Xinyi Glass (0868) H1 2026 earnings summary

Executive summary

• Revenue for 1H2026 decreased by 3.1% year-over-year to RMB9,520.8 million, mainly due to lower average selling prices of float glass and weak PRC property market conditions.

• Net profit attributable to equity holders rose 16.9% to RMB1,184.1 million, driven by improved cost controls and the absence of one-off losses.

• Basic earnings per share increased to 26.76 RMB cents from 23.25 RMB cents in 1H2025.

• An interim dividend of 15.0 HK cents per share was declared, up from 12.5 HK cents in 1H2025.

• Gross profit margin declined to 30.1% from 31.6% due to lower ASPs, partially offset by lower raw material and energy costs.

Financial highlights

• Gross profit declined 7.7% year-over-year to RMB2,863.4 million, with gross margin at 30.1%.

• EBITDA increased by 5.1% to RMB2,209.1 million.

• Net profit margin improved to 12.4% from 10.3% in 1H2025.

• Finance costs fell 43.7% to RMB35.4 million due to loan repayments and lower interest rates.

• Net cash inflow from operating activities was RMB923.0 million, down from RMB1,564.6 million in 1H2025.

Outlook and guidance

• Management remains optimistic about growth in the automobile glass aftermarket and OEM business globally and in China, expecting increased demand for advanced and energy-saving glass products.

• The company plans to expand overseas production capacity, including new facilities in Indonesia and potential acquisitions in the Middle East and Vietnam.

• The PRC government is expected to introduce policies to support the property market, potentially boosting future demand for float and architectural glass.

• Energy costs in Malaysia are expected to rise in 2H2026, while soda ash prices remain stable.