SDHS New Energy (01250) has announced its interim results for the six months ended June 30, 2026, showing a significant downturn in profitability. The company recorded a revenue of RMB 2.131 billion, marking an 11.18% decrease year-on-year, with profit attributable to equity holders of the company falling to RMB 154 million, a substantial 46.23% reduction from the previous year. Earnings per share stood at 6.87 cents.

According to the company's announcement, the increase in electricity contribution from newly connected grid projects during the reporting period was offset by the intensifying curtailment effects across the nation and the declining market-based trading electricity prices. The rise in the curtailment rate made the loss of power generation revenue due to curtailment a core negative factor affecting profits in the first half of the year.

Additionally, the implementation of market-based trading electricity prices at the beginning of this year has fully transitioned the new energy electricity pricing into a market trading era. Incremental projects no longer enjoy fixed guaranteed electricity prices (while existing projects also face slight impacts), as their revenues are now collectively determined by medium-to-long-term trading, spot markets, and green electricity trading. Consequently, the group's daily operations have begun to face downward pressure on electricity prices.

These combined factors have led to an increased proportion of revenue from grid-parity projects, while conversely, the share of revenue from subsidy-included projects has declined.