In the face of sharp questions raised by investors one after another, the management of Tianfu Energy has not responded positively.

Revenue and net profit both fell

On August 11, Tianfu Energy disclosed its 2025 semi-annual report. During the reporting period, the company's operating income reached 4.066 billion yuan, a year-on-year decrease of 10.64%; the net profit attributable to the parent company reached 304 million yuan, a year-on-year decrease of 3.00%.

Tianfu Energy was established in 1999 and listed on the Shanghai Stock Exchange in 2002. It is an important energy platform under the Xinjiang Production and Construction Corps, and its business covers thermal power, hydropower, photovoltaic and power supply services. In recent years, the company has proposed the development of dual main businesses of "power semiconductor", holding 9.09% of Tianke Heda's equity, and deploying silicon carbide materials.

However, semi-annual report data shows that Tianfu Energy’s current main business is under pressure. In the first half of 2025, the company completed a power supply of 9.677 billion kilowatt hours, a decrease of 1.588 billion kilowatt hours compared with the same period last year, a year-on-year decrease of 14.09%, and achieved power supply revenue of 2.844 billion yuan.

Chen Zhiyong, Secretary of the Board of Directors of Tianfu Energy, said at the performance briefing on August 21: "The main reason is that in the first half of 2025, the power demand of some industrial enterprises in Shihezi area of Xinjiang has decreased, and the new electricity price policy has been superimposed, resulting in a decrease of 631 million yuan compared with the same period last year. , a year-on-year decrease of 18.15%. However, due to the decline in fuel prices and purchased electricity prices in the first half of the year, the company's operating costs dropped significantly, and the total profit increased by 9.36% compared with the same period last year. Due to the impact of income taxes, the net profit attributable to shareholders of listed companies declined slightly. "

What deserves more attention is cash flow. As of the end of June 2025, Tianfu Energy had monetary funds of approximately 1.609 billion yuan, total current assets of 6.655 billion yuan, total current liabilities of 6.333 billion yuan, and net cash flow from operating activities of 226 million yuan, a sharp decrease of 39.65% year-on-year. Although short-term borrowings have declined, long-term borrowings have increased to 13.452 billion yuan, and the overall debt repayment pressure has increased. Wind data shows that as of the end of June, the company's asset-liability ratio was as high as 71.04%.

At the performance briefing of Tianfu Energy, in response to the question of "how to deal with the risk of high debt ratios," the company's executives responded that the company would "reduce the debt ratio by adjusting the financing structure and improving performance."

Photovoltaic subsidiary receives “blood transfusion”

It is worth noting that even though it is facing greater debt pressure, Tianfu Energy still chose to announce at this time that it plans to increase the capital of its wholly-owned photovoltaic subsidiary Xinjiang Tianfu Green Energy Photovoltaic Power Generation Co., Ltd. (hereinafter referred to as "Tianfu Green Energy") by 550 million yuan, and at the same time reduce the capital of its wholly-owned subsidiary Xinjiang Tianfu Energy Sales Co., Ltd. (hereinafter referred to as "Tianfu Electricity Sales") by 940 million yuan.

Tianfu Green Energy’s main business includes solar power generation technical services, energy storage technical services, photovoltaic power generation equipment leasing, etc. As of June 30, 2025, Tianfu Green Energy's total assets were 1.690 billion yuan, total liabilities were 1.681 billion yuan, and the asset-liability ratio was as high as 99.5%. It can be seen that this capital increase is undoubtedly a "blood transfusion emergency" provided by Tianfu Energy to Tianfu Green Energy.

In fact, the photovoltaic industry has experienced explosive development since 2020 and will enter a trough in the industry by 2024. Price wars are fierce, industry involution is serious, and many companies are facing a crisis of survival.

In the first half of 2025, affected by the "rush for installation", the photovoltaic industry experienced a brief "rejuvenation". Against this background, why did Tianfu Energy choose to increase its exposure to the photovoltaic sector?

Fang Wenzheng, a photovoltaic analyst at Longzhong Information, told a reporter from Times Weekly that Tianfu Energy’s arrangement for this capital increase and capital reduction may be based on the catalysis of policies and the expectation of a short-term rebound in industrial chain prices, thereby adjusting the capital allocation to tilt towards photovoltaics while avoiding short-term risks in the electricity sales business.

At the performance briefing on August 21, an investor asked about the motivation and future strategic direction of Tianfu Energy’s capital increase and capital reduction at the same time, but the company only repeated that “Based on the company’s development strategy and in order to optimize the company’s capital structure, the company decided to increase the capital of its wholly-owned subsidiary Tianfu Green Energy and reduce the capital of its wholly-owned subsidiary Tianfu Electricity Sales.”