Xinyi Solar Holdings (968) investor relations material

Executive summary

• Revenue for 1H2025 declined 6.5% year-over-year to RMB10,931.8 million, mainly due to lower average selling prices in the solar glass segment despite higher sales volume.

• Net profit attributable to equity holders dropped 58.8% year-over-year to RMB745.8 million, with basic EPS at 8.21 RMB cents.

• Gross profit margin fell to 18.3% from 26.9% in 1H2024, primarily due to margin compression in solar glass and impairment losses on idle production facilities.

• The Group maintained prudent financial management, improved liquidity, and reduced net debt gearing to 28.7%.

• Interim dividend declared at 4.2 HK cents per share, down from 10.0 HK cents in 1H2024.

Financial highlights

• EBITDA for 1H2025 was RMB2,445.0 million, down 32.2% year-over-year; EBITDA margin at 22.4%.

• Gross profit decreased by 36.4% to RMB1,998.5 million.

• Net profit margin declined to 6.8% from 15.5% in 1H2024.

• Net cash from operating activities increased to RMB1,567.4 million, aided by inventory reduction.

• Total assets increased 3.1% to RMB58,704.2 million; equity attributable to shareholders at RMB29,949.2 million.

Outlook and guidance

• Industry faces persistent supply-demand imbalances and overcapacity, with pricing pressure expected to persist in the near term.

• Recovery in solar glass market depends on global PV installation trends and policy developments, with a possible short-term slowdown in China offset by stronger overseas demand in 2H2025.

• The Group will continue prudent expansion, focusing on quality, cost control, and financial flexibility.

• Construction of two new solar glass lines in Indonesia underway, with commercial production expected in Q1 2026.

• Minimal new solar farm grid connections expected in 2H2025.