Comtec Solar posts profit at CNY5.1mn

The company achieved profitable operation and recorded 10% gross margin in tough market.

Comtec Solar Systems Group Limited (“Comtec Solar”), a global leader in manufacturing monocrystalline solar wafers, announced Friday its unaudited financial results for the three months ended 30 September 2011 (the “Period”).

During the Period, Comtec Solar recorded unaudited consolidated turnover and gross profit of approximately RMB256.0 million and RMB25.5 million, respectively. The Company achieved a gross profit margin of approximately 10.0% in a tough market environment. Profit before non-cash accounting charges on convertible bonds for the Period was approximately RMB16.1 million and net profit for the Period was approximately RMB5.1 million. 

The Company maintained a healthy financial position with aggregate cash and cash equivalents of approximately RMB660.7 million and net debts amounting to approximately RMB11.4 million, according to a Comtec Solar report.

“Leveraging on our competitive advantages in production technology, cost controls and product quality as well as the commercial launch of our Super Mono Wafers, we were able to achieve profitable operations and recorded remarkable gross profit margins of 10% under an extremely challenging and volatile market environment,” commented Mr John Zhang, Chairman of Comtec Solar.

“During the third quarter 2011, the ASP of solar products dropped approximately 30% worldwide. However, our monthly shipment volume, revenue and gross margin improved every month during the quarter. We will try our best to maintain this remarkable trend in the coming months. Also, we will accelerate the migration of our product portfolio from the traditional P-type wafer to Super Mono wafer and we are optimistic regarding our business prospects.

“Amidst the debt crisis in Europe and the challenging market landscape with substantial excess capacity, we consider it would be in the best interests of the Company to reconsider our original expansion plan. Meanwhile, we will strive to keep differentiating ourselves by offering value-added products with premium quality to customers. We expect the consolation in the solar industry to continue. It is important to maintain profitable operations and to preserve a healthy financial position for the survival and long term success of our Company,” Mr Zhang concluded.