Hanergy Thin Film lifts H1 profit, revenues on upstream business uptake

Hanergy Thin Film Power Group Ltd (HKG:0566) on Friday reported “outstanding” first-half results, bolstering both its net profit and revenues mainly thanks to its upstream business.

The Chinese firm, which focuses on thin-film solar research and development (R&D) and also offers photovoltaic (PV) products, closed the first half of 2018 with a net profit of HKD 7.33 billion (USD 934m/EUR 806m), registering an almost 30 times leap from HKD 244.8 million a year back. The surge came on the back of the company’s technological breakthroughs, strong policy support in China, development of new markets, as well as new clients and projects. Another key factor for the "exponential" growth is the improvement of the localisation of equipment production lines, which enabled the large-scale delivery of products, Hanergy Thin Film said.

Gross profit in the six months jumped to HKD 12.21 billion from HKD 1.09 billion. Operating revenue zoomed by 615% to HKD 20.41 billion, with the upstream business accounting for 93.5% of the total. The company’s downstream solar operations brought 7% of the overall revenue, or HKD 1.33 billion.

During the reporting period, Hanergy Thin Film achieved an aperture area efficiency of 18.75% for double glass copper indium gallium (di) selenide (CIGS) solar modules, which it says is the highest in the world. The result was announced in February.

(HKD 10 = USD 0.127/EUR 0.110)

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