Thu, Mar 20, 2014 - Page 13 News List

Neo Solar ends two years of loss

By Lisa Wang  /  Staff reporter

Neo Solar Power Corp (新日光), the nation’s biggest solar cell maker, reported NT$515 million (US$16.92 million) in net profit for last year, thanks to receding oversupply and stable demand.

That represented earnings per share of NT$0.86, snapping two straight years of losses. The Hsinchu-based solar cell maker lost NT$4.17 billion in 2012 and NT$2.9 billion in 2011.

Rival Motech Industries Inc (茂迪) posted a net profit of NT$252 million for last year, following a net loss of NT$5.03 billon in 2012, while Gintech Energy Corp (昱晶) reported that its losses narrowed to NT$591 million last year from NT$1.92 billion in 2012, according to their separate filings to the Taiwan Stock Exchange yesterday.

STABILIZING DEMAND

“The industry’s supply and demand gradually reached parity and market demand stabilized,” Neo Solar said in a statement on Tuesday.

The company’s shipments hit a record high last year of 1.53 gigawatts.

Neo Solar said the acquisition of local peer DelSolar Co Ltd (旺能光電) also helped the company swing into profit last year, thanks to better energy prices and lower raw material costs.

Gross profit reached NT$1.71 billion last year, compared with a gross loss of NT$3.23 billion in 2012, data showed.

Operating expenses improved to 6 percent last year from 6.69 percent the previous year, data showed.

REVENUE JUMP

Revenue jumped 64.07 percent to NT$20.08 billion last year from NT$12.24 billion in 2012.

The company’s board on Tuesday approved a cash dividend of NT$0.3 per share, its first such move in three years.

The cash dividend represents a payout ratio of 35 percent.

The dividend proposal is to be reviewed by shareholders at an annual meeting scheduled for June 11, the company said.

Neo Solar shares plummeted 2.15 percent to NT$38.65 yesterday, while Motech shares plunged 2.46 percent to NT$55.5 and Gintech shares sank 2.02 percent to NT$29.05.

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