Photovoltaic glass profits hit a record high

The increase in production capacity, coupled with the accelerated growth of downstream PV demand and increased sales of thin glass products, contributed to the rapid increase in the Group's total solar glass sales volume (in terms of tonnage) in 2023, which rose 49.3% YoY.

Timely capacity expansion not only enabled the Group to capture global market growth, but also reinforced its market-leading position. By the end of 2023, the Group's daily melting capacity of solar glass reached 25,800 tonnes, an increase of 6,000 tonnes compared to the beginning of the year.

Dual growth in both gross profit and net profit was also achieved, as the Group experienced a significant improvement in the gross profit margin of the solar glass segment in the second half amid better supply and demand dynamics. In 2023, the Group's consolidated revenue increased 29.6% year-on-year (" YoY ") to HK$26,628.8 million.

Together with the interim dividend of 7.5 HK cents, the full-year dividend is 22.5 HK cents, with a dividend payout ratio for the year of 47.8% (2022: 46.6%). Business Review Solar Glass Business – Rapid Revenue Growth Driven by Capacity Expansion and Strong Market Demand

As of now, the domestic glass capacity is about 99,000 tons, plus 5,850 tons overseas. In Q1 2024, the industry added 3,100 tons of new capacity and 650 tons of resumption. Considering about 3,500 tons of repair, the actual increase in Q1 is limited. Q2 is expected to increase, with capacity expected to be concentrated in Q3-4.

Concerning the solar farm business, following the sharp decline in solar module prices in mid-2023, the Group accelerated the installation and construction of solar farm projects in the second half of the year, achieving a record-high annual grid-connected capacity in 2023.