Xinyi Energy Announces 2025 Interim Results - Robust Growth Proves Resilience Global Deployment Opens New Opportunities

(1 August 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 unaudited interim results for the six months ended 30 June 2025 (“1H2025” or the “Period”).

During the Period, the Group’s revenue increased by 7.7% to RMB1,210.2 million (1H2024: RMB1,124.0 million), mainly attributable to the successful acquisition of one utility-scale solar farm project during the 1H2025 and the contribution from the solar farm projects acquired in 2024 that have commenced operation, yet the increase was partially offset by electricity curtailment loss due to grid consumption constraints and the increase in the frequency and the volume of the Market-Based Electricity Trading. The revenue contribution from sales of electricity increased by 14.9% to RMB740.5 million (1H2024: RMB644.2 million), accounting for 61.2% of the Group’s total revenue.

The Group’s gross profit increased by 3.5% to RMB747.4 million (1H2024: RMB722.3 million), mainly due to the increase in the amount of revenue which outweighed the increase in the cost of sales compared with 2024. Overall gross profit margin was 61.8% (1H2024: 64.3%).

Net profit attributable to equity holders of the Group for the Period increased by 23.4% to RMB449.8 million (1H2024: RMB364.4 million). Net profit margin for 1H2025 increased to 37.2% from 32.4% in the same period last year. Basic earnings per share attributable to equity holders of the Company was RMB5.37 cents (1H2024: RMB 4.41 cents).

The Board proposed the distribution of an interim dividend of 2.9 HK cents per share (1H2024: 2.3 HK cents per share). The dividend payout ratio is 49.4%.

The Group’s financial position remained healthy despite facing a challenging macro environment. As at 30 June 2025, it had cash and cash equivalents balance at RMB374.7 million and net cash generated from operating activities up to RMB309.0 million (1H2024: RMB169.6 million). The Group has adopted a strategic shift since last year by actively increasing its exposure to long-term onshore bank loans to refinance existing short-term offshore loans, which has not only alleviated short-term financing pressure but also helped reduce the effective annual interest rate on bank loans and then lowered the overall financing costs. Notably, the effective annual interest rate on bank borrowings fell from 3.5% at the end of last year to approximately 2.9% as at 30 June 2025. As of 30 June 2025, only 33.5% of the Group’s bank loans were classified as short-term, representing a decrease from 34.7% as at 31 December 2024. The decrease reflects the Group’s strengthened capital structure and improved risk management capabilities.

As at 30 June 2025, the Group owned 47 utility-scale solar farm projects, with an aggregate approved capacity of 4,540.5 MW. During the Period, the Group acquired one utility-scale solar farm project in the PRC from Xinyi Solar Holdings Limited (“Xinyi Solar”) and its subsidiaries, with an approved capacity of 30 MW. Through the acquisition of this project, under the grid-parity regime, the Group further expands its asset portfolio in the clean energy sector. The Group has successfully won the bid of a large-scale solar farm project in Malaysia with an approved capacity of 100 MW in 2024, which is expected to be constructed in the second half of 2025, that marks a significant milestone in the Group’s expansion into the Southeast Asian market. In addition, Xinyi Solar currently has approximately 1.2 GW of pipeline projects for the Group’s future acquisitions, of which 860 MW are grid-parity projects. With the continuous increase in the number of grid parity projects and the steady rise in project cash returns, the Group’s operating cash flow has continued to improve, while liquidity and financial stability have also been enhanced.

Mr. Lee Shing Put, B.B.S., Chairman and Executive Director of Xinyi Energy, concluded, “In the first half of 2025, despite the PV industry experiencing short-term cyclical adjustments and market fluctuation, the Group continued to demonstrate strong risk resistance, recording steady growth in business performance. Driven by the country’s ‘dual carbon’ goals and supportive policies, the PV market is expected to enter a new growth cycle, opening up room for long-term and high-quality growth of the Group. Currently, the Group is actively adjusting the operating strategies to strengthen its adaptability to Market-Based Electricity Trading, including planning to enter into mid-to-long-term power purchase agreements with end users or retailers to stabilise electricity sale prices and secure the revenue ranges, plus leveraging our market-based trading team to enhance real-time analysis of electricity price trends and supply-demand dynamics to improve decision-making efficiency and operational flexibility. Moreover, the Group will persist with its ‘asset light’ strategy and continue to refine its asset structure. Capitalizing on the international operational experience of the PV project in Malaysia, we will actively explore potential overseas opportunities such as Japan and other regions across APAC, while prudently evaluating our global expansion plans. Looking ahead, Xinyi Energy will continue to uphold its robust and efficient financial and operational strategies and push forward in steady strides its investment, acquisition and expansion plans at home and overseas so as to create sustainable long-term value for shareholders as well as contribute to the global transition to green energy.”