Xinyi Glass’s annual net profit increased by 289% to HK$5.377 billion

Xinyi Glass (00868.HK) announced that its revenue for the six months ended June 30, 2021 was approximately HK$13.576 billion, a year-on-year increase of 90.29%. Profit attributable to shareholders was approximately HK$5.377 billion, a year-on-year increase of 288.96%. Earnings per share was 133.4 HK cents; dividend per share was 66 HK cents.

The increase in revenue during the six-month review period was mainly due to the improvement in the revenue of all three glass business divisions of the group compared with the lower base in the same period in 2020 due to the impact of the 2019 Coronavirus. The increase in the average selling price was due to the strong market demand in the first half of the year leading to an increase in float glass revenue by 138.6% compared to the same period in 2020. The increase in profit was mainly due to the increase in gross profit of float glass, automotive glass and architectural glass.

The increase in automotive glass revenue was mainly due to the recovery of the COVID-19 epidemic during the period and the reopening of economic and social activities in major overseas countries, which led to an increase in overseas sales of automotive glass.

During the 6-month review period, the government’s policy on the Chinese real estate market has not been relaxed, and competition in construction activities is still very fierce. Based on the Chinese government’s policy of encouraging environmental protection and promoting energy-efficient buildings, the Directors expect that the Group’s demand for low-emissivity glass for construction will continue to increase. As a leading local manufacturer of low-e glass, the group enjoys the advantages of economies of scale and a national sales and delivery network. Compared with the same period in 2020, the increase in sales was mainly due to the strong demand brought by more new construction completion projects.