Xinyi Solar Holdings Limited reported sharp earnings contraction for the six months ended 30 June 2026, mirroring the downturn across China’s photovoltaic supply chain.

Financial Snapshot • Revenue slipped 22.9% year-on-year to RMB 8.43 billion. • Gross profit fell 54.0% to RMB 920.32 million; overall gross margin narrowed to 10.9% (1H2025: 18.3%). • Operating profit declined 66.9% to RMB 428.34 million. • Profit attributable to equity holders plunged 94.8% to RMB 39.02 million, dragging basic EPS to 0.43 RMB cents. • Interim dividend proposed at 0.23 HK cents per share, markedly lower than the 4.2 HK cents declared a year earlier.

Segment Performance • Solar-glass sales generated RMB 7.16 billion (85.0% of group revenue), down 24.4% on a 5.8% decrease in volume and a >20% decline in average selling price. Mainland China contributed 61.2% of segment revenue versus 68.4% in 1H2025; overseas share rose to 38.8% following the January start-up of the first Indonesian line. Segment gross margin contracted to 3.3% (1H2025: 11.4%), pressured by oversupply and inventory write-downs of RMB 29.06 million.

• Renewable-energy operations—mainly utility-scale solar farms in China—delivered RMB 1.21 billion, down 15.8%. Margin decreased to 55.7% (1H2025: 63.5%) due to increased curtailment and a shift to market-based tariffs under China’s new pricing regime. The segment now accounts for 14.4% of group turnover.

Cash Flow and Balance Sheet • Net operating cash inflow reached RMB 1.23 billion; net investing outflow moderated to RMB 512.22 million as capex slowed. • Cash and cash equivalents rose to RMB 5.90 billion, cutting net-debt-to-equity to 18.6% (end-2025: 20.1%). • Total assets stood at RMB 56.48 billion; equity attributable to shareholders was RMB 29.54 billion.

Capital Expenditure & Capacity • 1H2026 capex totalled RMB 997.40 million, directed chiefly to the Indonesian solar-glass project and residual spend on polysilicon and solar-farm assets. • Group solar-glass melting capacity in operation reached 22,600 tonnes/day; overseas capacity represents about 20%. One PRC line (1,000 tonnes/day) was idled in July amid weak demand.

Outlook Highlights Disclosed Management expects industry pricing pressure to persist until meaningful capacity rationalisation occurs, yet views long-term solar demand as intact. Resource allocations will favour overseas glass expansion and incremental efficiency gains, while new solar-farm investment in China will remain “cautious” under the market-based tariff framework.