Investment Rating - The investment rating for the company is "Buy" and is maintained [2]. Core Views - The company reported a revenue of 14.604 billion HKD for the first three quarters of 2024, a year-on-year decrease of 8.06%. The net profit attributable to shareholders was 1.296 billion HKD, down 34.18% year-on-year. In Q3 2024, revenue was 3.908 billion HKD, a decline of 37.03% year-on-year and 21.37% quarter-on-quarter. The net profit for Q3 was -203 million HKD, a decrease of 122.97% year-on-year and 127.48% quarter-on-quarter [3][4]. - The industry faced pressure due to increased capacity in Q2 and inventory depletion in Q3, leading to a rise in glass inventory to historical highs and a drop in prices near cash costs for some companies. Despite maintaining a significant cost advantage, the company's operational performance was slightly negative due to industry-wide impacts [3][4]. - The company’s Q3 expense ratio was 10.6%, an increase of 3.7 percentage points quarter-on-quarter. The absolute values of financial and management expenses increased due to timing, while revenue decline affected the expense ratio. The inventory at the end of Q3 was 2.17 billion HKD, up 1.5 percentage points quarter-on-quarter, indicating good inventory control [4]. - The current profitability in the photovoltaic glass segment is at a low point, with a significant decrease in production enthusiasm and ongoing reductions in production. It is expected that as demand recovers post-Spring Festival in 2025, inventory will continue to decrease, leading to a gradual recovery in profitability. The company, as an industry leader, is expected to benefit from future supply-side policies [4].

Investment Rating - The investment rating for the company is Neutral, with a target price of HKD 13.15, indicating a potential downside of 11.1% from the current price of HKD 14.80 [1][7]. Core Insights - The company's performance has significantly declined due to a sharp drop in photovoltaic glass prices, resulting in a net loss of RMB 203 million in Q3 2023, marking the first loss since its listing [1]. - Revenue for Q3 2023 was RMB 3.91 billion, down 37% year-on-year and 21% quarter-on-quarter, which was far below market expectations of a profit of RMB 100 million [1]. - The report anticipates that the industry will begin to balance supply and demand due to ongoing production cuts, but significant price recovery will require further reductions in production capacity [1]. - The report suggests that potential government supply-side reforms could accelerate industry consolidation and benefit leading companies with lower energy consumption [1]. Financial Overview - Revenue projections for the company are as follows: RMB 21.524 billion in 2023, RMB 17.881 billion in 2024 (down 16.9% year-on-year), RMB 20.130 billion in 2025, and RMB 23.444 billion in 2026 [2][8]. - Net profit estimates are projected to be RMB 2.760 billion in 2023, RMB 1.114 billion in 2024 (down 59.6% year-on-year), RMB 1.137 billion in 2025, and RMB 2.297 billion in 2026 [2][8]. - The report indicates a significant adjustment in earnings forecasts, with a reduction of 44% for 2024, 49% for 2025, and 29% for 2026 [1]. Market Dynamics - The photovoltaic glass market has seen a drastic price decline, with average prices for 2.0mm and 3.2mm glass dropping by 22% and 11% respectively in Q3 2023 [1]. - Despite production cuts, demand has not met expectations, leading to continued inventory accumulation and further price declines of 8% and 10% since September [1]. - The report highlights that the industry has reduced production capacity by 9% compared to peak levels, with the company itself reducing output by 20% since August [1]. Valuation Metrics - The estimated price-to-book ratio for the company is projected to be between 0.8 and 1.9 times for the next 12 months, reflecting the volatility in earnings and policy expectations [1]. - The report uses a price-to-book ratio of 1.2 times for 2025 as a valuation benchmark, which corresponds to the target price of HKD 13.15 [1].

