Home> News> Company News

Xinyi Glass Announces 2022 Interim Results

发布时间:2022-08-02 10:54阅读次数:
Xinyi Glass Announces 2022 Interim Results
Revenue of HK$13,649.4 Million Hits Another Six-month Record High
Maintains High Payout Ratio with Interim Dividend at HK40.0 Cents per Share
* * *

Continues Focus on Asset Acquisitions and Expansion despite Short-term Market Fluctuations


 (Hong Kong, 1 August 2022) Xinyi Glass Holdings Limited (Xinyi Glass ”or the Group ”) stock code: 00868), a leading integrated automobile glass, energy-saving architectural glass and high-quality float glass manufacturer, today announced its unaudited interim results for the six months ended 30 June 2022.

Despite the complicated and changing factors in the industry, the performance of Xinyi Glass’ core businesses remained healthy during the period under review, as revenue remained stable at HK$13,649.4 million (1H FY21: HK$13,575.5 million). Gross profit was HK$5,241.9 million (1H FY21: HK$7,199.0 million). Gross profit margin was 38.4% (1H FY21: 53.0%). Due to the pandemic, demand in the real estate market was partially delayed. Coupled with rising costs, the price of float glass dropped from its historical high level in the previous year. As a result, net profit in the first half of 2022 declined amounting to HK$3,304.9 million (1H FY21: HK$5,377.0 million). Basic earnings per share were HK82.1 cents (1H FY21: HK133.4 cents).

The Group's financial position remained sound. As at 30 June 2022, it had cash on hand of HK$13,616.5 million (as at 31 December 2021: HK$10,295.1 million). The Group has maintained a high dividend payout ratio to reward shareholders for their loyal support. The Board declared payment of an interim dividend of HK40.0 cents per share (1H FY21 : HK66.0 cents), translating into a dividend payout ratio of 48.8%. Shareholders will be given an option to receive the 2022 interim dividend in cash or wholly or partly in new and fully paid shares of the Company in lieu of cash by the Scrip Dividend Scheme.

Dr. LEE Yin Yee, B.B.S., Chairman of Xinyi Glass, said, "The year of 2022 was a challenging year for the glass industry and many other sectors. Lagging demand and cost pressures have presented short-term difficulties to the industry. As seen from the current situation, the number of property completions might increase in the second half of the year. The limited supply has supported the orderly resumption of economic activities. As an industry leader, we have been able to diversify risks drawing on our strategic production capacity deployment in China and overseas, thereby achieving record high revenue despite volatile market conditions. We are confident of realizing steady development in the future and generate sustainable and satisfactory returns for shareholders."

Business Review
Float Glass
During the period under review, due to the fluctuating pandemic situation, downstream industries were prudent about stocking up on inventories, leading to slower demand for float glass. As a result, the segment's revenue decreased slightly by 4.1% year-on-year to HK$9,231.1 million, accounting for 67.6% of the Group’s total revenue. Gross profit amounted to HK$3,167.1 million and gross profit margin was 34.3%. With the gradual relaxation of pandemic prevention restrictions, the Group remains cautiously optimistic about the long-term development of the float glass business.

Automobile Glass
The improvement in the pandemic situation and the relaxation of quarantine measures overseas have driven a recovery of overseas automobile glass sales. During the period under review, the Group's automobile glass business steadily improved, with revenue increasing by 14.0% year-on-year to HK$2,947.0 million. Gross profit was up by 17.0% to HK$1,489.9 million, while gross profit margin also further increased to 50.6% from 49.3% in the same period last year. In terms of sales volume, Xinyi Glass accounted for more than 25% of the global automobile glass aftermarket, exporting automobile glass to more than 130 countries. Moreover, the automobile glass production line in Malaysia is expected to reduce the Group’s overseas import tariff burden and match the long-term growth pace of related businesses.

Architectural Glass
During the period under review, although the completion of some construction projects was delayed due to COVID-19, the Group’s architectural glass business demonstrated strong resilience, as turnover increased by 8.0% year-on-year to HK$1,471.3 million, gross profit stood firmly at HK$584.9 million with gross profit margin at 39.8%. Overall, the Group received strong orders for its architectural glass. It is expected that downstream delivery is likely to accelerate following resumption of work after the pandemic subsides. As China promotes energy-saving construction materials, more construction projects are adopting energy-saving, sound-proofing and high-value-added architectural glass thanks to the supportive national green policy. Therefore, demand for single insulating, double insulating (triple layer) and laminated insulating (triple layer) glass products has been stimulated, which means the business is set to steadily expand through the ongoing support, so the Group remains cautiously optimistic in the long run.

Geographic Market Analysis
During the period under review, the Greater China region remained the Group’s largest geographical market, with turnover down moderately by 8.5% year-on-year to HK$9,648.3 million, accounting for 70.7% of the Group’s total turnover. In overseas markets, revenue from North America and other regions recorded satisfactory growth. Overall turnover amounted to HK$4,001.1 million, a year-on-year jump of 32.0%. Overseas markets accounted for 29.3% of total turnover.

Prospects
Looking ahead, the market does not expect any new additional production capacity in the domestic float glass market in the short term. The global markets have lifted lockdowns and economic activities have gradually returned to normal. Demand for float glass is expected to rise as a result. The Group will continue to implement flexible business strategies in response to the latest market conditions, with the aim of further improving overall profitability, and consolidating and expanding the Group’s industry-leading position and advantages.

In addition, the Group has actively explored green financing during the period under review. In 2021, the Group received a total of HK$7,430 million in green loans from various banks, and then in mid-2022, it secured the first sustainability-linked syndicated loan for HK$1,350 million. On the basis of these funds, the Group will continue to actively promote financial innovation, and boost efforts to integrate and optimize the “green” glass industry chain, so as to help realize the strategic national long-term goal of “carbon neutrality”.

Regarding production capacity, Xinyi Glass has embarked on disciplined expansion in regions with abundant resources and stable energy supplies thus actively maintaining its leadership and competitive market advantages. During the period under review, the Group will invest in four float glass production lines in Indonesia. The production lines are currently under planning and design stage. Given its strong domestic demand, coupled with significant cost advantage, Indonesia will become one of the strategic bases for the Group's overseas expansion in the future. Going forward, the Group will continue to monitor acquisition opportunities, so as to strategically expand production capacity to maintain its market share and meet the strong market demand and abundant resources, furthering the Group’s market diversification strategy.

Dr. LEE concluded, “Established for over three decades, Xinyi Glass has successfully encountered different economic cycles and maintained a position of strength in the industry. Entering the second half of the year, the entire workforce of the Group will continue to strive its utmost for excellence building on our solid business foundation. We will focus on our expansion strategy and short-term challenges will not hinder our future development, as our long-term goal is to become a global leading brand."



Top