Beijing Energy International Issues Profit Warning for FY2025

Key Points for Investors

• Profit Warning Issued: Beijing Energy International Holding Co., Ltd. (BEI, Stock Code: 686) has issued a profit warning for the financial year ended 31 December 2025.
• Sharp Decline in Net Profit: The Group expects to record a consolidated net profit of approximately RMB 30 million for FY2025, a substantial decrease from RMB 557 million in FY2024.
• Net Loss Attributable to Equity Holders: The company anticipates a consolidated net loss attributable to equity holders of approximately RMB 140 million for FY2025, compared to a net profit attributable to equity holders of RMB 86 million in FY2024.
• Revenue Growth Despite Profit Decline: Despite the profit warning, the Group expects revenue to increase by approximately 10%-11% and grid-connected installed capacity grew by around 13% year-on-year, reaching 15.29GW as at 31 December 2025.

Detailed Analysis

The announcement from the Board of Directors comes as a significant update for shareholders and potential investors. After a year of strong profitability in 2024, the Company now forecasts a dramatic reduction in profit for 2025. The anticipated net profit of RMB 30 million marks a decline of over 94% on a consolidated basis, and the shift from a net profit attributable to equity holders to a net loss of RMB 140 million is especially notable.

The Company attributes this downturn to several factors:

• Market Conditions: Adverse market conditions led to increased losses from electricity curtailment and a decline in the average on-grid tariff. This has significantly reduced the profitability margin per kilowatt-hour of electricity sold.
• Tax Policy Adjustments: Changes in tax policies affecting the new energy power generation sector, alongside the gradual expiration of income tax incentive benefits for certain projects, have resulted in higher income tax expenses.
• Operational Growth: Even as installed capacity increased by 13% and revenue is expected to grow by 10-11%, these positive operational indicators have not translated into bottom-line profitability due to the above headwinds.

What Shareholders Need to Know

This profit warning is likely to be price sensitive and may have a significant impact on the Company’s share price once fully reflected by the market. The combination of higher costs, reduced margins, and increased tax exposure has reversed the Company’s profit trajectory, which may prompt a reassessment of valuation and outlook by investors.

The figures in this profit warning are based on unaudited management accounts and may be subject to adjustment. The final, audited results for FY2025 are expected to be published by the end of March 2026. Investors are urged to exercise caution and await the release of the full annual results for a comprehensive understanding of the Company’s financial position.

Corporate Update

As of the date of the announcement, the Company’s Board comprises a diverse mix of executive, non-executive, and independent non-executive directors, ensuring a broad oversight of the Company’s affairs.

Conclusion

This announcement constitutes material inside information, and investors should consider the implications carefully. The anticipated swing from profit to loss attributable to shareholders, driven by market and fiscal challenges, is a crucial development for all stakeholders.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review official Company announcements and audited financial statements before making any investment decisions. The Company’s results are subject to change pending final audits and further disclosures.

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