GCL-Poly Energy Rises After Saying Profit Likely Double in 1H

  • Co. expects net income of at least 1.3b yuan in first half
  • Profit rose mainly because of solar material business

GCL-Poly Energy Holdings Ltd. surged after the world’s biggest polysilicon and solar wafer maker said first-half net income likely doubled.

The shares jumped as much as 8.1 percent to HK$1.20 and were at HK$1.18 as of 10:46 a.m. local time. The benchmark Hang Seng Index gained as much as 0.5 percent.

GCL-Poly said on Tuesday in a forecast based on unaudited numbers that it expects net income of at least 1.3 billion yuan ($196 million) in the six months ended June 30, up from 653 million yuan a year earlier.

The increase is mainly due to the “remarkable” financial performance of the solar-material business, the company said. A further reduction in production costs and an increase in average selling prices and wafer sales volume also helped. 

GCL-Poly maintained its annual polysilicon production capacity at 70,000 tons, up almost 8 percent from the previous year, and raised wafer capacity by 15 percent to 15 gigawatts, it said in May.

The company expects to report final first-half results on Aug. 24.