Xinjiang Lixin Energy Co. Ltd. A

On August 26, the A-share market fluctuated lower in the afternoon. The Shanghai Composite Index rose 0.59 percent to 3,912.52 points, the Shenzhen Component Index rose 0.69 percent to 13,841.33 points, the ChiNext Index rose 0.51 percent to 3,414.88 points, and the Beijing Stock Exchange 50 Index rose 0.45 percent to 1,067.97 points. Total turnover across the three exchanges reached 1.8218 trillion yuan, down 22.4 billion yuan from the previous session. In the afternoon, the power sector strengthened. Lixil New Energy surged in a straight line and hit the daily limit up within one minute, closing at 13.52 yuan per share with a total market value of 12.619 billion yuan. Earlier, Xinzhonggang and Chenzhou Electric Power International had already hit their daily limit up, while Huadian Liaoning Energy and GCL Energy rose in tandem. On the news front, the 2026 Green Computing and Artificial Intelligence Conference opened in Hohhot on August 22. Data showed that in 2025, electricity consumption by China's computing facilities reached 170 billion kilowatt-hours, up about 30 percent year on year. The National Energy Administration expects that during the 15th Five-Year Plan period, national computing electricity consumption will increase by an average of more than 100 billion kilowatt-hours per year. Lixil New Energy mainly operates wind power and photovoltaic power generation. In the first half of the year, its operating revenue was 644 million yuan, up 29.75 percent year on year, and net profit was 73.0239 million yuan, up 715.75 percent year on year. The profit growth was mainly driven by the grid connection and operation of the Xinjiang power transmission project by an associated company and an increase in new energy subsidy payments received.

Lixinnengyuan released its 2026 interim report, with net profit attributable to the parent company of 73.0239 million yuan, a year-on-year increase of 715.75%. Total operating revenue was 644 million yuan, up 29.75% year-on-year. Net cash inflow from operating activities was 284 million yuan, up 84.63% year-on-year, achieving growth for two consecutive years. At the end of the reporting period, the asset-liability ratio was 74.89%, down 5.94 percentage points from the same period last year. Gross margin was 32.51%, up 8.99 percentage points from the previous quarter. ROE was 2.36%, up 2.06 percentage points year-on-year. Diluted earnings per share were 0.08 yuan, up 714.58% year-on-year.

Lixinnengyuan has released its 2026 half-year report, showing recurring net profit jumped 1,568.33% year-on-year in the first half. The company achieved operating revenue of 644 million yuan, up 29.75% year-on-year; net profit attributable to shareholders of 73.02 million yuan, up 715.75%; and recurring net profit of 70.31 million yuan, landing in the higher range of its earnings forecast. The profit growth was mainly driven by increased investment income as the third channel project for transmitting Xinjiang power to other regions, in which an associated company participates, gradually connected to the grid, as well as a reduction in credit impairment losses due to higher collections of new energy subsidies. Following the earlier earnings forecast, the company's share price hit the daily upper limit seven times in nine trading sessions, surging nearly 120% cumulatively, with the latest total market capitalisation at approximately 12.3 billion yuan. The company also cautioned that the expansion of market-based electricity trading and declining electricity prices could affect future performance, and that as of the end of June, outstanding subsidy receivables stood at about 3.135 billion yuan, accounting for 95.38% of accounts receivable, posing a risk of further impairment provisions.

