billion, a decrease of 6.6% compared to the same period last year, and shareholders' surplus of RMB 2.82 billion.
It is worth noting that despite the challenges faced by the industry during this downturn, Converge New Energy's overall situation remains optimistic, with total installed capacity increasing to 4778 MW, including wind power installed capacity of 3844 MW, a year-on-year increase of 10.9%, and solar power installed capacity of 934 MW, a year-on-year increase of 60%. The company's internationalization strategy has also achieved significant breakthroughs.
At present, the new energy power industry is in a stage of capacity adjustment, with lagging capacity being accelerated to be phased out. As the industry profits are expected to recover in the second half of the year, Converge New Energy and other industry leaders will have opportunities to enhance their market share and performance through the process of "washing" the industry.
Focusing on High-Quality Assets, Significant Cost Savings Achieved
Under uncertain domestic industry conditions, Converge New Energy has demonstrated strong strategic discipline, adhering to the development strategy of "highly valuing quality, not blindly pursuing scale", focusing more on investing in high-efficiency, high-yield projects with clear returns.
In addition to being cautious about project developments, the company is also looking to the global market with a broader perspective. Through precisely laying out high-quality assets globally, Converge New Energy aims to achieve asset diversification and regionalization, enhancing its operating stability.
According to our understanding, as of June 30, 2025, Converge New Energy held installed capacity of wind power and solar power totaling 4778 MW, an increase of 18% compared to the same period last year. The company's overall assets have been consolidated, with wind power installed capacity increasing by 10.9% to 3844 MW, and solar power installed capacity increasing by 60% to 934 MW.
During the reporting period, the company optimized its organizational structure, significantly reduced financing costs, and achieved significant cost savings. Due to business adjustments and organizational structure optimization, the company's main personnel indicators have shown a positive trend, with average revenue per employee increasing by 10.4% year-on-year.
Multiple cost reductions will reflect in future performance, continuously improving performance. Additionally, according to announcements, Converge New Energy has launched its second listing on the Singapore Stock Exchange in February this year, which will further expand its financing channels and enhance the company's international influence.
National Power Demand Continues to Rise, Green Certificate Trading Becomes a New Performance Highlight
Recently, policies such as the "Optimization Action Plan for Electric System Regulation Capacity (2025-2027)" and the "Notice on Deepening Renewable Energy Grid Connection Marketization Reform" have been released, proposing to increase new energy installations by 2 billion kilowatts per year from 2027. These policies will help China's power system to gradually improve its ability to absorb more renewable energy.
Looking forward, with policy benefits continuing to be released and high-voltage line construction speeding up, the national power demand is expected to continue rising, providing a supportive foundation for the industry's long-term development.
The green certificate trading has become a new performance highlight for Converge New Energy, which has significantly improved its electric power transaction decision-making accuracy through digital tools such as mid-to-long-term transaction models and spot price models; with its leading transaction team and brand, the company has developed high-efficiency sales strategies and green certificate business profits have made significant contributions.
According to our understanding, in June this year, the company signed a 30-year power purchase agreement (PPA) for the 21-megawatt solar power project in South Korea with Hyundai E&C, making it Converge's first globally recognized RE100 certified project.