Xinyi Solar (968) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 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.

• The downturn was driven by a sharp contraction in China's photovoltaic (PV) market, weak global demand, and significant declines in solar glass prices.

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

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

Financial highlights

• Revenue dropped to RMB8,430.1 million from RMB10,931.8 million year-over-year.

• Net profit attributable to equity holders fell to RMB39.0 million from RMB745.8 million.

• EBITDA decreased 39.6% to RMB1,476.8 million; EBITDA margin was 17.5%.

• Gross profit margin declined to 10.9% (from 18.3%); net profit margin was 0.5% (from 6.8%).

• Interim dividend per share was 0.23 HK cents, down from 4.2 HK cents.

Outlook and guidance

• Global PV installations are expected to decline year-over-year in 2026, with China's slowdown pivotal.

• Solar glass prices may remain under pressure unless demand recovers or capacity is further reduced.

• The Group will shift strategic focus from scale to excellence, emphasizing product differentiation and cost efficiency.

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

• New solar farm investments will be approached cautiously due to policy and market uncertainties.