Comtec Solar reports net loss

The Chinese wafer manufacturer, Comtec Solar has issued a profit warning to inform shareholders and potential investors that the company expects to record a gross profit decrease for the six months leading to June 30, 2015. T

he decrease in gross profit margin is from approximately 8.3% in the first half of 2014 to 2.5% for the six months that ended June 30, 2015.

The net loss is expected to be around RMB204 million (US$31.98 million) for the first half of this year compared to a net profit of RMB3 million ($470,300) made for the corresponding six months in 2014.

Comtec Solar has attributed the net loss mainly to the impairment losses with respect to advance to suppliers amounting to RMB121.2 million ($19 million), the share-based payment expenses related to options granted during the first six months of 2015 amounting to RMB38.6 million ($6.05 million), and the expenses incurred by its subsidiary in Malaysia amounting to RMB32 million ($5.02 million).

In July 2014, Comtec Solar set about to expand its wafer production capabilities in Kuching, Malaysia to maintain a viable supply line to the U.S. market.