Flat Glass Group’s interim results for the six months ended 30 June 2026 show a sharp reversal in profitability as weak photovoltaic (PV) demand and industry overcapacity weighed on earnings. Operating revenue fell 13.81 % year on year to RMB 6.67 billion, driven by a 15.60 % drop in PV-glass sales to RMB 5.86 billion. Gross profit halved to RMB 545.17 million, pushing the gross margin down 5.87 percentage points to 8.18 %.

The company swung to a total loss before tax of RMB 427.73 million, compared with a profit of RMB 275.34 million a year earlier. After a tax credit of RMB 64.96 million, net loss stood at RMB 362.77 million versus a net profit of RMB 265.96 million in the prior-year period. EBITDA declined 36.7 % to RMB 918.20 million, and the EBITDA margin narrowed to 13.77 % from 18.76 %.

Domestic revenue contracted 20.60 % to RMB 4.30 billion, but overseas sales expanded 1.98 % to RMB 2.37 billion, lifting the non-China share of revenue to 35.60 % from 30.10 %. By product, PV glass remained dominant at 87.90 % of sales; float glass revenue more than tripled to RMB 101.87 million but still generated a negative gross margin of –12.01 %.

Operating cash flow held steady at RMB 1.34 billion, while net cash declined by RMB 216.15 million to RMB 3.50 billion. Capital expenditure was trimmed to RMB 682.72 million from RMB 1.74 billion, reflecting tighter spending on new capacity. Net gearing ticked up to 47.60 % from 46.65 % at end-2025.

Total assets slipped 2.01 % to RMB 41.53 billion due to lower inventories and fixed-asset impairments. Net assets fell 3.75 % to RMB 21.76 billion, and undistributed profit dropped to RMB 10.08 billion after an interim loss and a RMB 349.44 million cash dividend payment.

R&D spending rose 19.24 % to RMB 256.02 million, equal to 3.84 % of revenue, as the company prioritised process optimisation and cost control. Administrative expenses increased 39.36 % to RMB 201.83 million, largely linked to production-capacity adjustments, while finance costs rose 24.22 % to RMB 255.43 million on currency effects.

Flat Glass continued shareholder-return initiatives, repurchasing 12.12 million H-shares for HKD 90.16 million during the period, and carried RMB 375.32 million of treasury stock on the balance sheet. The company also disclosed that RMB 3.98 billion of A-share convertible bonds remain outstanding; only RMB 128,000 has been converted into equity to date.

Management cited sustained low PV-glass prices, industry oversupply and rising competition as core profit headwinds, but pointed to strong medium-term demand under China’s 2.8 TW wind-and-solar target for 2030. The group expects supply rationalisation and cost-reduction initiatives to stabilise margins and position the company for the sector’s next growth cycle.