Xinyi Glass (0868) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 declined 9.7% year-over-year to RMB9,821.3 million, mainly due to lower float glass prices and a weak PRC property market.

• Net profit attributable to equity holders dropped 59.6% to RMB1,012.8 million, with net profit margin falling to 10.3% from 23.1% in the prior year.

• Gross profit decreased 16.7% to RMB3,101.7 million, and gross margin declined to 31.6% from 34.2% year-over-year.

• The business maintained profitability through cost controls, refinancing, and operational efficiency despite market headwinds.

• An interim dividend of 12.5 HK cents per share was declared, down 59.7% from the prior year.

Financial highlights

• EBITDA decreased 43.3% to RMB2,102.9 million; net profit margin dropped to 10.3% from 23.1%.

• Basic EPS was 23.25 RMB cents, down from 59.41 RMB cents year-over-year.

• Net cash from operating activities was RMB1,564.6 million, down from RMB1,987.7 million a year earlier.

• Net debt gearing ratio improved to 14.3% from 16.3% at year-end 2024.

• Total assets stood at RMB49,113.0 million as of 30 June 2025.

Outlook and guidance

• The group expects soda ash and energy costs to remain low, with PRC government policies anticipated to support property and glass demand.

• Plans include further overseas expansion, R&D investment, and focus on energy-saving and advanced glass products.

• The group remains cautiously optimistic for long-term growth, targeting global leadership and carbon neutrality initiatives.