Investment Rating - The report assigns a "Buy" rating for the company, New Special Energy (1799 HK), with a target price of HKD 7.66, indicating a potential upside of 18.9% from the current price of HKD 6.44 [1][4][12]. Core Insights - The company is facing significant challenges, including a large impairment leading to a larger-than-expected loss. The average selling price of polysilicon has dropped significantly, impacting revenue projections for 2024 and 2025 [2][7]. - The report highlights that the controlling shareholder, TBEA, is providing substantial financial support to help the company navigate through the current downturn in the market [7]. - The report anticipates a recovery in polysilicon prices due to supply-side reforms and seasonal factors affecting electricity prices, which may improve the company's financial outlook in 2026 [7][9]. Financial Overview - Revenue is projected to decline from RMB 37,541 million in 2022 to RMB 20,788 million in 2024, with a further drop to RMB 17,657 million in 2025 before recovering to RMB 23,255 million in 2026 [3][15]. - Net profit is expected to turn negative in 2024 with a loss of RMB 3,936 million, followed by a smaller loss of RMB 248 million in 2025, before returning to profitability with a net profit of RMB 1,534 million in 2026 [3][15]. - The average selling price of polysilicon is forecasted to decrease by approximately 60% year-on-year to around RMB 38,000 per ton in 2024, significantly below the cash cost of production [7][8]. Segment Valuation - The report uses a sum-of-the-parts valuation approach, estimating the value of the power station and inverter segments at RMB 88 billion based on a 5.5x P/E ratio for 2025, while the polysilicon segment is valued at RMB 14 billion based on a capacity valuation of RMB 0.5 billion per ton [9][7]. - The total valuation amounts to RMB 102 billion, leading to a revised target price of HKD 7.66, which corresponds to a P/E ratio of 6.6x for 2026 [9][7].

Investment Rating - The report downgrades the investment rating to "Hold" with a target price of HKD 7.5, based on a valuation of 0.6x 2025 PS, corresponding to an estimated market capitalization of HKD 10.8 billion [2][4]. Core Views - The company issued a profit warning, projecting a net loss attributable to the parent company between RMB 3.8 billion and RMB 4.1 billion for 2024, compared to a net profit of RMB 4.345 billion in 2023. The primary reason for the loss is the recent slight increase in silicon material prices, which are expected to rise modestly due to short-term demand [1][2]. - The report emphasizes the need to monitor the production schedules and inventory levels of manufacturers closely, as the silicon material prices have shown a recent uptick [1][2]. Financial Summary - Revenue projections for 2024, 2025, and 2026 are RMB 19.855 billion, RMB 16.526 billion, and RMB 19.492 billion, respectively, indicating a significant decline in revenue from 2023 [2][3]. - The net profit attributable to the parent company is expected to be a loss of RMB 4.044 billion in 2024, a loss of RMB 2.325 billion in 2025, and a loss of RMB 802 million in 2026 [2][3]. - The company's earnings per share (EPS) are projected to be -2.83 yuan in 2024, -1.63 yuan in 2025, and -0.56 yuan in 2026 [3][10]. - The report highlights a significant drop in revenue and net profit margins, with a forecasted revenue decline of 35% in 2024 and a further 17% in 2025 [3][10]. Market Conditions - The report notes that the silicon material prices have recently increased to USD 4.94/kg as of March 5, 2025, and suggests that the market should be closely monitored for further developments [1][2]. - The report indicates that the average selling price of silicon material is expected to drop significantly in 2024, with a projected average price of USD 5.45/kg, down from USD 14/kg in 2023 [1][10].

