On the evening of August 25, Hainan Drinda New Energy Technology Co.,Ltd. (002865.SZ, stock price 49.68 yuan, market cap 145.36 billion yuan) released its 2025 half-year report, showing operating revenue of 36.63 billion yuan in the first half, down 42.53% year-on-year. The net profit attributable to shareholders of the listed company posted a loss of 2.64 billion yuan, compared to a loss of 1.66 billion yuan in the same period last year, representing an expanded loss.

As one of the "new three categories" of foreign trade exports, photovoltaic products continue to grow overseas, and DRINDA followed this trend in the first half. Although its domestic revenue declined significantly, overseas sales proportion surged from 23.85% in 2024 to 51.87%, with overseas revenue increasing from 879 million yuan to 1.9 billion yuan, achieving doubled growth.

In May this year, DRINDA was listed on the main board of the Hong Kong Stock Exchange, becoming the industry's first "A+H" dual-platform listed enterprise. The funds raised at that time were mainly directed toward overseas market expansion.

DRINDA stated in its half-year report that while the first quarter saw some recovery in industry chain prices and corporate performance, the second quarter witnessed a periodic decline in industry chain prices, with "involution-style competition" still persisting.

In the first half of this year, DRINDA's revenue was 36.63 billion yuan, with the vast majority coming from solar cell sales revenue, which declined 42.48% year-on-year. DRINDA attributed this mainly to decreases in both selling prices and sales volume.

With revenue nearly halved, DRINDA's profitability performance was also concerning. The first-half net profit attributable to shareholders was -2.64 billion yuan, with losses expanding year-on-year. Government subsidies included in current profit and loss amounted to 214 million yuan, accounting for the majority of non-recurring profit and loss items during the reporting period. DRINDA's non-GAAP net profit attributable to shareholders showed a loss of 465 million yuan.

DRINDA is one of the leading companies in the solar cell industry. However, no shipment volume data for the first half was found in the half-year report. Looking at 2024, its battery product shipments reached 33.74GW, up 12.62% year-on-year, with N-type battery shipments of 30.99GW, accounting for over 90% and growing 50.58% year-on-year. According to InfoLink data, the company's battery product shipments ranked third globally, with N-type battery product shipments maintaining industry leadership.

According to the introduction, DRINDA achieved large-scale mass production of N-type batteries at the end of 2022 and completed comprehensive upgrading and iteration of N-type battery technology. The company operates two major N-type battery production bases in Chuzhou and Huai'an, with combined battery capacity exceeding 40GW.

DRINDA stated that due to the high growth in global photovoltaic demand over the past few years and continued expansion across all segments of the industry chain, China's photovoltaic industry chain has shown a periodic supply-demand mismatch. The industry entered a capacity reduction cycle starting from the second half of 2023, and after nearly two years of market-based clearing, the industry's capacity reduction cycle has now entered its final stage.

From an industry perspective, TOPCon (Tunnel Oxide Passivated Contact) batteries currently dominate the market. According to data from the China Photovoltaic Industry Association, in 2024, N-type TOPCon battery cells held approximately 71.1% market share, heterojunction battery cells about 3.3%, and XBC (various back-contact) battery cells about 5%.

Research reports predict that in the second half of this year, TOPCon battery market share will gradually stabilize, while BC battery market share will continue to show rapid growth. It's expected that destocking and capacity reduction will remain the main themes for the photovoltaic industry in the second half of 2025, with companies facing the "prisoner's dilemma" of choosing between market share preservation or profit protection. The market is entering the deep end of clearing.

While navigating through industry cyclical challenges, DRINDA's overseas expansion performance has been noteworthy.

In the first half, one of DRINDA's most notable capital moves was its successful listing on the Hong Kong stock market. Through the Hong Kong listing, DRINDA raised HK$1.29 billion, primarily for overseas high-efficiency battery capacity construction, overseas market expansion and overseas sales operation system construction, global R&D center construction, and supplementing working capital.

The half-year report shows that despite significant declines in domestic revenue, DRINDA's overseas revenue grew 116.15% year-on-year, while overseas business gross margin reached 4.50%, up 2.83 percentage points year-on-year. Driven by overseas business gross margins, DRINDA's first-half photovoltaic battery cell gross margin reached 1.75%, up nearly 1 percentage point year-on-year.

DRINDA stated that in the first half of 2025, the company continued customer development and certification in emerging markets across Asia, Europe, North America, Latin America, and Australia, continuously building overseas sales networks and strengthening global customer service capabilities.

Additionally, DRINDA noted that beyond battery export business market expansion, the company continues to monitor development conditions in overseas markets in other countries and regions, continuously exploring through diversified models such as technical cooperation, capacity construction, and investment cooperation to plan and layout overseas high-efficiency battery capacity. In the first half, the company formally signed a strategic cooperation agreement with Turkish local module customers.

It should be noted that the volatile international trade environment brings new challenges to Chinese photovoltaic companies going global. Multiple industry participants believe that attention should be paid to sustainability issues during the current "going out" process. In this process, deploying localized distribution and service systems, emphasizing win-win relationships with local partners, and actively undertaking local social responsibilities are viewed as key breakthrough points.

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