Xinyi Solar (968) H2 2025 earnings summary

Executive summary

• Revenue declined 4.8% year-over-year to RMB20,861.2 million, mainly due to lower average selling prices of solar glass despite higher sales volume.

• Net profit attributable to equity holders dropped 16.2% to RMB844.5 million, primarily due to a significant increase in impairment provisions on fixed assets.

• Gross profit rose 15.4% to RMB4,461.0 million, with overall gross margin improving to 21.4% from 17.6% last year.

• The solar glass segment saw improved margins and increased overseas sales, while the renewable energy segment maintained stable revenue but slightly lower gross profit.

Financial highlights

• EBITDA decreased 16.6% to RMB3,665.1 million, with EBITDA margin at 17.6%.

• Net profit margin attributable to equity holders fell to 4.0% from 4.6%.

• Basic earnings per share were 9.29 RMB cents, down from 11.27 RMB cents.

• Net cash generated from operating activities surged to RMB5,656.2 million, up from RMB1,235.1 million.

• Final dividend proposed at 0.8 HK cents per share.

Outlook and guidance

• China’s PV market is expected to see a year-on-year decline in new installations in 2026 due to policy shifts toward market-oriented pricing.

• Global PV installation growth faces challenges, with only select regions like India and Africa expected to show substantial growth.

• The Group will focus on quality over quantity, cost reduction, efficiency, and prudent financial management.

• Expansion of overseas solar glass capacity continues, with new lines in Indonesia to mitigate geopolitical risks.