GCL New Energy’s net profit soars 135% y/y in H1 2016

Solar power-focused firm GCL New Energy Holdings Ltd (HKG:0451) said Tuesday its attributable net profit for the first half of 2016 has surged by 135.2% year-on-year to CNY 167 million (USD 25m/EUR 22.8m).

The Hong Kong-based company is active in the downstream renewable energy field with a focus on solar power, and also makes printed circuit boards. The result is above GCL New Energy’s forecast for at least CNY-130-million profits in January-June.

The improvement in the company’s bottom line result can be mainly attributed to its solar energy segment, which generated revenues and after-tax profits of CNY 929 million and CNY 261 million, respectively. As previously reported, increased installed photovoltaic (PV) power capacity, cost control measures and system efficiency enhancements also helped.

GCL New Energy’s gross margin was 46.2%, as compared to just 28.9% a year back. Its first-half revenue grew to CNY 1.67 billion from CNY 897 million in the same period in 2015. The increase came mainly from downstream solar operations, which yielded 247% higher sales of electricity during the period under review.

The aggregate number of GCL New Energy’s solar parks had jumped from 17 at end-June 2015 to 68 a year later. At the end of June 2016, the firm owned and operated 2,735 MW of PV capacity, which produced 1,139,684 MWh over the first six months of the year.

(CNY 1.0 = USD 0.150/EUR 0.136)

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