Xinyi Solar Announces 2025 lnterim Results
(Hong Kong, 1 August 2025) — Xinyi Solar Holdings Limited (the "Company", together with its subsidiaries, "Xinyi Solar", the "Group" or the “XYS Group”; Stock Code: 00968), a world leading solar glass manufacturer, today announced its interim results for the six months ended 30 June 2025 (the “1H2025” or the “Period”).
During the 1H2025, the solar industry continued to operate in a complicated, volatile and challenging environment, marked by a moderated growth in global solar installations, geopolitical tensions and increasing trade barriers, as well as supply-demand imbalances. Despite these challenges, the Group capitalised on its competitive strengths through proactive market positioning and flexible operations management to secure volume growth in its solar glass segment. Although the average selling price (“ASP”) of solar glass products declined significantly, leading to a year-on-year drop in profit margins, and impairment provisions were required for certain idle solar glass production facilities, the Group’s consolidated results for the 1H2025 improved remarkably compared to the second half of 2024.
In the 1H2025, the Group achieved consolidated revenue of RMB10,931.8 million (1H2024: RMB 11,693.9 million), and profit attributable to equity holders of the Company reached RMB745.8 million (1H2024: RMB 1,810.8 million). Basic earnings per share were 8.21 RMB cents for the 1H2025, compared to 20.33 RMB cents for the 1H2024. The Board of Directors has resolved to declare an interim dividend of 4.2 HK cents per share.
Business Review
Solar Glass Business –
Competitive Edge Through Disciplined Strategy and Production Diversification
In the 1H2025, the Group’s solar glass sales volume (in tonnes) increased 17.5% year-on-year. However, due to the significant drop in ASP, the Group’s solar glass revenue decreased by 7.3% year-on-year to RMB9,474.1 million.
The Group adopted a cautious approach during the Period – refraining from expanding production volume and maintaining daily melting capacity at 23,200 tonnes/day. The sales volume growth in the 1H2025 was primarily achieved through inventory reduction strategies.
Amid the challenging market conditions characterised by the supply-demand imbalances and margin pressures, the Group implemented a disciplined strategy to maintain competitiveness. Comprehensive cost optimisation measures were deployed across each production processes, while sustained R&D investment addressed evolving technical and commercial requirements from solar module manufacturers. Dynamic inventory management systems were calibrated to maintain appropriate stock levels, balancing operational efficiency with market responsiveness.
On the commercial front, the Group adopted a selective customer engagement approach, giving priority to the financially stable partners and implementing enhanced credit management policies. This was complemented by strategic capacity planning that optimised existing asset utilisation while preserving financial flexibility, enabling measured responses to regional market shifts. Through the disciplined operations and targeted overseas expansion (establishing a new solar glass production facility in Indonesia), the Group has enhanced its resilience against market volatility while positioning itself to capitalise on emerging opportunities and sustain long-term growth.
Solar Farm Business –
Prudently Expand Solar Farm Business and Flexibly Respond to Market Changes
In light of the increased uncertainties regarding project investment returns, the Group has adopted a more measured approach to the development and construction of new solar farm projects. As a result, no self-developed utility-scale solar farm projects were connected to the grid during the Period. The Group instead focused on the reserve development and preparatory work, positioning itself to swiftly resume construction when market clarity improves. This strategic pause optimised capital allocation, allowing for greater flexibility in adapting to market changes while safeguarding long-term growth pipelines.
Revenue from the solar farm segment saw a slight growth of 0.7% year-on-year to RMB1,437.6 million in the 1H2025. This limited growth was primarily attributable to: (i) minimal new grid-connected capacity additions in 2024 and the 1H2025; (ii) increased power curtailment in certain regions; and (iii) a higher proportion of electricity sales through market-based trading mechanisms, which introduced greater revenue volatility.
Regarding the disposal of solar farm projects, the Group completed the disposal of a solar farm project with a capacity of 30 megawatts (“MW”) to its non-wholly owned subsidiary Xinyi Energy Holdings Limited (“Xinyi Energy”) in the 1H2025. As of 30 June 2025, the cumulated approved grid-connected capacity of the Group’s solar farm projects was 6,245MW, of which 5,841MW was for the utility-scale ground mounted projects, and 404MW was for the distributed generation projects for the Group’s own consumption or sale to the grid. In terms of the ownership, the solar farm projects with a capacity of 4,585MW were held through Xinyi Energy; solar farm projects with a capacity of 1,560MW were held through certain wholly-owned subsidiaries of the Company. A solar farm project with a capacity of 100MW was held by an entity owned as to 50% by the Group.
Xinyi Energy is progressing plans to establish an infrastructure securities investment fund for selected solar farm assets, with the aim of listing on a stock exchange in the People’s Republic of China. This strategic initiative will facilitate the partial monetisation of the Group’s portfolio of solar farms, reduce the Group’s exposure to fixed assets and increase financial flexibility.
Prospects
Compared to the previous years, the newly initiated capacity expansions in the solar glass industry have significantly contracted, which should help rebalance market conditions. Based on the current market situation, pricing pressure may persist in the near term as the industry gradually absorbs these evolving market dynamics. Given the unprecedented scale and uncertainty surrounding the current solar industry cycle adjustment, the Group remains committed to prudent business management through rigorous financial risk monitoring, disciplined cost and capital expenditure control, and continuous efficiency enhancement initiatives to solidify its leading position.
As of 30 June 2025, the Group’s total operational solar glass melting capacity was 23,200 tonnes per day, which included two production lines with a total melting capacity of 1,800 tonnes per day that were suspended operation in July 2025. Furthermore, the Group maintains certain idle production capacities that can be reactivated in response to the market conditions. Meanwhile, the construction of two new solar glass production lines in Indonesia is underway, with commercial production expected to begin in the first quarter of 2026. The Group remains proactive in evaluating further expansion opportunities in strategic locations and will adjust operational capacity in line with market dynamics.
Regarding solar farm investment, the Group will continue to prioritise the quality and rigorously assess new projects based on their investment return potential. However, growing grid curtailment risks, increasing market-based power sales requirements, and policy changes in China’s renewable energy market have collectively added uncertainties to the investment return of the new projects. In response, the Group will maintain its focus on the development of its project pipeline and preparatory work during the second half of 2025, with consequently minimal to no new grid-connected capacity expected during this period.
Dr. LEE Yin Yee, S.B.S., Chairman of Xinyi Solar, concluded, "We believe that the global transition to green energy will continue to accelerate the use of the solar power, sustaining the long-term growth in the PV industry. While acknowledging the near-term market challenges, the Board maintains a strong confidence in both the industry’s prospects and the Group’s capacity to deliver sustained healthy growth in the future. Through the disciplined execution of its three-pillar strategy — operational excellence, financial prudence, and technology leadership — Xinyi Solar is strategically positioned to weather current market volatility while securing its competitive advantage and generate long-term economic value to its shareholders."