Xinyi Solar Announces 2025 Annual Results

Solar Glass Business Achieves 4.2% YoY Growth in Sales Volume

Gross Profit Margin Demonstrates Notable Growth

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(Hong Kong, 27 February 2025) — Xinyi Solar Holdings Limited (the "Company", together with its subsidiaries, "Xinyi Solar", the "Group" or the “XYS Group”; Stock Code: 00968), a world leading solar glass manufacturer, today announced its annual results for the year ended 31 December 2025.

In 2025, global photovoltaic (“PV”) installation growth slowed down as escalating geopolitical tensions and rising trade barriers have disrupted the PV supply chain, and China’s policy shifts have created additional uncertainties into the downstream installation activity, putting the solar industry value chain under significant pressure.

Despite the challenges, the Group achieved a 4.2% increase in annual sales volume (measured in tonnes) of solar glass. However, the Group recorded revenue of RMB20,861.2 million (2024: RMB 21,921.4 million), primarily due to lower average selling prices (“ASP”) of the solar glass products. Profit attributable to equity holders of the Company was RMB844.5 million (2024: RMB 1,008.2 million), mainly as a result of impairment provisions on solar glass and polysilicon manufacturing facilities. If excluding the impairment provisions, the Group’s profitability would have recorded a notable improvement — as compared to 2024 and between the first and second half of 2025.

The Board of Directors proposed a final dividend of 0.8 HK cents per share for the year ended 31 December 2025.

Business Review

Solar Glass Business –

Flexible Adjustment of Production Capacity and Diversification of Production Bases

During the year, the Group’s revenue from sales of solar glass was RMB17,831.8 million (2024: RMB 18,820.0 million). The gross profit margin of the solar glass business expanded by 4.4 percentage points to 14.1% (2024: 9.7%), mainly attributable to: (i) reduced procurement costs for certain raw materials and energy, particularly soda ash, silica sand, and natural gas; (ii) technological advancements that enhanced product yield rate and reduced energy consumption per unit; and (iii) stricter cost controls and streamlined production processes.

Anticipating a slowdown in the downstream demand and heightened market volatility, the Group adopted decisive measures in July 2025 by suspending two solar glass production lines in China, with a total daily melting capacity of 1,800 tonnes. Based on the Group’s operating capacity, the average daily melting volume of solar glass was 23,200 tonnes in the first half of 2025, declining to 21,400 tonnes in the second half. Despite the production decline, reduced inventory enabled the Group to achieve a 4.2% increase in annual sales volume (measured in tonnes).

In terms of receivable management, the Group prioritised partnerships with financially sound businesses with strong credit records and implemented stricter credit control policies. In addition to reducing costs and improving efficiency, the Group continued to invest in product and technology research and development, while strengthening the collaboration with customers to enhance technological capabilities and product quality, fostering mutual growth and progress.

It’s worth noting that the Group’s overseas sales of solar glass recorded a year-on-year increase of 36.0% and the proportion of overseas sales rose to 33.5% in 2025 from 23.3% in 2024. This growth was primarily driven by rising demand in the U.S. and India, following the commissioning of new solar module capacity in these markets. The Group’s ongoing overseas capacity expansion, including operational facilities in Malaysia and a new production base under construction in Indonesia, is strategically positioned to enhance its competitiveness abroad and navigate growing trade barriers.

Renewable Energy Business–

Strategic Optimisation of Renewable Energy Investments

In 2025, the solar power pricing policies shifted from a fixed feed-in tariff regime to a market-oriented framework. Given the heightened uncertainty in investment returns under this evolving policy environment, the Group suspended the construction of new solar farm projects in 2025.

With no additional solar farms connected to the grid in 2025, revenue from the renewable energy segment remained relatively stable, amounting to RMB2,993.5 million (2024: RMB3,017.3 million). The increase in power curtailments in certain regions has also contributed to the slight drop in power generation revenue.

The Company’s non-wholly owned subsidiary, Xinyi Energy Holdings Limited (“Xinyi Energy”) and its subsidiaries (together the “Xinyi Energy Group”) accounted for 81.7% of the electricity generation revenue and other wholly-owned subsidiaries of the Company accounted for remaining of 18.3%. Regarding the disposal of the solar farm projects, the Group completed the disposal of three solar farm projects with an aggregate capacity of 230 megawatts (“MW”) to Xinyi Energy Group in 2025. As part of its portfolio optimisation strategy, Xinyi Energy Group sold a 51% equity stake in its Tianjin solar farm project to an independent third party in 2025. This divestment was executed to unlock capital from existing assets and redeploy it toward future investment opportunities. On the other hand, Xinyi Energy Group completed the acquisition of a wind farm project with an approved capacity of 64MW prior to the end of 2025.

As of 31 December 2025, the cumulated approved grid-connected capacity of the Group’s solar farm projects was 6,245MW, of which 5,841MW was for the utility-scale ground mounted projects, and 404MW was for the distributed generation projects for the Group’s own consumption or sale to the grid.

Prospects

Amid an uncertain operating environment and intensifying market competition, the Group will adhere to the principle of prioritising quality, shifting its development focus from pursuing “quantity” to pursuing “excellence”, thereby the Group is expected to be in a position to meet the diverse needs of customers. While strengthening the cost-reduction and efficiency-enhancement measures, it will continue to leverage its advantages in production scale, product quality, diversification and technological innovation to respond swiftly to market shifts. The Group will pursue a prudent and pragmatic financial management strategy to appropriately control operational risks.

The Group maintains certain excess capacity that can be reactivated in response to the changing market conditions. Meanwhile, as part of the first phase of development of the production site in Indonesia, the Group planned to add two new solar glass production lines with an aggregate daily melting capacity of 2,400 tonnes in 2026, with the first line having commenced operation in January and the second line expected to begin production in the second quarter. In addition, the planning for the second phase has started, with the scale of daily melting capacity projected at 2,300 tonnes. The launch of the Indonesian production base will enhance the Group’s ability to mitigate geopolitical risks and navigate trade barriers more effectively. Going forward, the Group will continue to assess opportunities for further expansion in strategic locations and will adjust its production capacity in line with market developments.

The Group’s solar farm development strategy has shifted from “scale expansion” to “refined operations”. This entails more selective in the site and layout planning, reinforced cost control and a focus on the regions with strong electricity demand, high grid absorption capacity, and favourable resource conditions, including abundant solar irradiation and lower non-technical costs. In addition, the Group will implement refined management of power marketing and trading strategies across the full project lifecycle, integrating green electricity trading and the use of energy storage systems to enhance revenue levels. The Group’s 2026 target for new grid-connected capacity is expected to continue to be at a low level as compared to the historical average of approximately 500 MW per year over the past five years.

Dr. LEE Yin Yee, S.B.S., Chairman of Xinyi Solar, concluded, "While the solar supply chain remains in an adjustment phase of overcapacity, the long-term fundamentals remain solid. We expect technological innovation to lower costs and improve efficiency, and policy guidance will support capacity rationalisation. These factors are moving the industry from ‘involution’ toward ‘high-quality development,’ fostering a more efficient and sustainable industrial ecosystem. To navigate this transition and reinforce our market leadership, we will rigorously execute our three-pillar strategy — operational excellence, prudent financial management and technological leadership. By strengthening our core businesses and capturing new growth opportunities, we are committed to delivering greater long-term economic value to our shareholders."