According to the Zhitong Finance App, Xinyi Power Storage (08328) announced that the amount of unaudited comprehensive profit that company owners should account for the six months ending June 30, 2023 will be drastically reduced by 35% to 45% to between HK$12 million to HK$14.2 million, while net profit for the six months ending June 30, 2022 will be HK$21.8 million.
The decline in net profit in the first half of 2023 was mainly due to a decline in overall gross margin, lower gross margins for several projects undertaking engineering, procurement and construction (EPC) services for photovoltaic power plants due to increased sales of industrial and commercial energy storage products; and increased use of bank financing to expand business, which caused financial costs to rise.