Flat Glass Group (6865) H1 2026 earnings summary

Executive summary

• Operating revenue for the six months ended 30 June 2026 was RMB6,668.2 million, down 13.81% year-over-year due to weak global PV demand and industry overcapacity.

• Net profit was RMB-362.8 million, a sharp decline from RMB266.0 million in the prior year, reflecting a -236.39% change.

• Gross profit margin dropped to 8.18% from 14.05% year-over-year, mainly due to lower PV glass prices and intensified competition.

• The PV glass segment, the largest contributor, saw revenue drop 15.60% year-over-year, with gross profit margin narrowing to 6.73%.

• Overseas sales grew 1.98% year-over-year, increasing their share of total revenue to 35.6%.

Financial highlights

• EBITDA for the period was RMB918.2 million, down from RMB1,451.6 million year-over-year; EBITDA margin fell to 13.77% from 18.76%.

• Total assets as of 30 June 2026 were RMB41,534.4 million, a 2.01% decrease from year-end 2025; net assets stood at RMB21,763.6 million, down 3.75%.

• Current ratio declined to 1.31 from 1.57 at year-end 2025; gearing ratio increased to 47.60%.

• Capital expenditures for the period were RMB682.7 million, significantly lower than RMB1,739.9 million in the prior year.

• Gross profit for the period was RMB545.2 million, down 49.85% year-over-year; gross margin fell to 8.18%.

Outlook and guidance

• The PV glass industry is expected to gradually recover as inefficient capacity exits and supply-demand dynamics improve.

• Management remains focused on cost control, efficiency, and technological innovation to navigate the industry downturn.

• Long-term prospects remain positive due to global energy transition trends and supportive government policies.