Xinyi Solar Holdings Limited (00968) and Xinyi Glass Holdings Limited (00868) issued a supplemental joint announcement addressing the annual cap under the 2026 Production Equipment Purchase Agreement. The proposed annual cap for 2026 stands at RMB107.3 million, representing approximately 50.2% and 53.8% of the actual transaction amounts for the two years ended 31 December 2024.
According to the announcement, the purchase amount under the 2025 Production Equipment Purchase Agreement, as of 30 November 2025, was RMB1.2 million against the RMB168.8 million cap. This modest portion reflects slower capacity expansion in the solar glass sector due to a supply-demand imbalance. Two production lines were suspended in the second half of 2025, and the unaudited profit attributable to equity holders for the first half of 2025 declined by 58.8% year-on-year, prompting the group to scale down expansion and utilize spare parts from under-used facilities.
The announcement notes that historical purchase levels in 2023 and 2024 reached RMB213.9 million and RMB199.4 million, respectively, which management considers more indicative of the expected demand in the coming year. The anticipated market stabilization, bolstered by ongoing demand for new solar installations, underpins the view that the 2026 purchase volume for production equipment will rise compared with 2025.
The pricing for each transaction will rely on market-driven quotes from independent third parties or cost-plus measures, ensuring fairness and reasonableness. Should the transaction amount for the period ending 30 June 2026 remain below half of the proposed annual cap, both entities will provide additional details in their interim reports. The transaction mechanisms and internal controls set forth in prior agreements remain in effect to ensure compliance and transparency.
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