The board of directors of Xinte Energy Co., Ltd. hereby notified shareholders and potential investors of the Company that, based on the preliminary assessment of the information currently available (including but not limited to the unaudited consolidated management accounts of the Group for the six months ended 30 June 2024, the Group is expected to record an unaudited net loss attributable to the shareholders of the Company in the range of RMB 780 million to RMB 950 million for the First Half of 2024, as compared to the net profit attributable to the shareholders of the Company of RMB 4.759 billion recorded in the corresponding period of 2023. In the First Half of 2024, the production capacity of the Group's polysilicon business was fully released and the sales volume of polysilicon increased over 50% as compared to that of the corresponding period of 2023, while the production cost of polysilicon decreased by approximately 30% as compared to that of the corresponding period of 2023. However, as affected by the changes in market supply and demand, the average selling price of polysilicon decreased significantly as compared to that of the corresponding period of 2023.

Despite the Group's continuous and vigorous development in the photovoltaic and wind power resources development, construction and operation as well as key equipment manufacturing businesses, the steady progress of power plants construction and operation in the First Half of 2024, and the significant increase in the shipment of key equipment, such as inverters, as compared to that of the corresponding period of 2023, the impact of decline in the sales price of polysilicon on profit outweighed the contribution of the above business growth.