Xinyi Solar Holdings Ltd (XINYI SOLAR) has announced a profit alert for the first half of 2026.

The company expects its attributable comprehensive profit for the period to significantly decrease to no more than RMB 50 million, or that the group may record a net loss not exceeding RMB 50 million for H1 2026.

This contrasts sharply with the net profit of RMB 746 million reported for the first half of 2025.

The board of directors attributes this anticipated decline in profitability to overall industry trends in mainland China, citing three primary reasons.

Primary Factors for the Decline

Firstly, the performance of the solar glass segment deteriorated significantly during H1 2026.

Profit from solar glass products fell markedly, primarily due to a substantial year-on-year decrease in downstream solar panel installations.

This weakened upstream demand for solar glass, creating a supply-demand imbalance and leading to a drop in product selling prices, especially in the second quarter of 2026.

The decline in both sales volume and price resulted in reduced revenue, which was not fully offset by lower raw material procurement costs.

Inventory and Power Generation Impact

Secondly, due to falling market prices for solar glass products, the group has recognized an impairment provision for its inventory as of June 30, 2026.

Thirdly, the renewable energy power generation business also saw a decrease in solar power revenue.

This was mainly due to increased power curtailment in certain regions of mainland China during H1 2026 compared to the same period in 2025.

Furthermore, new electricity pricing policies in China have put pressure on both electricity sales volume and the price guarantees under the benchmark feed-in tariff mechanism.