Solargiga Energy Holdings Limited announces interim results for the six months ended 30 June 2017.
Financial Highlights
- Revenue for the period under review increased by 15.4% to RMB1,989.961 million (corresponding period in 2016: RMB1,723.799 million).
- Gross profit for the period under review increased by 55.3% to RMB305.235 million (corresponding period in 2016: RMB196.535 million). Gross profit margin increased from 11.4% in the first six months ended 30 June 2016 to 15.3% in the six months ended 30 June 2017.
- Net profit attributable to the equity shareholders of the Company for the period under review amounted to RMB95.299 million (corresponding period in 2016: Net loss of RMB49.557 million).
- Basic earnings per share amounted to RMB2.97 cents (corresponding period in 2016: RMB1.54 cents loss per share).
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the period under review was RMB271.008 million (13.6% to revenue) from RMB135.882 million (7.9% to revenue) for the corresponding period in 2016.
- Net asset value per share reaches RMB0.29 (HKD0.34) (note：translated at HKD1.175 to every RMB1).
- The board of directors of the Company does not recommend the distribution of any interim dividend for the six months ended 30 June 2017 (corresponding period in 2016: Nil).
Operations Review
The Group's current production chain includes 1.2GW monocrystalline ingot, 1.2GW monocrystalline wafer, 350MW solar cell and 1.2GW module production capacities.
Since upgrade and transformation work on upstream ingot and wafer manufacturing capacities was performed last year, utilization ratio was relatively low and the benefit from economy of scale could not be realised; long-term raw material, polysilicon, supply contract led to last year's losses. Upgrade and transformation work on upstream ingot and wafer manufacturing capacities has improved efficiencies. Since the turn of the year, production has resumed normal operations and external shipment volume increased from 749MW in the corresponding period of last year to 1,161MW in the first half of 2017, representing an increase of 55%. Further, long-term supply contract of high purchase price raw material, polysilicon, has mostly been completed and with the huge jump in capacity utilisation, the Group's bargaining power has improved significantly. Gross profit margins has also improved from 11.4% to 15.3%, representing an increase of 34%. The Group was able to enjoy the full benefit of economy of scale, and hence officially turned around its losses. Based on the above reasons, comparing to the operating profit of RMB30.283 million in the corresponding period of 2016, operating profit increased significantly to RMB181.663 million during the first half of 2017. This represented an increase of 500% comparing to the corresponding period of 2016.
While maintaining its own leading technological advantage in monocrystalline products, and adhering to the vertical integration strategy, through establishing strategic partnerships, the Group and its partners will be able to leverage their respective strengths and experiences in laying a solid foundation for broader co-operation in the future.