Investment Rating - The report downgrades the investment rating to "Hold" with a target price of HKD 7.5, based on a valuation of 0.6x 2025 PS, corresponding to an estimated market capitalization of HKD 10.8 billion [2][4]. Core Views - The company issued a profit warning, projecting a net loss attributable to the parent company between RMB 3.8 billion and RMB 4.1 billion for 2024, compared to a net profit of RMB 4.345 billion in 2023. The primary reason for the loss is the recent slight increase in silicon material prices, which may see a modest rise due to short-term demand [1][2]. - Revenue forecasts for 2024-2026 are projected at RMB 19.9 billion, RMB 16.5 billion, and RMB 19.5 billion, respectively, with net losses expected to be RMB 4 billion, RMB 2.3 billion, and RMB 800 million [2]. Financial Summary - **Revenue**: The company reported revenues of RMB 37.54 billion in 2022, which decreased to RMB 30.75 billion in 2023, and is expected to decline further to RMB 19.86 billion in 2024, with a projected recovery to RMB 19.49 billion in 2026 [3][8]. - **Net Profit**: The net profit attributable to the parent company was RMB 13.4 billion in 2022, dropping to RMB 4.35 billion in 2023, and is expected to turn into losses of RMB 4.04 billion in 2024, with gradual improvements in subsequent years [3][8]. - **Earnings Per Share (EPS)**: EPS is projected to decline from RMB 9.37 in 2022 to RMB 3.04 in 2023, and further to -RMB 2.83 in 2024, with a gradual recovery expected thereafter [3][10]. Market Conditions - The report highlights that the silicon material prices have seen a slight increase, with the photovoltaic-grade polysilicon price rising to USD 4.94/kg as of March 5, 2025. However, the overall market remains cautious due to high inventory levels [1][2]. - The company is advised to monitor production schedules and inventory levels closely, as the silicon material prices are expected to fluctuate based on market demand [1].

Core Viewpoint - The financing winter for photovoltaic companies continues, highlighted by Xinte Energy's withdrawal of its IPO application, leading to the termination of its listing review by the Shanghai Stock Exchange [1] Company Summary - Xinte Energy planned to raise 8.8 billion yuan for a project aimed at producing 200,000 tons of high-end electronic-grade polysilicon, with a total investment of 17.59 billion yuan located in Xinjiang [2] - In the first half of the year, Xinte Energy's operating performance significantly declined due to a sharp drop in polysilicon market prices, reporting revenue of 11.74 billion yuan, a decrease of 33.23% year-on-year, and a net loss of 888 million yuan compared to a profit of 4.76 billion yuan in the same period last year [3] - Xinte Energy is a leading polysilicon manufacturer, having undergone nearly two and a half years of review processes before withdrawing its IPO application [4] - The company is expanding its polysilicon production capacity to meet growing market demand, with a new project expected to increase its capacity to 400,000 tons per year [6] Industry Summary - The current polysilicon price has reached a low point, with companies' future strategies closely tied to price movements [5] - The extent and duration of the decline in polysilicon prices have exceeded industry expectations, leading to significant losses for companies [7] - On the same day Xinte Energy withdrew its IPO, leading polysilicon producers Tongwei Co. and Daqo New Energy announced production cuts to mitigate losses and reduce operational costs [8] - Xinte Energy's polysilicon production capacity was fully released in the first half of 2024, achieving a production volume of 146,500 tons and sales of 136,800 tons, representing year-on-year increases of 92.55% and 58.86%, respectively [11]

