Shares of Flat Glass Group (06865.HK) plummeted 5.03% in intraday trading, as investors reacted to a stark profit warning issued by the company. The solar glass manufacturer projected a dramatic decline in its financial performance for the first half of 2025, citing severe industry overcapacity and intensified competition.

According to the company's announcement, Flat Glass Group expects its H1 2025 net profit attributable to shareholders to plunge between 81.32% and 84.66% year-over-year, falling to a range of RMB230 million to RMB280 million. The net profit excluding non-recurring gains and losses is forecasted to drop even more sharply, by 83.45% to 86.82% compared to the same period last year, landing between RMB195 million and RMB245 million.

The precipitous earnings decline is primarily attributed to significantly lower photovoltaic glass selling prices during the reporting period. The company cited severe industry overcapacity, intensified competition, and aggressive pricing strategies as key factors driving down prices. While Flat Glass Group has partially offset these pressures through lower raw material costs and improved operational efficiency, the price erosion has still led to substantial revenue and profit contraction. Adding to the financial strain, the company also recognized asset impairment provisions for idled glass furnaces undergoing cold repairs and certain solar glass inventory. This profit warning, coupled with broader industry challenges, has clearly shaken investor confidence, resulting in today's sharp stock price decline.