HIUV New Materials

Business

Shanghai HIUV New Materials (上海海优威新材料股份有限公司) makes solar encapsulant films, including transparent and white EVA, single-layer and co-extruded POE, and films for newer cell designs, and is developing materials for cars and buildings: a liquid-crystal dimming film for glass roofs and windows, lightweight synthetic leather and a glass-laminating film (2026 interim report, pp. 9, 10). It is also working on equipment and processes for recycling old solar modules (p. 15).

Results in the first half of 2026

• Revenue fell 3.51% to ¥611m, and the net loss attributable to shareholders narrowed to ¥47.6m from ¥133m. Operating cash flow was ¥112m (pp. 7, 15).
• Encapsulant film brought in ¥559m at a gross margin of about 6.3%; sales abroad were ¥17m (our calculation from p. 159).
• Its main-business gross margin rose to about 6.7% from about -1.7% a year earlier (our calculation from p. 159).
• Its dimming film was chosen for five more car models, extending from glass roofs to rear and side windows (p. 15).

The company says it is putting cash flow and safety first: tighter control of receivables, stock and purchasing, and prices for its film linked to resin costs (p. 15).

Our view: HIUV's film business is less than a tenth the size of First Applied's and earns about a third of its margin. In a concentrated stage, the second tier is being pushed towards new markets rather than growing in the old one.

How it sees the industry

• Film is a small part of a module's cost but matters for a module life of more than 25 years, so customers test suppliers at length and some project tenders name approved film makers (p. 12).
• Chinese film makers hold an important place in global supply, and the industry is consolidating as it upgrades its technology (p. 12).