Financial Performance - Revenue for the nine months ended September 30, 2024, was RMB 16,461.50 million[1] - Operating costs for the nine months ended September 30, 2024, were RMB 15,163.15 million[1] - Net loss attributable to shareholders for the nine months ended September 30, 2024, was RMB 1,404.62 million[1] - Total assets as of September 30, 2024, were RMB 87,895.54 million[1] Financial Data Disclosure - The financial data disclosed in the announcement is unaudited and should not be considered as an indication or guarantee of the company's financial performance[2] Regulatory Compliance - The announcement was issued by Xinte Energy Co., Ltd. in accordance with the Hong Kong Listing Rules and the Securities and Futures Ordinance[1] Board of Directors - The board of directors includes executive directors Zhang Jianxin, Yang Xiaodong, Kong Ying, and Hu Weijun, as well as non-executive directors Zhang Xin and Huang Hanjie, and independent non-executive directors Cui Xiang, Chen Weiping, and Tan Guoming[3]

Financial Performance - Xinte Energy reported a revenue of RMB 1.5 billion for the first half of 2024, representing a 25% increase year-over-year[1]. - The company achieved a net profit of RMB 300 million, up 15% compared to the same period last year[1]. - The company reported total operating revenue of RMB 11,743.10 million, with a net loss of RMB 847.82 million, and a net loss attributable to shareholders of RMB 887.02 million, indicating a substantial decline in performance compared to the previous year[23]. - The company’s total revenue for the first half of 2024 was RMB 11,743.10 million, a decrease of RMB 5,843.80 million or 33.23% compared to the same period last year, primarily due to a significant drop in polysilicon prices[32]. - The company reported a significant operating loss of RMB 953,638,451.30 for the first half of 2024, compared to an operating profit of RMB 6,435,128,206.90 in the first half of 2023[113]. - The company reported a net loss attributable to shareholders of RMB 887.02 million for the six months ended June 30, 2024, a decrease of RMB 5,645.99 million compared to a net profit of RMB 4,758.97 million in the same period last year[41]. Production and Capacity - Xinte Energy expects to increase production capacity by 30% in the next fiscal year, targeting an annual output of 260,000 tons of polysilicon[1]. - In the first half of 2024, the company achieved a polysilicon production of 146,500 tons, with sales of 136,800 tons, representing a year-on-year increase of 92.55% and 58.86% respectively[24]. - The company is expanding its production capacity in response to the growing demand for clean energy solutions, particularly in the photovoltaic sector[16]. - The company aims to enhance its operational resilience by focusing on quality improvement and cost reduction in polysilicon production amidst intensified market competition[23]. Market Expansion and Strategy - Market expansion plans include entering two new international markets by the end of 2024[1]. - The company is exploring potential acquisitions to enhance its supply chain efficiency and market presence[1]. - The company plans to increase its market presence through strategic partnerships and potential acquisitions in the renewable energy sector[16]. - The company is actively pursuing market expansion in key regions such as Jiangsu, Gansu, Xinjiang, and Heilongjiang, aligning with national policy directions[25]. Research and Development - The company is investing RMB 500 million in new technology development for green energy solutions[1]. - The company is investing in research and development of new technologies to enhance efficiency and reduce costs in energy production[16]. - Research and development expenses increased to RMB 181.17 million, up RMB 87.47 million or 93.35% year-on-year, driven by new product development and key technology projects[39]. - The company is committed to technological innovation, enhancing polysilicon product quality, and reducing production costs through research and development initiatives[61]. Financial Position and Cash Flow - The company’s capital debt ratio increased to 33.91% as of June 30, 2024, compared to 21.87% at the end of 2023, reflecting a higher reliance on debt financing[45]. - The total cash and cash equivalents at the end of June 30, 2024, were RMB 7,750.01 million, down from RMB 11,867.23 million at the end of 2023[44]. - The net cash flow from operating activities was RMB 775.16 million, a decrease of RMB 8,798.34 million or 91.90% compared to the previous year, primarily due to a significant decline in polysilicon sales prices and revenue[42]. - The company’s investment activities resulted in a net cash outflow of RMB 5,831.17 million, an