Huadian New Energy Group Corp Ltd

Huadian New Energy Group Corp Ltd maintains a capital-intensive balance sheet typical of renewable energy infrastructure, with total assets of CNY 518.1 billion and total liabilities of CNY 381.2 billion. The company’s debt-to-equity ratio stands at 2.39, driven by long-term debt of CNY 327.3 billion against total equity of CNY 136.9 billion. Liquidity is constrained, evidenced by a current ratio of 0.51, indicating that current liabilities exceed current assets. Despite generating CNY 31.8 billion in operating cash flow, the company reports negative free cash flow of CNY -49.0 billion due to heavy capital expenditures of CNY 75.3 billion, reflecting ongoing investment in new energy projects.

Profitability metrics show a net income of CNY 7.3 billion on revenue of CNY 39.0 billion, resulting in a net margin of approximately 18.6%. Return on equity is 5.3%, while return on assets is 1.4%, suggesting modest returns relative to the substantial asset base. The valuation snapshot indicates a price-to-earnings ratio of 26.53 and a price-to-book ratio of 1.41, with an EV/EBITDA of 56.22, reflecting the market’s pricing of the company’s growth trajectory and asset quality.

The company operates through two primary segments: Wind Power and Solar Power. The Wind Power Business segment is engaged in the construction, management, and operation of wind power plants, while the Solar Power Business segment focuses on solar power plants. Both segments produce electricity and sell it to local power grid companies, creating a concentrated revenue model dependent on grid connectivity and regulatory tariffs in China.

Growth trajectory is characterized by significant capital deployment, with capital expenditures exceeding operating cash flow by a wide margin. The company’s market capitalization is approximately CNY 192.7 billion, with a share price of CNY 4.62. The substantial negative free cash flow indicates that the company is in an aggressive expansion phase, prioritizing capacity addition over immediate cash return to shareholders.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag is the negative net cash position after subtracting total debt, which underscores the leverage inherent in the business model. The company’s reliance on debt financing for capital-intensive projects exposes it to interest rate fluctuations and refinancing risks, although the low dilution risk suggests limited pressure from equity issuance.

Recent observations note that the company is headquartered in China and employs 8,562 people as of 2025-12-31. The company has 451,285 common-share holders as of 2026-03-31 and a total share float of 7,897,913,429 shares. No specific recent filing or news events were provided in the input data to detail recent operational changes or regulatory developments.