Xinyi Energy's First Half Within Our Expectation, but Shy of Street; Acquisition Plan Unchanged

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 only 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 16 years for its solar farm portfolio as of end-2021, largely shields it from construction risks and regulatory risks such as project approvals, leading to a more stable returns profile. The company targets to distribute 90%-100% of its distributable income annually.