March 18 (Renewables Now) - China's Solargiga Energy Holdings Ltd (HKG:0757) said on Friday it expects to book a “substantial” loss in 2018 as demand has been hit by policy changes on the domestic market.
In 2017, the Chinese company, which makes monocrystalline silicon ingots, wafers, cells and modules, posted a profit attributable to equity shareholders of CNY 107.5 million (USD 16m/EUR 14.1m). In 2018, however, its performance was affected by a “sudden and rapid freezing of market demand” after the Chinese government decided to limit both distributed generation (DG) and utility-scale additions, which in turn led to substantial inventory provisions and fixed asset impairments for the company. Still, it booked a 15.2% rise in shipment volumes as compared to 2017.
Solargiga noted that the projections are based on a preliminary assessment of unaudited management accounts and may differ from actual results. The company will publish its full-year financial report on March 29.
(CNY 1.0 = USD 0.14/EUR 0.131)