Xinyi Glass (0868) H1 2026 earnings summary

Executive summary

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

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

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

• EBITDA increased by 5.1% to RMB2,209.1 million; net profit margin improved to 12.4% from 10.3%.

Financial highlights

• Revenue: RMB9,520.8 million (down 3.1% year-over-year).

• Net profit: RMB1,184.1 million (up 16.9% year-over-year).

• Gross profit: RMB2,863.4 million (down 7.7% year-over-year); gross margin 30.1%.

• EBITDA: RMB2,209.1 million (up 5.1% year-over-year).

• Earnings per share: 26.76 RMB cents (up 15.1%).

• Interim dividend: 15.0 HK cents per share (up 20%).

Outlook and guidance

• Management remains optimistic about global and PRC automobile glass demand, with growth expected in advanced glass products and energy-saving segments.

• Expansion plans include new facilities in Indonesia and potential acquisitions in the Middle East and Vietnam.

• PRC government policies are expected to support property market recovery, boosting demand for float and architectural glass.

• Energy costs in Malaysia expected to rise in 2H2026; soda ash prices stable.