Chinese solar glass producer Haikong Sanxin to file for bankruptcy

About this update from Hainan Development Holdings Nanhai Co., Ltd. Class A

Solar glass producer Haikong Sanxin New Energy Materials will apply for bankruptcy to curb mounting losses, in the latest sign of the financial difficulties facing the solar industry in China, home to around 80% of global production.Haikong Sanxin posted a net loss of 194.5 yuan ($27.3 million) for January-June 2025 and 659 million yuan in debt, parent company Hainan Development Holdings Nankai SZSE:002163 said in a filing on Thursday.Haikong also halted production at the end of September because continued production would have incurred more losses, according to the filing.In July, Haikong had shut down a 550 metric ton kiln and five processing lines but kept two lines open to meet commitments to key customers."At the moment there are no signs of improvement in the solar glass market," the company said, adding that prices had fallen significantly and it was difficult to reduce production costs.Following the news, Hainan Development's stock price was down 4.71% as of 0214 GMT on Thursday.The CSI China solar index SSE:931151 was up 1.99% as of 0218 GMT.China's solar industry is facing significant losses as production capacity has surged to close to double global demand, driving down prices to unsustainable levels.In response, the government has called for an end to what it calls "involution", or excessive competition leading to damaging price wars.

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