Solargiga turns H1 profit on mono-Si demand, expansion
Author: University of Salford Press Office.
China-based Solargiga Energy Holdings Ltd (HKG:0757) returned to profit in the first half of 2017 thanks to increased demand for monocrystalline photovoltaic modules, economy of scale, and expanded client base.
The company, which makes monocrystalline silicon (mono-Si) ingots, wafers, cells and modules, on Thursday said its profitability improved also because long-term procurement deals for high-priced polysilicon have mainly been completed last year. After production upgrades its bargaining power improved.
Solargiga reported a profit attributable to the equity shareholders of CNY 95.3 million (USD 14.3m/EUR 12m), versus a loss of CNY 49.6 million a year ago. Upgrade and transformation work carried out in 2016 on upstream ingot and wafer manufacturing capacities improved efficiencies. After the firm resumed normal operations it saw the external shipment volume jump by 55% to 1,161 MW in the first half of 2017. That rise offset the impact of the fall in selling prices so revenue was up by 15.4% year-on-year.
Details on the company’s performance in the six months are available in the table.
All in CNY million, unless specified
Gross margin (in %)
Profit (loss) for the period
- of which profit (loss) from polysilicon, ingots/wafers
- of which profit from module
Profit (loss) attributable to equity shareholders
Solargiga’s current production chain includes 1.2 GW mono-Si ingot, 1.2 GW mono-Si wafer, 350 MW solar cell and 1.2 GW module production capacities. It has long-term strategic partnerships with solar cell-focused manufacturers to which it supplies wafers and from which it ten buys cells for its own modules.
The company said it expects to expand further its production capacity of monocrystalline ingots and monocrystalline wafers “at the opportune moment” so that it remains among the top three manufacturer of monocrystalline wafers.