Neo Solar Power reduced its net loss in the second quarter of 2018 to NT$390 million (US$12.75 million). This represents a 39.3% improvement over the previous quarter’s NT$ 643 million net loss.
Revenue for the quarter increased by 13.2% Q on Q, to reach NT$ 2,846 million (US$93 million), which alongside reduced operating expenses, allowed for the improved performance. The company also points out that its focus on high efficiency monocrystalline silicon products, move towards downstream project management, and reduced reliance on Chinese demand over the past couple of years also contributed to its improved quarterly performance.
Earlier this week, Neo Solar Power confirmed that its merger with two more of Taiwan’s leading cell producers is on schedule to be completed on October 1. Under the terms of the merger, Neo Solar Power will continue to exist, with Gintech and Solartech coming under its ownership. At this stage, any changes to Neo Solar Power’s listing on the Taiwan Stock Exchange have not been announced.
The merger is part of a plan to move beyond cell manufacturing, where Taiwanese producers have struggled to keep pace with cost reductions seen in mainland China, and for the new company to become a “full range solar solution provider” with activities from manufacturing down to plant operations and management.
Neo Solar Power also states that in the future it “might gradually get rid of the OEM role in the solar industry”. This would appear to follow a broader industry trend of manufacturers looking to move beyond simply supplying modules and instead broaden their horizons to supplying other components or full PV systems, and moving into project development and management.