Hainan Drinda New Energy Technology Co., Ltd. (Drinda) reported first-half 2026 revenue of RMB 3.15 billion, down 13.8% from the prior-year period, as China’s photovoltaic (PV) industry remained in an overcapacity adjustment phase. Despite softer sales, the company’s net loss attributable to shareholders narrowed 4.0% year on year to RMB 253.04 million, helped by a swing to a positive gross profit of RMB 78.89 million versus RMB 0.94 million a year earlier.

The revenue mix shifted toward the domestic market, which contributed 59.9% (RMB 1.89 billion) of total sales, up from 48.0% in the first half of 2025. Overseas revenue fell to RMB 1.26 billion, reflecting trade frictions and tariff pressures.

Cost of revenue declined 15.9% to RMB 3.07 billion, outpacing the drop in sales. Drinda cited process optimisation and higher average selling prices for its N-type solar cells as key drivers of the margin improvement. Other income surged 222.8% to RMB 137.93 million on higher value-added tax rebates, while adverse currency movements and mark-to-market losses on financial assets pushed other gains/losses to a RMB 176.05 million deficit from a RMB 21.19 million gain a year ago.

Finance costs rose 13.1% to RMB 144.12 million amid increased short-term borrowing. Consequently, the gearing ratio climbed to 182.8%, up from 157.6% at end-2025. Total assets reached RMB 17.10 billion, with cash and cash equivalents declining 11.7% to RMB 2.64 billion, mainly after the RMB 266.05 million net cash outflow for acquiring 60% of Shanghai Fuyao Xinghe Aerospace Technology in February.

Drinda continues to deploy capital from its A+H share platforms. In February it placed 18.68 million new H shares, raising net proceeds of HKD 397.70 million; 45% has been earmarked for commercial aerospace investments and 45% for space PV R&D and production. As of 30 June, 61.8% of the placement funds and 21.7% of the HKD 1.29 billion raised in the May 2025 IPO remained unspent.

The company reiterated its strategy as a specialised PV cell manufacturer focused on N-type technology, cost reduction and overseas capacity expansion. Management highlighted that its Turkish joint-venture plant is ramping up, while plans for a 5 GW facility in Oman are under review due to regional uncertainties.

No interim dividend was declared for the period.