GCL-Poly posts 28% revenue increase for H1

Hong Kong’s GCL-Poly, the largest producer of polysilicon and solar wafers in the world, has recorded first half (H1) 2016 income of RMB 1.58 billion ($239 million), which is more than double the RMB 788 million registered in H1 2015.

Revenue for the period was up 28.7% year-over-year, reaching RMB 13.15 million compared to RMB 10.22 million in H1 2015, while gross profit surged 66% to RMB 4.33 million.

The performance surpasses bullish preliminary guidance published earlier this month, and follows a “remarkable” first half financial year in which the firm has enjoyed lower wafer and polysilicon production costs that have boosted GCL’s bottom line.

The company registered profits across its solar material, downstream and new energy businesses, and increased revenue in its solar materials department to RMB 11.22 million, up from RMB 9 million in H1 2015. Its downstream revenue, however, was slightly below last year.

GCL-Poly’s chairman, Zhu Gongshan, remarked that business in the PV industry "recovered remarkably" in the first half of 2016. He did, however, label the polysilicon and wafer markets as something of a “mixed bag” this year.

"Polysilicon prices started to pick up in mid-April after prolonged destocking, while wafer market prices have witnessed an upward trend since the middle of last year."

GCL-Poly’s H1 polysilicon production output reached 36,328 metric tons (MT), which was a 1.2% decrease year-over-year, and 8,643 MW of solar wafers, which represented an annual 21.7% increase. Capacity utilization exceeded 100%, and the company said that it achieved global market share of 30% and 40% of polysilicon and wafers respectively.

Increased average selling prices (ASPs) of polysilicon and wafers underscored GCL-Poly’s revenue and profit increase, reaching $15.3 per kg (polysilicon) and $0.187 per watt (wafers) by June 30, 2016. Revenue increase from external customers rose 24.4% compared to H1 2015, driving a net profit margin for GCL’s solar materials business of 15.6% – up from 8.7% a year prior.