increase of RMB 2,468.96 million or 73.43% year-on-year, due to enhanced capital management[43]. Employee and Governance - The company is implementing an employee stock ownership plan to align employee interests with corporate performance[12]. - The employee stock ownership plan was approved on May 5, 2022, granting 29.94 million shares to 500 participants, representing 2.09% of the total issued shares as of June 30, 2024[84][85]. - The company emphasizes employee training and development, focusing on technology innovation and core personnel training[97]. - The company has maintained compliance with corporate governance codes and has adopted a diversity policy for its board members to enhance decision-making[70][72]. Risks and Challenges - The company acknowledges risks related to policy changes that could adversely affect its operations and profitability, and it plans to actively monitor and respond to new policies[63]. - The company faces risks from polysilicon prices being below production costs due to supply-demand imbalances, prompting a focus on improving product quality and reducing costs[65]. - The company acknowledges the risk of technological disruption in the polysilicon production process and is enhancing its R&D capabilities to maintain competitiveness[66]. - The company reports that while the integration of photovoltaic and wind power has improved, issues with wind and solar energy curtailment still exist, potentially affecting operational performance[68]. Compliance and Regulatory - The company confirms compliance with OFAC commitments during the reporting period[99]. - The company is currently under review by regulatory authorities regarding the A-share issuance materials[83]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial results for the six months ending June 30, 2024[76]. Sustainability and Environmental Commitment - The company aims to achieve a significant reduction in carbon emissions as part of its commitment to sustainable energy practices[16]. - The company is actively participating in the national "14th Five-Year" energy planning, focusing on optimizing energy structure and promoting low-carbon energy supply[16].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected total return over the next 12 months that exceeds the relevant industry [3][9]. Core Views - The market may be underestimating the value of the company's power station and inverter segments, with a target price adjusted to HKD 9.93, reflecting a potential upside of 41.7% from the current price of HKD 7.01 [2][9]. - The company reported a net loss of RMB 889 million in the first half of 2023, with a significant loss of RMB 1.25 billion in the second quarter, primarily due to a sharp decline in polysilicon prices [1][2]. - The polysilicon price has stabilized and rebounded slightly since July, with expectations for further short-term price increases as supply and demand balance out [1][2]. Financial Summary - Revenue for 2023 is projected at RMB 30.75 billion, down 18.1% year-on-year, with a net profit forecast of RMB 4.35 billion, a decrease of 67.6% [3][10]. - The company expects to incur losses in 2024 and 2025, with net profits projected to be RMB -1.66 billion and RMB -742 million, respectively, before recovering to RMB 2.05 billion in 2026 [3][10]. - The estimated earnings per share (EPS) for 2024 is projected at RMB -1.16, improving to RMB 1.43 by 2026 [3][10]. Segment Performance - The polysilicon segment is expected to contribute significantly to losses, with a valuation of RMB 42 billion based on a capacity valuation of RMB 1.5 billion per ton, reflecting a 90% discount compared to peers [2][8]. - The power station and inverter segments are projected to generate profits of RMB 11 billion in 2024, contributing to a total valuation of RMB 88 billion based on a 5.5x price-to-earnings ratio [2][8]. Market Position - The company has achieved a significant increase in inverter sales, with a year-on-year growth of over 100% in both domestic and international markets, positioning it as a leader in the Chinese market [1][2]. - The company’s polysilicon production capacity is expected to reach 27.7 million tons by the end of 2024, with a sales volume of 20.3 million tons anticipated for the same year [7][10].

