Solargiga Energy records RMB120m profit in H1 2021

This is coming from an RMB42.7 m net loss in the same period last year. 

Hong Kong Exchange-listed Solargiga Energy Holdings Limited recorded an RMB120m profit in the first half of 2021, following a net loss of RMB42.7m in the first six months of 2020.

Solargiga is engaged in manufacturing monocrystalline photovoltaic products for generating solar energy.

Solargiga said the market demand for monocrystalline silicon ingots and wafers rose during the first half, resulting in an increase in its high-efficiency production capacity with shipment volume rising 16%. This drove an 8% increase in revenue to RMB2.8b from RMB2.6m in the same period last year.

The company noted that it is expected that the medium- and long-term demand for photovoltaic products will continue to see robust growth in China and worldwide, noting that as a result, China will be able to “move further towards full-scale marketized competition in the photovoltaic industry, move away from policy subsidies and take advantage of an explosive growth in demand.”

This is along with a series of government policies in different countries that support the development of the photovoltaic industry.

“In order to respond to the rapid increase in demand, the group has continuously expanded its production capacity of monocrystalline silicon ingots, wafers, and modules in order to take advantage of the more favourable external production conditions in different markets and maximize its existing technological advantages in production.

It said its production capacity for monocrystalline silicon ingots is estimated to increase to 8.55 gigawatts (GW) by end-2021 and to 18.55GW by end-2022 from the current 6.05GW. Monocrystalline silicon wafers were also anticipated to reach 4.60GW by the end of 2021 and 14.60GW by the end of 2022 from the present 2.90GW.

Modules production capacity is also estimated to increase to 8.20GW by the end of the year and reach 12.50GW by the end of 2022 from the current 4GW.

Solargiga Chairman Tan Wenhua said they have completed its “one base, three wings” layout with the Jinzhou in Liaoning as the base and Qujing in Yunnan and Yancheng in Jiangsu as two side wings and Xining in Qinghai as the tail wing. He added that they have started to show stronger comprehensive competitiveness and an enlarged market share of products.

“Looking ahead, given our leading technological advantages, comprehensive new product lines with higher bargaining power, and continuous expansion of low-cost and highly effective production capacity, as well as our strong client base in the PRC and overseas, we will be able to drive sustainable business growth and prepare to embrace the good times underpinned by the remarkable expansion of the industry,” Tan said.