Solar wafer maker Green Energy Technology Inc (GET, 綠能科技) said it expects the second quarter to be its second consecutive quarter of profits, but foresees headwinds going forward.
Britain’s vote to leave the EU has caused currencies from the pound to the yuan to plunge, putting the solar industry under pressure, a company executive said yesterday.
“That is one of the uncertainties that could dent solar demand,” Green Energy president Swean Lin (林士源) said on the sidelines of the company’s annual general meeting in Taoyuan.
China, the world’s biggest solar market, plans to subsidize solar-panel installation totaling 18.1 gigawatts in capacity over the next year, after its existing subsidiary program expires this month.
Demand might pick up in the second half of August at the earliest after the “Brexit” shock calms down and Beijing’s new “green” energy policy takes effect, Lin said.
With strong demand from emerging markets, the US and China, Lin said he is confident in the company’s profitability this quarter.
“The company will be able to keep gross margin at a high-single digit percentage in the second quarter, leading to another profitable quarter,” he said.
The firm posted gross margin of 10.3 percent in the first quarter, up from 7.6 percent in the fourth quarter of last year.
The company still aims to make a profit in the third quarter, but its gross margin will be lower than this quarter, given sagging demand and falling prices, Lin said.
Green Energy swung back to a net profit of NT$388 million (US$12 million) in the first quarter after posting five consecutive years of losses.
The company said it is making efforts to improve its manufacturing costs and boost the conversion efficiency of its solar wafers in preparation for volatility in the industry.
The company has also improved its recycling system, reducing its consumption of raw materials by at least 20 percent, Lin said.
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