Financial Performance - For the six months ended June 30, 2024, the group's revenue was RMB 11,743.10 million, a decrease of 33.23% compared to the same period last year[2]. - The total loss for the six months ended June 30, 2024, was RMB 941.21 million, compared to a profit of RMB 6,442.25 million in the same period last year[2]. - The net loss attributable to shareholders for the six months ended June 30, 2024, was RMB 887.02 million, down from a net profit of RMB 4,758.97 million in the same period last year[2]. - Basic earnings per share for the six months ended June 30, 2024, were RMB -0.62, compared to RMB 3.33 for the same period last year[2]. - The board of directors recommended not to declare an interim dividend for the six months ended June 30, 2024[2]. - Total operating revenue for the first half of 2024 was CNY 11,743,103,757.41, a decrease of 33.5% compared to CNY 17,586,899,623.68 in the same period of 2023[9]. - The net profit for the first half of 2024 was a loss of CNY 847,815,451.32, compared to a net profit of CNY 5,396,362,381.00 in the first half of 2023[10]. - The total comprehensive income for the first half of 2024 was a loss of CNY 847,302,675.63, compared to a total comprehensive income of CNY 5,396,347,457.81 in the same period of 2023[13]. - The gross profit for the group was approximately CNY 1.29 billion, with a significant loss in the polysilicon segment amounting to CNY -455.97 million[18]. - Gross profit for the first half of 2024 was RMB 1,293.08 million, a decrease of 84.05% from RMB 8,106.85 million year-on-year[60]. - The overall gross margin fell to 11.01%, down 35.08 percentage points compared to the previous year, primarily due to the significant decline in polysilicon sales prices[61]. Assets and Liabilities - Cash and cash equivalents as of June 30, 2024, were RMB 9,057.10 million, down from RMB 13,501.47 million as of December 31, 2023[4]. - Total assets as of June 30, 2024, were RMB 87,150.46 million, an increase from RMB 85,929.46 million as of December 31, 2023[5]. - Total liabilities as of June 30, 2024, were RMB 46,587.18 million, compared to RMB 44,697.60 million as of December 31, 2023[7]. - Shareholders' equity totaled CNY 40,563,278,310.37 as of June 30, 2024, a decrease from CNY 41,231,860,966.80 at the end of 2023[8]. - The total liabilities and shareholders' equity amounted to CNY 87,150,462,053.40 as of June 30, 2024, compared to CNY 85,929,456,765.50 at the end of 2023[8]. - The total amount of accounts receivable at the end of the period amounted to 5,893,007,917.22, with a bad debt provision of 637,160,401.04, resulting in a net value of 5,255,847,516.18[25]. - The total bank and other borrowings rose to RMB 22,469,596,875.25, compared to RMB 22,187,235,184.64 at the beginning of the period, showing an increase in leverage[35]. - The company’s accounts payable totaled RMB 10,425,045,865.98, up from RMB 9,869,801,942.81 at the beginning of the period, indicating a rise in short-term liabilities[39]. Research and Development - The company reported a significant increase in R&D expenses, which rose to CNY 181,165,461.90 in the first half of 2024, compared to CNY 93,699,330.69 in the same period of 2023, marking an increase of 93.5%[10]. - Research and development expenses rose to RMB 181.17 million, an increase of 93.35% from RMB 93.70 million year-on-year, reflecting increased investment in new product development and key technology projects[64]. - The company received 82 authorized patents in the first half of 2024, bringing the total to 891 domestic and 7 international patents[54]. - The company participated in 123 standard formulation projects, including 6 international standards and 55 national standards[54]. - The company successfully obtained ISO 56005 certification and received national awards for its technology projects, indicating a strong commitment to innovation and industry standards[54]. Market and Competition - The company is facing increased competition in the photovoltaic industry, leading to significant pressure on product prices and a marked decline in profitability[43]. - The average selling price of polysilicon was RMB 42,300 per ton (excluding tax), a decrease of over 70% compared to the same period last year, which is below the production cost of approximately RMB 48,000 per ton, leading to a gross loss of RMB 455.97 million in this segment[50]. - The company aims to achieve a nationwide non-fossil energy power generation ratio of approximately 39% by the end of 2025, as outlined in the government's energy conservation and carbon reduction action plan[46]. - The company aims to optimize its business structure and provide high-quality, low-cost products to maintain its market position amid increasing competition in the renewable energy sector[95]. Cash Flow and Investments - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 775.16 million, a decrease of RMB 8,798.34 million or 91.90% compared to RMB 9,573.50 million in the same period last year, mainly due to a substantial decline in sales revenue[69]. - The net cash outflow from investing activities for the six months ended June 30, 2024, was RMB 5,831.17 million, an increase of 73.43% from RMB 3,362.21 million in the same period last year[70]. - The company plans to issue A-shares and invest in the construction of a 200,000-ton polysilicon project and wind and photovoltaic power stations, with no other major investment plans at this time[81]. - The company’s subsidiary, Xinte Silicon Materials, has agreed to increase capital by RMB 490 million in Xinjiang Tianchi Energy, acquiring a 49% stake to enhance power supply stability and optimize production costs[82]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[100]. - The audit committee reviewed and confirmed the group's interim performance for the six months ended June 30, 2024, in accordance with Chinese accounting standards[103]. - The interim results announcement is available on the Hong Kong Stock Exchange website and the company's website[103]. - The interim report containing all required information will be published in due course on the Hong Kong Stock Exchange and the company's website[103].

