Flat Glass Group Co., Ltd. released unaudited first-quarter results for the three months ended 31 March 2026. Operating revenue contracted 9.95% year on year to RMB 3.67 billion, reflecting softer pricing in the photovoltaic (PV) glass market.

Net profit attributable to equity holders slid 64.06% to RMB 38.15 million, with basic earnings per share down to RMB 0.02 from RMB 0.05 a year earlier. Excluding non-recurring items, attributable net profit dropped 70.47% to RMB 30.18 million. Management cited “a significant decrease in the selling price of photovoltaic glass” and a 61.30% jump in administrative expenses—linked to capacity-optimisation spending—as primary factors behind the earnings contraction. Operating profit declined 57.28% to RMB 46.95 million.

Despite weaker profitability, operating cash flow improved markedly, rising 79.92% to RMB 300.42 million, mainly due to lower cash outlays for goods and services. Capital allocation remained investment-heavy: net cash used in investing activities widened slightly to a negative RMB 672.97 million, driven by RMB 423.29 million for fixed and intangible assets and RMB 1.52 billion deployed into investments. Financing activities provided a net inflow of RMB 139.98 million as the company drew RMB 1.12 billion in new borrowings.

The balance sheet was broadly stable. Total assets inched up 0.41% from end-2025 to RMB 42.56 billion, while equity attributable to shareholders was essentially flat at RMB 22.52 billion. Short-term borrowings rose 59.38% to RMB 1.33 billion, and non-current borrowings eased 9.15% to RMB 5.85 billion, indicating a shift toward shorter-tenor funding. Net cash and cash equivalents fell to RMB 3.46 billion from RMB 3.72 billion three months earlier, partly reflecting negative FX effects of RMB 23.28 million.

Non-recurring gains totalled RMB 7.97 million, fuelled by government subsidies (RMB 3.55 million) and fair-value investment gains (RMB 4.67 million). Weighted average return on equity narrowed to 0.17%, versus 0.49% in the prior-year quarter.

As at quarter-end, the three largest individual shareholders—Ruan Hongliang, Ruan Zeyun and Jiang Jinhua—together held just over 46% of outstanding shares, while HKSCC Nominees Limited represented 18.85% of total share capital through Hong Kong-registered investors.

The audit committee has reviewed the unaudited results, and the board reiterates that all financial data are prepared in accordance with Chinese Accounting Standards for Business Enterprises.