The pressure of climate change and policy guidance has attracted plenty of enterprises to expand their renewable energy business, presenting an opportunity to investigate whether latent information can contribute to improved performance in their transformation. This context also offers a broader application scenario for studying information management theory. Therefore, this paper explores the above topic using business data from listed Chinese renewable energy companies between 2003 and 2021, focusing on three aspects of latent information related to diversification. The findings reveal that: 1) Market power information plays a fundamental role in explaining the performance enhancement from renewable energy business expansion, and non-dedicated resource information is a significant factor for understanding the enhancement, whereas agency problems have no significant effect. 2) The latent information exhibits notable heterogeneity concerning the expansion of renewable energy business among enterprises with different transformation backgrounds.