Solargiga sees 34% Y/Y drop in Q1 revenues

China's Solargiga Energy Holdings Ltd (HKG:0757) said Monday it expects to register a 34% year-on-year drop in revenues for the first quarter of 2018 to CNY 657.2 million (USD 104.7m/EUR 84.6m).

Based on unaudited operating statistics, the drop mirrors a decline in revenues from the company’s production activities and lower external shipment volumes, which were down 19.9% to 462.1 MW.

Solargiga, which makes monocrystalline silicon ingots, wafers, cells and modules, explained that revenues and external shipments in the three months were hit by falling market prices of monocrystalline silicon wafers and unfavourable winter conditions, which led to a decrease in shipments of photovoltaic (PV) modules. The company had decided not to pursue external sales of monocrystalline silicon wafers and used them in the production of PV modules.

Solargiga’s revenues from production activities in the first quarter contracted by 35.5% to CNY 637.5 million. Meanwhile, other revenue rose to CNY 19.7 million from CNY 7.1 million.

At the end of 2017, the company's production chain included 1.2 GW monocrystalline silicon (mono-Si) ingot, 1.2 GW mono-Si wafer, 400 MW solar cell and 1.2 GW module capacity. It is in a process of expansion that, from the second half of 2018, will increase its ingot and wafer capacity to 1.8 GW each and the module manufacturing capacity to 2.2 GW. The solar cell capacity will stay at 400 MW.

(CNY 1.0 = USD 0.159/EUR 0.129)

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