Hainan Drinda New Energy Technology Co.,Ltd. (ASX: 002865) has released its preliminary financial results for the first half of 2026.
The company forecasts a net loss attributable to shareholders of between 180 million yuan and 270 million yuan for the period, compared to a loss of 264 million yuan in the same period last year.
The performance was impacted by an industry-wide downturn in the photovoltaic sector. Following a period of rapid capacity expansion driven by high global demand, the Chinese solar industry has faced a phase of overcapacity since the second half of 2023, entering a cycle of capacity rationalization that has led to a general decline in prices across the supply chain.
During the first half of 2026, the industry continued to be challenged by multiple factors including adjustments to electricity pricing policies, a decline in domestic installation rates, and overseas trade restrictions. The supply-demand dynamics across various segments of the photovoltaic industry have not yet seen substantial improvement, and product prices have failed to recover significantly, adversely affecting the company's operating results.
Throughout the reporting period, the company remained committed to its strategy as a specialized cell manufacturer. It focused on meeting the needs of global module customers, continued to expand its presence in both domestic and international markets, and introduced cost-effective photovoltaic cells. The company also strengthened its refined management practices and implemented multiple measures to reduce costs and improve efficiency, striving to enhance the profitability of its core business.
From a medium to long-term perspective, the outlook for solar energy remains positive. As the most economical form of clean energy, the photovoltaic sector is expected to see broad market opportunities, supported by the accelerated construction of AI computing infrastructure and the large-scale rise of the energy storage industry.
Furthermore, with the implementation of mandatory safety and energy efficiency standards for photovoltaic modules, inefficient and outdated production capacity is expected to be phased out more rapidly. This should lead to a gradual rebalancing of supply and demand within the industry chain, a steady increase in product prices, and a potential recovery in overall industry profitability.
The company plans to steadily advance its overseas capacity layout and market expansion efforts. It will continue to drive the iterative upgrade of its core technologies to solidify the foundation of its main business.
Leveraging its technical expertise and industrial resources, and utilizing the advantages of its dual A+H share capital market platform, the company will persistently explore new application scenarios for photovoltaics and diversify into emerging business segments, aiming to cultivate new drivers for future earnings growth.
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