Xinyi Energy Announces 2026 Interim Results

Xinyi Energy Announces 2026 Interim Results

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Leveraging Strong Financial Position to Weather Macro Challenges

Positioning in Overseas Markets for Future Growth

(31 July 2026, Hong Kong) – Xinyi Energy Holdings Limited (“Xinyi Energy” or the “Group”; Stock Code: 03868), a leading non-state-owned renewable energy projects owner and operator in the PRC, today announced its unaudited interim results for the six months ended 30 June 2026 (“1H2026” or the “Period”).

During the Period, the Group recorded revenue of RMB1,051.7 million (1H2025: RMB1,210.2 million), mainly attributable to the impact of the weather, higher curtailment losses arising from grid consumption constraints, lower market electricity prices in the market-based electricity trading, and the revenue in Xinyi Solar (Tianjin) was no longer included in the consolidated revenue following the disposal of a 51% equity interest last year, partially offset by the additional electricity sales contributed by the 2025 Portfolio after its full operation in 2026, together with the new revenue generated from the Group’s newly acquired subsidiaries in New Zealand during 1H2026. The revenue contribution from sales of electricity was RMB663.3 million (1H2025: RMB740.5 million), accounting for 63.1% of the Group’s total revenue.

The Group’s gross profit was RMB544.1 million (1H2025: RMB747.4 million), mainly due to the reduced revenue together with the higher cost of sales. Overall gross profit margin was 51.7% (1H2025: 61.8%).

Net profit attributable to equity holders of the Group was RMB320.0 million (1H2025: RMB449.8 million). Net profit margin was 30.4% (1H2025: 37.2%). Basic earnings per share attributable to equity holders of the Company were 3.76 RMB cents (1H2025: 5.37 RMB cents).

The Board proposed the distribution of an interim dividend of 2.1 HK cents per share (1H2025: 2.9 HK cents per share). The dividend payout ratio is 48.5%.

During the Period, the Group’s financial position remained healthy. As at 30 June 2026, the cash and cash equivalents balance was RMB780.0 million. Net cash generated from operating activities increased to RMB429.5 million (1H2025: RMB309.0 million), driven by the Group’s profit before income tax, as well as reductions in interest paid and income tax paid during the Period. In addition, to effectively control financing costs, the Group continued to flexibly utilise long-term onshore bank loans and short-term offshore loans to meet its funding needs. This not only effectively eased short-term repayment pressure but also helped lower the average loan interest rate, thereby reducing overall interest expenses. As of 30 June 2026, the proportion of short-term borrowings was 32.4% (31 December 2025: 30.1%). This reflects the Group’s continued maintenance of a robust capital structure and the ongoing enhancement of its loan management and risk control capabilities.

As of 30 June 2026, the Group owned utility-scale renewable energy generation projects with an aggregate approved capacity of 4,630.5 MW, of which 1,624 MW were under the subsidised regime and 3,006.5 MW were under the grid-parity regime. With the continuous increase in the number of grid-parity projects and a steady rise in project cash returns, the Group’s operating cash flow has continued to improve, while its liquidity and financial stability have also been enhanced. To further diversify the geographical coverage of its renewable energy projects, the Group completed the acquisition of a company incorporated in New Zealand during the Period. It is expected to support the Group in expanding its renewable energy business in New Zealand. Separately, the construction of the 100 MW large scale renewable energy project in Malaysia, for which a joint venture of the Group had successfully won the bid earlier, is expected to achieve grid connection by the end of this year.

Mr Lee Shing Put, B.B.S., Chairman and Executive Director of Xinyi Energy, concluded, “In the first half of 2026, in response to periodic market volatility, the Group advanced both short-term countermeasures and medium-to-long-term strategic initiatives. As for the medium-to-long-term strategy, the Group will scale up the execution of medium-and-long-term power purchase agreements with end users and electricity retailers to lock in electricity selling prices and revenue bands, so as to mitigate risks brought by price fluctuations in the power market. On the short-term strategy front, the Group has set up a dedicated team for market-based electricity trading, developed an electricity trading platform, and integrated power forecasting models with AI analysis systems to enhance real-time analysis capabilities on electricity price movements and supply-demand shifts, lifting decision-making efficiency and operational flexibility accordingly.

“During the Period, the Group received aggregate subsidies of approximately RMB201.1 million in respect of renewable energy projects enlisted on the Renewable Energy Power Generation Project List, which effectively strengthened its cash flow and further enhanced its financial resilience. At the same time, against the backdrop of long-term policy dividends arising from the photovoltaic industry's ‘anti-involution’ governance and the 15th Five-Year Plan, the Group will continuously optimise its capital structure and asset portfolio, and prudently pursue high-quality new renewable energy investment opportunities both at home and abroad, so as to broaden its international business coverage and revenue streams, and strengthen its global presence in the renewable energy sector. The Group will focus on selecting projects with strong growth potential and robust cash flow profiles to build a more resilient investment portfolio, improve overall asset returns, and sustainably create long-term value for shareholders.”