Low demand hits Solargiga's H1 net profit

Solar panels. Featured Image: pornvit_v/Shutterstock.com

September 3 (Renewables Now) - China's Solargiga Energy Holdings Ltd (HKG:0757) saw its net loss attributable to equity shareholders expand to CNY 184.2 million (USD 25.7m/EUR 23.5m) in the first half of 2019 from CNY 107.3 million a year before.

Solargiga makes monocrystalline silicon solar ingots, wafers, photovoltaic (PV) cells and modules and is also involved in the engineering, procurement and construction (EPC) of solar plants. In a bourse statement on Friday, it explained that the wider loss reflects the continued decline in average selling prices and decreased demand in the domestic market. This was mainly due to a delay in the introduction of China’s 2019 PV power subsidy policy and the partial utilisation of Solargiga’s production capacity, which it said is still in an adjustment phase.

The gross profit margin for the period fell to 4.9% from 10.1% in the first half of 2018. Operating loss came at CNY 90.6 million, widening from CNY 40.8 million.

In spite of the lower demand, Solargiga’s revenues went slightly up, from CNY 1.81 billion to CNY 1.85 billion, with almost 80% of the total coming from downstream module product sales. Shipments of major products, meanwhile, climbed by 32.7% year-on-year to 1,602 MW.

The company has not recommended an interim dividend payout for the January-June period. No distribution was allocated in the year-ago period, as well.

At the end of June, Solargiga’s production capacity was 1.8 GW for monocrystalline silicon (mono-Si) ingot, 1.8 GW for mono-Si wafer, 400 MW for monocrystalline solar cell and 2.2 GW for modules.

(CNY 1.0 = USD 0.139/EUR 0.127)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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