Comtec Solar turns to H1 2017 net profit

Comtec Solar Systems Group (HKG:0712) last week reported a net attributable profit for the first half of 2017 of CNY 8.8 million (USD 1.3m/EUR 1.1m), against a loss of CNY 6.4 million a year before.

The Chinese company explained that the improvement, in line with its guidance, came after it downsized the scale of its solar photovoltaics (PV) manufacturing activities and focused its efforts on the downstream solar business. A particular focus was put on rooftop distributed PV plants on industrial and commercial buildings, Comtec Solar noted. The company also benefited from an increase in subsidy income and a gain from fair value changes.

Net profit margin stood at 2.6% in January-June, against a negative 1.3% in the year-ago period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 67.8% to CNY 49 million.

The positive bottom line result was achieved despite a 36% drop in revenue at Comtec Solar to CNY 314.2 million. About CNY 274.7 million of Comtec Solar’s total revenues came from the upstream business, while the downstream operations brought CNY 39.5 million.

Wafer sales in the six months fell to CNY 134.6 million from CNY 228.4 million, while ingot sales improved to CNY 33.7 million from CNY 290,000. Revenue from the sale of monocrystalline silicon was CNY 65.3 million, down from CNY 257.7 million.

Shipments of ingots and wafers climbed by 18.8% to 197.4 MW.

(CNY 1.0 = USD 0.152/EUR 0.129)

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