The nation’s biggest solar panel maker, Green Energy Technology Inc (綠能科技), yesterday posted an audited net income for last year that was 93 percent lower than the previous year as prices plummeted because of oversupply after economic woes retrenched demand.
Last year, Green Energy earned NT$115 million (US$3.62 million), or NT$0.82 per share, down from NT$1.47 billion, or NT$12.05 per share in 2008, a company statement read. Gross margin plunged to 3.8 percent from 23.8 percent over the same period.
However, Green Energy sees more positive signs for this year. It is set to unveil expansion plans to increase capacity later this year to satisfy customer demand, the statement read.
The chipmaker’s plants were “fully utilized for three consecutive quarters,” the company said in the statement.
To match the uptrend, Green Energy said it plans to boost ingot growing capacity by nearly 40 percent to 500 megawatts this quarter, up from 360 megawatts at the end of last year.
To support the company’s expansion, the board approved plans to raise funds by selling corporate bonds or 17.97 million new shares in the form of global depositary receipts, overseas or at home.
The plan will be discussed during the annual general shareholder’s meeting scheduled for June 4.
Earlier this year, company president Lin Hur-lon (林和龍) said the chipmaker had been in discussions over whether to raise prices by 3 percent in February. This was in response to a rebound in demand after governments in Europe, Asia and Australia appeared to be resuming or increasing subsidies for solar panel installation after the worst of the economic crisis appeared to be over.
Market researcher Solarbuzz forecasts that the global solar industry is expected to resume high-speed growth over the next five-year period to at least US$100 billion in 2014.
Demand in the second half of last year proved to be robust, setting the stage for 38 percent growth this year, Solarbuzz said in a report released in December.
Last year, revenues in the global solar industry fell by 25 percent year-on-year to US$38 billion, according to Solarbuzz’s statistics.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
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