Xinyi Energy (Xinyi Energy Holdings Limited) released its unaudited results for the six months ended 30 June 2026, highlighting lower revenue and profit amid China’s ongoing transition to market-based renewable-power pricing and weaker solar generation conditions.

Revenue and Profit Performance • Revenue declined 13.1% year on year to RMB 1.05 billion, primarily due to reduced electricity sales, lower market-based power prices, higher curtailment losses and the deconsolidation of Xinyi Solar (Tianjin) following a 51% stake disposal in late 2025. • Profit attributable to equity holders fell 28.9% to RMB 320.00 million. • Basic and diluted EPS decreased to RMB 3.76 cents from RMB 5.37 cents. • Gross profit dropped 27.2% to RMB 544.11 million, with gross margin narrowing to 51.7% (1H 2025: 61.8%) as fixed depreciation costs weighed on profitability. • EBITDA stood at RMB 931.83 million, down 16.8% year on year.

Dividend • The board declared an interim dividend of HK $0.021 per share (1H 2025: HK $0.029), payable on or about 30 September 2026. • Shareholders may elect to receive the dividend in cash or new shares under a scrip dividend scheme, subject to Stock Exchange approval. • Record date: 19 August 2026; register of members closure: 17–19 August 2026.

Operational Highlights • Electricity generation volume fell 10.7% versus the prior-year period, reflecting weaker sunshine hours from El Niño, increased grid curtailment and lower prices in market-based electricity trading. • As at 30 June 2026, the Group operated 4,630.5 MW of approved renewable capacity—all utility-scale projects—of which 1,624 MW remain under the subsidised regime and 3,006.5 MW under grid-parity terms. An additional 174 MW project is held via equity method. • Renewable energy projects contributed 95.7% of total revenue; electricity sales accounted for 63.1% of group revenue, tariff adjustments 31.8%, and operation & management services 0.8%. • Acquisition: Xinyi Energy bought 87.81% of New Zealand-based RCR Infrastructure Limited and its subsidiary for RMB 74.40 million, adding electrical and HVAC service capabilities.

Financial Position • Total assets: RMB 22.07 billion (-1.5% vs 31 Dec 2025). • Equity attributable to shareholders: RMB 13.29 billion (+0.4%). • Net gearing ratio improved to 44.9% (31 Dec 2025: 47.9%). • Cash and cash equivalents stood at RMB 779.96 million. • Bank borrowings declined to RMB 6.75 billion; 32.4% are short-term facilities.

Policy and Market Context • Implementation of China’s 2025 “Reform Notice” shifted renewable tariffs from fixed to market-based, pressuring prices and increasing revenue volatility. • Newly installed photovoltaic capacity in China fell 66.0% year on year to 72.07 GW in 1H 2026 after a record 211.61 GW rush in 1H 2025. • The June 2026 “15th Five-Year Plan for the Construction of a New Energy System” targets wind and solar to exceed 50% of national installed capacity and electricity generation by 2030, supporting long-term growth. • From 1 August 2026, China’s new renewable-energy consumption quota system will mandate minimum green-power usage by high-energy industries, expected to stimulate demand.

Outlook and Strategy Management plans to: 1. Pursue medium- to long-term power purchase agreements to stabilise revenue under market-based pricing. 2. Expand overseas, with a 100 MW Malaysian project targeted for grid connection by end-2026 and additional opportunities under review. 3. Explore establishment of an infrastructure securities investment fund in mainland China to monetise part of its asset base and bolster financial flexibility. 4. Evaluate energy-storage investments following national policy support for capacity-price mechanisms.

Other Corporate Updates • Shareholders approved a final 2025 dividend of HK $0.036 per share, paid during 1H 2026 (RMB 267.67 million). • The company issued 4.00 million share options in March 2026 at an exercise price of HK $1.26; outstanding options total 13.77 million. • No share buy-backs, issuances, or redemptions of listed securities occurred during the period. • The board affirms compliance with Hong Kong’s Corporate Governance Code, and all directors confirmed adherence to the Model Code for securities transactions.