Xinyi Glass (00868) has announced a significant corporate restructuring move. On August 31, 2026, its wholly-owned subsidiary, Xinyi Automobile Glass Holdings Limited, which serves as the holding company for the group's automotive glass operations, submitted a listing application (Form A1) to the Stock Exchange of Hong Kong. This application seeks approval for the shares of Xinyi Automobile Glass to be listed and traded on the Main Board, marking a proposed spin-off and separate listing of this business segment.
This filing follows the company's receipt of a letter from the exchange confirming that the proposed spin-off can proceed. The application was submitted on a confidential basis, and as such, Xinyi Automobile Glass will not publish any application version as part of this process.
With a rich operational history spanning nearly four decades, the automotive glass business stands as one of Xinyi Glass' three core divisions, alongside its float glass and architectural glass operations. In 2025, this segment achieved global leadership, ranking first in the aftermarket automotive glass products market by revenue. Given its scale and international reach, the board believes a separate listing is the most suitable avenue to support the continued growth of this business.
The independent listing is also expected to unlock the intrinsic value of the automotive glass division, providing investors with a clearer view of the distinct development trajectories of both Xinyi Glass and Xinyi Automobile Glass. The board is confident that the proposed spin-off will yield clear commercial benefits for both entities. The plan is structured as a pro-rata distribution in specie, where eligible shareholders will receive new shares of Xinyi Automobile Glass for zero consideration, excluding certain ineligible participants.
As part of the transaction, Xinyi Glass will sell a portion of its shares in the subsidiary, while Xinyi Automobile Glass will issue new shares. Based on current estimates, the shares to be distributed under this scheme will represent 80.0% of the total issued shares, with the sell-down and new issuance accounting for 14.0% and 6.0% of the expected offering size, respectively.
Upon completion of the separate listing, Xinyi Glass will continue to focus on its float glass and architectural glass businesses. As a leading float glass manufacturer, its operations were the largest in both China and globally by capacity in 2025, according to the latest available data. The architectural glass business is also well-positioned to benefit from the anticipated gradual recovery of the mainland property market. The company will announce the intended use of net proceeds from the share sale at an appropriate time.
Xinyi Automobile Glass, a global leader in its field, ranked first worldwide in the automotive replacement glass market by revenue in 2025. It offers comprehensive solutions encompassing design, development, manufacturing, delivery support, and services for automotive glass and accessories. Its products are sold to over 150 countries and regions across North America, South America, Europe, Asia, Oceania, and Africa through a robust sales network and regional teams. While primarily focused on the ARG market, the business is also steadily expanding its footprint in the original equipment manufacturing sector. The ARG business benefits from a broad customer base and persistent replacement demand, while the OEM operations allow participation in new model development and supply to automakers, enabling the company to address diverse demand drivers within the automotive glass market.