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].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected total return above the relevant industry over the next 12 months [4]. Core Views - The report highlights that the significant drop in polysilicon prices has led to attractive valuations at the cycle bottom, with expectations that prices have likely bottomed out and may rebound in the third quarter [2][3]. - The company's first-quarter performance showed a revenue of 5.6 billion RMB and a net profit of 359 million RMB, with a gross margin of 23.4% [2]. - The report suggests that the company remains competitive in the long term as a leading polysilicon producer, despite current performance pressures [3]. Financial Summary - Revenue projections for the company are as follows: 2024E: 25.48 billion RMB, 2025E: 27.88 billion RMB, 2026E: 30.87 billion RMB, reflecting a decline in 2023 and 2024, followed by growth in subsequent years [4][8]. - Net profit estimates are significantly reduced to 347 million RMB for 2024E, with a recovery expected in 2025E and 2026E [4][8]. - The report indicates a substantial decrease in production costs, with the cost per ton of polysilicon dropping to 46,000 RMB, which is competitive with peers [2][3]. Market Performance - The company's stock closed at HKD 9.20, with a target price adjusted to HKD 12.04, indicating a potential upside of 30.9% [1][3]. - The stock has experienced a year-to-date decline of 15.90%, with a 52-week high of HKD 18.62 and a low of HKD 8.17 [6].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 XINTE ENERGY CO., LTD. 新特能源股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1799） 公 告 截 至2024年3月31日止三個月未經審計之合併業績 本公告乃由新特能源股份有限公司（「本公司」）根據香港聯合交易所有限公司 證券上市規則（「上市規則」）第13.09條及《證券及期貨條例》（香港法例第571章） 第XIVA部項下內幕消息條文（定義見上市規則）作出。 本公司董事會（「董事會」）謹此宣佈本公司及其附屬公司（「本集團」）截至2024年 3月31日止三個月未經審計之合併業績。 截至2024年3月31日止三個月，本集團實現營業收入人民幣5,601.11百萬元，營 業成本人民幣4,290.09百萬元及歸屬於上市公司股東的淨利潤人民幣359.13百萬 元。於2024年3月31日，本集團資產總額人民幣87,652.27百萬元。 本公司股東及潛在投資者應知悉本公告 ...

IPO and Share Issuance - The company plans to issue up to 300,000,000 A shares, with the proposed A-share IPO to be listed on the Shanghai Stock Exchange[5] - The company's H-shares are listed on the Hong Kong Stock Exchange under the stock code 1799[4] - The company's H shares were included in the Hang Seng Composite Index and became eligible for the Stock Connect program, effective from March 13, 2023[13] - The company implemented a strategic placement plan for A-share issuance, allowing senior management and core employees to subscribe for up to 30 million A-shares[121] - The company's issued share capital as of December 31, 2023, consists of 1,053,829,244 domestic shares (73.69%) and 376,170,756 H-shares (26.31%), totaling 1,430,000,000 shares[78] - The company plans to issue A-shares to raise funds for the construction of a 200,000-ton polysilicon project in Zhundong, with a total investment expected to be RMB 17.6 billion[70] Production and Capacity Expansion - The company's Inner Mongolia project aims to produce 100,000 tons of high-purity polysilicon annually, while the Zhundong project targets 200,000 tons of high-end electronic-grade polysilicon annually[5] - The company's polysilicon production capacity increased to 300,000 tons/year with the completion of the first phase of the 100,000-ton project in Zhundong[18] - The company's polysilicon production capacity reached 300,000 tons, with sales of 202,900 tons in 2023, a year-on-year increase of 90.16%[25] - The company is investing in the construction of a 200,000-ton polysilicon project in Zhundong, with no other major investment plans announced[55] - The company plans to achieve a polysilicon production volume of 280,000–300,000 tons in 2024, with wind and photovoltaic power station construction scale of 2–3GW[57] - Polysilicon production capacity increased to 300,000 tons/year with the completion of the first phase of the 100,000-ton project in August 2023[32] - Polysilicon production volume reached 191,300 tons, an increase of 52.01% year-over-year[32] - Polysilicon sales volume reached 202,900 tons, an increase of 90.16% year-over-year[32] Financial Performance - The company achieved operating revenue of RMB 30,751.80 million, with a total profit of RMB 6,104.68 million and a net profit attributable to shareholders of RMB 4,345.03 million[22] - The polysilicon business generated revenue of RMB 19,518.13 million, accounting for 63.47% of total operating revenue, a decrease of 23.95% compared to the previous year[23] - The wind and photovoltaic power station construction business contributed RMB 6,268.05 million, representing 20.38% of total operating revenue, a decrease of 18.47% year-over-year[23] - The wind and photovoltaic power station operation business saw revenue of RMB 2,213.00 million, accounting for 7.20% of total operating revenue, an increase of 66.57% compared to the previous year[23] - The company's total assets reached RMB 85,929.46 million, with total liabilities of RMB 44,697.60 