Xinte corrects update which said it was selling polysilicon at a bargain basement price

The tumbling price of solar-grade polysilicon over the past year or so may have been widely publicized but more eagle-eyed PV analysts must surely have raised an eyebrow at the price quoted by manufacturer Xinte Energy on Friday as it sought to explain away an anticipated thumping fall in profits.

Announcing it would expect profits of no more than RMB5 million (US$720,000) from a first half which saw the average selling price of polysilicon fall almost 18% from the level witnessed in January-to-June last year, Hong Kong-listed Xinte said its product had fetched an average price of only RMB5.21/kg (US$0.75) during the first six months, down from RMB6.29/kg in the same period of last year. At that price, China’s push for unsubsidized ‘grid parity’ solar power would appear to be a stroll in the park.

However Xinte, which is owned by Chinese solar manufacturer TBEA, today corrected the figures cited to reassure possibly panicked investors it had actually sold polysilicon for RMB52.1/kg during the first half of this year and RMB62.9/kg in the opening six months of 2019.

The company issued a warning on profits for the period because it raked in RMB235 million during the first six months of last year.

A reduction in Xinte’s engineering and construction business was also cited as a reason for the steeply declining profits, with activity hit by Covid-19.