GCL New Energy posts net loss of $14.5 million

China’s GCL New Energy, a subsidiary of GCL-Poly Energy Holdings, on Thursday posted a net loss to HK$112.7 million ($14.5 million) in the nine-month period from April through December 2014, down from HK$173.3 million in the previous reporting period, the year ending March 31.

GCL New Energy focuses on development, construction and operation of solar power, energy storage, energy conservation, smart micro-grid and distributed energy.

The group’s overall revenue dropped from HK$1.58 billion to HK$1.17 billion while its operating loss reached HK$$137 million after a previous reporting period operating profit of HK$49.9 million.

GCL New Energy Chairman Tang Cheng attributed the company’s net loss primarily to amortization of expenses related to share options as well as the increase in costs and expenses due to GCL’s expansion into the solar energy business. The group’s expansion has included development, acquisition or investment in greenfield or existing solar power plants, solar energy projects and solar energy assets, according to Cheng.

The company raised HK$1.64 billion last year from a share subscription completed by GCL-Poly in May, which “signified the official birth of GCL New Energy,” Cheng added. With 360 million new shares, GCL-Poly became the company’s controlling shareholder.

In October, the company placed additional shares to raise a further HK$740 million.

GCL’s completed projects in China included installations in Inner Mongolia, Jiangsu, Shanxi, Qinghai and Xinjiang. GCL is planning to add 7.5 GW of on-grid solar capacity between 2015 and 2017.