Breaking Down Sichuan New Energy Power Company Limited Financial Health: Key Insights for Investors

From its founding in 1997 and its strategic rebrand in September 2018, Sichuan New Energy Power Company Limited has reshaped itself from a chemical manufacturer into a diversified renewable energy and materials player-building wind farms, large-scale photovoltaic installations and lithium battery production while also divesting non-core units (notably selling its 100% equity in Sichuan Chuaneng Energy‑saving and Environmental Engineering Co., Ltd. in March 2025 for 59.6549 million yuan) to sharpen focus on growth sectors; by late 2025 the company reported roughly 1.85 billion shares outstanding (a 22.81% year‑over‑year rise) and a market capitalization of 22.82 billion yuan as of November 28, 2025, even as market volatility saw its stock at 11.56 yuan and market cap of 21.34 billion yuan on December 12, 2025; operationally it combines power generation (selling electricity to state grids, municipalities and industrial clients), lithium ore processing and lithium salt production for batteries, plus legacy chemical product sales, producing a trailing‑twelve‑months revenue of 2.87 billion yuan and net income of 444.57 million yuan while reporting a year‑on‑year first‑half 2025 net income decline in the range of 47.91% to 55.80% amid grid renovations and softer lithium prices-signals of both near‑term pressure and positioning for China's clean‑energy transition.

Sichuan New Energy Power Company Limited (000155.SZ): Intro

• Founded: 1997 (as Sichuan Chemical Company Limited)
• Rebranded: September 2018 - name changed to Sichuan New Energy Power Company Limited
• Major divestiture: March 2025 - sold 100% stake in Sichuan Chuaneng Energy-saving and Environmental Engineering Co., Ltd. for RMB 59.6549 million
• Stock ticker: 000155.SZ (listed on Shenzhen Stock Exchange)

• Strategic shift: chemical manufacturing → renewable energy (wind, PV, energy storage)
• Asset focus: development, construction and operation of utility-scale wind and PV projects; lithium battery manufacturing and integration for grid/vehicle/storage applications
• Operational streamlining: disposal of non-core environmental engineering arm to concentrate capital and management on generation and storage assets

• Power generation sales - on-grid electricity from company-owned wind and PV farms (primary recurring revenue)
• Feed-in tariff / power purchase agreements - contracted pricing and long-term offtake for renewable output
• Battery manufacturing and sales - lithium battery cells/modules sold to OEMs and energy-storage project integrators
• Energy storage services - arbitrage, frequency regulation and ancillary services in markets where permitted
• O&M and asset management - recurring service contracts for own and third-party renewable assets
• Carbon and renewable energy certificates - monetization where eligible

• Portfolio diversification across wind, PV and batteries reduces single-technology exposure and aligns with grid-integrated clean energy trends.
• Recent divestiture (RMB 59.6549 million) signals capital reallocation to higher-growth generation and storage projects.
• Rebranding (2018) and subsequent transactions demonstrate a multi-year transition from legacy chemical business to a new-energy platform.

Sichuan New Energy Power Company Limited (000155.SZ): History

• Shares outstanding: ~1.85 billion (late 2025), up 22.81% year-over-year - reflects active capital management and possible issuance or conversion events.
• Market capitalization: ¥22.82 billion (as of 2025-11-28), +15.73% YoY - signals improved investor sentiment and growth expectations.
• Institutional ownership: ~9.12% - moderate institutional interest with room to grow.
• Insider ownership: not publicly disclosed; management-led strategic moves (e.g., March 2025 divestiture) indicate active internal steering.

Sichuan New Energy Power Company Limited (000155.SZ): Ownership Structure

• Mission: accelerate clean-energy deployment through wind farms, photovoltaic projects and lithium batteries to support electrification and grid stability.
• Values: adaptability, innovation, environmental stewardship, and operational excellence.
• Strategic focus: scale renewable generation, expand battery manufacturing, and optimize asset portfolio (including the March 2025 divestiture).

• Power generation sales: spot and contracted sales from wind and photovoltaic assets to grid and industrial customers.
• Power purchase agreements (PPAs): medium- to long-term contracted revenue providing predictable cash flows.
• Battery manufacturing and sales: lithium-ion cells/modules sold to EV makers, ESS integrators and B2B customers.
• Energy services: O&M, energy storage services, and ancillary grid services (frequency regulation, peak shaving).

Sichuan New Energy Power Company Limited (000155.SZ): Mission and Values

• Renewable electricity generation: development, ownership and operation of wind farms and large-scale photovoltaic (PV) installations that feed electricity into regional and national grids.
• Lithium upstream and midstream: exploration, mining and processing of lithium ore, plus production of lithium salts used in battery cathodes and other battery components.
• Chemicals and fertilizers: production and sale of chemical fertilizers, basic chemical raw materials and organic chemical products to agriculture and manufacturing customers.
• Commercial channels: long-term power purchase agreements (PPAs) and spot sales to state grid entities, municipal utilities and industrial clients; lithium and chemical sales via contract and spot markets.
• Portfolio optimization: strategic divestitures and reinvestments (e.g., disposal of non-core energy-saving engineering units) to redeploy capital into core renewable and battery material businesses.
• Operational synergies: co-location or integrated management of generation and chemical facilities to share logistics, utilities and management systems for cost and carbon efficiency gains.

