The third-quarter earnings report issued by GCL Poly paints the picture of a solar developer in rude good health.
Although the travails of 2012 offer a good comparison for any solar players turning a profit this year, the figures presented by the Chinese power company development subsidiary of GCL-Poly Energy Holdings Ltd, show a rise in net profits to RMB288 million (US$47 million) for January to October. By comparison, net profits for the same period last year were RMB146 million.
Operating income grew from RMB3.54 billion to RMB3.96 billion despite a RMB44 million rise in ‘administrative expenses' to RMB218 million, a RMB26 million rise in financing costs to RMB184 million and an impairment loss on assets of RMB170 million, compared to last year's RMB43 million gain.
The operating income meant operating profits mushroomed from RMB158 million to RMB367 million, helping total profits rise from RMB188 million to RMB398 million.
Staff costs almost halved this year
The healthy top line figures were helped by the company almost halving the wage bill from RMB46 million at the start of the year to RMB26 million at the end of last month which might in part explain the raised admin costs.
The bottom line figures showed total assets for GCL Poly Ltd rose from RMB8 billion at the start of the year to RMB10.3 billion on September 30, although the accounts receivable portion of that rose RMB14 million to RMB625 million.
Total liabilities also rose, from RMB4.8 billion on January 1 to RMB6.5 billion a month ago, with short term borrowings rising from RMB680 million to RMB922 million during the year as long term borrowings widened from RMB1.6 billion to RMB1.9 billion.
The figures were released in an earnings statement to the Hong Kong Stock Exchange today.
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