GCL-Poly Energy posts USD-31m profit in 2016

Chinese firm GCL-Poly Energy Holdings Ltd (HKG:3800) reported an attributable net profit of CNY 2.1 billion (USD 31m/EUR 28m) for 2016, marking a slight decline of 1.9% year-on-year.

The company said in the financial report released Wednesday that its 2015 profit had been boosted by a one-off effect.

Revenue for the year grew by 7.5% to CNY 22.03 billion, mainly thanks to higher electricity sales by its unit GCL New Energy Holdings (GNE), which develops, builds and operates solar farm. GNE’s performance was positively impacted by tariff adjustments and its profit quadrupled to CNY 243.6 million in 2016. The solar materials business, GCL-Poly’s polysilicon and wafer division, saw its profit increase by 23.9%.

The results of separate businesses is visible in the table in CNY million.

Segment - Revenue - Segment profit (loss)
Polysilicon and wafer - 19,270 - 2,319.5
Solar farms - 508.3 - (161.3)
GNE - 2,246 - 243.6
TOTAL - 22,024.5 - 2,402

GCL-Poly Energy produced 69,345 tonnes of polysilicon and 17,327 MW of wafer . It sold 9,951 tonnes of polysilicon in 2016, which is down by 44% year-on-year. The average selling prices (ASP) reported by the company stood at CNY 99 per kg, up from CNY 97.8/kg in 2015. The firm also sold 17,518 MW of wafer, up by 15.4% in annual terms, but the ASP was lower at CNY 1.085 per W, down from CNY 1.175/W in 2015.

The Chinese solar company expects global demand in 2017 to surpass 85 GW, up from 75 GW last year, with the main markets being China, India, the USA, Japan and the Middle East. It added that emerging markets in the ‘‘sun-belt’’ regions such as Southeast Asia, Latin America and Africa will also continue to grow.

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