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.
Xinjiang Lixin Energy Co. Ltd. ARecurring net profit surged 1,568% YoY, driven by investment income and lower impairments, beating forecasts.
