[True Burn Hong Kong Stock Trends] Xinyi Glass (00868.HK) announced its 2025 interim results, advancing capacity-based business layout, actively expanding overseas markets, continuously consolidating core advantages, and flexibly responding to market fluctuations.
Zhenzhuo Finance August 1, 2025 - Leading comprehensive manufacturer of automotive glass, energy-saving architectural glass, and high-quality float glass, Xinyi Glass Holdings Limited (00868.HK) $XINYI GLASS(00868.HK) announced its unaudited interim results for the six months ended June 30, 2025 ("the Review Period").
In the first half of 2025, the glass industry faced weak demand and market price pressures, coupled with a significant decline in new property project areas and completed areas, leading to sluggish demand. The Group's float glass and architectural glass businesses were inevitably affected. Amid the industry's demand contraction, the Group leveraged the high value-added characteristics of its differentiated product portfolio and continued to focus on automotive glass, mitigating some of the price pressures in the float glass market. During the Review Period, the Group recorded revenue of RMB 9,821.3 million (H1 2024: RMB 10,881.7 million), gross profit of RMB 3,101.7 million (H1 2024: RMB 3,724.4 million), and a gross profit margin of 31.6% (H1 2024: 34.2%). Due to the decline in gross profit from float glass and architectural glass products and the reduced share of profits from Xinyi Solar Holdings Limited in H1 2025, net profit was RMB 1,012.8 million, with a net profit margin of 10.3% (H1 2024: 23.1%). Basic earnings per share were RMB 23.3 cents (H1 2024: RMB 59.4 cents).
The Group maintained a robust financial position, with cash on hand of RMB 2,033 million as of June 30, 2025, and a net capital-to-debt ratio of 14.3%, remaining at a healthy level. The Board proposed an interim dividend of 12.5 HK cents per share, with a payout ratio of 49.2%, continuing a stable dividend policy. Additionally, the Group completed the conversion of all borrowings to RMB by the end of January 2025, reducing interest expenses from RMB 119 million in the same period last year to RMB 63 million in H1 2025.
Dr. Lee Yin Yee, S.B.S., Chairman of Xinyi Glass, said: "Despite the challenges faced by the industry in the first half of 2025, Xinyi Glass demonstrated operational resilience through its high-quality, differentiated product portfolio and value-added product strategy. The automotive glass business achieved steady growth driven by demand for new energy vehicles, effectively offsetting the impact of declines in other segments. Upholding the philosophy of 'seeking opportunities in crises,' the Group flexibly responded to market fluctuations through precise cost control and a global production layout, consolidating its leading position in the industry. The orderly expansion of overseas production bases in Malaysia and Indonesia further enhanced the Group's competitiveness in Asia and other regions. Looking ahead, the Group will continue to strengthen its core advantages and optimize its global supply chain, embracing opportunities and challenges amid uncertainty with steady operations and technological innovation, and seizing market recovery opportunities with a forward-looking vision."
Business Review
Float Glass
In the first half of 2025, the domestic real estate market continued to adjust, putting pressure on float glass demand, with average market prices trending downward. The Group's float glass business recorded revenue of RMB 5,381 million, with a gross profit margin of 17.8% (H1 2024: 28.4%). To address market challenges, the Group continued to optimize its production capacity structure, focusing on high-value-added and differentiated products, and deepened the strategic layout of overseas production bases to mitigate some of the impact of price fluctuations and maintain business stability.
Automotive Glass
Benefiting from the steady recovery of the automotive industry and demand from the new energy vehicle market, the Group's automotive glass business performed relatively well. Revenue for the period was RMB 3,322.9 million, up 10.6% year-on-year, with gross profit rising 21.6% to RMB 1,810 million and gross profit margin increasing to 54.5% (H1 2024: 49.5%). Leveraging its diversified customer base and high-value-added products, the Group maintained strong market pricing power and actively expanded into the aftermarket and OEM markets, broadening revenue streams. Additionally, production operations in Malaysia and Indonesia progressed smoothly, further enhancing the Group's global supply capabilities. The Group also deepened cooperation with leading Chinese new energy vehicle manufacturers, focusing on the R&D of smart and lightweight automotive glass products. At the same time, the Group closely followed market demand, promptly launching new products aligned with trends. The global production layout effectively addressed trade barrier challenges, ensuring the Group's competitive edge in the automotive glass sector.
Architectural Glass
The architectural glass business faced pressure against the backdrop of a sluggish real estate industry, recording revenue of RMB 1,117.4 million, gross profit of RMB 332.4 million, and a gross profit margin of 29.7% (H1 2024: 28.5%). With the deepening of the "dual carbon" goals and the rise in green building standards, the Group increased R&D investment in high-value-added products such as double-silver and triple-silver low-emissivity coated glass, consolidating its market leadership.
Market Analysis
During the period, Greater China remained the Group's core market, contributing revenue of RMB 6,197.0 million, accounting for 63.1% of total revenue (H1 2024: 71.2%). Overseas markets, including North America, Europe, and other regions, contributed revenue of RMB 3,624.3 million, accounting for 36.9% of total revenue (H1 2024: 28.8%). Mainland China, as the Group's largest investment and production base, still holds significant development potential. Meanwhile, the Group continued to advance its internationalization strategy, expanding domestic and overseas production capacity and broadening overseas operations to further strengthen its market competitiveness globally. After years of expansion in China and key Southeast Asian economic regions, the Group continues to seek market opportunities, lower labor and raw material costs, favorable tax treatments, and energy advantages through mergers, acquisitions, and new projects. The Group's global layout and robust management capabilities help maintain its leading position in the industry amid complex market conditions.
Outlook
Looking ahead, despite ongoing global economic and geopolitical turbulence, the glass industry continues to face challenges. Xinyi Glass, with its high-end product positioning, differentiated product portfolio, and global production layout, demonstrates strong risk resilience. The Group will continue to optimize its global production network to enhance operational efficiency, mitigate cost pressures, and improve profitability across its three core businesses. The proportion of differentiated product sales is expected to further increase, with high-value-added products driving overall gross margin improvement. Xinyi Glass will deepen its "global layout, differentiated competition" strategy, ensuring steady development during industry downturns through technological innovation and flexible market strategies.
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