GCL-Poly Energy H1 profit edges down to $181 million

The Chinese energy group primarily attributed its lower profit for the period to “challenging” conditions in the global market for solar materials. It continued to lead the world in the production of polysilicon in the first half of 2017, with output hitting 38,747 metric tons (MT). Total wafer production reached 10.6 GW.

However, revenue from its solar materials division fell 17% YoY to CNY 9.3 billion ($1.4 billion) in the first six months of this year. The company primarily attributed the revenue decline to a decrease in the average selling price (ASP) of wafers, which fell to roughly CNY 0.891/W at the end of June, from CNY 1.22/W a year earlier.

Polysilicon ASPs hit CNY 103.40/kg, from CNY 100.30/kg a year earlier. Its annual polysilicon production capacity remained steady from the preceding year at 70,000 MT.

Sales of wafer fell to CNY 8.4 billion, from CNY 10.3 billion during the same period a year earlier. Revenue from sales of polysilicon also edged down from CNY 640.6 million in the first six months of 2016 to CNY 505.4 million. The company fared slightly better with sales of ingots and PV modules, which generated CNY 391 million of revenue, up from CNY 236.3 million in the first half of 2016.

“However, this was partially offset by the increase in profit contribution by the group’s new energy business and the solar farm business,” GCL-Poly Energy said in a statement to the Hong Kong stock exchange.

Total group revenue — including income from its PV materials, solar farms and new energy businesses — hit CNY 11.4 billion in the first half, down 8.2%, according to the company’s unaudited results for the six months to the end of June. Sales of electricity from the company’s PV projects generated CNY 1.8 billion of revenue in the January-June period, up 95% from a year earlier, it said in a statement to the Hong Kong stock exchange.

GCL-Poly Energy’s total installed solar capacity across its various subsidiaries reached 5.08 GW at the end of June, up 44% from the end of December and 85.7% year on year. The company’s solar farm unit alone manages and operates 371 MW of PV capacity, including 18 MW in the U.S. The division generated CNY 267.8 million of revenue and a profit of CNY 67.2 million in the January-June period. The company valued its PV project assets at CNY 4.1 billion, versus CNY 2.3 billion of liabilities.