GCL New Energy's profit drops 29% in H1 2018 due to higher costs
Solar panels in China. Featured Image: zhu difeng/Shutterstock.com
Chinese solar power producer GCL New Energy Holdings Ltd (HKG:0451) said its attributable net profit from continuing operations dropped 29% on the year to CNY 345 million (USD 51.7m/EUR 47m) in the first half, burdened by higher financial costs.
Financial costs rose 50 % to CNY 1.182 billion in due to higher borrowing for recent solar park developments . The company also noted increases in administrative expenses and negative currency effects.
The company’s first half revenue climbed 49% to CNY 2.704 billion, driven up by a 59% increase in electricity sales to 3,765 million kWh, following the capacity expansion in the last 12 months. The group had 7.1 GW of solar parks as of June 30, 2018, up from 3.5 GW a year earlier.
Results in CNY million
Profit to owners of the company from cont ops (Solar Energy Business)
In August 2017, GCL New Energy completed the sale of its printed circuit board (PCB) business, which is now classified as discontinued operations.