Financial Performance - The company's operating revenue for the six months ended June 30, 2024, was RMB 10,695,995.50 thousand, representing an increase of 10.5% compared to RMB 9,678,423.35 thousand for the same period in 2023[5]. - Gross profit for the same period was RMB 2,543,888.99 thousand, up 37.4% from RMB 1,850,421.19 thousand in 2023[5]. - Net profit reached RMB 1,500,260.94 thousand, a significant increase of 38.4% compared to RMB 1,085,367.84 thousand in the previous year[5]. - For the six months ended June 30, 2024, the company's revenue was approximately RMB 10,696.0 million, an increase of 10.51% compared to RMB 9,678.4 million for the same period in 2023[35]. - The net profit for the same period was RMB 1,500.3 million, representing a 38.23% increase from RMB 1,085.4 million in the prior year[35]. - The gross profit for the six months was RMB 2,543.9 million, a 37.48% increase from RMB 1,850.4 million year-on-year, with a gross margin of 23.78%, up from 19.12%[39]. - For the six months ended June 30, 2024, the group's EBITDA was RMB 3,012.4 million, an increase of RMB 724.6 million from RMB 2,287.8 million for the same period in 2023, resulting in an EBITDA margin of 28.16% compared to 23.64% in 2023[46]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 28,587,229.45 thousand, an increase from RMB 26,149,026.24 thousand as of December 31, 2023[5]. - As of June 30, 2024, total assets amounted to RMB 44,689.6 million, an increase of RMB 1,707.6 million or 3.97% from RMB 42,982.0 million as of December 31, 2023[47]. - Total liabilities increased to RMB 22.15 billion from RMB 20.69 billion, reflecting a rise of about 7.09%[89]. - The debt-to-asset ratio as of June 30, 2024, was 49.56%, an increase of 1.42 percentage points from 48.14% as of December 31, 2023[49]. - Current assets decreased to RMB 16.10 billion from RMB 16.83 billion, a decline of about 4.32%[88]. - The company's cash and cash equivalents decreased to RMB 5.61 billion from RMB 6.62 billion, a reduction of approximately 15.24%[88]. Shareholder Equity and Dividends - The total equity as of June 30, 2024, was RMB 22,543,176.02 thousand, compared to RMB 22,290,910.45 thousand at the end of 2023, indicating a growth in shareholder equity[5]. - The company plans to distribute an interim dividend of RMB 0.13 per share (pre-tax) for the six months ending June 30, 2024, pending approval at the extraordinary general meeting[86]. - The total equity attributable to shareholders rose to RMB 22,465,699,338.83 from RMB 22,215,074,391.42, an increase of 1.1%[96]. Research and Development - Research and development expenses rose to RMB 325.8 million, a 13.70% increase from RMB 286.5 million, driven by more R&D projects including new production technologies[43]. - Research and development expenses for the first half of 2024 were RMB 325,805,907.04, compared to RMB 286,539,318.55 in the same period of 2023, marking a 13.7% increase[97]. Market and Industry Trends - In the first half of 2024, China's newly installed photovoltaic capacity reached 102.48 GW, a year-on-year increase of 30.7%[30]. - The price of photovoltaic glass has declined by over 20% as of now, following a significant drop in the prices of polysilicon and wafers, which fell by over 40%[33]. - The company anticipates that the photovoltaic industry will regain vitality after short-term fluctuations and pain, as new supply gradually moves towards rationality and outdated capacity is eliminated[34]. Stock Incentive Plans - The company has implemented a stock incentive plan aimed at attracting and retaining key management and technical personnel, with a total of 6 million A-shares available for issuance under the plan[10]. - The company granted a total of 2,260,000 restricted shares under the 2020 incentive plan, with a grant price of RMB 6.23 and RMB 14.23 for different employee categories[12]. - The 2021 A-share stock option incentive plan was announced on August 17, 2021, with specific terms to be detailed[17]. Financial Management and Governance - The company has complied with the corporate governance code during the reporting period from January 1, 2024, to June 30, 2024[54]. - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations for the next 12 months[117]. - The company adheres to the relevant enterprise accounting standards, ensuring that financial statements reflect a true and complete picture of its financial status[119]. Taxation - The company reported a total tax expense of RMB 211,763.67 thousand for the first half of 2024, compared to RMB 99,079.31 thousand in the same period of 2023[5]. - According to the tax policy, individual shareholders holding shares for over 1 year are exempt from personal income tax on dividends[78]. Employee Compensation - The total number of full-time employees as of June 30, 2024, was 8,787, with total employee compensation reaching RMB 481.2 million, accounting for 4.50% of the group's revenue[51].

