Chenfeng Tech's renewable energy lags expectations in 2024

Zhejiang Chenfeng Technology (SSE:603685) reported a decline in its lighting business in 2024, with revenues down 8.6% to ¥110.12 million and net profit falling significantly. This was due to increased competition, lower margins, and increased depreciation expenses. While the lighting segment faced headwinds, the company's new energy sector revenues grew to ¥165.74 million, but net profit fell short of projections at ¥28.69 million. This shortfall was attributed to lower-than-expected wind speeds impacting power generation at its wind farm projects and lower electricity demand from customers in its industrial parks. While short-term issues exist, the company aims to optimize its management model, strengthen cooperation among its businesses, and improve the profitability of the lighting segment. The long term goals of the company are to develop an integrated renewable energy grid, promote local energy consumption, reduce energy cost, and attract “carbon neutral” businesses to invest in the industrial park to increase the profits of the new energy sector.