Solar module. Author: Oregon Department of Transportation. License: Creative Commons, Attribution 2.0 Generic.
Chinese solar wafer maker Comtec Solar Systems Group (HKG:0712) expects its net loss for 2016 to exceed CNY 1 billion (USD 145m/EUR 135m) due to write-down effects and a drop in revenues.
For comparison, the company’s net loss in 2015 stood at CNY 434.7 million.
In a press release on Wednesday, Comtec Solar explained that the deeper yearly net loss is a result of a CNY-339.3-million write-down of assets related to manufacturing facilities and assets in Malaysia. In January, Comtec Solar agreed to sell the assets to Xi’an Longi Silicon Materials Co Ltd (SHA:601012) at a 60% discount under a plan to exit its investment in production plants in Malaysia and focus on the growth of its downstream distributed solar business.
In addition, Comtec Solar’s bottom line result for 2016 will be affected by costs for the termination of its Malaysian operations, the CNY-276.5-million write-down of assets related to its Chinese factories, as well as a drop in the selling prices of solar wafers and polysilicon and lower shipments of monocrystalline ingots and wafers. The company also recognised share base payment expenses of nearly CNY 22.4 million and net exchange losses of about CNY 10.1 million amid the challenging market conditions in 2016 when a number of large photovoltaic (PV) module and panel manufacturers announced plans in the second half of the year to scale back or shut down production.
In spite of the expected negative net result for 2016, Comtec Solar said that it expects to book a net cash inflow from operating activities of about CNY 80.2 million.
The solar wafer maker will publish its annual report for 2016 on March 31.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.