million and total equity of RMB 41,231.86 million[24] - The company's total revenue for 2023 was RMB 30,751.80 million, a decrease of 16.51% compared to the previous year[24] - The company's net profit for 2023 was RMB 5,117.52 million, a decrease of 64.26% compared to the previous year[24] - The company's basic earnings per share for 2023 were RMB 3.04, a decrease of 67.35% compared to the previous year[24] - Revenue for the period was RMB 30,751.80 million, a decrease of 16.51% year-over-year[31] - Net profit was RMB 5,117.52 million, a decrease of 64.26% year-over-year[31] - Net profit attributable to shareholders was RMB 4,345.03 million, a decrease of 67.37% year-over-year[31] - Polysilicon segment revenue was RMB 19,518.13 million, a decrease of 23.95% year-over-year[33] - Polysilicon segment gross profit was RMB 7,006.24 million, a decrease of 61.22% year-over-year[33] - Wind and solar power station construction segment revenue was RMB 6,268.05 million, a decrease of 18.47% year-over-year[34] - Wind and solar power station operation segment revenue was RMB 2,213.00 million, an increase of 66.57% year-over-year[34] - Revenue for 2023 decreased by 16.51% to RMB 30,751.80 million, primarily due to a significant drop in polysilicon prices[40] - Polysilicon segment revenue decreased by 23.95% to RMB 19,518.13 million, with average selling prices dropping approximately 60% despite a 90% increase in sales volume[41] - Wind and photovoltaic power station construction segment revenue decreased by 18.47% to RMB 6,268.05 million due to intensified market competition and reduced per-watt revenue[41] - Wind and photovoltaic power station operation segment revenue increased by 66.57% to RMB 2,213.00 million, driven by increased project scale and electricity generation[41] - Total costs increased by 24.29% to RMB 20,465.31 million, mainly due to higher polysilicon production and sales volume[42] - Polysilicon segment costs increased by 64.69% to RMB 12,511.89 million, reflecting a 90.16% increase in sales volume[42] - Gross profit decreased by 49.49% to RMB 10,286.48 million, with a comprehensive gross margin of 33.45%, down 21.84 percentage points[44] - Sales expenses increased by 11.93% to RMB 736.12 million due to expanded market development efforts[45] - Administrative expenses increased by 8.96% to RMB 987.72 million, driven by higher polysilicon production capacity[45] - Financial expenses decreased by RMB 93.34 million (13.29%) to RMB 608.80 million in 2023, primarily due to increased deposits and lower borrowing interest rates[46] - Investment income decreased by RMB 49.34 million to RMB -6.75 million in 2023, mainly due to losses from the disposal of long-term equity investments[46] - Income tax expenses decreased by RMB 1,508.11 million (60.44%) to RMB 987.15 million in 2023, driven by a significant drop in polysilicon sales prices[46] - Net profit attributable to shareholders decreased by RMB 8,969.79 million (67.37%) to RMB 4,345.03 million in 2023, due to the sharp decline in polysilicon sales prices[46] - Net cash flow from operating activities increased by RMB 1,639.26 million (12.87%) to RMB 14,371.49 million in 2023, driven by optimized procurement and reduced tax payments[47] - Net cash outflow from investing activities decreased by RMB 7,086.52 million (49.78%) to RMB 7,148.27 million in 2023, as capital expenditures for polysilicon capacity expansion were lower[48] - Net cash flow from financing activities decreased by RMB 479.54 million (28.02%) to RMB 1,231.90 million in 2023, due to increased debt repayments[49] - Cash and cash equivalents balance increased to RMB 11,867.23 million as of December 31, 2023, compared to RMB 3,409.76 million in 2022[50] - Capital expenditure for fixed assets, intangible assets, and other long-term assets totaled RMB 8,111.34 million in 2023[51] - Current assets increased to RMB 31,520.39 million as of December 31, 2023, with cash and cash equivalents accounting for RMB 13,501.47 million[51] - The company's distributable profit to shareholders as of December 31, 2023, is RMB 24,546,471,052.21[79] - Revenue for 2023 reached 30.75 billion yuan, with product sales accounting for 70.28% and engineering construction revenue accounting for 20.38% of total revenue[199] R&D and Innovation - The company's R&D projects won 2 first prizes and 1 second prize in the Xinjiang Uygur Autonomous Region Patent Awards[12] - Two R&D projects were awarded third-class achievements in the 2022 Power Construction Quality Management Activities by the China Electric Power Construction Enterprise Association[14] - Three R&D projects won first prizes in the Xinjiang Science and Technology Progress Awards[15] - The company is focusing on cost reduction and quality improvement in polysilicon production, aiming to increase the proportion of N-type materials[59] - The company is enhancing technological innovation in polysilicon production, including optimizing cold hydrogenation systems and improving energy