Sat, Jul 09, 2016 - Page 12 News List

Neo Solar revenue drops amid falling cell prices

By Lisa Wang  /  Staff reporter

Neo Solar Power Corp (新日光) yesterday reported a 24 percent quarterly decline in revenue for last quarter, as falling prices decreased the solar cell maker’s revenue to about a three-year-low.

Revenue plunged 26.11 percent to NT$1.26 billion (US$39 million) last month, compared with NT$1.7 billion in May. Last month’s figure was the lowest since May 2013.

The Hsinchu-based solar cell maker said a lower average selling price of solar cells and reduced shipments was behind last month’s decline.

The company said the ongoing capacity allocation to a plant in Vietnam also drove down shipments last month.

In the April-to-June quarter, Neo Solar’s revenue contracted 23.56 percent from NT$5.9 billion to NT$4.51 billion in the previous quarter, company data showed.

The downturn might bottom out this quarter, when average selling prices are expected to hit a trough, while demand would gradually pick up next quarter, Neo Solar said in a statement.

“Looking ahead, market demand is expected to gradually recover in the second half, benefiting from China’s new solar installation target of 18.1 gigawatts next year,” Neo Solar said.

The company added that its new overseas production line would start operations at the end of next quarter after it completes capacity allocation.

Meanwhile, solar wafer maker Sino-America Silicon Products Inc (SAS, 中美晶) on Thursday reported a record-high revenue for last month at NT$2.77 billion, bringing its revenue in the second quarter from NT$7.09 billion to NT$7.55 billion, a 6.49 percent increase from the first quarter.

In the first six months, revenue increased 5.2 percent to NT$14.64 billion from the same period last year, supported by sales in solar products that were up 20.3 percent annually, the company said.

“In the first half of this year, robust demand from China’s solar [panel] installation spree ahead of the expiration of a subsidy program helped boost the whole solar industry and SAS’ performance,” the company said in a statement.

Demand is expected to slow in the second half, SAS said.

However, the company remains optimistic about the second-half outlook as global solar demand is expected to grow 17 percent annually to 69 gigawatts this year, SAS said, citing a forecast by market researcher IHS.

SAS last month said that it would follow its plan to expand wafer capacity to 1.3 gigawatts this year, up 30 percent from 1 gigawatt last year.

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