April 3 (Renewables Now) - Chinese solar wafer maker Comtec Solar Systems Group (HKG:0712) reported a net loss of CNY 1.01 billion (USD 148m/EUR 138.5m) for 2016 following its decision to sell its production facilities in Malaysia, and due to declining sales and lower selling prices.
The result compares to a loss of CNY 434.7 million a year before. The net loss margin was 124.3% and 39.8% in 2016 and 2015, respectively.
On a more positive note, the net cash inflow from operating activities amounted to CNY 80.2 million.
Revenue fell by 25.8% to CNY 810.0 million as shipments of monocrystalline solar wafers contracted and the average selling prices (ASPs) were down. More specifically, wafer sales more than halved to CNY 306.56 million, while ingot sales improved to CNY 29.65 million. Revenue from the sale of monocrystalline silicon was roughly flat at CNY 4561. million.
In the year under review Comtec Solar worked to downsize the scale of its manufacturing operations and to grow its downstream solar businesses which mainly focus on industrial, commercial and residential distributed generation projects. Its performance was hurt by lower demand for solar photovoltaic (PV) equipment, falling average selling prices, and the sale at a significant discount of Comtec Malaysia. The company booked a CNY-339.3-million loss from disposal of assets and properties in Malaysia, CNY 276.5 million in impairment losses, and more losses resulting from its restructuring efforts.
As Comtec Solar said on announcing the Malaysian deal in January, market conditions deteriorated in the the second half of 2016, with certain major players who use monocrystalline silicon wafers scaling back or even shutting down production. The company thus reached the conclusion that it would be in its interest to exit its investment in the production facilities in Malaysia so that it has more resources for the expansion of the distributed solar business.
(CNY 10 = USD 1.46/EUR 1.37)