Xinte Energy (1799) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB7,310.83 million, down 37.74% year-over-year, mainly due to a sharp decline in polysilicon sales and prices.

• Net loss attributable to shareholders was RMB256.29 million, a significant reduction from RMB887.02 million loss in the same period last year, driven by improved performance in wind and PV power segments and investment income from thermal power plants.

• Gross profit margin decreased to 9.14% from 11.01% year-over-year, reflecting continued pressure on polysilicon pricing.

• The company continued to invest in R&D, digital transformation, and expansion of wind/PV power and key equipment manufacturing.

• No interim dividend was declared for the period.

Financial highlights

• Polysilicon segment revenue dropped 83.32% year-over-year to RMB978.72 million; output fell 77% to 33,600 tons.

• Wind and PV power plant construction revenue rose 4.18% to RMB3,340.56 million; operation revenue increased 5.17% to RMB1,305.87 million.

• Electrical equipment segment revenue grew 36.98% to RMB1,463.78 million, reflecting higher inverter sales.

• Group costs decreased 36.44% to RMB6,642.31 million, mainly due to lower polysilicon sales.

• Net cash outflow from operating activities was RMB856.53 million, compared to an inflow of RMB775.16 million last year.

• Net cash inflow from financing activities surged to RMB6,145.51 million, up 556.43% year-over-year, due to capital injections and reduced debt repayment.

• Major capital expenditure was RMB3,277.48 million for fixed and intangible assets.

• Gearing ratio increased to 37.31% from 30.55% at year-end 2024.

• Inventory turnover days rose to 124.01.

Outlook and guidance

• The company expects global electricity demand to grow at 3.9% annually through 2027, with renewables meeting 95% of new demand.

• Plans for the second half of 2025 include strict cost control, quality improvement, digitalization, and leveraging upstream/downstream synergies.

• Focus on safety, innovation, and talent development to drive high-quality growth.

• Will leverage upstream/downstream synergies and innovation to enhance competitiveness amid ongoing PV industry supply-demand imbalance.