While preparing shareholders for an expected annual loss of RMB215 million ($33 million) from last year, the board of Chinese solar manufacturer Solargiga said in an announcement on today’s Hong Kong Stock Exchange that it could not have “reasonably foreseen” its aging production equipment and lack of scale would force it to halt cell manufacturing in 2020. It added that it could not have predicted the rising polysilicon price and supply shortage that resulted from explosions and floods at poly suppliers last year or that Covid-19 would prompt a rise in selling costs.
Furthermore, the board said the loss is anticipated despite shipment volumes rising 65% from the 4,134 MW of product shifted in 2019 to 6,811 MW in 2020. Revenues also rose last year, up 37% from 2019, from RMB4.43 billion ($681 million) to RMB6.05 billion.
The fact the expected annual loss will be 40% lower than the figure shed in 2019 may not be sufficient to stifle criticism of the directors.
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