Xinyi Glass Announces 2026 Interim Results
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Net Profit Rises Amid an Industry Adjustment Period
"Product Differentiation and a Global Production Footprint" Strategy
Demonstrates Resilience
(Hong Kong,3 Aug 2026) ― 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 2026 (the “Period Under Review”).
In the first half of 2026, China's domestic float glass industry faced multiple pressures, including persistently weak demand arising from real estate completions, persistently high inventory levels, and declining product selling prices, resulting in an extremely challenging operating environment. In the face of major industry restructuring, the Group leveraged its diversified business portfolio and prudent operating strategies to further strengthen its resilience against cyclical industry fluctuations, while capturing development opportunities arising from industry consolidation and reinforcing its market-leading position. During the Period Under Review, the Group recorded revenue of RMB 9,520.8 million (1H 25: RMB 9,821.3 million), with gross profit of RMB 2,863.4 million (1H 25: RMB 3,101.7 million) and a gross profit margin of 30.1% (1H 25: 31.6%). Despite the difficult operating environment, the Group's net profit increased by 16.9% to RMB 1,184.1 million, while its net profit margin increased by 2.1 percentage points year-on-year to 12.4% (1H 25: 10.3%). Basic earnings per share were RMB 26.8 cents (1H 25: RMB 23.3 cents).
The Group maintained a sound financial position. As of 30 June 2026, cash on hand stood at RMB 2,383.5 million, with a net gearing ratio of 4.0%, hence remaining at a healthy level. The Board of Directors declared an interim dividend of HK15.0 cents per share, representing a payout ratio of 48.6%, continuing its stable dividend policy and demonstrating the Group's commitment to creating sustainable long-term value for shareholders.
Dr. LEE Yin Yee (S.B.S), Chairman of Xinyi Glass, said, "In the first half of 2026, the industry underwent a profound adjustment rarely seen in recent years, and we fully understand the pressures facing our industry peers. Against this industry downturn, Xinyi Glass has responded by strengthening its internal management and adopting a more targeted approach to product innovation. There are no shortcuts to our achievements, which are built on years of sustained investment in our global production footprint, technological R&D and cost control. While the automobile glass business remains a cornerstone of the Group, both float glass and architectural glass businesses maintain profitability that outperforms in the industry, providing solid earnings support through its strong position in the global aftermarket and growth in domestic new energy vehicle (NEV) orders. Meanwhile, our production base in Indonesia is now operating smoothly, and the Saudi Arabia project is progressing steadily as planned. We believe that a period of industry adjustment represents a natural process through which stronger market participants emerge, as well as a test of a company’s underlying strengths.Xinyi Glass will maintain a pragmatic approach, remain focused on executing its strategies and patiently await a market recovery.”
Business Review
Float glass
In the first half of 2026, the completed floor area of property projects in the Chinese Mainland continued to decline, weakening demand in the float glass market. The market’s average selling price decreased, and the industry as a whole faced significant operating pressure. The Group's float glass sales remained stable, recording revenue of RMB 5,101.6 million and a gross profit margin of 16.7% (1H 25: 17.8%). Amid the industry downturn, the Group continued to leverage the advantages of its diversified overseas production footprint, actively expanding high-value-added and differentiated products to enhance business resilience and reduce the impact of market fluctuations. Looking ahead to the second half of 2026, as less competitive capacity is gradually phased out, the market's supply-demand balance is expected to gradually improve. The Group will continue to optimize its global strategic production capacity layout and product portfolio, seize market opportunities for differentiated and innovative Ice-Blue glass products, and further strengthen its competitive advantage in the float glass market.
Automobile glass
The automobile glass business continued to deliver outstanding performance and remained the Group’s primary profit contributor. Benefiting from stable demand from the sizeable global automobile glass aftermarket, as well as steady growth in China’s OEM market, the business recorded revenue of RMB 3,452.6 million during the Period Under Review (1H 25: RMB 3,322.9 million), representing up 3.9% year-on-year, while the gross profit margin remained at a healthy level of approximately 52.6%. As the new energy vehicle (NEV) market expands rapidly, the Group’s OEM customer base has further broadened, reflecting the market’s recognition of the cost-effectiveness of its products. The Group will ramp up production capacity in an orderly manner and continue to launch high-value-added products suitable for both new and existing vehicle models to further consolidate its market position.
Architectural glass
The architectural glass business recorded revenue of RMB 966.6 million during the Period Under Review, with gross profit of RMB 194.7 million and a gross profit margin of 20.1% (1H 25: 29.7%). As the country continues to advance energy conservation and carbon reduction in the construction sector, accelerate the retrofitting of existing buildings for energy efficiency, and fully implement green building standards, market demand for high-performance, energy-saving architectural coated glass continues to grow. The Group continues to increase its investment in the research and development and production of high-value-added products such as high-quality double-silver and triple-silver Low-E coated glass, as well as insulating, laminated, and ceramic-fritted glass. Leveraging its outstanding specialized glass processing capabilities, the Group is well-positioned to meet the diverse needs of customers.
Market Analysis
During the Period Under Review, the Greater China region remained the Group’s core market. Revenue from this region totaled RMB 5,856.9 million, accounting for 61.5% of the Group’s total revenue (1H 25: 63.1%). As for overseas markets, revenue from North America, Europe and other regions was RMB 3,663.9 million, accounting for 38.5% of total revenue (1H 25: 36.9%). The Group continued to deepen its global development strategy, systematically expanding its domestic and overseas production capacity while growing its overseas business. This further enhanced the Group’s global production capacity and supply chain footprint, strengthened overall operational resilience, and consolidated its market leadership and long-term competitive advantages.
Outlook
Looking ahead to the second half of the year, although uncertainties remain in the global economy, geopolitical landscape and trade environment, and the glass industry is in a critical phase of supply-side clearance and competitive optimization, the market’s supply–demand dynamics are expected to gradually improve as the pace of cold repairs accelerates and the threshold for resuming production increases.
The Group will continue to pursue its core strategy of “Product Differentiation and a Global Production Footprint,” to reduce its reliance on the Chinese Mainland real estate market, and continue to step up the research and development and market expansion of high-value-added products such as NEV glass, low-carbon and energy-saving glass and specialty glass. The Group’s self-developed Ice-Blue Glass, for example, is protected by the Group’s exclusive patent, has a wide range of applications, and is expected to serve as a new growth driver for the Group in the future.
Supported by sound cost and financial management, ample operating cash flow and a diversified global production footprint, the Group will actively seize opportunities arising from infrastructure development in emerging markets and the growth of the NEV sector. It will methodically advance the construction and operation of its production bases in Saudi Arabia and Southeast Asia, further enhance its global supply chain, and continue to consolidate its market-leading position.
Dr. LEE concluded, “Industries are cyclical, but Xinyi Glass’ business philosophy remains consistent. We do not pursue short-term surges in growth, but instead prioritize long-term resilience. The capabilities we have accumulated over the past several decades enable us to continue moving forward steadily despite today’s headwinds. We respect every industry peer and maintain a deep respect for market forces. Looking ahead, we will remain focused on delivering quality products, managing costs effectively and strategically developing our global footprint, allowing our tangible results to speak for themselves.”
