STOCKS | Xinyi Energy Issues Profit Warning On First-Half Net Profit Drop

Xinyi Energy Holdings (3868) said it expects first-half net profit for the six months ended June 30 to fall 25% to 35% year on year, according to Ming Pao reported. The company said the decline was due to power curtailment losses caused by grid absorption limits in some provinces, which reduced on-grid power generation, especially for subsidised projects. It also cited lower electricity market prices after the implementation of new mainland power pricing policies that increased the volume of market-based trading. In addition, after selling a 51% stake in Xinyi Solar (Tianjin) in December last year, the unit is no longer a wholly owned subsidiary and has become an associate company.