Xinyi Energy's 1H2022 Revenue Increases by 13.1% YoY Despite Market Volatility
Distributable Income Records an Increase of 7.1% YoY with the Interim Dividends of 7.7 HK Cents per Share
(1 August 2022, 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 unaudited interim results for the six months ended 30 June 2022 (the "1H2022" or the "Period" ).
During the 1H2022, the Group's consolidated revenue increased by 13.1% to HK$1,257.8 million (1H2021: HK$1,112.6 million) and the profit attributable to the Company's equity holders rose to HK$623.1 million (1H2021: HK$620.7 million). The steady increase in consolidated revenue was mainly attributable to the full performance and contribution of solar farm projects acquired in 2021, which contributed a total of HK$193.2 million in revenue during the Period. As at 30 June 2022, the Group owned 29 utility-scale solar farm projects, with an aggregate approved capacity of 2,534 megawatts ("MW").
The gross profit of the Group recorded an increase of 10.9% to HK$914.5 million (1H2021: HK$824.7 million), in line with the increase in revenue, mainly attributable to the greater contributions from solar power electricity generation. The overall gross profit margin of the Group was 72.7% in the 1H2022 (1H2021: 74.1%). The slight dip was primarily due to the increase in the cost of sales outweighing the increase in revenue. Basic earnings per share attributable to the equity holders of the Company was 8.66 HK cents in the 1H2022 (1H2021: 8.73 HK cents).
The Group's financial position remained healthy, with the cash and cash equivalents balance of HK$1,213.2 million and the net debt gearing ratio at 24.5% as at 30 June 2022. The Group intends to maintain a high dividend payout ratio and to distribute not less than 90% of its distributable income to shareholders each year. In the 1H2022, the distributable income increased by 7.1% YoY to HK$563.3 million, with the declared interim dividend of 7.7 HK cents per share.
The Group's acquisition plan was reluctantly deferred due to the implemented lockdown measures in many cities to slow the spread of COVID-19 in China during the Period. The Group completed an acquisition of a utility-scale solar farm project in Shaanxi Province with the approved capacity of 40MW from an independent third party in the 1H2022. Following the lifting of the lockdown measures at the end of the 1H2022, the Group plans to acquire 650MW solar farm projects from its parent company, Xinyi Solar Holdings Limited, and not less than 300MW solar farm projects from independent third parties in the second half of 2022. As of the end of July, the Group has completed the acquisition of 170MW solar farms, including the 40MW solar farm acquired in the 1H2022. The Group will propel the acquisition of the remaining targeted projects on the premise of ensuring a reasonable return during the rest of 2022.
Mr. Lee Shing Put, B.B.S., Chairman and Executive Director of Xinyi Energy, concluded, "Since the COVID-19 pandemic, the world has battled volatility and unpredictability, and these uncertainties create real-world consequences for the business planning and production of companies from all walks of life. As a company solely engaged in solar farm operation, we are glad to see that our business delivered solid growth despite a backdrop of macroeconomic uncertainty. Xinyi Energy will continuously seize opportunities to expand and strengthen its business and asset portfolio by acquiring high-quality solar farm projects from its parent company and sourcing solar farm projects from independent third parties in the PRC and abroad, thereby consistently generating substantial returns for shareholders. We will capitalise on the growing demand for renewable energy brought by energy transition and climate change mitigation to cement our position as one of the industry's leading players. "