SDHS New Energy (Shandong Hi-Speed New Energy Group Limited) posted mixed interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue fell 11.18% year-on-year to RMB 2.13 billion, chiefly due to a 9.4% slide in power generation to 3.33 billion kWh and lower market-based tariffs. • Gross profit decreased 23.41% to RMB 921.81 million; gross margin contracted 6.9 percentage points to 43.3%. • Profit attributable to equity holders declined 46.20% to RMB 154.23 million; total net profit dropped 36.94% to RMB 247.70 million. • Finance costs narrowed 21.18% to RMB 439.95 million, reflecting refinancing at lower rates and early repayment of expensive debt. • Administrative expenses were trimmed 24.12% to RMB 152.20 million through cost-control initiatives.

Operational Metrics • Grid-connected installed capacity reached 5.02 GW (photovoltaic: 3.75 GW; wind: 1.27 GW). • Weighted average utilisation hours fell to 495 for centralised PV (-66 hours YoY) and 1,216 for wind (-321 hours YoY) as higher curtailment constrained output. • Electricity sales remained the core earner, contributing 94% of gross profit, while clean-heat services accounted for 5%.

Balance Sheet and Liquidity • Total assets rose 2.50% to RMB 49.76 billion; total liabilities increased 3.47% to RMB 29.80 billion. • Net assets stood at RMB 19.96 billion. • Cash and cash equivalents expanded 12.90% to RMB 5.21 billion, supported by RMB 6.40 billion in new financing drawdowns. • Interest-bearing debt (bank loans, other borrowings and corporate bonds) amounted to RMB 27.09 billion, representing a gearing ratio of 53.49%.

Capital Expenditure and Development Pipeline • Capex reached RMB 1.08 billion, primarily for PV and wind construction. • New development indicators totaling 2.89 GW (wind 1.96 GW; PV 0.93 GW) were secured, lifting approved or under-construction capacity above 7.8 GW. • Key ongoing projects include the 287.5 MW Dingtao wind project, 212.5 MW Mudan Phase II wind project, and 300 MW PV bases in Jiangsu and Shanxi.

Strategic Focus Management is advancing a dual-core model of “enhancing wind, stabilising solar,” prioritising rapid conversion of indicators to grid-connected assets. Operational upgrades—automation, minimally-manned stations, and predictive maintenance—aim to mitigate curtailment and price volatility under China’s fully marketised power-trading regime.

Outlook The company targets accelerated grid connections, expansion in energy-storage and “source-grid-load-storage” demonstrations, and deeper power-trading capabilities to offset continued tariff and curtailment pressures. No interim dividend was declared.