Investment Rating - The investment rating for the company is downgraded to "Neutral" with a target price of HKD 11.09, reflecting a potential upside of 5.6% from the current price of HKD 10.50 [1][2][7]. Core Insights - The company's gross margin exceeded expectations, but the price of photovoltaic glass continues to hit new lows, leading to the downgrade of the rating to neutral [1]. - In Q2, the company reported revenues and net profit of RMB 4.97 billion and RMB 739 million, respectively, representing year-on-year growth of 15% and 29% [1]. - The average price of photovoltaic glass saw a slight increase quarter-on-quarter, while the decline in prices of soda ash and natural gas contributed to a decrease in costs, pushing the gross margin up by 5.0 percentage points to 26.5%, the highest since Q4 2021 [1]. - The company’s production capacity decreased by 200 tons to 20,400 tons compared to the beginning of the year, leading to a decline in market share [1]. - The photovoltaic glass price has been continuously decreasing, with a significant oversupply in the market, resulting in a 10% and 7% drop in prices in July and August, respectively [1]. - The report anticipates a slight rebound in prices in October and November due to seasonal demand, but warns of a potential decline again in Q1 next year as production ramps up [1]. Financial Summary - Revenue for 2023 is projected at RMB 21.524 billion, with a year-on-year growth of 39.2%, followed by a decline of 10.1% in 2024 [2][8]. - Net profit for 2023 is estimated at RMB 2.76 billion, with a projected decline to RMB 1.979 billion in 2024 [2][8]. - The earnings per share (EPS) for 2023 is expected to be RMB 1.17, decreasing to RMB 0.84 in 2024 [2][8]. - The price-to-earnings (P/E) ratio is projected to be 8.2 for 2023 and 11.4 for 2024 [2][8]. - The gross margin is expected to decline from 22.4% in 2023 to 18.5% in 2024 [5][8].

Financial Performance - For the six months ended June 30, 2024, the company reported operating revenue of RMB 10,695,995.50 thousand, an increase of 10.5% from RMB 9,678,423.35 thousand in the same period of 2023[6]. - The gross profit for the same period was RMB 2,543,888.99 thousand, representing a 37.4% increase compared to RMB 1,850,421.19 thousand in 2023[6]. - Net profit for the six months ended June 30, 2024, was RMB 1,500,260.94 thousand, up 38.4% from RMB 1,085,367.84 thousand in the previous year[6]. - EBITDA for the six months ended June 30, 2024, was RMB 3,012.4 million, an increase of RMB 724.6 million from RMB 2,287.8 million in the same period last year, with an EBITDA margin of 28.16%[47]. - The company's net profit for the first half of 2024 was RMB 1,500.3 million, a 38.23% increase from RMB 1,085.4 million in the same period of 2023[36]. - The total profit for the first half of 2024 reached RMB 731,495,295.62, a significant increase from RMB 104,836,927.82 in the same period of 2023, representing a growth of approximately 696.9%[104]. - Net profit for the first half of 2024 was RMB 719,667,049.24, compared to RMB 94,939,292.32 in the first half of 2023, indicating a year-over-year increase of about 658.5%[104]. Assets and Liabilities - Non-current assets increased to RMB 28,587,229.45 thousand as of June 30, 2024, compared to RMB 26,149,026.24 thousand at the end of 2023[6]. - Total assets as of June 30, 2024, were RMB 44,689.6 million, an increase of RMB 1,707.6 million or 3.97% from RMB 42,982.0 million at the end of 2023[48]. - Total liabilities amounted to RMB 22.15 billion, an increase of 7.0% from RMB 20.69 billion as of December 31, 2023[90]. - Current liabilities totaled RMB 9.77 billion, up from RMB 9.18 billion, reflecting a 6.4% increase[90]. - Non-current liabilities reached RMB 12.38 billion, a rise of 7.6% compared to RMB 11.51 billion[90]. - The debt-to-asset ratio as of June 30, 2024, was 49.56%, an increase of 1.42 percentage points from 48.14% at the end of 2023[50]. Shareholder Information - The total equity as of June 30, 2024, was RMB 22,543,176.02 thousand, slightly up from RMB 22,290,910.45 thousand at the end of 2023[6]. - Mr. Ruan Hongliang holds 1,083,445,543 A shares, representing approximately 56.98% of the total equity[58]. - The total equity interest of the top shareholders indicates a concentrated ownership structure, with the top three shareholders holding over 66% of the total shares[63]. - The company aims to enhance shareholder returns and maintain stock price stability through share repurchase programs[66]. Incentive Plans - The company has implemented a restricted stock incentive plan to attract and retain key management and technical personnel[9]. - The total number of restricted shares to be granted under the 2020 incentive plan is 6 million A-shares, accounting for 0.31% of the company's total share capital of 1,950 million shares as of June 29, 2020[11]. - The 2021 A-share stock option plan proposes to grant 5,947,858 stock options, accounting for approximately 0.28% of the total issued share capital as of the approval date[21]. - The maximum number of shares granted to any individual incentive target under the 2021 A-share stock option plan does not exceed 