
Investment Summary
Significant Performance Improvement in Q3 2025
According to the Company’s announcement, in the first three quarters of 2025, Flat Glass
Group Co., Ltd. recorded revenue of RMB12.464 billion (RMB, the same below), down 14.7%
yoy, and net profit attributable to the parent company of RMB638 million, down 50.8% yoy.
Specifically, the Company recorded revenue of RMB4.079/3.658/4.727 billion in Q1/Q2/Q3,
down 28.8%/26.4%/up 21.0% yoy and flat/-10.3%/up 29.2% qoq; net profit attributable to
the parent company amounted to RMB106/155/376 million, down 86.0%/79.0%/up 285.5%
yoy and up 136.7%/46.0%/142.9% qoq, respectively. The results showed a trend of
improvement quarter by quarter, with particularly notable growth in Q3.
Anti-Excessive Competition Measures Strengthened, Driving Recovery in Profitability
The performance improvement was mainly driven by the accelerated inventory de-stocking
that led to a recovery in industry prosperity, easing of cost pressures, and the support from
overseas business (accounting for approximately 30%).
In 2025, the photovoltaic (PV) industry intensified its efforts to curb excessive competition.
As of July 2025, the cold-repair capacity in the PV glass industry reached 7,750 tonnes/day,
reducing the domestic operating capacity to 89 thousand tonnes/day—a decline of
approximately 22.4% from the peak of 114.7 thousand tonnes/day in November 2024. This
accelerated capacity reduction strengthened supply-side constraints, which supported PV
glass price stabilisation. In July, prices bottomed out, followed by a rebound in August. In
September, the price of 2.0mm PV glass rose 18% month-on-month to RMB13–13.5/sq.m,
recovering approximately 25% from July’s RMB10.5/sq.m.
The Company’s gross margin for the first three quarters was 15.1%, down 3.9 ppts yoy. In
Q3, gross margin reached 16.8%, up 10.8 ppts yoy and 0.1 ppt qoq, benefiting from
increased shipments driven by price recovery, a decline in soda ash costs, and support from
high-margin overseas business. The Q3 period expense ratio stood at 6.9%, down 3.7 ppts
yoy and 0.6 ppt qoq, mainly attributable to scale effects. Additionally, a reversal of asset
impairment losses of RMB80 million in Q3 further boosted profit. As a result, the Q3 net
profit margin attributable to the parent company rose to 7.96%, up 13.2 ppts yoy and 3.7
ppts qoq.
Industry Expected to Maintain Weak Balance in Q4
As of early November 2025, PV glass prices declined slightly due to weakening demand
support, and industry inventories showed an increasing trend. The mainstream transaction
price for 2.0mm PV glass was around RMB12.5–13/sq.m. However, considering the onset
of the heating season and the resulting increase in natural gas prices, cost support is
expected to limit the extent of price fluctuations. Benefiting from its advantages in
technology, scale, capital, and clientele, the Company’s cost advantages will become more
prominent as market prices decline, potentially leading to an expansion in market share.
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Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.