Xinyi Glass Interim Profit Up 16.9% to RMB 1.18 Billion Despite 3.1% Revenue Dip

Bulletin Express
Jul 31

Xinyi Glass Holdings Limited reported resilient first-half 2026 results, with net profit attributable to shareholders rising 16.9 % year on year to RMB 1.18 billion, while revenue slipped 3.1 % to RMB 9.52 billion.

Key financials (1H 2026 vs 1H 2025) • Revenue: RMB 9.52 billion (-3.1 %) • Gross profit: RMB 2.86 billion (-7.7 %); gross margin 30.1 % (1H 2025: 31.6 %) • Operating profit: RMB 1.42 billion (+19.8 %) • Net profit attributable to shareholders: RMB 1.18 billion (+16.9 %) • Basic EPS: 26.76 RMB cents (+15.1 %) • Interim dividend: 15.0 HK cents per share (+20.0 %), with scrip option

Segment performance • Float glass revenue fell 5.2 % to RMB 5.10 billion; gross margin compressed on lower average selling prices. • Automobile glass revenue grew 3.9 % to RMB 3.45 billion, supported by increased overseas and PRC OEM sales; segment gross profit rose to RMB 1.82 billion. • Architectural glass revenue declined 13.5 % to RMB 0.97 billion amid a weak PRC property market; gross profit reached RMB 0.19 billion.

Cost and expenses • Cost of sales edged down 0.9 % to RMB 6.66 billion. • Selling and marketing expenses contracted 24.5 % to RMB 0.50 billion, reflecting lower transportation and U.S. tariff costs. • Administrative and other operating expenses slipped 1.6 % to RMB 1.09 billion. • Finance costs dropped 43.7 % to RMB 35.38 million following loan repayments and lower interest rates; finance income increased 27.3 % to RMB 16.68 million. • Share of profits from associates (mainly Xinyi Solar and Xinyi Energy) declined to RMB 25.46 million from RMB 202.87 million.

Cash flow and balance sheet • Net cash from operations: RMB 0.92 billion (1H 2025: RMB 1.56 billion). • Capital expenditure: RMB 0.79 billion, focused on production facilities in China, Malaysia and Indonesia. • Bank borrowings fell 19.7 % to RMB 3.86 billion; net debt-to-equity ratio improved to 4.0 % (31 Dec 2025: 5.1 %). • Cash and bank balances stood at RMB 2.38 billion. • Current ratio improved to 1.41 (31 Dec 2025: 1.36). • Capital commitments totalled RMB 1.10 billion.

Management highlights The board cited sustained weakness in China’s property sector and lower float-glass prices as revenue headwinds, partially offset by reduced raw-material and energy costs. The automobile glass segment benefited from product upgrades for ADAS and EV applications and stronger overseas demand. Strategic repayment of higher-cost debt and a shift to RMB funding lowered finance costs.

No material acquisitions, disposals or contingent liabilities were reported post-period.

Dividend timetable The register of members will close 17–19 August 2026; the interim dividend is payable on or about 30 September 2026.

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