HK Stock Market Move | XINYI SOLAR(00968) falls over 4% again. The selling price of photovoltaic glass is dropping. It is expected that the net profit in the first half of the year will significantly decrease, and may even turn into a loss.

XINYI SOLAR (00968) fell more than 4%, falling by 4.55% to HK$2.1 as of the time of writing, with a turnover of HK$61.5241 million. On the news front, XINYI SOLAR previously announced that it expects its net profit in the first half of the year to decrease significantly to not more than 50 million yuan or possibly a net loss not exceeding 50 million yuan, compared to a net profit of 746 million yuan in the same period last year. The announcement stated that the profit margin of CECEP Solar Energy's glass products in the second quarter has significantly decreased, mainly due to a substantial year-on-year decrease in the installed capacity of downstream CECEP Solar Energy solar panels, weakening the demand for CECEP Solar Energy glass from upstream, leading to a supply-demand imbalance and a decline in prices of CECEP Solar Energy glass products. The period also saw a drop in CECEP Solar Energy's electricity generation income. Dongzheng Futures released a research report stating that the gross profit margin of the photovoltaic glass industry is currently approximately -14.92%. Overall, as low-priced inventory is cleared out, there are signs of an upward trend in market prices. Although the full implementation of price increases still depends on the acceptance by downstream component manufacturers, the signals of marginal improvement in the industry's fundamentals are clear.