As of now, 22 companies in the Shenzhen-listed utilities sector have disclosed earnings forecasts. More than half reported year-on-year profit growth, and 10 saw net profit rise by over 50%, with overall profitability improving markedly. Qianyuan Power expects first-half net profit attributable to the parent of 220 million to 255 million yuan, up 73.01% to 100.54% year on year, with power generation reaching 4.036 billion kilowatt-hours, a 26.10% increase. Chuanneng Power expects net profit attributable to the parent of 650 million to 720 million yuan, up 112.41% to 135.29%, mainly driven by the commissioning of lithium mining and lithium salt projects and the grid connection of wind power projects. Fuchun Environmental Protection expects net profit attributable to the parent of 298 million to 335 million yuan, up 60% to 80%, with higher product prices in the non-ferrous metal resource recycling business as the main driver. Lixin Energy expects net profit attributable to the parent of 60 million to 80 million yuan, up 570.26% to 793.68%, as the grid connection of a joint venture's outbound power transmission project from Xinjiang led to a sharp increase in investment income. Changyuan Electric Power expects net profit attributable to the parent of 149 million to 215 million yuan, up 57.14% to 126.74%, benefiting from lower standard coal unit prices and higher average electricity selling prices. Hunan Development expects net profit attributable to the parent to rise 318.91% to 391.77% year on year, following the completion of a major asset restructuring that brought four hydropower companies into the consolidated financial statements and significantly expanded hydropower installed capacity. Overall, in the first half of 2026, the Shenzhen-listed utilities sector achieved broad-based growth across sub-sectors such as power, new energy, and environmental protection. Many companies benefited from multiple tailwinds including project commissioning, abundant water inflows, lower fuel costs, and asset restructurings, delivering relatively rapid profit growth.

On July 23, the three major A-share indexes opened higher across the board, with the ChiNext Index up 0.54%. In Hong Kong, the Hang Seng Index and Hang Seng Tech Index rose. As of press time, GigaDevice rose nearly 4%, Zhipu rose nearly 3%, Kingboard Laminates and Akeso rose over 2%, SMIC and Hua Hong Semiconductor rose over 1%, while Xiaomi fell over 1%. On the sector front, sports concepts were active, with Shuhua Sports hitting the daily limit up. In news, the General Administration of Sport of China released the first national-level special plan themed on building a sporting powerhouse, proposing that the total scale of the sports industry exceed 7 trillion yuan by 2030. MLCC concepts strengthened, with Fenghua Advanced Technology hitting the daily limit up. The power sector was active again, with Lixinyuan surging to the daily limit up and achieving six consecutive daily limit ups. Computing power leasing concepts were repeatedly active, with Meili Cloud hitting four consecutive daily limit ups. Oil and gas concepts remained active, with Zhongman Petroleum hitting three daily limit ups in four days. International oil prices rose rapidly, with New York crude oil futures briefly up over 5% to 95.18 US dollars per barrel. In addition, optical fiber concept stocks and liquid cooling server concept stocks also saw gains.

Lixiang New Energy hit its daily limit within less than 3 minutes of the market open, achieving five consecutive limit-up days. The company previously released its semi-annual earnings forecast, projecting a sharp rise in performance for the first half of 2026, with net profit attributable to shareholders of the listed company expected to be between 60 million and 80 million yuan, representing a year-on-year increase of 570.26 percent to 793.68 percent. The growth was mainly driven by an increase in investment income from the grid connection and commissioning of the third-channel power generation project under the Xinjiang Electricity Transmission initiative by an associated enterprise, as well as a significant reduction in credit impairment losses due to higher collections of new energy subsidies. The company recently disclosed an announcement on abnormal stock trading activity, stating that its overall operations remain stable, while reminding investors to be aware of secondary market trading risks. On the same day, Xinneng Shares, Huadian Liaoning Energy, and Shimao Energy also hit their daily limits, while Huaguang Energy, Jiuzhou Group, and Huayin Electric Power followed with gains.

Power sector concepts strengthened intraday. Among related constituent stocks, Huayin Electric Power rose 10.07%, Jinkai New Energy rose 10.05%, Lixin Energy rose 10.04%, Fuling Electric Power rose 10.01%, and Huadian Energy rose 10.00%. According to Jiangsu Power Grid, the province's peak electricity load reached 157.59 million kilowatts, setting a new historical record. This marks the tenth consecutive year the load has exceeded the 100-million-kilowatt threshold since first breaking it in 2016. A research report from Zhongtai Securities noted that as of February 2026, 11 provinces and cities nationwide have abolished fixed time-of-use electricity pricing, and the goal of full coverage for the electricity spot market is accelerating. Electricity retailers are shifting from spread arbitrage to risk management, significantly boosting demand for ancillary services in electricity trading.

