Lower sales push China's Solargiga into H1 net loss

China's Solargiga Energy Holdings Ltd (HKG:0757) on Friday reported a first-half net loss attributable to equity shareholders of CNY 103.8 million (USD 15.2m/EUR 13.1m), in line with expectations.

The loss compares with a net profit of CNY 100.6 million in the year-ago period. The Chinese company, which makes monocrystalline silicon ingots, wafers, cells and modules, explained the negative result for the first half of 2018 with an “unanticipated” drop in sales volumes and prices caused by policy changes in the Chinese solar market and the recognition of an inventory provision loss. An increase in research and development (R&D) costs also affected the company’s performance.

No interim dividend distribution has been recommended, according to the bourse statement.

Gross profit fell to CNY 183.1 million from CNY 305.2 million and gross profit margin slipped to 10.1% from 15.3% a year back.

Revenue in the six months came at CNY 1.81 billion, falling 8.9% in annual terms in spite of the 4% rise in shipment volumes. Shipment of major products in the respective period totalled 1,207 MW.

At the end of June, Solargiga's production chain included 1.2 GW monocrystalline silicon (mono-Si) ingot, 1.2 GW mono-Si wafer, 400 MW monocrystalline solar cell and 2.2 GW module capacity. The company is currently implementing a capacity expansion process that will see it lift its ingot and wafer capacity to 1.8 GW each.

(CNY 1.0 = USD 0.146/EUR 0.126)

Choose your newsletter by Renewables Now. Join for free!