Xinte Energy (1799) H2 2024 earnings summary

Executive summary

• Operating revenue for 2024 was RMB21,212.98 million, down 31.02% year-over-year due to a sharp decline in polysilicon prices.

• Net loss attributable to shareholders was RMB3,904.88 million, compared to a net profit of RMB4,345.03 million last year.

• No final dividend was declared for 2024, reflecting the challenging market and capital needs.

• The company actively expanded wind and PV power operations and electrical equipment manufacturing to offset polysilicon market volatility.

Financial highlights

• Gross profit fell 86.55% to RMB1,361.36 million; gross margin dropped to 6.42% from 32.9%.

• Operating costs decreased 3.79% to RMB19,851.62 million.

• Impairment losses on assets rose 123.83% to RMB3,415.98 million, mainly from polysilicon and power station assets.

• Net cash from operating activities dropped 87.79% to RMB1,754.58 million.

• Gearing ratio increased to 30.55% from 21.87% year-over-year.

Outlook and guidance

• The company expects continued pressure on polysilicon prices and plans to focus on cost control, quality improvement, and digital transformation.

• Expansion in wind and PV power, and manufacturing of key equipment, will be prioritized.

• No final dividend for 2024 to preserve capital for strategic investments.