Xinyi Solar issues profit warning amidst falling price of solar glass

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.

“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.

Read Next

August 15, 2022
How can solar PV projects boost their power output and raise profits amid rising module, land and equipment costs
August 10, 2022
Canadian Solar plans to build an integrated PV manufacturing plant in Western China, with a capacity of 200,000MT of high-purity polysilicon, 10GW of both cells and modules and multi-GW productions of raw and auxiliary materials.
PV Tech Premium
August 8, 2022
The price of polysilicon in China rose across the board last week, despite signals that it may have stabilised, constituting the 25th round of price increases this year alone.
August 3, 2022
Global investment in renewable energy reached a record half-year figure of US$226 billion in H1 2022, driven by soaring demand for clean energy technologies amid the ongoing energy and climate crisis, according to a BloombergNEF (BNEF) report.
PV Tech Premium
August 1, 2022
China’s polysilicon price finally stabilised this week, according to the Silicon Industry Branch of the China Nonferrous Metals Industry Association, following several long-term contracts being signed, helping to reduce market volatility in the short-term.
July 25, 2022
Module manufacturer and energy solutions company Hanwha Qcells has landed an agreement with Canadian Premium Sand (CPS) for the commercial offtake of patterned solar glass to support its US PV module production.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event