Xinyi Energy’s FY23 Revenue Increased by 8.7% YoY to HK$2,517.4 Million
Xinyi Energy’s FY23 Revenue Increased by 8.7% YoY to HK$2,517.4 Million
Proposed Final Dividend of 2.6 HK cents per Share
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2022 and 2023 Portfolios Continued Contribution
Revenue from Sales of Electricity Increased Steadily
Seize Opportunities in the New Cycle of PV Industry
Achieve Dual Growth in Business Scale and Profitability
(28 February 2024, Hong Kong) – Xinyi Energy Holdings Limited (“Xinyi Energy” or the “Group”; stock code: 03868), a leading non-state-owned solar farm owner and operator in the PRC has today announced its audited consolidated annual results for the year ended 31 December 2023 (“FY2023” or the “Year”).
During the Year, the Group’s revenue increased by 8.7% to HK$2,517.4 million (FY2022: HK$2,315.3 million), mainly due to the continuous contribution from the solar farm projects acquired in 2022 and 2023, yet partially offset by the depreciation of the Renminbi (“RMB”) against the Hong Kong Dollar (“HKD”) in 2023. Compared with the same period last year, the Group's revenue contributed by sales of electricity increased by 10.9% to HK$1,419.1 million, accounting for as high as 56.4% of the total revenue.
Gross profit recorded an increase of 4.6% to HK$1,709.2 million (FY2022: HK$1,634.2 million), primarily due to the increase in the amount of revenue which outweighed the increase in the cost of sales. The overall gross profit margin slightly decreased by 2.7 percentage points to 67.9% (FY2022: 70.6%).
Net profit attributable to equity holders of the Company during the Year was HK$993.0 million, representing an increase of 2.2% (FY2022: HK$971.5 million). Net profit margin was 39.4% (FY2022: 42.0%). Basic earnings per share attributable to the equity holders of the Company was 12.56 HK cents (FY2022: 13.30 HK cents). The Board proposed a final dividend of 2.6 HK cents per share. Together with an interim dividend of 3.4 HK cents per share, total dividend for the year will be 6.0 HK cents per share, with a dividend payout ratio of 49.7%.
The Group’s financial position remained healthy, with cash and cash equivalents of HK$645.0 million and net debt gearing ratio of 42.3% as at 31 December 2023. The Group’s total assets increased by 6.0% to HK$21,133.6 million and net assets increased by 13.1% to HK$13,307.3 million. During the Year, the Group had loan facilities secured and had drawn down from onshore bank borrowings since the first half of 2023 at lower interest rates compared to those offered by offshore banks to meet its funding requirements for new acquisitions, expecting to reduce the Group’s financing costs, while effectively reducing the risk associated with changes in financing policies and refinancing.
In 2023, the photovoltaic (“PV”) industry ushered in a new cycle, and the economic efficiency of PV power generation has been greatly improved. With a further decline in the expected installation cost, as well as increasing the energy storage ratio by the combination of solar power generation and energy storage, the power system with a high proportion of renewable energy will be realised, and the room for growth of PV power generation capacity in the medium and long term will be fully opened up, benefitting the Group’s acquisition plan. As at 31 December 2023, the Group owned 39 utility-scale solar farm projects, with an aggregate approved capacity of 3650.5 megawatts (“MW”), of which 1,926.5 MW was under the grid-parity regime. During the Year, the Group acquired from Xinyi Solar Holdings Limited (“Xinyi Solar”) 4 utility-scale solar farm projects located in the PRC under the grid-parity regime with aggregate approved capacity of 636.5 MW, of which 3 projects were completed in the second half of 2023, expecting the full performance of the 2023 Portfolio to be reflected gradually in the Group’s results in 2024. With the construction progress of pipeline projects returning to normal, the Group will carry on with the remaining acquisition from Xinyi Solar as and when consider appropriate. In the future, the Group will also identify in the market solar farm projects that promise high returns in order to ensure a steady growth in its aggregate approved capacity and revenue in 2024.
Mr. Lee Shing Put, B.B.S., Chairman and Executive Director of Xinyi Energy, concluded, “With the PRC’s strong support for the construction of the new power system for renewable energy to achieve the ‘dual-carbon’ targets, the PRC’s PV industry continued to accelerate development last year, with the annual new PV installations of 217 gigawatts (“GW”), close to the total amount of the past four years. With the favorable momentum, Xinyi Energy, as a leading pure renewable energy operator in the PRC, will continue to seek and acquire high-quality renewable energy projects assets, while enhancing operational efficiency through excellent intelligent operation and maintenance management, to achieve dual growth in business scale and profitability. Furthermore, the Group will actively capture the opportunities arising from the green electricity certificates trading, contributing to the expansion of the green electricity market as well as promoting industry development, ultimately delivering long-term and sustainable returns to shareholders.”