Xinyi Solar boasts increasing of H1 profits but warns over solar glass headwinds

• Solar glass supplier Xinyi Solar has reported a more-than-doubling of profits in H1 2021, however advised that weaker demand and lower rates for solar glass will certainly wet its lead to the 2nd half of the year.

Reporting its first fifty percent efficiency last week, Xinyi Solar disclosed that H1 2021 earnings stood at HK$ 8.074 billion (US$ 1.037 billion), a rise of more than 74% year-on-year. Internet profit on the other hand greater than doubled to HK$ 3.072 billion (US$ 394.9 million), leading the business to describe its efficiency in the first fifty percent of the year as "magnificent".

The team's first fifty percent performance was primarily driven by its solar glass production tasks, which made up 81% of complete group revenue-- the staying 19% stemming from utility-scale solar growth tasks-- which was in turn improved by surging solar glass costs in the initial quarter.

Ordinary selling prices (ASPs) for solar glass surged towards completion of in 2015, motivating solar module makers to describe them as "out of control" and ask the Chinese federal government to step in.

ASPs did begin to decrease throughout the initial half however, with Xinyi noting that the price for 3.2 mm glass specifically fell by at least 45% in the six-months ended 30 June 2021.

Despite a weakening spot cost for solar glass in Q2, Xinyi managed to maintain its gross margin at 51.2%, nonetheless this is now anticipated to fall in the 2nd half of the year as better amounts of glass result comes onstream and require for glass remains dimmed as module makers reduced exercise rates in the middle of prices volatility in other places.

Xinyi noted that around 7,900 MT daily of brand-new glass outcome was included across the industry in the very first fifty percent of the year, with Xinyi itself including brand-new capability to take its everyday result capacity to 11,800 MT as of 30 June.

The business even more kept in mind that in anticipation of weak pricing moving forward, it had actually taken on versatile marketing strategies, optimised product profiles for future generation products such as large-format solar modules and applied new price control procedures.