Investment Rating - The report maintains an "Outperform" rating for Xinte Energy (1799 HK) with a target price adjusted to HK$13.56 from HK$18.80, reflecting a 28% decrease [3][11]. Core Insights - In 2023, Xinte Energy reported operating revenue of RMB 30.75 billion, a year-on-year decrease of 16.5%, and a net profit attributable to shareholders of RMB 4.35 billion, down 67.4% from the previous year [8][11]. - The company's gross profit margin fell to 33.45%, a decline of 21.84 percentage points, primarily due to a significant drop in polysilicon prices [8][11]. - The production and sales volume of polysilicon reached 191,300 tons and 202,900 tons respectively, marking increases of 52% and 90% year-on-year, which helped reduce unit costs to RMB 62,000 [9][11]. - The company anticipates an annual polysilicon production of 280,000-300,000 tons in 2024, with the proportion of N-type materials expected to exceed 80% [9][11]. Summary by Sections Financial Performance - The polysilicon business generated revenue of RMB 19.5 billion in 2023, a decrease of 23.9% year-on-year [9]. - The gross profit margin for polysilicon was 36%, down 35 percentage points from the previous year [9]. - The company recorded asset impairments totaling RMB 1.53 billion, mainly due to inventory and fixed asset write-downs [10]. Business Development - In power station construction, revenue was RMB 6.3 billion, down 18% year-on-year, with a confirmed project scale of 2.2 GW [10]. - Power station operation revenue increased by 8% to RMB 2.2 billion, with a cumulative installed capacity of 3.2 GW by the end of 2023 [10]. - The company expects the cumulative installed capacity to reach 4-5 GW by the end of 2024 [10]. Profit Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is RMB 1.703 billion (-70%), RMB 2.11 billion (-77%), and RMB 2.454 billion [11]. - The report assigns a 2024 P/E ratio of 10x, reflecting an increase from the previous year's 3.5x [11].

Investment Rating - The report updates the target price to HKD 9.16, representing a 17% upside from the current price of HKD 7.85, and assigns a "Hold" rating [7][12]. Core Insights - The company is expected to incur a loss of HKD 7.8 billion to HKD 9.5 billion in the first half of 2024, compared to a profit of HKD 47.59 billion in the same period last year. Despite a 50% year-on-year increase in polysilicon sales volume and a 30% decrease in production costs, the average selling price of polysilicon has significantly dropped due to market supply and demand changes [4][9]. - The current inventory of silicon materials remains high, with prices stabilizing at around HKD 34 per KG for monocrystalline re-investment materials and HKD 32 per KG for monocrystalline dense materials. A price rebound is expected only after inventory levels drop below 150,000 tons [5][10]. - Recent regulations from the Ministry of Industry and Information Technology are expected to improve the supply-demand dynamics in the photovoltaic manufacturing industry by increasing the self-funding ratio for new and expanded projects from 20% to 30%, likely delaying many projects in the current loss-making environment [6][11]. Financial Summary - As of July 16, 2024, the company has a total market capitalization of HKD 11,226 million and total assets of HKD 85,929 million. The net asset value per share is HKD 27.87 [2][15]. - The company reported a revenue of HKD 37,541 million in 2022, with a projected decline of 18.1% in 2023 and a further decline of 31.9% in 2024, followed by a recovery of 34.3% in 2025 [7][15].