Photo voltaic glass supplier Xinyi Photo voltaic has issued a revenue warning after the value of photo voltaic glass fell and the value of key parts and vitality inputs rose.
In a press release issued to the Hong Kong inventory change, Xinyi mentioned the corporate’s internet revenue for H1 2022 is anticipated to lower by 33% to 43% in comparison with H1 2021.
“Such [a] lower is primarily as a result of lower within the profitability of the photo voltaic glass enterprise of the Group,” mentioned Xinyi Photo voltaic.
Final yr, the Wuhu, China-based firm noticed its internet income greater than double in H1 2021 to HK$3.072 billion (US$394.9 million), main the corporate to explain its efficiency within the first half of the yr as “spectacular”.
It did, nevertheless, warn that weaker demand and decrease costs for photo voltaic glass will dampen its ends in the second half of the final yr and thru to 2022.
Xinyi Photo voltaic mentioned its profitability had taken a success due to a ten – 20% year-on-year lower within the common market value of photo voltaic glass merchandise of the Group in H1 2022 as in comparison with similar interval in 2021. It mentioned that costs had remained “exceptionally excessive” in Q1 2021 however had began to fall in Q2.
Moreover, “vital will increase” within the prices of uncooked supplies, resembling soda ash, and the upper value of vitality has additionally helped to depress income, mentioned Xinyi Photo voltaic, including “the above hostile components have been partially offset by the Group’s achievement of excessive gross sales quantity and improved manufacturing effectivity”.
The years 2020 and 2021 have been a bonanza for photo voltaic glass producers, with income and income hovering. However, following authorities lobbying from main module producers, claiming costs for solar-grade glass have been “uncontrolled”, the Chinese language authorities carried out a collection of insurance policies designed to convey extra capability on-line and management value inflation.
In the meantime, Xinyi Photo voltaic entered the polysilicon sport final yr. In a press release issued to the Hong Kong inventory change, the place it’s listed, the boards of each Xinyi Photo voltaic and guardian firm Xinyi Glass confirmed that that they had agreed to ascertain Xinyi Silicon, an entity 52% owned by Xinyi Photo voltaic, to develop polysilicon manufacturing services in China, backed by RMB3.3 billion (US$517 million) in funding.
The board of Xinyi Photo voltaic mentioned the complete monetary outcomes of the group shall be printed earlier than the tip of August 2022.