GCL Poly decreased revenue and announced loss in 2018

Chinese polysilicon and wafer producer GCL Poly Energy Holdings Ltd recorded in 2018 a revenue of CNY 20,565 million ($3 billion), representing a decrease of 13.6 percent compared with 2017. Gross profit was approximately CNY 5,039 million (-38.6 percent). Loss amounted to approximately CNY 458 million (2017: profit CNY 2,274 million).
The Group is principally engaged in manufacturing and sales of polysilicon and wafers for solar industry and the development, construction, operation and management of solar farms.
The company produced approximately 61,785 MT tons of polysilicon in 2018, representing a decrease of 17.4 percent as compared to 74,818 MT for the corresponding period in 2017. The company sold 20,041 MT of polysilicon, representing an increase of 173.9 percent as compared with 7,316 MT in 2017. The average selling prices (excluding tax) of polysilicon and wafer were approximately CNY 78.8 ($11.73) per kilogram and CNY 0.570 ($0.087) per W respectively (2017: CNY 104.8 / $15.46 per kilogram; and CNY 0.905 / $0.134 per W). According to the company, despite the increase in the sales volume of both polysilicon and wafers, the drop in average selling prices following the implementation of the new Chinese solar policy announced at the end of May 2018 led to the decrease in revenue.
The Group’s annual wafer production capacity remained at 30 GW. Wafer production was approximately 24,189 MW, representing an increase of 1.2 percent from 23,902 MW for the corresponding period in 2017. The company sold 24,761 MW of wafers (+5.7 percent) compared with 23,417 MW in the corresponding period in 2017.
The annual production capacity of polysilicon of the Group’s Xuzhou base remained at 70,000 MT. The production capacity of the Group’s Xinjiang polysilicon production base was on the rise as at 31 December 2018 and will reach 50,000 MT of its total capacity of 60,000 MT in the first quarter of 2019, says the company. According to GCL's CEO, Chinese domestic polysilicon production in 2018 was approximately 250,000 tonnes, recording a year-on-year increase of 3.3 percent.
The Group’s monosilicon entered mass production and it is anticipated that the monthly production capacity will surge to no less than 500 MW in 2019, »making monosilicon a new profit driver.«
GCL subsidiary’s GCL New Energy Holdings Limited (GNE) total installed PV capacity was 7,309 MW for 2018, representing an increase of 22 percent as compared with 2017. Total revenue from the new energy business was approximately CNY 5,632 million, representing a year-on-year increase of 17.7 percent. The Board does not recommend the payment of any final dividend for 2018 (2017: nil).

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