2017-03-24 | Editor : rheatsao 2086 pageviews

Taiwan PV Giants Report Loss for 2016

Taiwanese leading solar companies, Neo Solar Power (NSP), Gintech Energy, Motech Industries, and SAS have already announced their financial results for 2016. Due to steep price decrease across the PV value chain, all these PV giants reported net losses and EPS losses.

Outline

China encountered the strongest installation rush in the first half of 2016 and the steepest demand freeze in the third quarter of the year. Consequently, PV prices across the supply chain had gone downward and broken the history bottom. This situation severely influenced Taiwanese PV industry.

Motech reported an annual net loss of TW$1.243 billion and TW$1.86 loss per share.

Gintech’s net loss was TW$2.254 billion and loss per share was TS$5.02, while the gross margin was -10.4%. Gintech explained that the loss was expanded because it listed loss of material acquisition, amount of TW$1.2 billion, in 3Q16.

NSP’s net loss and loss per share in 2016 was TW$6.31 billion and TW$6.53, respectively, both broke the company’s historical low. Furthermore, its gross margin dropped to -11.56% although the revenue hit TW$16.54 billion.

NSP explained that oversupply in Chinese PV market drove global PV price to tumble and hence influenced ASPs across the PV supply chain. In addition, NSP has listed losses from capacity moves in China and Southeast Asia as well as losses from production equipment assets. These factors squeezed NSP’s financial performance in 2016.

SAS also reported net loss even though the company’s consolidate revenue in 2016 reached TW$3.16 billion. The net loss after tax in 2016 was TW$1.59 billion, loss per share was TW$2.77.

Capacity and business restructuring

Gintech’s PV cell production capacity has been increased from 1.8GW to 2.2GW, added by capacity expansion from 350MW to 750MW in its Thailand fab. Gintech believes it Thai fab will be supportive for its global deployment.

SAS sticks on its approach to developing high-efficiency mono-si PERC cells and CELCO cell technology. This company also aims to introduce black-silicon technology for multi-si wafers to gain competitiveness.

Motech has announced to enter into downstream PV sector by establishing a new company.

NSP did a lot for its business. As for PV cell technology, NSP announced to shift its multi-si PV cell manufacturing in Taiwan completely to mono-si PERC cell production for being marginal, whereas its multi-si production in China will continue. After the capacity transformation being completed, NSP will finally reduce its global cell capacity from 2.2GW to 1.5~1.6GW. In addition, NSP has already set Taiwan’s first HJT cell production line.

As for modules, NSP will add 200MW of high-efficiency module capacity in Taiwan for domestic demand. The additional 200MW module capacity is scheduled to start operating in the second half of 2017, NSP told EnergyTrend through a phone call.

NSP has deployed business in downstream sector since 2016 by forming JVs in Taiwan and overseas. Currently, NSP owns approximately 200MW of solar projects and 1GW of pipeline around the globe, and NSP aims to double its operational assets in this year.

“NSP is not the only one solar company in Taiwan that struggled in 2016,” stated Celeste Tsai, analyst at EnergyTrend. “Since NSP is constructive and proactive in business restructuring, it is optimistic about this company’s future.”

NSP claimed that it expects to return profitable this year.

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