Flat Glass Group

Business

Flat Glass Group (福莱特玻璃集团股份有限公司) makes solar glass, float glass, architectural and household glass, and mines quartz for glassmaking (2026 interim report, p. 7). Solar glass brought in 87.90% of revenue in the first half of 2026 (p. 7). It says it became the first Chinese maker to break the international producers' hold on solar glass, in 2006 (p. 9), and names Jinko, JA Solar, Tongwei, LONGi, Chint New Energy and DMEGC among its long-term customers (p. 10). It has a subsidiary in Vietnam (p. 14).

Results in the first half of 2026

• Revenue fell 13.81% to ¥6.67bn, on lower solar glass prices and volumes, and the company swung to a net loss of ¥363m from a profit of ¥261m (pp. 6, 11).
• Solar glass brought in ¥5.86bn at a gross margin of about 6.7% (our calculation from p. 119).
• By region, across all products, sales in China earned about -1.4%, the rest of Asia about 26.7% and North America about 24.3%; exports were 35.58% of revenue (our calculations from p. 119; p. 15).
• Asset impairments of ¥201m came mainly from shutting production lines (p. 11). Operating cash flow was ¥1.34bn (p. 6).

How it sees the industry

The company says solar glass prices fell to around cash cost, that most of the industry was loss-making, and that cold repairs and permanent closures of high-cost furnaces increased. It expects closures and slower capacity additions to improve the balance, and the market to concentrate on the leaders (p. 8).

Capacity plans

Two large projects in China, run by its Anhui and Nantong subsidiaries, are under construction, and a plant in Indonesia with an investment of US$290m is in preparation (p. 13).

Our view: Flat Glass's regional margins show why it is building closer to overseas customers. Its sales in China lost money in the half while its sales elsewhere in Asia kept more than a quarter of revenue as gross profit.

The company's own caveats

• Industry cycles. Demand for solar glass follows module installations and policy (p. 15).
• Trade. The US, the EU and India are building local manufacturing and raising barriers to Chinese solar products (p. 15).
• Inputs. Soda ash, quartz sand, natural gas and fuel oil prices drive its costs (p. 15).
• Currency. Export sales are mainly in US dollars (p. 15).