Xinyi Solar issues profit warning amidst falling price of solar glass

Facebook
Twitter
LinkedIn
Reddit
Email
Xinyi Solar had been expecting profits from its solar glass to fall this year. Image: Xinyi Solar

Solar glass provider Xinyi Solar has issued a profit warning after the price of solar glass fell and the price of key components and energy inputs rose.

In a statement issued to the Hong Kong stock exchange, Xinyi said the company’s net profit for H1 2022 is expected to decrease by 33% to 43% compared to H1 2021.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

“Such [a] decrease is primarily due to the decrease in the profitability of the solar glass business of the Group,” said Xinyi Solar.

Last year, the Wuhu, China-based company saw its net profits more than double in H1 2021 to HK$3.072 billion (US$394.9 million), leading the company to describe its performance in the first half of the year as “spectacular”.

It did, however, warn that weaker demand and lower prices for solar glass will dampen its results in the second half of the last year and through to 2022.

Xinyi Solar said its profitability had taken a hit because of a 10 – 20% year-on-year decrease in the average market price of solar glass products of the Group in H1 2022 as compared to same period in 2021. It said that prices had remained “exceptionally high” in Q1 2021 but had started to fall in Q2.

Furthermore, “significant increases” in the costs of raw materials, such as soda ash, and the higher price of energy has also helped to depress profits, said Xinyi Solar, adding “the above adverse factors were partially offset by the Group’s achievement of high sales volume and improved production efficiency”.

The years 2020 and 2021 were a bonanza for solar glass producers, with revenue and profits soaring. But, following government lobbying from major module manufacturers, claiming prices for solar-grade glass were “out of control”, the Chinese government implemented a series of policies designed to bring more capacity online and control price inflation.

Meanwhile, Xinyi Solar entered the polysilicon game last year. In a statement issued to the Hong Kong stock exchange, where it is listed, the boards of both Xinyi Solar and parent company Xinyi Glass confirmed that they had agreed to establish Xinyi Silicon, an entity 52% owned by Xinyi Solar, to develop polysilicon production facilities in China, backed by RMB3.3 billion (US$517 million) in funding.

The board of Xinyi Solar said the full financial results of the group will be published before the end of August 2022.

10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

Premium
June 9, 2025
N-type polysilicon prices have dropped to RMB34,000/ton as the project installation rush ends, putting cost pressure on the industrial chain.
June 5, 2025
Investment in clean energy and grids will reach US$2.2 trillion in 2025, double the expected investment into fossil fuels this year, according to data from the International Energy Agency (IEA).
June 4, 2025
Chinese PV module manufacturer Haitai Solar has announced the termination of a 10GW TOPCon and the reallocation of investment to fund an Indonesian facility.
June 2, 2025
Arctech has partnered with ACME Cleantech Solutions to provide 175MW worth of solar trackers for an upcoming facility in Duqm, Oman.
Premium
May 29, 2025
PV Talk: Global Solar Council CEO Sonia Dunlop tells Shreeyashi Ojha why the solar industry needs collective action to combat political and supply-chain disruption.
Sponsored
May 28, 2025
Ben Willis speaks to Astronergy about its next-generation TOPCon offering and the advantages of its zero-busbar module design, both of which were on show at Intersolar 2025.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece