IRICO Group New Energy Company Limited (IRICO NEWENERGY) reported a sharp deterioration in first-half 2026 results, hit by a 35.03 % slide in photovoltaic (PV) glass prices and lower shipment volumes.
Revenue and Profitability • Operating revenue fell to RMB 986.79 million, down from RMB 1.52 billion a year earlier. • Gross margin turned negative as operating costs (RMB 1.25 billion) exceeded sales, driving an operating loss of RMB 494.91 million. • Net loss attributable to shareholders widened to RMB 494.16 million, versus a RMB 295.70 million deficit in 1H 2025. Basic and diluted EPS declined to –RMB 2.80 from –RMB 1.68.
Segment Performance PV glass accounted for 98 % of revenue, generating RMB 970.35 million, down 35.7 % year on year. Other operating income, primarily hydropower sales and scrap disposal, contributed RMB 15.94 million.
Cash Flow and Liquidity • Operating cash outflow narrowed to –RMB 156.79 million (1H 2025: –RMB 445.24 million) as working-capital pressure eased. • Net financing inflow of RMB 570.02 million underpinned a RMB 268.59 million rise in cash and cash equivalents to RMB 537.57 million. • Total debt climbed to RMB 5.04 billion, lifting the gearing ratio to 91.97 % from 89.88 % at end-2025. • Interest expenses fell 11.8 % to RMB 72.19 million following lower average funding costs.
Balance Sheet Metrics Total assets reached RMB 8.50 billion, while shareholders’ equity declined 18.8 % to RMB 682.88 million after the net loss and a negative RMB 335.34 million mark-to-market swing on equity investments. Accounts-receivable days lengthened to 195 (1H 2025: 100), reflecting extended payment terms amid sector liquidity strain. Inventory days edged up to 60.
Operational Initiatives Management accelerated cost-cutting and efficiency programmes, expanded sales of ultra-high-transmittance PV glass, and pursued new materials for liquid-crystal substrates and specialty appliance glass. Capital expenditure reached RMB 101.72 million, with outstanding capex commitments of RMB 517.44 million.
Risk Profile The company classifies borrowings as predominantly floating-rate, leaving profits sensitive to interest-rate movements; a 100-basis-point rate shift would change annualised net profit by roughly RMB 21.20 million. Exchange-rate exposure is limited; USD-denominated cash balances total only RMB 0.83 million.
Dividend and Outlook With no retained earnings for distribution, the board declared no interim dividend. Management expects PV glass pricing to remain under pressure but targets higher contributions from value-added products and technology upgrades to mitigate the downturn.