Baosight Energy Achieves Nearly 50% Gross Margin in First Half, Earnings Reach NT$0.69 Per Share

Renewable energy firm Baosight Energy* (6987-TW) announced today (14th) that, benefiting from the full realization of its solar-storage operations and enhanced efficiency in green power transfers, its single-quarter gross margin has risen to around 50%. Net profit attributable to owners of the parent company reached NT$154 million, representing a 4.4% year-on-year increase, with earnings per share (EPS) reaching NT$0.69.

Baosight Energy’s revenue for the first half of the year reached NT$683 million, a 21.79% year-on-year increase. Gross margin stood at 49.94%, up 7.03 percentage points from the same period last year. Operating margin reached 39.54%, a significant improvement of 12.71 percentage points compared to last year. In the first half of last year, the company recognized NT$102 million in compensation income from delayed solar engineering EPC contracts, which created a high base effect due to one-time non-operating gains. Despite this, net profit attributable to owners of the parent company reached NT$154 million in the first half of this year, marking a 4.4% year-on-year growth, with EPS at NT$0.69.

Baosight Energy attributed the strong revenue growth in the first half primarily to three drivers: First, its subsidiary secured Taiwan’s largest 'solar-plus-storage' project in 2022, totaling 26MW/69MWh. Since full operations began in May last year, the project will contribute full annual revenue starting in 2026, becoming a stable cash cow for the company. Second, grid-connected green power capacity increased by 2.71MW. Third, green power transfer efficiency has been significantly optimized.

On green power sales, Baosight Power, a wholly-owned subsidiary responsible for electricity sales, supplies over 95% of its electricity (excluding solar-storage operations) to long-term core industry clients such as semiconductor manufacturers via Corporate Power Purchase Agreements (CPPAs), actively supporting their RE100 commitments. Only about 5% of surplus power is resold back to Taipower, mainly due to seasonal factors such as unexpectedly abundant sunlight during summer months (e.g., May) and routine mismatches between instantaneous generation and consumption.

Benefiting from an increased volume of CPPA transfers priced above Taipower’s feed-in tariff, the company’s electricity sales business saw its gross margin surge from 50.57% in the first half of last year to 56.17% in the first half of this year. Baosight Energy explained that solar power generation does not require fuel purchases such as coal or natural gas; instead, costs are primarily fixed depreciation expenses of power generation equipment over a set lifespan. Therefore, as power generation increases, fixed costs are spread thinner, leading to higher gross margins. For instance, in May this year, driven by record-high monthly revenue, the monthly gross margin peaked at 62.92%.

Facing the broader industry challenge of prolonged development timelines for photovoltaic projects, Baosight Energy has actively strengthened internal operating expense controls and fully introduced AI tools to implement lean management. While revenue grew 21.79% year-on-year, operating expenses in the first half of this year were reduced by 21.23% compared to the same period last year, demonstrating strong operational synergies.

To further cultivate AI talent and promote practical technology adoption, Baosight Energy officially launched its 'Generative AI Learning Map Resource Portal' on August 3 through its IT department, simultaneously rolling out a 'Three-Level AI Professional Certification Program'. Within less than ten days of launch, the initiative sparked enthusiastic responses across the organization, with 13 employees already obtaining 'Silver Certification' and continuing toward 'Gold Certification'.

For mid-to-long-term asset management development, Baosight Energy’s internally developed 'Solar Intelligence Monitoring and O&M System', after three years of iterative upgrades across dozens of versions, is now highly mature and stable in operation. The company is soon set to roll out an 'AI-Powered Generation Monitoring and Forecasting Mechanism', extending into solar asset management services to maximize the value of every unit of green power generated.