Xinyi Solar's H1 profit jumps by 150%

Jul 23, 2014 - Hong Kong-based Xinyi Solar Holdings Ltd (HKG:00968) today said its net profit for the first half of 2014 has jumped by 150% on the year to HKD 200.3 million (USD 26m/EUR 19m), thanks to the photovoltaic (PV) industry's growth.

The jump in profits was also prompted by lower tax rates granted to the solar glass maker’s wholly-owned subsidiary Xinyi Solar Wuhu for three years, starting from 2014, after the unit was awarded the status of "high-technology enterprise" by the southeastern province of Anhui.

Xinyi Solar's gross margin in January-June rose to 33.7% from 25.9% a year earlier due to higher selling prices for its products, improved cost efficiency and changes in the product mix.

Revenue gained 15.7% year-on-year to HKD 994.4 million, mainly thanks to the high prices and the transition of the company’s product line to the more expensive PV-processed glass. Revenues from ultra-clear photovoltaic raw glass dropped by 47.2% to HKD 149.9 million, but that was more than compensated by a 44% rise in ultra-clear PV-processed glass sales to HKD 853.5 million.

As part of its expansion strategy in the downstream segment, announced early in 2014, the company is working on four ground-mounted solar farm projects in China, which have an estimated aggregate capacity of 450 MW, it said. As previously announced, Xinyi Solar is also developing a 250-MW solar project in Anhui and a 100-MW one in Fujian. As for its upstream business, the company will put online two new PV raw glass production lines, each of 900 tonnes melting capacity per day, in 2014.

Xinyi Solar is a unit of Xinyi Glass Holdings (HKG:0868).

(HKD 1 = USD 0.129/EUR 0.096)

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