Gintech, Green Energy report revenue declines

By Lisa Wang  /  Staff reporter

Thu, Jul 07, 2016 - Page 12

Solar companies Gintech Energy Corp (昱晶) and Green Energy Technology Inc (綠能科技) yesterday reported revenue declines last month amid falling prices.

As demand from China remains soft, Gintech, which makes solar cells and solar modules, said it expects the weakness to extend into the next few months.

However, Gintech said in a statement that it is confident it can “outperform industry peers and weather the turbulence with our international production diversification strategy.”

Gintech revenue declined 12.2 percent to NT$1.43 billion (US$44.13 million) last month, from NT$1.63 billion in May, hitting the lowest level since July last year, it said.

“Our monthly revenue decreased due to lower shipments and average selling prices,” the company said.

Gintech said the rush to install solar panels in China tapered off as a solar subsidy project launched by Beijing last year expired on Thursday last week.

Revenue in the second quarter fell 5.3 percent from the previous quarter to NT$4.62 billion, but grew 17 percent from a year earlier, company data showed.

The decline in prices of Taiwan-made polysilicon solar cells accelerated to 2.51 percent this week from last week, sending prices to a record-low of US$0.272 per watt, TrendForce Corp (集邦科技) reported yesterday.

Some solar cell makers began reducing factory utilization to weather the slump, as polysilicone solar cell prices are approaching manufacturing costs for most companies, the Taipei-based market researcher said.

Green Energy, the nation’s largest solar wafer producer, reported that its revenue dropped 26.3 percent sequentially to NT$1.27 billion last month as it gave up non-profitable orders.

Green Energy said industrial volatility had driven prices lower last month.

The company said it expects prices to stabilize at the end of this quarter and pick up gradually in the fourth quarter on potential growth in global solar panel installation later this year.