GCL-Poly Energy Holdings Ltd., the world’s biggest maker of polysilicon, said its loss almost tripled in the first half after foreign competitors sold the commodity below costs.
The net loss was HK$917.3 million ($118 million) in the six months ended June 30 compared with HK$330.2 million a year earlier, GCL-Poly said today in a filing to the Hong Kong stock exchange. Revenue fell 4 percent to HK$11.3 billion.
“The consolidation of the industry has not yet fully completed and imported polysilicon was dumped into the Chinese domestic market at a price below cost, therefore our business performance was materially impacted,” the company said.
Oversupply across the solar-component industry has sent the average spot price of polysilicon, a raw material used to make solar cells, tumbling by 24 percent at the end of the first half from a year earlier. Prices of solar wafers were down 13 percent, according to data compiled by Bloomberg.
China said last month that it plans to impose tariffs of as much as 57 percent on polysilicon shipped from the U.S. and South Korea to counter dumping. The move follows a U.S. decision last year to impose tariffs of as much as 250 percent on Chinese solar panels after a plunge in prices. The European Union and China recently struck a deal on tariffs amid a European probe into alleged unfair Chinese trade in solar goods.
“We believe the worst is over for the solar giant and we anticipate the loss to narrow to HK$437 million” in the second half on higher output, Johnny Lau, a Hong Kong-based analyst at Kingsway Financial Services Group, wrote in an Aug. 23 note.
GCL-Poly produced 21,980 metric tons of polysilicon in the first six months, down 13 percent from the previous year. Wafer output increased 14 percent to 3,452 megawatts, according to the statement.
The company said it developed 270 megawatts of solar farms in the first half.
The stock rose 4.3 percent to close at HK$1.94 in Hong Kong trading before the announcement.
— With assistance by Feifei Shen