On its first trading day, China Resources New Energy's market value exceeded 300 billion yuan, behind the 136.89% surge lies the underlying reality of rising revenue but non-increasing profits
China Resources New Energy soared after its listing, but the industry is caught in the dilemma of growing bigger without making profits.
Yujian Energy learned that on July 2nd, China Resources New Energy was listed on the Shenzhen Stock Exchange. During the session, it once soared by more than 198%, and closed up 136.89%, with a market value of 311.5 billion yuan. The fundraising amount of 24.5 billion yuan set a new record on the Shenzhen Stock Exchange.
However, these figures cannot hide an embarrassing fact: The installed capacity increased by 64% in three years, but the net profit attributable to the parent company dropped from 8.28 billion yuan to 6.102 billion yuan, a decrease of 26%. In the first quarter of 2026, the net profit decreased by another 31% year - on - year. The company expects the net profit in the first half of the year to be between 3.3 billion and 3.8 billion yuan, a year - on - year decrease of 19% to 29%.
A leading new energy company among central state - owned enterprises is experiencing a collective dilemma in the industry of "growing bigger but making less money".
The same script, different endings
Let's first look at two reference cases.
Three Gorges Energy was listed on June 10th, 2021, with an issue price of 2.65 yuan. It hit the daily limit on the first day and then had six consecutive daily limit up days. The increase exceeded 200% within nine trading days. On the ninth trading day after listing, it experienced a sharp drop from the daily limit up to the daily limit down, but it still couldn't stop the enthusiasm of funds.
Longyuan Power achieved A - share listing through a share - swap merger on January 24th, 2022. It broke below the issue price at the opening on the first day and closed down 22.87%. It dropped 26.3% from the issue price within two trading days. The signboard of the world's largest wind power operator couldn't hold up on its first day in the A - share market.
Both are new energy power generation platforms of central state - owned enterprises. One is getting stronger, while the other collapsed on the first day. What's the difference? Valuation.
Longyuan Power's price - to - book ratio exceeded 4 times when it returned to the A - share market, while the price - to - book ratio of new energy power operators in the A - share market was generally around 2 times at that time. The pricing was too high, and the market didn't buy it. The issue price of Three Gorges Energy was low, leaving enough room for the secondary market.
The issue price - to - earnings ratio of China Resources New Energy is 21.99 times, and the industry average is 20.86 times. It's not outrageous, but it's not cheap either. The key is that the market gave it a price - to - earnings ratio of 50 times on the first day — The price - to - earnings ratio corresponding to the closing price has exceeded 50 times.
For a company with a net profit of 6.1 billion yuan in 2025 and an expected year - on - year decrease of 19% to 29% in the net profit in the first half of 2026, the market gives it a price - to - earnings ratio of 50 times. One has to ask, what exactly supports this valuation?
The era of "guaranteed quantity and price" ends, and the electricity price drops by 0.3 yuan in three years
Let's first look at the profit.
Put simply, China Resources New Energy's business is to build wind turbines and install solar panels, and sell electricity to the State Grid and China Southern Power Grid.
In the past three years, the average on - grid electricity price of wind power has dropped from 0.45 yuan per kilowatt - hour to 0.35 yuan per kilowatt - hour, and that of photovoltaic power has dropped from 0.37 yuan to 0.28 yuan. Selling each kilowatt - hour of electricity for 0.1 yuan less, multiplied by the annual power generation of tens of billions of kilowatt - hours, means tens of billions of yuan in profits evaporate.
Why did the electricity price drop? This has to do with Document No. 136, a much - talked - about document.
In January 2025, the National Development and Reform Commission and the National Energy Administration jointly issued Document No. 136, ending the era of "guaranteed quantity and price" for new energy. Previously, 85% of the electricity generated by new energy power generation projects was purchased at the benchmark coal - fired price; after that, all incremental projects entered the power market, and the electricity price was determined by the market.
What's the result of the market - determined price? In the electricity price bidding mechanism for new energy in Shandong, the price of wind power is only 0.319 yuan per kilowatt - hour, and that of photovoltaic power is only 0.225 yuan per kilowatt - hour. Negative electricity prices even appeared in some areas.
The proportion of guaranteed on - grid electricity of China Resources New Energy has dropped from 70.38% in 2023 to 49.64% in 2025. Half of the electricity is exposed to market price fluctuations.
But this is not just a problem for China Resources New Energy. Statistics show that the average net profit of five central state - owned enterprises with pure new energy assets for power generation decreased by 40% in 2025. Three Gorges Energy's total profit decreased by 41.55% year - on - year in 2025. The financial reports of Longyuan Power and Three Gorges Energy in the first quarter of 2026 both show that the power generation and profit levels of the wind power sector have decreased to varying degrees.