• Sale of electricity: revenue from PPAs and spot market deliveries to provincial/state grids and large industrial off-takers; stable cash flows from long-term contracts support financing of capex-heavy renewable projects.
• Lithium product sales: sale of lithium carbonate/hydroxide and intermediates to battery manufacturers and chemical firms; pricing tied to global lithium market cycles and contract terms.
• Chemicals & fertilizers: recurring revenues from agricultural seasonality and industrial feedstock demand; typically shorter sales cycles than power contracts.
• Ancillary services and grid support: income from grid-balancing services where available, plus renewable certificate/green attribute income (where market mechanisms exist).

• Divestitures: selling non-core subsidiaries (e.g., energy-saving engineering arm) reduces management complexity, releases capital and improves return on invested capital when funds are redeployed to higher-growth lithium and renewable projects.
• Scale benefits: larger, contiguous project clusters lower per-MW construction and O&M costs; centralized logistics lower chemical and raw-material transport costs.
• Integration advantages: owning both energy supply and chemical production enables captive power use, reducing feedstock and energy costs for chemical/fertilizer operations and improving margin stability.

• Integrated model: vertically linking lithium raw materials with electricity generation and chemical output creates internal demand flexibility and hedges energy cost exposure for chemical units.
• Regional synergies: leveraging Sichuan and adjacent provinces' resource endowments (wind, solar irradiance, mining concessions) to build cost-efficient clusters.
• Regulatory alignment: participation in national decarbonization initiatives and grid modernization programs supports long-term demand for renewable energy and battery materials.

Sichuan New Energy Power Company Limited (000155.SZ): How It Works

• Primary revenue drivers: sale of electricity from hydropower, wind and solar farms; sales of chemical fertilizers and basic chemical raw materials; lithium salt production and sales.
• Customer base: state and regional power grids, municipal and industrial users, agricultural distributors, and battery-material manufacturers.
• Capital allocation: ongoing divestiture of non-core assets to concentrate investment in higher-margin renewable projects and lithium salt capacity.

• Project development & ownership - develops and/or acquires renewable power assets (hydro, wind, solar) and runs chemical manufacturing plants.
• Power generation & dispatch - sells electricity under feed-in tariffs, renewable power purchase agreements (PPAs), and spot market transactions to state grids and large industrial offtakers.
• Chemical production & contracts - manufactures fertilizers and basic chemicals sold to agricultural distributors and industrial processors under medium- and long-term supply contracts.
• Lithium salt processing & sales - converts upstream lithium resources into battery-grade lithium salts sold to battery and EV supply-chain customers.
• Asset recycling - disposes of non-core subsidiaries (e.g., energy-saving engineering) and redeploys proceeds to expand core, higher-return operations.

• Installed renewable capacity: hundreds of MW of hydropower plus distributed wind/solar assets contributing the bulk of generation (company publishes project-by-project MW on annual reports).
• Electricity offtake: mix of long-term PPA volumes and spot market sales; revenue sensitivity tied to on-grid tariffs and annual hydrology variations.
• Chemical production volumes: fertilizer and basic chemical output serving regional agricultural and industrial demand.
• Lithium salt capacity: strategic growth area with rising contribution to downstream battery-material sales as China's EV battery production expands.

• Renewables provide steady, policy-supported cash flows (PPA and tariff frameworks), and access to subsidies or preferential financing aligned with China's clean-energy goals.
• Chemicals and fertilizers provide cyclical but tangible industrial cash flows that offset seasonal generation variability.
• Lithium salt sales position the company to capture upside from the battery-materials boom, improving margins as scale and processing efficiency rise.
• Proceeds from divesting non-core assets strengthen the balance sheet and enable targeted reinvestment into higher-growth segments.

• State and provincial grid companies: primary electricity buyers under regulated mechanisms and PPAs.
• Agricultural distributors & industrial buyers: long-standing offtake channels for fertilizers and basic chemicals.
• Battery and materials firms: growing counterparty set for lithium salts supply agreements.
• Government policy: benefits from national clean-energy initiatives, renewable power quotas, and incentives that support project economics and financing.

Sichuan New Energy Power Company Limited (000155.SZ): How It Makes Money

• Core revenue streams: electricity sales from renewable assets, lithium-ion battery cell and module sales, and ancillary services (grid services, maintenance, EPC contracting).
• Recent strategic move: divestiture of non-core assets in March 2025 to concentrate capital and management on high-growth renewable energy and lithium businesses.
• Market positioning: aligned with global decarbonization trends, aiming to capture demand for energy storage and EV battery supply chains.

• How revenue is realized: long-term power purchase agreements and spot electricity markets for generation; contract and spot sales for batteries; value-added engineering, procurement, and construction (EPC) and maintenance contracts.
• Profit drivers: scale-up of battery capacity, higher utilization of renewable assets post-grid upgrades, improved margins from streamlined operations after divestitures.
• Risks: commodity price volatility for lithium, periodic grid upgrade impacts on dispatch, and near-term margin pressure observed in H1 2025.