Xinyi Glass Holdings Limited Business Report FY ended Dec. 2021
Financial overview |
(HKD millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change (%) | Factors | |
| Sales | 30,459.12 | 18,615.88 | 63.62 | -Sales increased significantly year-over-year due to higher sales and higher prices for float glass, architectural glass and automotive glass products in China as well as global markets. |
| Gross income | 15,777.13 | 7,771.44 | 103.01 | |
| Earnings before taxes | 13,501.72 | 7,330.34 | 84.19 | |
| Net income | 11,570.68 | 4,482.68 | 158.12 |
Joint venture with Xinyi Solar
-The Company and Xinyi Solar Holdings Limited announced that they will jointly fund the establishment of Xinyi Silicon Holdings Limited (Xinyi Silicon). The Company and Xinyi Solar will hold 48% and 52% of the shares of the new company, respectively. Xinyi Silicon will engage in polysilicon production projects, including the construction of a polysilicon production plant in Qilin District, Qujing City, Yunnan Province, with an estimated annual production capacity of 60,000 tons (which may be upgraded to 200,000 tons in phases thereafter) and an estimated annual production capacity of up to 10,000 tons of silica. Construction of the polysilicon production project is expected to be completed within two years. Polysilicon is a key raw material for the photovoltaic industry and is widely used in the production of conventional solar cells. The establishment of Xinyi Silicon will help Xinyi Group to expand its new energy business horizontally and become one of the world's leading suppliers of solar energy materials and core auxiliary materials. (From a press release on December 17, 2021)
Plant construction
-In February 2022, Xinyi Group and Chengmai County, Yunnan Province, signed a cooperation agreement. According to the agreement, Xinyi Group intends to invest in the construction of an automotive glass production line capable of producing 3 million glass sheets in the existing plant in the Hainan Laocheng Economic Development Zone, the replacement of existing facilities and the restoration of three other lines. The company also plans to reserve a 200,000 square meter parcel of land for the construction of a centralized automotive glass management center, supply chain management center, and a "twin chain + intelligent manufacturing". (From a press release on February 22, 2022)
-In December 2021, the Company signed a cooperation agreement with the People's Government of Qilin District to invest CNY 23 billion to promote Xinyi's polysilicon, photovoltaic (PV) module cover and high-quality float glass production projects. The Qilin District government signed cooperation agreements with Xinyi Solar for various projects including a 200,000 ton polysilicon and 20,000 ton of silica project, PV module cover production line configured with waste heat generation equipment, and environmental facilities PV power generation and wind power project. The parties agreed to projects for a Xinyi Glass float glass production line and a PV power generation and wind power project in Qilin District. After completion of the projects, the annual output of 200,000 tons of polysilicon and 20,000 tons of silica can be realized, and daily production of 1,400 tons of float glass and 2,400 tons of photovoltaic covers will be realized. (From a press release on December 17, 2021)
-The groundbreaking ceremony of Xinyi Glass Jiangmen Heshan Industrial Park was held on June 28, 2021. The industrial park covers a total area of about 330,000 square meters, with a total investment of CNY 2 billion. Once operational, the plant will mainly produce high-quality float glass, low-e coated glass, and energy-saving architectural glass, etc., which is one of the important investment projects and production bases of Xinyi Glass. (From a press release on June 30, 2021)
-The Company and Xinyi Solar entered into framework agreement for the supply of silica sand on May 26, 2021. Under the agreement, the Company will purchase approximately 510,000 tons of silica sand from Xinyi Solar subsidiary Hepu Xinyi, with the total purchase amount not exceeding CNY 66.2 million. Such silica sand will be used by members of the Xinyi Glass Group for the production of float glass. Xinyi Solar Group is principally engaged in the production and sale of solar glass products globally through its integrated production industrial parks in China and Malaysia. Hepu Xinyi, a wholly-owned subsidiary of Xinyi Solar, is principally engaged in the mining and processing of silica sand. (From a press release on May 26, 2021)
R&D Facilities
-The Company focuses on energy saving and environmental protection, and conducts technical research in the fields of float glass, glass-processing products, film, and solar energy.
-Certified by Guangdong Provincial Technology Research and Development Center as a provincial-level enterprise technology center in 1997.
-Established the world's first energy-saving and environmental protection glass research and development center, in Hong Kong in January 2009.
-Established an industry-academia-research framework with South China University of Technology, Chinese Academy of Building Materials Science, Tsinghua University, Shenzhen University and other universities and research institutes to conduct basic and applied research activities to develop energy-saving technologies. For example, technology on materials will be included, such as technology on traditional inorganic glass materials, polymer materials such as rubber plastics, and nano, film and composite materials.
Patents
-By the end of 2021, the Group had filed more than 1,100 patents.