1.00% of the total share capital[22]. Market and Industry Trends - In the first half of 2024, China's newly installed photovoltaic capacity reached 102.48 GW, representing a year-on-year growth of 30.7%[31]. - The U.S. imposed new tariffs on solar products, increasing tariffs on photovoltaic components and cells from 25% to 50%, impacting short-term demand for photovoltaic installations[32]. - The company is focusing on expanding its production capacity in Southeast Asia, India, and the Middle East to participate in the global photovoltaic supply chain[32]. Cash Flow and Financial Management - Cash inflow from operating activities amounted to RMB 6,735,595,810.72, up from RMB 4,697,406,416.64 in the previous year, reflecting a growth of approximately 43.3%[106]. - The net cash flow from operating activities was RMB 1,745,865,470.74, a turnaround from a negative cash flow of RMB -845,350,166.11 in the first half of 2023[106]. - The company reported a cash inflow from investment activities of RMB 372,097,042.40, compared to RMB 108,072,447.34 in the previous year, indicating an increase of about 244.5%[106]. Research and Development - R&D expenses rose by 13.70% to RMB 325.8 million from RMB 286.5 million, driven by an increase in R&D projects[44]. - Research and development expenses increased to RMB 325,805,907.04 in the first half of 2024, up from RMB 286,539,318.55 in the previous year, reflecting a growth of 13.7%[98]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules from January 1, 2024, to June 30, 2024[55]. - The company has adopted the standard code for securities trading by directors and supervisors, ensuring compliance throughout the reporting period[56]. Dividend and Profit Distribution - The company plans to distribute an interim dividend of RMB 0.13 per share (pre-tax) for the six months ending June 30, 2024, pending approval at the extraordinary general meeting[87].

Investment Rating - The report maintains an "OUTPERFORM" rating for the company [3][9]. Core Insights - In Q1 2024, the company achieved operating revenue of RMB 5.73 billion, representing a year-on-year growth of 6.7% and a quarter-on-quarter growth of 1.5%. The net profit attributable to the parent company was RMB 760 million, with a year-on-year growth of 48.6% [6][9]. - The gross profit margin for Q1 2024 was 21.5%, showing a year-on-year increase of 3 percentage points, primarily due to lower costs from declining prices of soda ash and natural gas [6][9]. - The company expects to ignite new production capacity in 2024, which will support sustained performance growth. The total capacity is projected to reach 30,200 tons per day by the end of 2024 [8][9]. Financial Summary - The company reported a net profit margin of 13.2% in Q1 2024, with a year-on-year increase of 3.7 percentage points [6]. - The forecasted net profit attributable to the parent company for 2024-2026 is RMB 3.936 billion (-5.6%), RMB 4.934 billion (-4.8%), and RMB 5.762 billion (-4.8%) respectively [9]. - The target price has been revised from HKD 27.25 down by 12.3% to HKD 23.91 based on a DCF valuation model [9]. Market Dynamics - The price of photovoltaic glass has declined, while overall inventory continues to grow, indicating significant supply and demand pressures [7][9]. - The company’s production of photovoltaic glass remained stable in Q1 2024, with a slight increase in sales volume and a decrease in inventory by 23.7% compared to the end of 2023 [8][9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 25.26, indicating a potential upside of 35% from the current price of HKD 18.78 [2][7]. Core Insights - In Q1 2024, the company achieved a net profit of RMB 760 million, representing a year-on-year increase of 48.57%, with total revenue reaching RMB 5.726 billion, up 6.73% year-on-year [4][9]. - The price of photovoltaic glass increased by HKD 0.5-1 per square meter in April, driven by demand from solar module production, and Q2 profits are expected to continue rising [5][10]. - The company is actively expanding its production capacity, with a total capacity of 20,600 tons/day as of the end of 2023, projected to reach approximately 30,200 tons by the end of 2024 [6][11]. Financial Performance - The company reported a significant increase in Q1 2024 profits due to lower soda ash costs, reduced expenses, and the reversal of impairment losses [4][9]. - The projected revenue growth for 2024 is 18%, with net profit expected to grow by 39.8% [8][12]. - The company’s earnings per share (EPS) for 2024 is estimated at RMB 0.99, with a PE ratio of 17.2 based on the current price [8][12]. Market Position and Expansion - The company is a leader in the photovoltaic glass industry, with ongoing domestic and international expansion plans that will support future growth [6][11]. - New production lines in Anhui and Nantong are expected to come online in 2024, contributing to a projected 20-30% increase in actual production volume [6][11]. - Future capacity expansions include additional facilities in Guangxi, Sichuan, and Jiangsu, as well as overseas projects in Vietnam and Indonesia, expected to start operations in 2026 or later [6][11].