On the morning of July 17, the three major A-share indexes fell collectively. The Shanghai Composite Index dropped 1.64 percent to 3,818.59 points, the Shenzhen Component Index fell 3.7 percent, the ChiNext Index declined 4.71 percent, and the STAR Composite Index tumbled over 5 percent. More than 4,300 stocks across the market declined. The power sector bucked the trend, with Huayin Electric hitting the daily limit up in a straight line, with over 660,000 lots locked in. Leshan Electric, Guiguan Electric, Shennan Electric A, Hangzhou Thermal Power, Lixin Energy, and Ganneng also hit their daily limit up. Jiawei New Energy surged nearly 16 percent. On the news front, many regions continue to experience high temperatures. Shanghai's power grid reached a record high in maximum electricity load, and several cities in Jiangsu also set new records. Data from the National Energy Administration showed that total electricity consumption in June was 898.1 billion kilowatt-hours, up 3.7 percent year-on-year. The technology sector slumped heavily, with CPO concept stocks plunging. Demingli hit the daily limit down for three consecutive days. Dongshan Precision, Yangtze Optical Fibre, and Accelink Technologies, each with a market value of over 100 billion yuan, also hit the daily limit down. Zhongji Innolight fell over 10 percent, and Tianfu Communication dropped over 11 percent. The pharmaceutical sector also tumbled, with CRO concept stocks Zhaoyan New Drug and Asymchem hitting the daily limit down, and WuXi AppTec falling over 6 percent.

On July 17, A-shares fell across the board in morning trading. The Shanghai Composite Index dropped 1.64%, the Shenzhen Component Index fell 3.7%, the ChiNext Index lost 4.71%, and the STAR 50 Index declined 4.53%. More than 4,300 stocks in the overall market fell, but the power sector bucked the trend and moved higher. Lixiang New Energy hit its daily limit up in three minutes, with its share price reaching 8.27 yuan and its latest market capitalization at 7.7 billion yuan. It has now posted a straight-line daily limit up move for two consecutive days. Lixiang New Energy expects its attributable net profit for the first half of 2026 to be between 60 million and 80 million yuan, representing a year-on-year increase of 570.26% to 793.68%. This is mainly due to increased investment income from the gradual grid connection and commissioning of the third-channel power generation project under the Xinjiang-to-other-provinces electricity transmission scheme, which belongs to its associate company Xinjiang Huadian Tianshan Power Generation, as well as an increase in the collection of new energy subsidies that reduced credit impairment losses. In terms of news, data from the National Energy Administration showed that total electricity consumption in June reached 898.1 billion kilowatt-hours, up 3.7% year on year. For the first six months, cumulative consumption reached 5.0999 trillion kilowatt-hours, up 5.3% year on year. The Shanghai power grid recorded a peak load of 42.216 million kilowatts on July 15, a record high, while the Jiangsu power grid hit a new record peak load of 157.59 million kilowatts on July 16. The CPO sector, meanwhile, suffered a heavy blow, with the sector index falling more than 8%. Tianfu Communication and Shijia Photonics dropped over 11%, while Zhongji Innolight and Changxin Bochuang fell more than 10%. Net capital outflows for Eoptolink, Zhongji Innolight, and Tianfu Communication all exceeded 1 billion yuan. Zhang Yidong, member of the executive committee and chief economist at Haitong International, believes that this round of the summer chill has entered its aftershock phase. Chinese equities, having led overseas markets into a correction, will be the first to stabilize and reverse. The third leg of the N-shaped summer market pattern is expected to start by August at the latest.

Lixiang New Energy disclosed its performance forecast, estimating net profit attributable to the parent company for the first half of 2026 at 60 million to 80 million yuan, a year-on-year increase of 570.26% to 793.68%. Deducted non-recurring net profit is expected to be 57 million to 77 million yuan, up 1252.41% to 1726.94% year-on-year. Basic earnings per share are projected at 0.0643 to 0.0857 yuan per share. The performance growth is mainly due to increased investment income from the gradual grid connection and operation of the third channel power generation project under the associate company Xinjiang Huadian Tianshan Power Generation Company, which is part of the Xinjiang power transmission initiative, as well as a reduction in credit impairment losses due to higher collections of new energy subsidies.