Xinyi Solar's net profit jumps 86% in H1 2016

Hong Kong-based Xinyi Solar Holdings Ltd (HKG:00968) said Tuesday its attributable net profit for the first half of 2016 surged by 85.7% on the year to HKD 1.12 billion (USD 144m/EUR 131m).

The rise was chiefly prompted by higher margins at the downstream solar business coupled with continuous improvements in the costs and production efficiency of the solar glass segment. The result met the company's previous forecast for profit growth of between 70% and 90% over January-June 2015.

Xinyi Solar saw its gross profit reach HKD 1.55 billion, up 105.8% year-on-year, thanks to higher sales of solar glass and contributions from its electricity generation division. The firm’s gross margin in the six months through June 2016 rose to 48.9% from 36.7% a year back.

Consolidated revenue gained 54.6% year-on-year to HKD 3.17 billion, mainly thanks to HKD 2.42 billion of solar glass sales. Revenues from the solar farm and solar power generation segment amounted to HKD 476.2 million whilst engineering, procurement and construction (EPC) service income stood at HKD 281.1 million.

The company, a unit of Xinyi Glass Holdings, is focused on the making of solar glass, but has also expanded into the downstream solar power generation segment. As at the end of June, the company owned and operated ten ground-mounted solar farms, totaling 974 MW.

(HKD 1.0 = USD 0.129/EUR 0.117)

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