Comtec more than doubles expected losses for 2016

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The company said that the write-down of assets at its Malaysian manufacturing facilities would be approximately RMB339.3 million (US$49.2 million) as the company would be disposing of equipment at a loss.

Monocrystalline wafer producer Comtec Solar Systems Group has more than doubled expected losses for 2016, due to further write-downs on its Malaysia manufacturing facility with the pending sale of the facility to leading mono wafer supplier, LONGi Green Energy Technology.

Comtec had previously said that it had expected a net loss of approximately RMB434.7 million (US$63.07 million) in 2016. Updated information in a financial filing indicates the company expects losses to be over RMB1,000.0 million (US$145.09 million) in 2016, while these figures remain preliminary, according to the company.

The company said that the write-down of assets at its Malaysian manufacturing facilities would be approximately RMB339.3 million (US$49.2 million) as the company would be disposing of equipment at a loss.

A write-down of approximately RMB276.5 million (US$40.1 million) of the assets related to manufacturing facilities in China as it downsizes its mono wafer production as it shifts to a downstream business model.

However, market dynamics are also at play, due to falling ASPs. Comtec said it would take a charge of RMB152.6 million (US$22.1 million) on inventory write downs and RMB94.5 million (US$13.7 million) due to the decrease in the market prices of solar wafers and polysilicon.

Comtec cited that its upstream business deterioration in the second half of 2016 was due to weak demand and customers scaling back production of solar cells as overcapacity forced overall price declines. The company has yet to report full-year 2016 financial results.

Read Next

May 10, 2021
LONGi Solar has set a record conversion efficiency of 25.09% for its N-type monocrystalline bifacial TOPCon cell that has been independently verified by the Institute for Solar Energy Research in Hamelin.
May 4, 2021
Leading monocrystalline wafer producer and ‘Solar Module Super League’ (SMSL) member, LONGi Green Energy and subsidiary, LONGi Solar respectively, have continued an unprecedented sales run, notching up first 2021 revenue (operating income) of RMB 15.85 billion (US$2.44 billion), its second highest quarterly figures.
April 21, 2021
‘Solar Module Super League’ (SMSL) member LONGi Solar has reported total PV module shipments of 24.53GW in 2020, setting a new industry shipment record and leapfrogging rivals to become the largest PV manufacturer in the world for the first time.
April 8, 2021
Green hydrogen may become cheaper than natural gas by 2050, falling by 85% over the next 30 years, but declining costs in the solar sector will be crucial for the nascent technology's growth.
March 12, 2021
LONGi Solar is planning to build a new 5GW high-efficiency monocrystalline solar cell plant in Yinchuan, China.
February 10, 2021
Leading monocrystalline wafer producer LONGi Green Energy has signed a three-year high-purity polysilicon supply deal from OCI Malaysia, while securing 46GW of PV glass from China's Flat Glass Co.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
July 29, 2021
Webinar
Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021