CITIC Securities has released a research report stating that XINYI SOLAR (00968) recently announced a profit warning, expecting a 70-80% year-on-year decline in net profit for 2024 to 0.77-1.15 billion RMB, which is lower than the bank's prediction and may also be below the expectations of domestic investors regarding impairments and inventory losses.

The bank estimates that the group's net loss per square meter in the solar Glass Business for the second half of the year will be about 1 RMB (2.0mm), with impairment losses reaching approximately 0.6 billion RMB. However, despite the weak performance in 2024, CITIC Securities still believes that as more production capacity undergoes maintenance, expansion delays, and supply-side reforms occur, the industry supply and demand will move towards balance in the first half of 2025.