Solar Glut Rains On Xinyi Energy's Profit Parade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 31 2024
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Source: Benzinga
Xinyi Energy's Profit Decline: Xinyi Energy reported a 25% to 35% drop in net profit for the first half of 2024, attributed to oversupply in the solar market and limitations in China's electric grid affecting profitability.
Market Challenges and Regulatory Changes: The rapid increase in solar power capacity has led to higher abandonment rates of unused electricity, prompting the Chinese government to raise the maximum allowable abandonment rate from 5% to 10%, indicating a shift towards more market-oriented pricing that could further impact revenue for solar energy companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
