On 16 January 2026, Xinyi Glass Holdings Limited (XYG, Stock Code: 00868), Xinyi Electric Storage Holdings Limited (XES, Stock Code: 08328), Xinyi Energy Holdings Limited (XYE, Stock Code: 03868), and Xinyi Solar Holdings Limited (XYS, Stock Code: 00968) issued a supplemental joint announcement related to the sale and purchase of an equity interest in Jinzhai Wind Power (the Equity Interest).
The announcement confirms that the valuation of Jinzhai Wind Power was prepared by an independent professional valuer using the discounted cash flow method under the income approach. Since this approach is classified as a “profit forecast” under listing rules, a review was conducted by Ernst & Young regarding the arithmetical accuracy of the financial calculations. According to the disclosure, the valuation indicates a 9.23% discount rate based on Jinzhai Wind Power’s weighted average cost of capital and factors such as a risk-free rate, market risk premium, country risk premium, and other firm-specific risks.
The forecast period extends until 2037, reflecting Jinzhai Wind Power’s estimated operating life. Projected revenues combine electricity generation (based on operational output, electricity selling prices, and annual degradation) and government subsidies. Further assumptions address operating and maintenance expenses, depreciation, amortization, and related taxes. Sensitivity analyses were performed for variations in discount rate, electricity sales, and operating expenses, resulting in adjusted appraised valuations. A discount for lack of marketability of 20.40% was also applied.
Following these calculations, the final appraised value of Jinzhai Wind Power was placed at approximately RMB62.0 million (rounded). The announcement emphasizes that this figure reflects adjustments for projected free cash flows, net debts, non-operating assets, and dividend payable, and that it aligns with Jinzhai Wind Power’s expected financial performance.
The boards of the participating companies state that the valuation follows careful procedures and confirm that the release of dividend prior to completion will not adversely affect Jinzhai Wind Power’s ongoing operations. The joint announcement also reproduces letters from Ernst & Young and the boards to satisfy formal disclosure requirements, underscoring that the profit forecast was compiled after due and careful inquiry.
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