The entire industry is experiencing the same pain.
19.519 billion yuan in subsidy payments are "frozen" on the books, and only half of the funds are raised for the 40 - billion - yuan new project
A more hidden risk than the drop in electricity price is the inability to collect money.
As of the end of 2025, China Resources New Energy's accounts receivable for subsidies reached as high as 19.519 billion yuan, accounting for 71.91% of current assets. This money is the receivable renewable energy subsidy, and the payment cycle is usually 1 to 4 years. Nominally, it is an asset, but in fact, it is cash that is occupied for a long time.
Subsidies used to be an important source of income for China Resources New Energy. From 2023 to 2025, the company recognized subsidy income of 6.479 billion yuan, 6.492 billion yuan, and 3.974 billion yuan respectively, and the proportion of subsidy income in revenue dropped from 31.59% to 17.35%. The subsidies are declining, and the money is still on the way.
Meanwhile, the asset - liability ratio has climbed from 54.8% in 2023 to 59.98%. The annual interest expense exceeds 2.4 billion yuan, accounting for more than 10% of the revenue.
The bigger problem is the capital gap. The total investment amount of this fundraising project exceeds 40 billion yuan, and the 24.5 billion yuan in raised funds can only cover about half. From 2023 to 2025, the net cash outflow from investment activities was about 96.7 billion yuan, while the net cash inflow from operating activities was about 49.4 billion yuan. 96.7 billion yuan was spent on building power stations in three years, but only 49.4 billion yuan was earned back. How to make up for the difference? By borrowing money.
High debt, high accounts receivable, and high capital expenditure — the superposition of these three pressures is a test for any heavy - asset enterprise.
It is still the most resilient one in the industry
Having talked about so many problems, one fact cannot be ignored: China Resources New Energy is still one of the enterprises with the highest operating efficiency in the industry.
As of the end of 2025, its controlled grid - connected installed capacity was 41.5899 million kilowatts, ranking fourth in the industry after Huadian New Energy, Longyuan Power, and Three Gorges Energy. Its business covers 31 provinces across the country.
Its operating efficiency has always been among the top in the industry. In 2025, the average utilization hours of wind power were 2,307 hours, 16.6% higher than the industry average of 1,979 hours; for photovoltaic power, it was 1,295 hours, 19% higher than the industry average of 1,088 hours. With the same installed capacity, it can generate nearly 20% more electricity than its peers.
This is due to China Resources New Energy's key layout in regions with good power consumption such as the Beijing - Tianjin - Hebei region, the Yangtze River Delta, and the Guangdong - Hong Kong - Macao Greater Bay Area. Against the background of the rising rate of wind and solar curtailment in the industry as a whole, this strategy of "taking into account both resource endowment and consumption conditions" has enabled it to maintain a relative advantage.
In terms of cash flow, the net cash flow from operating activities increased steadily from 13.7 billion yuan in 2023 to 20 billion yuan in 2025. The profit is falling, but the cash flow is rising — which shows that the quality of earnings is solid and the money earned is real.
In terms of R & D, the company holds 566 domestic patents, covering the entire business process such as wind farm site selection, power prediction, and intelligent operation and maintenance.
The most crucial thing is that China Resources New Energy also has an irreplaceable advantage: The credit of a central state - owned enterprise. The total assets of its actual controller, China Resources, exceed 2.6 trillion yuan. Relying on the group's credit, China Resources New Energy can raise funds at an interest rate much lower than that of private enterprises.
The cumulative installed capacity of wind and solar power has exceeded 1.84 billion kilowatts, accounting for 47.3% of the country's total power generation installed capacity, historically exceeding that of thermal power. The shift of new energy from "subsidy - driven" to "market - driven" is an irreversible trend.
It must be said that China Resources New Energy has a very solid foundation: 41.59 million kilowatts of installed capacity, operating efficiency higher than the industry average, 20 billion yuan in annual operating cash flow, and 566 technological patents. But even with such a solid foundation, it has to face the dilemma of falling electricity prices, 19.5 billion yuan in accounts receivable hanging over its head, and only half of the funds raised for a 40 - billion - yuan investment.
The 24.5 - billion - yuan fundraising and the 311.5 - billion - yuan market value — these figures are very impressive. But behind these impressive figures is the embarrassment that a leading company is experiencing: It has everything good, but it's getting harder and harder to make money.
However, the market - oriented reform of electricity prices will not turn back, and the industry reshuffle has just begun. Whether China Resources New Energy can transform its operating efficiency advantage into sustainable profitability under the new "market - driven" rules is its real test.
This article is from the WeChat official account "Yujian Energy", author: Zhao Jianan. Republished by 36Kr with authorization.