Xinyi Solar (00968) is expected to have a net loss of no more than 50 million yuan in the medium term to a comprehensive net profit of no more than 50 million yuan

According to Zhitong Finance App News, Xinyi Solar (00968) announced that the Group's comprehensive net profit attributable to the Company's equity holders in the first half of 2026 will be drastically reduced to no more than RMB 50 million, or that the Group may record a net loss of no more than RMB 50 million in the first half of 2026, while net profit for the six months ending June 30, 2025 (first half of 2025) will be RMB 746 million.

The directors believe that the decline in profitability is roughly in line with the overall industry trend in mainland China and is mainly due to the following reasons: (1) Solar glass business performance - In the first half of 2026, the profit margin of solar glass products declined significantly, mainly due to a sharp year-on-year decrease in downstream solar panel installed capacity, which weakened upstream demand for solar glass, leading to an imbalance between supply and demand and a drop in the sales price of solar glass products, especially in the second quarter of 2026. The decline in sales volume and sales prices led to a decrease in earnings, which was not offset by a decrease in the procurement costs of raw materials. (2) Inventory impairment - Due to a drop in the market price of solar glass products, the Group made provision for confirmed inventory impairment as of June 30, 2026. (3) Renewable energy power generation business - Solar power generation revenue also recorded a decline, mainly due to increased electricity restrictions in several regions of mainland China in the first half of 2026 compared to the first half of 2025. Mainland China's new electricity price policy is also putting pressure on electricity sales volume and electricity price protection under the benchmark feed-in tariff mechanism.