New energy M&A retrospective adjustment: Longyuan Power’s 2025 revenue and net profit slightly increased by 0.25%, with interest expenses of 35.03 billion yuan, accounting for 99.84% of the total financial expenses.

Ask AI · How do acquisition retrospective adjustments affect Longyuan Power’s true performance evaluation?

Blue Whale News, April 1: On March 31, Longyuan Power released its 2025 performance report. The data shows that the company’s revenue for the full year was 37.16 billion yuan, up 0.25% year over year; net profit attributable to shareholders was 6.36 billion yuan, up 0.15% year over year. These growth rates all stem from accounting retrospective adjustments arising from corporate mergers under the same control. It is reported that the company has successively completed the acquisitions of 64% equity in Junan New Energy and 60% equity in Hukou Wind Power, and accordingly restated the financial statements for the comparative period in 2024.

Net cash flow from operating activities was 17.11 billion yuan, up 0.28% year over year. The company’s report clearly states that this change “is entirely due to accounting policy retrospective adjustments, and not due to any changes in the actual operational cadence or the efficiency of collections during the period.”

Financial expenses totaled 3.51 billion yuan, including interest expenses of 3.50 billion yuan, accounting for 99.84% of total financial expenses; interest income was only 104 million yuan. The scale of interest expenditure is significantly higher than the R&D investment of 209 million yuan in the same period, which is only about 5.97% of the former.

R&D investment as a percentage of operating revenue was 0.56%, and this ratio remains the same before and after the retrospective adjustment. However, this period’s report does not provide the amount of R&D expenses for 2024 or the year-on-year change, nor does it disclose the number of R&D personnel and how that number changed.

Debt structure continues to face pressure. As of the end of 2025, the company’s short-term debt was 28.23 billion yuan, long-term debt was 95.31 billion yuan, totaling 123.55 billion yuan, accounting for 72.11% of total liabilities of 171.34 billion yuan. The asset-liability ratio was 66.49%, and the current ratio was 0.71—both of which have changed compared with before the adjustments.