Xinyi Solar (968) H1 2026 earnings summary

Executive summary

• Revenue for 1H2026 declined 22.9% year-over-year to RMB8,430.1 million, with net profit attributable to equity holders plunging 94.8% to RMB39.0 million, mainly due to weak demand, falling prices in the solar glass and renewable energy segments, and a sharp contraction in China's PV market.

• The industry faced a sharp contraction in China's PV installations, global oversupply, and intensified competition, leading to margin compression and inventory buildup.

• Gross profit margin fell to 10.9% from 18.3% a year earlier, reflecting margin pressure across both solar glass and renewable energy segments.

• The Group focused on cost optimization, operational risk management, and overseas capacity expansion, notably launching a new solar glass facility in Indonesia.

Financial highlights

• Solar glass revenue dropped 24.4% year-over-year to RMB7,162.7 million, with sales volume down 5.8% and average selling prices falling over 20%.

• Renewable energy revenue decreased 15.8% to RMB1,210.4 million, mainly due to increased curtailment and lower average selling prices.

• EBITDA declined 39.6% to RMB1,476.8 million, and net profit margin dropped to 0.5% from 6.8%.

• Basic and diluted EPS were 0.43 RMB cents, compared to 8.21 RMB cents in 1H2025.

• Interim dividend declared at 0.23 HK cents per share, down from 4.2 HK cents in 1H2025.

Outlook and guidance

• Global and China PV installations are expected to decline year-over-year in 2026, with solar glass prices likely to remain under pressure unless demand recovers or capacity is further reduced.

• The Group will focus on product and market differentiation, cost efficiency, and prudent financial management, shifting strategic emphasis from scale to excellence.

• Expansion in overseas markets will continue, with Indonesia and Malaysia accounting for a growing share of solar glass capacity.

• New utility-scale solar farm investments will be limited, with a cautious approach due to ongoing policy reforms and market uncertainties.