Xinyi Energy has announced a profit warning, forecasting a 25% to 35% year-on-year decline in net profit for the first half of 2026. This compares to a net profit of 449.8 million yuan for the corresponding period in 2025.

The company attributes the expected decrease in profit primarily to several key factors. These include curtailment losses stemming from grid absorption capacity limitations in certain Chinese provinces, leading to a reduction in grid-connected electricity generation, particularly from subsidized projects.

Additionally, the implementation of China's new electricity pricing policy has increased the volume of market-based electricity trading, resulting in a decline in market electricity prices.

Furthermore, following the sale of its 51% equity stake in Xinyi Solar (Tianjin) Co., Ltd. in December 2025, Xinyi Solar (Tianjin) is no longer a wholly-owned subsidiary but has become an associate company of the group, which also impacts the financial results.