Xinyi Energy’s Expansion Plan Remains on Track

Xinyi Energy Holdings is the solar farm operation unit of its holding company Xinyi Solar, a leading solar glass manufacturer and solar farm developer in China. Unlike most solar power suppliers with integrated upstream solar project development, Xinyi Energy mainly acquires utility-scale ground-mounted solar projects and focuses on downstream solar farm operations. The company's unique business model, along with its weighted average lifetime of about 15.7 years for its solar farm portfolio as of end-2022, largely shields it from construction risks and regulatory risks such as project approvals, leading to a more stable returns profile. Previously, the company aimed to distribute not less than 90% of its distributable income annually. However, Xinyi Energy changed its dividend policy in 2023—it now considers the firm’s financial resources and funding needs, with no fixed payout ratio.