Solargiga swings to USD-35m loss in 2016

Solargiga Energy Holdings Ltd (HKG:0757) on Friday reported a 2016 net loss attributable to equity holders of CNY 239.1 million (USD 35m/EUR 32.8m), versus a CNY-15.7-million profit in 2015.

Operating loss was CNY 74.3 million, against a profit of CNY 152.5 million in the previous year.

The Chinese company, which makes monocrystalline silicon ingots, wafers, cells and modules, said the deficit reflects upgrading work which affected part of its production capacity, as well as higher research and development (R&D) costs. The 2015 result, meanwhile, was aided by a gain on land disposal.

Gross margin improved to 10.9% from 8.4% in 2015.

External shipments grew 34.1% year-over-year to 1,543.4 MW, while revenues increased at a slower pace of 4.2% to CNY 3.02 billion due the declining average selling price of photovoltaic (PV) products.

Solargiga, which warned in March it will record a substantial loss for 2016, currently has 1.2 GW of monocrystalline ingot capacity, 900 MW monocrystalline wafer, 350 MW cell and 1.2 GW module capacity. The latter is up from 600 MW at the end of 2015.

(CNY 1.0 = USD 0.146/EUR 0.137)

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