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On the evening of August 26, Xizi Clean Energy released its 2024 semi-annual report, achieving operating income of 2.988 billion yuan in the first half of the year, a year-on-year decrease of 19.57%; net profit attributable to parent company shareholders was 342 million yuan, a year-on-year increase of 1066.46%; basic earnings per share was 0.46 yuan.

In terms of performance, Xizi Clean Energy's net profit attributable to the parent company reached the highest level since its listing in the same period, and it was the first time that the company's net profit attributable to the parent company in the semi-annual report exceeded 300 million yuan. In terms of the reasons for the performance change, the company transferred Kesheng Company and obtained equity transfer income of 273 million yuan, which affected the net profit after tax by 232 million yuan.

Figure: Net profit attributable to parent company of Xizi Clean Energy in semi-annual reports over the years

From the perspective of the main business, Xizi Clean Energy's profitability has increased, with the gross profit margin of sales reaching 20.48% in the first half of the year, an increase of 5.83 percentage points over the same period last year. The gross profit margins of waste heat boilers and clean and environmentally friendly energy equipment businesses have increased significantly, up 9.09 and 14.67 percentage points respectively over the same period last year.

From the perspective of the reasons for the change in gross profit margin, raw material prices have soared since the second half of 2021, resulting in a decline in the company's gross profit margin in 2022 and 2023. Xizi Clean Energy has actively adopted methods such as inventory preparation, price locking, and hedging to reduce the impact of raw material price fluctuations on costs. Since 2024, the gross profit margin has rebounded.

Xizi Clean Energy's asset-liability ratio has also decreased, with the semi-annual report showing a debt ratio of 70.62%, down 2.1 percentage points from the end of last year and 3.5 percentage points from the same period last year. The company's asset-liability ratio has gradually improved, and Xizi Clean Energy said that in the future the company will control the asset-liability ratio to further reduce it within a reasonable range.

In the first half of the year, the company's business expanded smoothly, with new orders of 3.327 billion yuan, including 1.196 billion yuan in new orders for waste heat boilers, 525 million yuan in new orders for clean and environmentally friendly energy equipment, 1.297 billion yuan in new orders for solutions, and 309 million yuan in new orders for spare parts and services. Among them, the new orders for spare parts and services increased by 38.57% over the same period last year. As of the end of June 2024, the company has 6.995 billion yuan in orders on hand (the company's latest total market value is 7.215 billion yuan).

Xizi Clean Energy is a leading company in the domestic waste heat boiler industry. It provides customers with energy-saving and environmentally friendly equipment and overall energy utilization solutions with its waste heat utilization and ultra-low emissions, molten salt energy storage, multi-energy storage and other technical reserves.

In terms of clean energy and environmental protection equipment, the company independently developed "high-power molten salt absorber and molten salt steam generation system suitable for solar thermal and heat storage systems" and won the first major technical equipment in the national energy field. This technology is used in projects such as the 50MW tower molten salt energy storage solar thermal power generation project in Delingha, Qinghai. The project's power generation rate and other indicators have reached the best level of similar solar thermal power stations in the world.

During the reporting period, the company participated in the construction of the "extracted steam storage" heat storage peak-shaving flexibility transformation project of the State Energy Hebei Longshan 600MW subcritical thermal power unit, providing the project with heat storage system design and special technical consultation, molten salt energy storage equipment, etc. The project strives to become the first major scientific and technological innovation demonstration project in China to use molten salt large-scale heat storage to achieve deep peak-shaving and peak-peaking of units.

Xizi Clean Energy has been frequently surveyed by institutions this year. Statistics show that the company has received 11 institutional surveys this year, with a total of 81 institutions participating in the surveys.

In the latest survey (August 16), Xizi Clean Energy revealed that the company has three major strategic development directions in the future: the first is the overseas market, that is, using its own advantageous products (such as gas turbine waste heat boilers) to open up the international market and increase the international market share of products. The second is the new energy market, mainly relying on the core technology of molten salt energy storage to expand its application in more energy utilization scenarios such as solar thermal power generation, user-side energy storage, thermal power flexibility transformation, and zero-carbon parks. The third is the spare parts market. Since the State Council issued a large-scale equipment renewal and transformation policy, various provinces have successively launched action plans. The company actively pays attention to and strives for energy-saving and efficiency-enhancing transformation opportunities, emission reduction transformation needs, and demolishing the old and building the new business opportunities.