Xinyi Solar

Business

Xinyi Solar Holdings (信义光能控股有限公司) makes solar glass at production complexes in China, Malaysia and Indonesia, and develops and runs solar farms (2026 interim results, p. 10). At the end of June 2026 it had 22,600 tonnes a day of solar glass melting capacity in operation, about 20% of it outside China (p. 53).

Results in the first half of 2026

• Revenue fell 22.9% to ¥8.43bn and profit attributable to shareholders fell 94.8% to ¥39.0m (p. 39).
• Solar glass revenue fell 24.4% to ¥7.16bn, 85.0% of the total (p. 45). Sales volume fell 5.8% and mainstream glass prices more than 20% (p. 46).
• The solar glass gross margin fell 8.1 points to 3.3%, after inventory write-downs of ¥29.1m, partly offset by cheaper soda ash and silica sand (p. 48).
• Overseas markets took 38.8% of solar glass sales, up from 31.6% (p. 46).

Solar farms

Its renewable energy business had 6,342 MW of approved grid-connected capacity at the end of June (p. 43). Revenue fell 15.8% to ¥1.21bn because of curtailment and lower power prices under China's new market-based pricing, but the gross margin was still 55.7% (pp. 45, 48). It connected no new projects in the half and is waiting to see how the pricing reform works out (pp. 43, 54). Government subsidies owed to it stood at ¥5.0bn (p. 48).

Moving abroad

Its first solar glass line in Indonesia started in January 2026, a second is due this year, and a second phase of 2,300 tonnes a day is being planned; some idle capacity in China has been shut (p. 54). The company says overseas plants help it avoid trade barriers and tariffs, cut freight costs and earn higher prices (p. 42).

Our view: with glass earning 3.3%, the solar farms carried Xinyi through the half, but the pricing reform that cut demand for glass is also lowering what those farms earn.

The company's own caveats

• Oversupply. Capacity across the solar chain is shrinking too slowly to match the fall in demand, and prices are below cash cost in several segments (p. 42).
• Customers' finances. Many companies in the chain face liquidity problems, so it has favoured customers with better credit (p. 46).
• Power pricing. New market-based pricing makes solar farm returns less certain and could lower tariffs on existing projects (pp. 43, 54).