Green Energy Technology Inc (綠能科技), the nation’s biggest solar wafer maker, yesterday said its losses widened to NT$511 million (US$16.95 million) in October from a month ago as prices dropped further on sluggish demand and oversupply.
In September, Green Energy lost NT$372 million, according to the company’s filing to the Taiwan Stock Exchange yesterday. In the first 10 months of this year, the company lost NT$1.05 billion in total.
In October, the solar wafer maker drastically cut its financial forecast, saying losses would widen to NT$2.04 billion before tax this year, from losses of NT$610 million forecast earlier.
Prices for polysilicon solar wafers plunged nearly 25 percent to US$1.364 per unit early last month, compared with US$1.81 per unit at the end of September, according to information from market researcher TrendForce Corp (集邦科技).
In a separate statement, Green Energy said revenues expanded 15.4 percent to NT$1.04 billion last month from NT$897 million in October as it secured more orders by providing high conversion -efficiency wafers.
On an annual basis, revenues plunged 44.41 percent from NT$1.86 billion in November last year.
Last month, Taoyuan-based Green Energy said it decided to aggressively clear inventory to generate more cash after oversupply and sagging demand drove prices below almost all solar wafer makers’ cost levels.
“Green Energy has secured orders and maintained a very close partnership with its supply chain by providing high quality products,” the company said in the statement.
The company also said it “has regulated cash flow and reduced its inventory to enhance cost competitiveness.”
Green Energy expects its cost structure to improve because it will use lower-priced materials to produce wafers early next year after digesting raw materials that it bought at higher prices previously.
Prices for solar wafers are expected to drop at a slower pace of 1 percent this week to US$1.183 per unit, down from US$1.4 per unit last week as manufacturers cut production to ease oversupply, TrendForce said in a report last week.
The prices decreased 4.47 percent last week from a week before, TrendForce said.
Local solar wafer maker Sino-American Silicon Products Inc (中美矽晶) has offered preferential packages to employees who resign by year-end, to save costs by reducing staff.
Sino-American shares plummeted 3.75 percent to NT$42.3, while Green Energy shares edged lower by 0.34 percent to NT$29.4 yesterday.