Xinte Energy (1799) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB11,743.10 million, down 33.23% year-over-year due to a sharp decline in polysilicon prices.

• Net loss attributable to shareholders was RMB887.02 million, compared to a net profit of RMB4,758.97 million in the same period last year.

• Gross profit margin dropped to 11.01%, down 35.08 percentage points year-over-year.

• No interim dividend was declared for the period.

Financial highlights

• Polysilicon segment revenue fell 53.50% to RMB5,867.11 million, with a gross loss of RMB455.97 million.

• Construction of wind and PV power plants revenue rose 17.27% to RMB3,206.64 million, gross profit up 24.25% to RMB620.36 million.

• Operation of wind and PV power plants revenue increased 9.04% to RMB1,241.73 million, gross profit up 3.63% to RMB733.24 million.

• Key equipment (inverters) revenue reached approximately RMB880 million, up 100% year-over-year.

• Net cash flow from operating activities was RMB775.16 million, down 91.90% year-over-year.

Outlook and guidance

• The company expects continued pressure on polysilicon prices, with high-cost, low-quality producers likely to exit the market.

• Plans to focus on safety, cost control, technological innovation, and expansion in wind/PV and key equipment manufacturing.

• Will enhance digitalization, intelligent management, and expand market share in inverters and energy storage.