XINYI SOLAR (00968) has dropped over 4% again, trading down 4.55% at HK$2.10 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 first-half net profit to decrease significantly to no more than HK$50 million, or it may record a net loss of no more than HK$50 million, compared to a net profit of HK$746 million in the same period last year.

The company stated that the profit from solar glass products declined significantly in the second quarter, primarily due to a sharp year-on-year decrease in downstream solar panel installations, which weakened upstream demand for solar glass. This led to an imbalance between supply and demand and a decline in the selling prices of solar glass products. Revenue from solar power generation also fell during the period.

Orient Futures released a research report indicating that the current gross profit margin in the solar glass industry is approximately -14.92%. Overall, as low-priced inventory clears out, the market price floor has shown signs of upward movement. Although the full implementation of price increases still depends on the acceptance level of downstream module manufacturers, the signal of marginal improvement in the industry's fundamentals has become clear.