Hefty sales lift Xinyi Glass net

Finance | Carrie Chen 3 Aug 2016

Xinyi Glass Holdings (0868) posted a 44.9 percent increase in interim net profit to HK$1.37 billion, due mainly to the strong growth of its float glass business and the steady growth of its automobile glass division. The board has recommended an interim dividend of 17 HK cents.

Total revenue reached HK$5.89 billion, 11.4 percent higher from a year earlier. The float glass business contributed 22.7 percent or HK$2.68 billion to revenue.

"Since sales area in the mainland's real estate market grew by 2 percent in the first half of the year, supply and demand of float glass has become more balanced," said chief executive Tung Ching-sai.

He said he expects the sales volume and price of float glass to bounce back in the second half of the year from the bottom as costs could remain low.

Selling prices of construction glass have fallen because of stiff competition in this segment. But Tung expects prices and sales volume to increase eventually. He also said sales of Xinyi's automobile glass grew by 4.9 percent and were not affected by the weakness in the first half of the euro against other currencies and the European markets.

Meanwhile, Xinyi Solar Holdings (0968) posted an 85 percent jump in interim profit to HK$1.12 billion due to the reduction in the feed-in tariff, strong demand for solar modules and installed capacity boost.

Chief executive Lee Yau-ching said the company expects to increase its solar glass sales in southeast Asia when its production facility in Malaysia starts its production in the fourth quarter of this year.

Responding to questions from the media if unit Xinyi Energy will be spinned off either late next year or early in 2018, Lee said that any such move will depend on the financial condition of the group's unit.

Xinyi Energy is currently operating a 945 megawatt solar power station in the mainland.

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