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Insights - The company reported Q1 2024 revenue of 5.726 billion HKD, a year-on-year increase of 7% and a quarter-on-quarter increase of 2%. The net profit attributable to shareholders was 760 million HKD, representing a year-on-year increase of 49% but a quarter-on-quarter decrease of 4% [4]. - The increase in glass sales volume in Q1 was attributed to strong demand for glass components after the Spring Festival. The company's inventory at the end of Q1 was 1.53 billion HKD, down 24% quarter-on-quarter [4]. - The company expects significant improvement in profitability in Q2 due to stable glass prices and effective procurement management, with projected profits of 3.85 billion HKD and 4.66 billion HKD for 2024 and 2025, respectively [4]. Summary by Sections Event Description - The company released its Q1 report, showing better-than-expected performance with a revenue of 5.726 billion HKD and a net profit of 760 million HKD [4]. Event Commentary - The company experienced a slight increase in glass sales volume, driven by strong demand post-Spring Festival. Inventory levels are low, supporting future sales [4]. - Profitability is expected to improve due to stable pricing and effective cost management strategies, including flexible procurement of raw materials [4]. - The company is accelerating capacity expansion, with new production lines expected to come online within the year, which will support market share growth [4].

Investment Rating - The report maintains a "Neutral" rating for the company with a target price of HKD 19.50, indicating a potential upside of 0.5% from the current closing price of HKD 19.40 [1][7]. Core Insights - The company's Q1 performance slightly exceeded expectations, with a revenue growth of 6.7% year-on-year and 1.5% quarter-on-quarter, reaching RMB 5.73 billion. Net profit increased by 48.6% year-on-year but decreased by 3.9% quarter-on-quarter to RMB 758.6 million, which was 5% higher than forecasts due to lower expenses and a reversal of impairment losses [1][2]. - In April, glass prices rose by 3% following a rapid inventory reduction in March, although inventory levels began to increase again in the latter half of the month due to reduced production rates from some component manufacturers [2]. - The report anticipates a significant increase in profit margins in Q2, but a decline in the second half of the year is expected due to limited valuation attractiveness at present [2]. Financial Overview - Q1 2023 revenue was RMB 5.73 billion, with a net profit of RMB 758.6 million, reflecting a net profit margin of 13.2% [1][5]. - The company’s financial projections indicate revenue growth from RMB 21.52 billion in 2023 to RMB 34.81 billion by 2026, with net profit expected to rise from RMB 2.76 billion to RMB 5.35 billion over the same period [4][8]. - The gross margin is projected to improve from 22.4% in 2023 to 23.5% in 2024, while the net profit margin is expected to increase from 12.8% in 2023 to 15.4% in 2026 [6][8]. Market Dynamics - The industry is experiencing a rapid increase in new production capacity, with 8,300 tons coming online since March, leading to an expected oversupply in the second half of the year [2]. - The report notes that the average prices for photovoltaic glass have decreased by 9% and 3% for 2.0mm and 3.2mm glass respectively, although cost reductions from lower soda ash prices have helped maintain margins [1][2].

香港交易及結算有限公司和香港證券交易有限公司不對本公告的內容負責，不對本公告的準確性 或完整性做任何聲明，也明確不對依賴本公告全部或任何部分內容而產生任何損失負擔任何責 任。 福萊特玻璃集團股份有限公司 Flat Glass Group Co., Ltd. （於中華人民共和國註冊成立的股份有限公司） （股份代號：6865） 截至2024年3月31日止三個月第一季度報告 本公告由福萊特玻璃集團股份有限公司（「本公司」及其附屬公司統稱「本集團」）根據香港聯合交易所 有限公司證券上市規則第13.09條及13.10B條及證券及期貨條例（香港法例第571章）第XIVA部項下 內幕消息條文而刊發。 根據中國證券監督管理委員會的規定，本公司需刊發第一季度和第三季度報告。本季報根據中國 證券監督管理委員會發佈的上市公司季報信息披露相關要求所編製。 本季度報告內所載的財務數據均未經審計，並根據中國企業會計準則而編製。 本公司審核委員會已審閱本集團截至二零二四年三月三十一日止第一季度未經審計業績。 季報內容與上海證券交易所發佈的公告保持一致。本季度報告最初是用中文編寫的。如中英文版 本有不一致之處，以中文版本為準。 1 一、重要 ...