Xinyi Energy Holdings Limited (03868) released its audited final results for the year ended 31 December 2025, reporting revenue of RMB2.45 billion, a 0.5% increase over the same period in 2024. Profit attributable to equity holders rose by 27.8% to RMB1.01 billion, bolstered by contributions from newly acquired renewable energy projects despite certain electricity curtailment constraints.

According to the announcement, sales of electricity generated RMB1.53 billion, while tariff adjustment contributed RMB0.92 billion. The overall growth in revenue was primarily driven by additional capacity in the 2024 and 2025 portfolios. Yet the slight revenue increase of 0.5% reflected the impact of curtailment loss and shifts toward market-based electricity trading. Gross profit for 2025 was RMB1.52 billion, down 5.2% from 2024. The Group’s gross profit margin stood at 61.8%, compared with 65.6% a year earlier.

Net profit attributable to equity holders reached RMB1.01 billion, up 27.8% year on year, supported by a one-off gain from the partial disposal of a subsidiary, reduced finance costs, and lower income tax expenses. During 2025, the Group strengthened its capital structure by relying more on domestic long-term borrowings, with short-term borrowings accounting for only 30.1% of total bank loans at year-end.

As of 31 December 2025, total assets were RMB22.42 billion, and net assets were RMB13.24 billion. Cash and cash equivalents stood at RMB0.95 billion, reflecting improvements in operating cash flow driven by the ongoing collection of electricity subsidies. The Group’s net debt gearing ratio declined from 55.8% to 48.1%, attributed to increased cash on hand and a measured approach to borrowing.

In line with China’s shift toward market-based electricity reforms and the pursuit of carbon reduction targets, Xinyi Energy actively adjusted its business and operational strategies. The Group expanded by acquiring solar farms from Xinyi Solar Holdings Limited and one wind farm, and it disposed of a 51% stake in a utility-scale solar project to an independent party. The Group also initiated the construction of a large-scale solar farm project in Malaysia through a joint venture and remains open to exploring additional overseas opportunities.

The Board has proposed a final dividend of 3.6 HK cents per share for 2025, subject to shareholder approval at the upcoming annual general meeting. If approved, shareholders may opt to receive the dividend entirely in cash or participate in a scrip dividend scheme.