efficiency[61] - The company is developing new technologies for power station construction and operation, including high-power string inverters and low-cost energy storage systems[62] - The company is implementing a digital transformation in safety management, aiming for 100% completion of the safety system digitalization[58] - The company is strengthening its technological innovation system and R&D capabilities to mitigate risks associated with potential disruptions in polysilicon production technology[66] Corporate Governance and Leadership - The company's registered office and headquarters are located in Ganquanbao Economic and Technological Development Zone, Urumqi, Xinjiang, China[4] - The company's website is www.xinteenergy.com, and investor relations can be contacted via phone at 86 991-3665888 or email at ir@xinteenergy.com[4] - Zhang Jianxin, aged 51, serves as Chairman and Executive Director, and General Manager of Xinjiang New Energy, holding a Ph.D. in Economic Management and a senior economist title[71] - Yin Bo, aged 45, is the Executive Director and General Manager, with a Ph.D. in Chemical Engineering and a senior engineer title[71] - Xia Jinjing, aged 43, is the Executive Director and Chief Engineer, holding a master's degree in Chemical Engineering and a senior engineer title[71] - Zhang Xin, aged 62, is a Non-Executive Director, with a college degree in Electrical Engineering and a senior mechanical and electronic engineer title[71] - Huang Hanjie, aged 45, is a Non-Executive Director, holding a master's degree and a senior accountant title[71] - Guo Junxiang, aged 53, is a Non-Executive Director, with a bachelor's degree in Industrial Economics and a senior economist title[71] - Cui Xiang, aged 63, is an Independent Non-Executive Director, holding a Ph.D. and a professor title[72] - Chen Weiping, aged 67, is an Independent Non-Executive Director, with a bachelor's degree and a professor-level senior engineer title[72] - Tan Guoming, aged 61, is an Independent Non-Executive Director, a certified public accountant in Hong Kong and the UK[72] - Chen Qijun, aged 53, is the Chairman of the Supervisory Board, with a college degree in Economic Management and senior titles in risk management and credit management[73] - The company's audited financial performance for the reporting period is detailed in the consolidated income statement on pages 110 to 112, with the financial position as of December 31, 2023, outlined in the consolidated balance sheet on pages 103 to 106[77] - The company's board of directors confirmed the effectiveness of the internal control system as of December 31, 2023, with no significant internal control deficiencies identified[181] - The company held 5 shareholder meetings during the reporting period, with all directors, supervisors, and senior management in attendance[183] - Shareholders holding 10% or more of the company's shares have the right to request the board to convene an extraordinary general meeting[184] - The company has implemented a comprehensive risk management and internal control system to ensure compliance and operational stability[179] - All directors and supervisors strictly adhered to the "Standard Code" for securities trading during the reporting period[178] - The company's internal control review focused on key risk areas such as financial management, asset management, and supplier management[180] - Shareholders holding 3% or more of the company's shares can propose temporary agenda items for shareholder meetings 10 days in advance[185] - The company's Board of Directors consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors[149] - The Board of Directors held 18 meetings during the reporting period and submitted 56 proposals to the shareholders' meeting[151] - All directors attended all 18 meetings in 2023, with no proxy attendance[152] - The board is responsible for major decisions including business plans, investment proposals, profit distribution, and capital adjustments[153] - The board has authority over external investments, asset acquisitions/disposals, and senior management appointments[154] - The company maintains separate roles for Chairman (Zhang Jianxin) and CEO (Yin Bo) to ensure independence and accountability[156] - Directors are elected for a maximum 3-year term and can be re-elected, with new appointments following a nomination committee process[157] - All directors completed at least 60 hours of professional development training in 2023, with most exceeding 80 hours[160][161] - Training topics covered corporate governance, strategic planning, new energy industry research, and anti-corruption measures[160][161] - The board oversees corporate governance policies, director training programs, and compliance with regulatory requirements[162] - The Audit Committee held 11 meetings during the reporting period, reviewing the Group's 2022 annual financial report, 2022 annual report, asset impairment provisions, and major financial information for the first and third quarters