TAIPEI: Green Energy Technology Inc yesterday reported losses of NT$124 million (US$3.78 million) for last quarter and said it aimed to return to profit this year after getting rid of heavy depreciation costs from its thin-film solar equipment.
The Taoyuan-based company said its gross margin returned to positive territory last quarter, helping the nation’s biggest solar wafer maker shrink last year’s losses.
In the final quarter of last year, gross margin improved to 8 percent, from minus-1 percent in the third quarter. The company lost NT$567 million in the third quarter last year.
For the whole of last year, Green Energy reduced its losses to NT$1.7 billion, from losses of NT$2.1 billion in 2014.
The company said in a statement that it has terminated its thin-film solar business because of cost disadvantages and is working with global partners in developing high-end solar wafers, as well as integrating its supply chain to enhance its profitability.
The overcapacity-driven slump of the solar industry also extends to solar cell manufacturers.
Solar cell maker Gintech Energy Corp on Thursday posted its fifth consecutive year of losses at NT$99 million for last year, compared with losses of NT$378 million in the previous year.
However, the company posted a second straight quarterly net profit of NT$390 million for the final quarter of last year, more than doubling from NT$139 million in the third quarter.
Gintech attributed the profitable quarter last quarter to an increase in solar cell prices and a better product portfolio, according to a company statement released on Thursday.
The company said its gross margin could climb further this quarter after it opened a new plant in Thailand. The plant’s products enjoy a 15 percent higher in average selling prices than those from its other plants, the company said.
The company said it was cautiously optimistic that demand would pick up in the second half of this year.
Gintech’s board approved a fundraising plan by launching a right issue of up to 80 million common shares to improve its capital structure.
However, Yuanta Securities Investment Consulting yesterday said that a lackluster outlook for the solar cell segment amid increasing price pressure and inventory adjustment in China poses challenges for the company.
Yuanta has lowered its net profit forecast for Gintech by 3 percent to NT$1.74 billion for this year.
Last week, solar cell maker Neo Solar Power Corp said it swung into a profit of NT$139 million in the fourth quarter of last year, reversing losses of NT$371 million in the prior quarter.
Last year as a whole, Neo Solar lost NT$1.46 billion.
As order visibility is clearer this quarter, the company expects higher revenue and shipments going forward, it said.
Gintech shares plunged 5.58 percent to NT$26.25 yesterday, while Neo Solar and Green Energy also fell 0.93 percent and 2.91 percent to NT$21.25 and NT$20 respectively.
