Neo Solar’s net loss shrinks in Q1

Taiwanese photovoltaics (PV) maker Neo Solar Power Corp (TPE:3576), or NSP, on Tuesday reported a net loss of TWD 643 million (USD 21.5m/EUR 18.2m) in the first quarter quarter of 2018, narrowing from TWD 1.32 billion a year ago thanks to a rise in sales.

The company’s revenues in the three months marked a 16% increase year-on-year to TWD 2.51 billion, but decreased sequentially as the 2017 year-end rush installation ended and average selling prices (ASP) remained low.

Neo Solar booked an operating loss of TWD 531 million, down from TWD 1.14 billion a year back, cutting operating costs from TWD 444 million to TWD 345 million.

The Taiwanese company noted that it is facing “great operational challenges” due to the quickly changing solar market, the ongoing solar trade disputes and imbalance between demand and supply, which in turn hurts ASPs. Nevertheless, it expects to boost its overall performance by expanding its downstream solar activities and taking advantage of rising demand on the domestic market.

As regards to its merger with Gintech Energy (TPE:3514) and Solartech Energy (TPE:3561), Neo Solar said the process is going smoothly. The trio has already secured approvals from Germany's Federal Cartel Office, China's Ministry of Commerce, and Taiwan's Fair Trade Commission for the move. The three solar product makers unveiled their plan to merge in October 2017.

(TWD 10 = USD 0.334/EUR 0.283)

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