of 2023[165] - The Audit Committee reviewed and approved the strategic placement of senior management and core employees in the company's A-share issuance[165] - The Audit Committee assessed the expected upper limits of non-exempt continuing connected transactions with TBEA and TBEA Group for 2024-2026[165] - The Remuneration and Assessment Committee held 1 meeting during the reporting period, approving the 2023 director and supervisor allowance plan and the 2023 senior management compensation standards[168] - The Remuneration and Assessment Committee is responsible for formulating and reviewing the company's director and manager compensation policies and schemes[167] - The Nomination Committee is responsible for selecting and recommending candidates for the company's directors and managers, as well as setting selection criteria and procedures[168] - The Nomination Committee reviews the board's size, composition, and structure at least once a year, considering factors such as age, culture, expertise, skills, and diversity[168] - The Nomination Committee evaluates the independence of independent non-executive directors, especially if they hold positions in seven or more listed companies[168] - The Audit Committee ensures appropriate arrangements for employees to raise concerns about financial reporting, internal controls, or other potential misconduct[165] - The Audit Committee reviews the company's risk and compliance monitoring department's staffing, qualifications, experience, training, and budget[165] - The company held 1 meeting of the Nomination Committee during the reporting period to review the structure, size, and composition of the Board of Directors, as well as the independence of independent non-executive directors[170] - The Board of Directors consists of 9 members with diverse backgrounds, including 4 executive directors, 3 non-executive directors, and 2 independent non-executive directors, meeting the requirements of the Board Diversity Policy[171][172][173] - The Strategic Committee, composed of 5 directors, is responsible for researching and proposing recommendations on the company's long-term development strategy and major investment decisions[174] - All independent non-executive directors have confirmed their independence in accordance with Listing Rule 3.13, with no business dealings or significant financial interests with the company or its subsidiaries[176] - The Nomination Committee reviewed and approved the Board's structure, size, and composition, as well as the independence of independent non-executive directors during the reporting period[170] - The company's Board Diversity Policy considers factors such as gender, age, culture, perspective, educational background, and work experience when evaluating Board composition[171] - The Strategic Committee is chaired by Mr. Zhang Jianxin, the Executive Director and Chairman of the Board[174] - The company will disclose the Board composition in the Corporate Governance Report annually and monitor the implementation of the Board Diversity Policy[173] - The Nomination Committee will review the Board Diversity Policy annually and propose any necessary amendments to the Board for approval[173] - The company has established a Nomination Policy to ensure Board members possess the necessary skills, experience, and diverse perspectives for the company's business[170] - The company's internal control system covers 97.09% of the total assets and 96.17% of the total revenue in the consolidated financial statements[180] - The company paid RMB 3.3 million for the 2023 annual audit fee to ShineWing and RMB 12.59 million for the audit fee related to the proposed A-share issuance[182] - The company has made appropriate insurance arrangements for potential legal actions and liabilities faced by directors[177] - The company's employee development and training programs are detailed in its 2023 ESG report[87] - The company has established a comprehensive employee incentive system, including salary incentives, work incentives, growth incentives, and equity incentives[192] - The company has implemented internal control measures for handling and disclosing insider information, ensuring timely reporting to the board of directors[195] - The company's investor communication channels include its website, phone, fax, and email, with timely responses to shareholder inquiries[186] - The company's compensation policy includes both position-based and performance-based pay, with performance results influencing salary adjustments, promotions, and training opportunities[194] - The company adheres to the Corporate Governance Code and continuously reviews and enhances its governance practices to ensure compliance[187] - The company has a total of 8,586 employees as of December 31, 2023, with 59.55% being production staff, 13.24% R&D technicians, and 14.83% management personnel[191] - Female employees account for 18.59% of the workforce, with 1 out of 8 senior executives being female[191] - The company