Neo Solar Power’s December revenue spikes by 30%

Share

It attributed the gains to higher shipments of PV modules

However, cumulative 2016 revenue fell 25.38% on the year to NT$16.6 billion.

The year-to-date decline in revenue was primarily due to NSP’s efforts to shift 270MW of production capacity from Taiwan to undisclosed locations in Southeast Asia, a company spokesperson said.

The company also moved 400MW of production lines in mainland China to Nanchang, Jiangxi province. Idled capacity accounted for roughly 30% of NSP’s total manufacturing base in 2016, the spokesperson said.

In addition, the Hsinchu-based said that a 30-40% decline in average selling prices of its PV modules also weighed on revenue throughout 2016, mainly due to sluggish demand in China after June.

NSP expects a slight rise in mainland Chinese demand in the first half of 2017 as developers rush to complete projects ahead of changes to the feed-in tariff (FIT) after June 30.

Popular content

However, the installation rush will not be as strong as the build-out seen in the months leading to the last round of FIT changes in 2016, NSP said in an online statement.

As a result, the company only expects a “ mild cyclical rebound” in the first quarter of 2017.

In October, NSP — which is steadily trying to expand its production capacity — raised $120 million in a bond offering.

It posted a net loss of NT826 million the first half of 2016, partly due to the expansion of its factory in Malaysia.

Author: Brian Publicover

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.