Xinyi Glass Announces 2024 Annual Results
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Expands Overseas Markets to Weather Industry Headwinds
Continues to Strengthen own Advantages
Building Momentum to Seize Recovery Opportunities
(Hong Kong, 3 March 2025) ― Xinyi Glass Holdings Limited (“Xinyi Glass” or the “Group”) (stock code: 00868), a leading integrated automobile glass, energy-saving architectural glass and high-quality float glass manufacturer, announced its annual results for the year ended 31 December 2024 (the “Year Under Review”).
In 2024, amid global economic fluctuations and external uncertainties, the glass industry was facing a complicated environment. The Group’s recorded annual revenue of RMB 22,323.6 million, with a gross profit of RMB 7,231.8 million, maintaining a stable gross profit margin of 32.4%. With its high-end and high-quality product positioning, differentiated product portfolio, as well as global production and business deployment, the Group successfully mitigated some of the industry pressures and still recorded a profit, despite the slowdown in demand for float glass and the significant drop in market prices. Excluding the one-time impairment of production equipment and the reduced profits from associated company, profit from core operations was RMB 3,674.4 million, a year-on-year decrease of 7.5%. Basic earnings per share were RMB 79.2 cents.
The Group maintained a sound financial position. with cash on hand reaching RMB1,709.3 million as of 31 December, 2024, and a net debt gearing ratio of only 16.3%. The Board of Directors has proposed payment of a final dividend of HK10.0 cents per share. Total dividend for the year is HK 41.0 cents, representing a dividend payout ratio of 48.5%. The Group continued to uphold a high dividend yield and payout ratio, underscoring its investment value. In addition, the Group actively replaced its borrowings into RMB during the year, resulting in a significant reduction in interest expenses from RMB 460 million in 2023 to RMB 180 million in 2024. By the end of 2024, 96.2% of the borrowings of the Group were denominated in RMB and as of the end of January 2025, the Group had transitioned to 100% RMB-denominated borrowings.
Dr. LEE Yin Yee (S.B.S), Chairman of Xinyi Glass, said: "Over the past year, the glass industry experienced weakened and unbalanced supply and demand in real estate market with low demand for constructed properties. Although certain glass products faced price pressures amid fluctuating market demand, the declining prices of raw material and energy effectively offset some of the downward pressure on product prices. Adhering to the philosophy of ‘seeking opportunities in crises’, the Group actively pursued opportunities to enhance competitiveness amidst uncertainty. By expanding our portfolio of high value-added and differentiated products, the Group further expanded room for profit margin improvement. Additionally, the Group has been proactively expanding into overseas markets, diversifying risks and enhancing overall bargaining power. These efforts fully leveraged the advantages of Xinyi Glass as an industry leader, effectively mitigating some of the potential pressures on the Group. Looking ahead, the Group will pay closer attention to the market, focusing on prudent operations and innovation-driven growth to ensure sustainable development in a complex market environment."
Affected by the demand adjustment in the Mainland real estate market, the average price of the float glass market has experienced a significant decline. The Group’s float glass business recorded a revenue of RMB 12,909.9 million, representation a year-on-year decrease of 18.5%, with gross profit margin remained stable at 22.8%. The Group is actively optimizing its production capacity while increasing its share in overseas markets to mitigate risks and respond more effectively to changes in individual markets.
Driven by the gradual recovery of the automotive industry and the trend of new energy vehicles (NEVs), the automotive glass business recorded a revenue of RMB 6,304.8 million during the Year, a year-on-year increase of 16.4%, with the gross profit margin rising to 52.3%. Leveraging its diversified customer base and high-quality products in the aftermarket, along with actively expanding into the OEM market, the Group has broadened its revenue streams and maintained strong bargaining power. The capacity utilization rate at the Malaysia production base continues to improve, and the new production lines in East Java, Indonesia, are progressing smoothly and expected to commence operations this year. Additionally, the Group is actively seizing opportunities in NEV sector, establishing partnerships with leading Chinese automakers, injecting new momentum into the development of intelligent and lightweight automotive glass products. The global production layout will effectively reduce tariff costs and further enhance market competitiveness.
The architectural glass business recorded revenue of RMB 3,108.9 million, a year-on-year increase of 2.4%, with a gross profit of RMB 988.2 million and a gross profit margin of 31.8%. As the "twin carbon" goals advance and green building standards become more stringent, the Group has increased its investment in the research and development of silver and triple silver low-E glass products, further solidifying its market leadership position. By prioritizing major public projects and high-quality commercial projects, the Group has effectively mitigated collection and sales-related risks.
Regarding the production capacity layout, the Group will continue to optimize its global production network in an orderly manner to enhance operational efficiency. The construction of two new production lines in Jipei City, Surabaya, Indonesia is progressing smoothly. The first production line began operation at the end of 2024, and the second production line is expected to start operation in the second quarter of this year, with an annual production capacity of 600 thousand tons for this year. Corresponding deep-processing production lines will also be built sequentially. The coordinated development of local automotive glass and architectural glass businesses will significantly enhance the Group’s competitiveness in the global market. With the gradual release of overseas production capacity, it is expected that there will be room for improvement in the proportion of overseas market revenue this year.
Dr. LEE concluded, "In the current era of profound changes in the global economic landscape, Xinyi Glass will adopt the core strategy of ‘seeking progress while maintaining stability and seeking quality while progressing’, gaining insight into the dynamic balance of the industrial chain and grasping the dual driving forces of technological innovation and market demand. We are well aware that the long-term development of an enterprise depends not only on scale expansion, but also on precise allocation of resources and continuous efficiency improvement. In the future, the Group will continue to strengthen its advantages, respond to opportunities and challenges amidst uncertainties with an open vision, and steadily building momentum to seize recovery opportunities."
