Shunfeng International faces going concern doubts amid revenue drop, mounting debt

Shunfeng International Clean Energy Limited announced its interim results for the six months ended June 30, 2025, reporting revenue of RMB67,485,000, an 18.6% decrease from RMB82,875,000 in the same period of 2024. This decline was primarily attributed to a 19.3% reduction in power generation volume in the PRC. Gross profit fell by 44.3% to RMB13,226,000, down from RMB23,693,000 in the prior year. The company recorded a net loss of RMB210,689,000, a slight improvement from RMB219,004,000 in 2024.

The company's financial position remains precarious, with net current liabilities of RMB2,713,220,000 and net liabilities of RMB2,119,261,000 as of June 30, 2025. Total borrowings repayable within one year or on demand amounted to RMB1,925,266,000, including overdue obligations of RMB995,423,000 in bank and other borrowings and RMB585,372,000 in bond payables. Cash and cash equivalents stood at RMB3,406,000.

The report highlighted material uncertainties regarding the group's ability to continue as a going concern, citing ongoing litigation with bondholders and a winding-up petition filed against the company in Hong Kong. Efforts to improve liquidity include possible disposals of subsidiaries and negotiations with creditors for refinancing or extensions of due dates.