Xinyi Solar Announces 2026 Interim Results

Xinyi Solar Announces 2026 Interim Results

Navigates Changing Macro Environment with

Strengthened Overseas Production Capacity

Prioritises Quality over Volume amid Industry Adjustment

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(Hong Kong, 31 July 2026) — 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 2026 (the “1H2026” or the “Period”).

During 1H2026, amid a challenging market condition, the Group recorded consolidated revenue of RMB 8,430.1 million (1H2025: RMB 10,931.8 million). Profit attributable to the equity holders of the Company was RMB 39.0 million (1H2025: RMB 745.8 million). Basic earnings per share were 0.43 RMB cents for the 1H2026 (1H2025: 8.21 RMB cents). The Board of Directors has resolved to declare an interim dividend of 0.23 HK cents per share, representing a dividend payout ratio of 46.7%.

Business Review

Solar Glass Business –

Capacity diversification to strengthen market position

During the Period, the Group’s solar glass revenue was RMB 7,162.7 million (1H2025: RMB 9,474.1million). The decrease was mainly due to the significant drop in average selling price (“ASP”) and decline in sales volume.

Given the pressure on profitability and the liquidity challenges and deteriorating financial conditions faced by many companies along the solar value chain, the Group adopted a cautious approach after weighing returns against risks. Priority was given to transactions with customers demonstrating sound credit records and stronger financial positions, while shipment volumes were appropriately controlled.

Despite the challenging environment of shrinking demand and falling prices, the Group has continued to expand its production capacity outside China, a move underpinned by strategic considerations. By diversifying production bases, the Group can mitigate the impact of trade protection measures and tariffs, reduce logistics costs and delivery times, and secure price premiums and higher margins from overseas sales. The Group’s first solar glass production line in Indonesia commenced operation in January 2026, enhancing its ability to serve overseas customers more effectively. As of 30 June 2026, the Group’s total daily melting capacity for solar glass in operation amounted to 22,600 tonnes, with overseas capacity (including Malaysia and Indonesia) rising to approximately 20%.

Renewable Energy Business –

Navigating Electricity Market and Pricing Reforms

In light of the increased uncertainty surrounding the return on investment for new solar farm projects under China’s new renewable energy pricing mechanism, no new projects were connected to the grid during the 1H2026 by the Group.

As of 30 June 2026, the Group’s renewable energy projects had a cumulative approved grid-connected capacity of 6,342MW, including 5,841MW of utility-scale ground-mounted solar farm projects, 64MW of wind farm project, and 437MW of distributed solar power projects (for self-consumption or sale to the grid). In terms of ownership, projects totaling 4,849 MW were held through Xinyi Energy Holdings Limited (“Xinyi Energy”); projects totaling 1,393 MW were held through wholly-owned subsidiaries of the Company; and projects totaling 100 MW were held by an entity in which the Group owns a 50% interest. During the Period, revenue from the renewable energy segment was 1,210.4 (1H2025: RMB 1,437.6 million), reflecting a higher share of market-based electricity sales and increased curtailment.

Prospects

Despite the near-term weakness, the medium- and long-term fundamentals of solar power remain compelling, as global electricity demand is set to accelerate, fueled by the rapid expansion of artificial intelligence applications, data centers, and electric mobility. The structural drivers underpinning solar adoption suggest that growth momentum will resume in the years ahead.

Adhering to the principle of “quality first,” the Group will shift its strategic focus from pursuing volume to pursuing excellence. In parallel with strengthening cost-reduction and efficiency-enhancement measures, the Group will continue to leverage its advantages in production scale, product quality, portfolio diversification, and technological innovation to respond flexibly to market changes. The Group will also maintain a prudent and pragmatic financial management strategy to ensure reasonable control of operating risks.

With PV installation growth in China slowing, the Group is shifting its development focus to overseas markets. Phase One development of the Group’s production base in Indonesia comprises two new solar glass production lines with a total daily melting capacity of 2,400 tonnes. The second production line is expected to commence operations within this year. Planning and development for Phase Two has already commenced, with a projected daily melting capacity of 2,300 tonnes. In addition, the Group maintains certain idle and reserve production capacity in China and will flexibly adjust its overall capacity in response to market developments.

As for the solar farm business, the renewable energy pricing reform remains at an early stage, and market conditions continue to evolve. As the Group requires further data and analysis to properly assess the feasibility of potential projects, the target for new grid-connected installed capacity in 2026 is expected to be significantly lower than the historical average of approximately 400 to 500 megawatts per year over the past five years.

Dr. LEE Yin Yee, S.B.S., Chairman of Xinyi Solar, concluded, "While the solar glass industry remains in the midst of an overcapacity adjustment, some short-term pressures are unavoidable. Nevertheless, as less-efficient capacity is gradually phased out, the industry is poised to return to a healthier and more sustainable trajectory. We will seize the opportunity presented by the industry’s transition from scale expansion to a focus on product quality and technological advancement. The Group will adjust and expand capacity as appropriate, strengthen innovation and product development, and remain committed to cost reduction and efficiency enhancement. In executing its three strategic pillars — operational excellence, prudent financial management, and technological leadership — the Group will continue to reinforce the sustainability and resilience of its solar glass and renewable energy businesses, while actively pursuing new growth opportunities to consolidate and enhance its market leadership position."