On January 19, HIUV Materials Technology (SH:688680) released its 2025 annual performance forecast. The company expects to achieve a net loss attributable to shareholders of 440–520 million yuan, compared to a loss of 558 million yuan in the same period last year. It also projects a net loss attributable to shareholders after deducting non-recurring gains and losses of 430–510 million yuan, compared to a loss of 519 million yuan in the same period last year.
The announcement noted that in 2025, the imbalance between supply and demand in the photovoltaic industry remained prominent. Throughout the year, the company proactively scaled down its photovoltaic film business, implemented cost reductions in operations, and reduced impairment provisions for raw materials and finished goods inventories. During the industry’s deep adjustment period, the company remained committed to enhancing its sustainable development capabilities around its core business, accelerating the layout of its overseas film operations, and continuously optimizing its domestic industrial structure. Additionally, the company actively explored a dual-core business development model. Its automotive materials business is entering a critical phase of development, with short-term R&D and market investments laying the foundation for medium- to long-term growth. The company will expedite the advancement of related operations to maintain its industry-leading position through technological innovation capabilities.
HIUV Materials Technology attributed the net loss attributable to shareholders primarily to the following factors:
- Adjustments in the photovoltaic industry cycle led to fierce price competition in the company’s specific segment, reduced sales volume, and low gross margins for film products, putting significant pressure on profitability.
- Due to low capacity utilization, the recoverable amount of certain assets at the period-end was lower than their book value. Based on the principle of prudence, the company engaged professional institutions to conduct a specialized assessment of the assets in its photovoltaic business as of the reporting period-end. In accordance with accounting standards, impairment provisions for these assets were made accordingly.
- The company’s continuous investments in R&D and market development for new business areas negatively impacted profitability.
