Sichuan New Energy Power Company (000155) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥1.49 billion, down 17.58% year-over-year, with net profit attributable to shareholders at ¥306 million, a 51.70% decrease year-over-year, mainly due to reduced wind and solar power output and lower market electricity prices.

• Wind and solar power generation volume dropped 24.16% year-over-year due to grid upgrades and maintenance, but these issues have since been resolved.

• The company maintained leading wind resource utilization and continued to expand installed capacity, with total operational and under-construction wind/solar projects reaching 3.37 GW.

• The lithium business advanced, with the new 30,000 tpa lithium salt project entering trial production and the Lijiagou lithium mine achieving design throughput.

Financial highlights

• Operating income: ¥1.49 billion, down 17.58% year-over-year.

• Net profit attributable to shareholders: ¥306 million, down 51.70% year-over-year.

• Gross margin for wind/solar power: 67.58%; lithium business: 3.15%; waste-to-energy: 44.77%.

• Operating cash flow: ¥538 million, down 29.15% year-over-year.

• Total assets: ¥27.80 billion, up 10.19% from year-end 2024.

• Net assets attributable to shareholders: ¥10.59 billion, up 3.03% from year-end 2024.

• Basic/diluted EPS: ¥0.17, down 58.54% year-over-year.

• Non-recurring gains: ¥9.51 million, mainly from government grants and asset disposals.

Outlook and guidance

• The company expects new wind and solar projects to become new profit drivers as grid constraints have been resolved.

• Lithium salt production is ramping up, with full capacity expected after process optimization.

• The company will continue to expand in Sichuan and other regions, leveraging resource and policy advantages.