Xinyi Solar issues profit warning amidst falling price of solar glass

• Solar glass company Xinyi Solar has provided a profit caution after the price of solar glass fell and the price of key components and also power inputs rose.

In a statement released to the Hong Kong stock market, Xinyi stated the business's net profit for H1 2022 is anticipated to decrease by 33% to 43% contrasted to H1 2021.

"Such [a] decrease is primarily because of the decrease in the profitability of the solar glass business of the Group," claimed Xinyi Solar.

Last year, the Wuhu, China-based business saw its net profits greater than double in H1 2021 to HK$ 3.072 billion (US$ 394.9 million), leading the business to describe its performance in the initial half of the year as "incredible".

It did, however, warn that weaker need and lower prices for solar glass will certainly moisten its lead to the 2nd fifty percent of the last year and also through to 2022.

Xinyi Solar said its profitability had taken a hit because of a 10-- 20% year-on-year decrease in the typical market value of solar glass products of the Group in H1 2022 as contrasted to very same period in 2021. It said that prices had remained "extremely high" in Q1 2021 but had started to fall in Q2.

Additionally, "considerable rises" in the costs of raw materials, such as soda ash, and the greater price of energy has actually additionally aided to dispirit profits, said Xinyi Solar, including "the above unfavorable factors were partially countered by the Group's achievement of high sales volume and better production performance".

The years 2020 and also 2021 were a treasure trove for solar glass producers, with revenue as well as profits skyrocketing. However, complying with federal government lobbying from major module producers, claiming prices for solar-grade glass were "uncontrollable", the Chinese government executed a collection of plans developed to bring even more capacity online and control price inflation.

At The Same Time, Xinyi Solar got in the polysilicon game last year. In a declaration released to the Hong Kong stock market, where it is provided, the boards of both Xinyi Solar as well as parent company Xinyi Glass confirmed that they had actually accepted establish Xinyi Silicon, an entity 52% owned by Xinyi Solar, to establish polysilicon manufacturing facilities in China, backed by RMB3.3 billion (US$ 517 million) in financing.

The board of Xinyi Solar stated the complete monetary outcomes of the group will be published prior to the end of August 2022.