Longi & DHL Ink Green Logistics Deal; Shenhuo Profit Soars 151% — Energy Roundup

Longi–DHL Partnership, Shenhuo Earnings Surge, and Power Market Growth

Multiple energy sector announcements highlighted the morning session on July 27. Longi Green Energy and DHL Group signed a strategic cooperation memorandum of understanding (MOU), establishing a long-term, deep partnership. The two sides identified four core cooperation areas: deployment of building-integrated photovoltaics (BIPV) at DHL logistics parks and office buildings in Europe using Longi’s next-generation high-efficiency back-contact technology; joint development of integrated photovoltaic-storage solutions tailored for logistics facilities; joint exploration of green hydrogen and other cutting-edge clean energy technologies through pilot projects at DHL global sites; and establishment of a regular high-level communication mechanism to track progress and explore new global market opportunities.

In corporate results, Shenhuo Shares reported first-half 2026 revenue of RMB 24.79 billion, up 21.35% year-on-year, while net profit attributable to shareholders surged 151.06% to RMB 4.78 billion. The sharp profit improvement reflects elevated aluminum prices and strong downstream demand. Meanwhile, China Energy Engineering Corporation announced Q2 2026 new contract value of RMB 236.99 billion, but its half-year total new contracts fell 33.81% year-on-year to RMB 513.19 billion, driven by a 37.89% decline in domestic contracts. Similarly, PowerChina reported a 9.73% drop in first-half new contracts to RMB 619.89 billion, though overseas contracts grew 39.29%.

In marine clean energy, CIMC Enric’s subsidiary Nantong CIMC Pacific Offshore Engineering secured new orders worth approximately RMB 3.388 billion for LNG bunkering vessels, gas carriers and marine fuel tanks, pushing its order backlog to a record RMB 23.735 billion with production scheduled through 2029. On the battery materials front, Tinci Materials confirmed it is supplying sodium-ion battery electrolyte solutions to leading cell manufacturers including CATL, and is planning dedicated capacity for the technology as the market begins to scale. Lastly, the National Energy Administration reported that China’s electricity market trading volume reached 3,684.8 TWh in the first half of 2026, up 24.2% year-on-year, with spot market trading accounting for 428 TWh and green electricity trading growing 6.6% to 164.1 TWh.

What the Latest Developments Signal for the Energy Sector

Longi–DHL deal accelerates BIPV export into European logistics

The MOU is more than a procurement framework; it pairs Longi’s advanced back-contact BIPV technology with DHL’s vast European real estate footprint. Logistics parks, with large flat rooftop areas and high daytime energy demand, are ideal for building-integrated solar. By positioning its BIPV product as a plug-and-play solution for commercial buildings, Longi gains a reference client that could unlock similar contracts across the logistics and warehousing sector. The green hydrogen pilot adds a longer-term technology development angle, though near-term revenue contribution will be modest.

Shenhuo’s profit boom highlights aluminum supply tightness

The 151% profit surge suggests Shenhuo enjoyed a favorable price-cost spread, likely driven by supply constraints in China’s aluminum market and resilient demand from electric vehicles and construction. However, the results also reflect a low comparable base in the year-ago period. For investors, the key question is whether alumina and electricity costs will erode margins in the second half, especially if production curtailments ease.

Power market data confirms China’s electricity reform momentum

The 24.2% jump in market-based trading volumes — with spot volumes making up a growing share — indicates the National Energy Administration’s push to liberalize the power sector is gaining traction. More generation is being traded outside the planned allocation, exposing generators and large users to real-time price signals. The moderate 6.6% rise in green electricity trading, however, suggests that corporate renewable procurement, while increasing, still faces hurdles related to grid integration and certificate recognition, a point that will be relevant for companies like DHL pursuing Scope 2 emission reductions.

Tinci’s sodium-ion moves reflect nascent technology bets

Tinci’s supply of sodium-ion electrolyte to CATL shows the technology is moving from pilot to small-scale commercialization, but the company’s own language — “demand is still in the early stages” — indicates any meaningful revenue contribution is years away. For the broader battery supply chain, sodium-ion remains a hedge against lithium price volatility, not an imminent replacement.

Practical Implications for Industry Players

For BIPV and solar equipment exporters: The Longi–DHL MOU is a template for approaching large pan-European logistics and commercial real estate owners. Companies should prepare turnkey BIPV-storage packages that meet EU building energy standards and can be deployed across multiple jurisdictions.

For aluminum producers and investors: Shenhuo’s results underline the sensitivity of earnings to aluminum prices and power costs. Monitor provincial power tariff adjustments and seasonal demand from construction and automotive sectors. Capacity expansion plans should be stress-tested against possible margin compression in H2.

For energy procurement managers: The growth in spot electricity trading in China means large industrial consumers can increasingly optimize procurement by blending medium- and long-term contracts with spot purchases. However, this requires sophisticated forecasting tools and risk management. The slow growth in green electricity trading suggests that corporates with renewable targets should lock in bilateral green contracts early to avoid scarcity premiums.

For battery materials suppliers: Tinci’s early position in sodium-ion electrolyte is a low-cost option on a technology that may take share in stationary storage. Competitors should evaluate their own sodium-ion roadmaps while the market remains small, but avoid over-committing until volume data from cell makers becomes clearer.