Xinyi Solar notified the Hong Kong stock exchange that it expects a dip in profit after the price of solar glass fell and the price of energy inputs and vital components rose.

The solar glass manufacturer issued a statement to the stock exchange stating that its net profit for H1 2022 is expected to decrease by 33% to 43% compared to H1 2021.

“Such [a] decrease is primarily due to the decrease in the profitability of the solar glass business of the Group,” Xinyi Solar said in the statement.

Xinyi Solar, based in Wuhu, China, said that its profitability took a hit as a result of increases in the cost of raw materials, such as soda ash along with the higher price of energy. The company added that a 10-20% year-on-year decrease in the average market price of solar glass products has also impacted its profitability.