Longyuan Power reports 37 percent decline in net profit for first nine months of 2026
Chinese renewable energy firm Longyuan Power saw its net profit drop to 2.82 billion yuan through September 2026, missing market expectations amid weak wind conditions.
Longyuan Power, a major renewable energy operator under the China Energy Investment Corporation, reported a net profit of 2.82 billion yuan for the first three quarters of 2026, representing a 36.83 percent decline year-on-year. The results were particularly impacted by a weak performance in the third quarter, where net profit fell to 442 million yuan, significantly below institutional forecasts.
The decline is attributed to a combination of lower wind speeds and reduced electricity market prices, which pressured revenue. Although the company expanded its solar energy capacity by 26.28 percent, a 4.97 percent drop in wind power generation resulted in an overall slight decrease in total electricity output. Profitability was further hindered by rising depreciation and amortization costs linked to the firm's expanding infrastructure, alongside the declining fair value of equity holdings.
Despite the profit slump, Longyuan Power maintained strong liquidity, with operating cash flow reaching 19.22 billion yuan, a 20.4 percent increase from the previous year. The company's asset-liability ratio stood at 65.54 percent as of late September. Analysts remain cautious as the firm navigates fluctuating wind resources and market-driven electricity pricing.