Solargiga suffers 2018 loss on policy change in China

China's Solargiga Energy Holdings Ltd (HKG:0757) has turned to a net loss attributable to equity shareholders of CNY 222.4 million (EUR 33.1m/EUR 29.5m) in 2018, hit by the lower product selling prices that followed 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. Its performance in 2018 was impacted by the “sudden and rapid freezing of market demand” that dragged down photovoltaics (PV) selling prices after China decided to limit distributed generation (DG) and utility-scale installations for the year. Solargiga had to recognise an inventory provision loss because of deferrals in procurement by solar project developers and investors and it saw its gross profit drop to CNY 397.6 million from CNY 657.9 million.

The gross profit margin stood at 9.9%, down from 16.4% a year back.

Solargiga’s revenue inched up by 0.6% on the year to CNY 4.02 billion. Shipment of major products climbed by 15.2% in annual terms to 2,797 MW.

At the end of 2018, 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 0.149/EUR 0.133)

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