On October 8, Zhejiang Chenfeng Technology Co.,Ltd. (603685.SH) announced that its Shenyang energy storage project had completed a filing information change due to an adjustment in construction land area. The total investment has been revised down from the originally planned 700 million yuan to 655 million yuan, the construction site has been relocated to the southwest side of the intersection of Shendong Seventh Road and Zhongxing West First Street, and the construction scale has been changed to a total land area of approximately 58 mu. The project's core installed capacity remains unchanged at 200MW/760MWh, and the land for the original project has already completed delisting procedures.

The termination of the Erenhot energy storage EPC contract stands in sharp contrast to the steady progress of the Shenyang project. On August 4, Liaoning Beiwang, in partnership with Sichuan Yihe Electric Power Design, signed a 712 million yuan EPC general contracting agreement with project owner Guotian Beiwang for a 200MW/800MWh grid-side independent energy storage station. Chenfeng Technology holds a 35% equity stake in Guotian Beiwang through a wholly-owned subsidiary, making this a related-party project. As the project advanced to the financing stage, financial institutions raised additional requirements, demanding that the general contractor Liaoning Beiwang assume completion, grid connection, and financing repayment guarantee obligations beyond the original EPC contract. According to company estimates, after factoring in shareholder guarantees, the overall risk exposure could reach 827.5 million yuan, exceeding the total contract value of 712 million yuan. Project returns could not cover the potential risks, and the allocation of rights and responsibilities was clearly imbalanced. The project owner issued a letter setting a deadline for Liaoning Beiwang to sign the guarantee documents, failing which a new general contractor would be sought. After extensive negotiations, all parties signed a termination agreement on September 21, stipulating the return of funds, transfer of materials, and settlement of debts and claims. The announcement also noted that Guotian Beiwang will subsequently select a new general contracting unit and plans to coordinate with the new contractor to subcontract part of the works to Liaoning Beiwang. The contract termination is not expected to have a material impact on the company's financial results for the current period.

Main Business Transformation, Energy Storage Layout Accelerates

Chenfeng Technology was founded in 2001 and listed on the Shanghai Stock Exchange main board in 2017. It started as a manufacturer of LED lighting structural components and is a leading supplier in this niche segment. In 2023, the company established a dual-main-business strategy of "lighting structural component manufacturing plus comprehensive new energy power services," rapidly entering the wind power, photovoltaic, and energy storage sectors through "acquisitions plus self-construction," gradually transforming from a traditional manufacturer into a comprehensive green energy service provider. As of the end of 2025, the company had 191.17MW of new energy capacity in operation and 183.81MW under construction. In 2025, new energy business revenue reached 236 million yuan, rising to 20.87% of total revenue. On the financial front, in the first half of 2026, Chenfeng Technology achieved revenue of 522 million yuan, down 10.01% year-on-year, but net profit attributable to shareholders was 20.5265 million yuan, up 48.03% year-on-year, while non-recurring net profit surged 108.15%. The profit growth was mainly driven by increased contributions from the new energy segment, with electricity distribution revenue growing by more than 52%. Regarding energy storage deployment, in May of this year, Chenfeng Technology announced plans to invest a total of 1.315 billion yuan to build two independent energy storage stations in Tongliao, Inner Mongolia: an 800MWh facility in Kailu County and a 200MW/800MWh facility in Kezuozhong Banner. Construction is expected to begin in August 2026, with pre-tax investment return rates of 7.82% and 7.99%, respectively. Now, the Shenyang project has reduced costs through land use optimization, while the Erenhot project was decisively exited when risk and return became imbalanced. Both events point to the same logic: against the backdrop of tightening financing conditions for independent energy storage projects, companies are becoming increasingly sensitive to risk exposure. Whether the energy storage business can deliver expected returns on schedule will be a key variable in testing the quality of the company's second growth curve.