Xinyi Energy Announces 2024 Annual Results
Xinyi Energy Announces 2024 Annual Results
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Stable Results and Prudent Strategy Propel Future Operational Performance
(28 February 2025, 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, today announced its consolidated annual results for the year ended 31 December 2024 (“FY2024” or the “Year”).
During the Year, the Group’s revenue increased by 7.0% to RMB2,440.4 million (FY2023: RMB2,280.8 million), mainly attributable to the contribution from the solar farm projects acquired in 2023 and 2024, yet partially offset by electricity curtailment loss due to grid consumption constraints and the increase in the number and the volume of the Market-Based Electricity Trading. The revenue contribution from sales of electricity increased by 13.8% to RMB1,464.2 million (FY2023: RMB1,286.5 million), accounting for 60% of the Group’s total revenue.
The Group’s gross profit increased by 3.3% to RMB1,599.7 million (FY2023: RMB1,548.4 million), mainly due to the increase in the amount of revenue which outweighed the increase in the cost of sales compared with FY2023. Overall gross profit margin was 65.6% (FY2023: 67.9%).
Net profit attributable to equity holders of the Group for the Year was RMB790.1 million (FY2023: RMB898.3 million). Net profit margin for FY2024 was 32.4% (FY2023: 39.5%). Basic earnings per share attributable to equity holders of the Company were 9.55 RMB cents (FY2023: 11.36 RMB cents).
The Board has proposed to declare a final dividend of 2.7 HK cents per share. Together with an interim dividend of 2.3 HK cents per share, total dividend for the year will be 5.0 HK cents (FY2023: 6.0 HK cents per share), with a dividend payout ratio at 49.4%.
The Group’s financial position remained healthy despite facing a complex and volatile macro environment. As at 31 December 2024, it had cash and cash equivalents balance at RMB354.2 million and net cash generated from operating activities was RMB956.2 million (FY2023: RMB675.5 million). During the Year, the Group strategically increased its domestic long-term bank loans to replace its offshore short-term bank loans. As of 31 December 2024, 34.7% of its bank loans were short-term borrowings, as compared to 58.0% as of 31 December 2023. That not only effectively reduced the Group’s short-term financing pressure, but also significantly lowered the effective annualised interest rate of the bank loans. The Group’s financial position has significantly improved with stability enhanced, giving it a solid foundation to meet challenges ahead.
During the Year, the Group acquired seven utility-scale solar farm projects in the PRC from Xinyi Solar Holdings Limited (“Xinyi Solar”) and its subsidiaries, including six grid-parity solar farm projects and one project under the Fits regime, with total approved capacity reaching 860 MW. Xinyi Solar currently has approximately 1.2 GW of pipeline projects for the Group’s future acquisitions, of which 890 MW are grid-parity projects that promise to bring stable cash flow and high expected return on investment. In order to further diversify its solar farm portfolio, a joint venture of the Group has won the bid for a solar farm project in Malaysia with an approved capacity 100 MW, which is expected to be constructed in the second half of 2025. As at 31 December 2024, the Group owned 46 utility-scale solar farm projects, with an aggregate approved capacity of 4,510.5 MW, expected to reach to approximately 5,000 MW in the coming year.
Mr. Lee Shing Put, B.B.S., Chairman and Executive Director of Xinyi Energy, said, “In FY2024, the general economy and our operating environment remained volatile. Amidst both challenges and opportunities, the Group's business performance stayed consistent, demonstrating strong operational resilience and risk resistance. With the PRC remaining committed to her ‘dual-carbon’ goals, supportive policies are expected to continue and in turn create favourable market conditions. To cope with the uncertainties ahead, the Group will proactively adjust its overall operating strategy, continue to optimize its asset portfolio, enhance its capital operations, capitalize on its core strengths, and evaluate various potential market opportunities in order to create better performance and results.”