XINYI SOLAR (00968) fell more than 5% again, dropping 5.42% to HK$3.14 by the time of writing, with a turnover of HK$292 million. Recently, the company released its 2025 performance results. Bocom International noted that XINYI SOLAR reported a net profit of RMB 844 million for the year, down 16% year-on-year, with only RMB 99 million earned in the second half. This was mainly due to a full-year impairment of fixed assets totaling RMB 2.32 billion, including RMB 720 million for photovoltaic glass and RMB 1.6 billion for a 52%-owned polysilicon project. The institution indicated that since November, photovoltaic glass prices have resumed a downward trend, pushing the entire industry back into a loss-making situation. However, most of the currently operational capacity consists of low-cost production lines with relatively short operating histories, reducing the incentive for further cold repairs. Meanwhile, already constructed capacity continues to gradually come online, meaning it will take more time for excess capacity to be phased out. Bocom International has lowered its profit forecasts for XINYI SOLAR for 2026 and 2027 by 14% and 20%, respectively, citing slower-than-expected capacity reduction. It also adjusted its valuation benchmark from 1.0 times 2026 price-to-book ratio to 0.95 times.