Shares of Xinyi Solar, one of the world’s leading photovoltaic glass manufacturers, are slumping more than 10% in Hong Kong to hit a low of HK$7.22.
Xinyi Solar logged a revenue of HK$12.142 billion for the six months ended June, rising by 25.2% year over year, while net profit plunged by 26.9% to HK$1.392 billion. The earnings per share was 15.63 cents. An interim dividend of 7.5 cents was declared, compared to the 10 cents in the same period last year.
Driven by strong market demand growth and the continuous capacity expansion, the sales volume and revenue of solar glass surged by 49.8% and 30.8%, respectively, from a year earlier, however, the decline in average selling price and cost pressures continued to have a negative impact on the gross profit margin of the solar glass business, with the overall gross profit margin dropping by 8.7 percentage points year over year to 22%, the company said.
Nevertheless, the company noted that major energy and raw material procurement costs have lowered since the second quarter of 2023, and that its gross profit margin has improved on a monthly basis since April.
