Monocrystalline wafer producer Comtec Solar Systems Group has reported first half 2016 financial results that were impacted by a decline in average selling prices (ASP) and lower volume shipments, due to production upgrades and training at its facility in Malaysia.
Comtec Solar reported revenue of RMB 491.1 million (US$73.5 million) in the first half of 2016, a 13.2% decline from the prior year period.
The company reported a gross profit of RMB 31.1 million (US$4.65 million), an increase of 122.1% from approximately RMB 14.0 million (US$2.09 million) for the first half of 2015. Gross profit margin was approximately 6.3%, increasing from the gross profit margin of 2.5% from the prior year period.
Improvements were said to be due to new polysilicon supply agreements with the two major suppliers, eliminating ‘take or pay’ agreements, which had been primarily responsible for losses in 2015 and operating losses over last few years.
However, the company did report a net loss for the current period of approximately RMB 6.4 million (US$958,435), compared to a net loss of RMB 204.0 million (US$30.5 million) in the prior year period. Net cash inflow from operating activities was approximately RMB 63.3 million (US$9.47 million).
Revenue from sales of 125 mm by 125 mm monocrystalline solar wafers decreased by RMB 54.1 million, or 23.4%, from RMB 231.3 million in the prior year period, due to the decrease in volume by 14.8% from 146.7MW in 2015 to 125.0MW in the first half of 2016. The smaller wafer size ASP’s declined 12.5% from RMB 1.6/W in the first half of 2015 to RMB 1.4/W, in the first half of 2016.
Revenue from sales of 156 mm by 156 mm monocrystalline solar wafers decreased by RMB 27.8 million, a 35.2% decline when revenue reached was RMB 79.0 million in 2015, compared to RMB 51.2 million in the first half of 2016. ASP declined 6.3% from RMB 1.6/W in 2015 to RMB 1.5/W, in the first half of 2016.
Comtec Solar reported first half 2016 shipments of ingots and wafers of 166.2MW, down 15.9% (166.2MW) from the prior year period.
On a geographical basis, approximately 55.2% of first half 2016 revenue was generated in China. Sales of its N-type ‘Super Mono Wafers’ to its largest customer in the Philippines was said to have accounted for approximately 36.0% of total revenue, compared to approximately 38.9% in the prior year period.
Comtec’s top five customers contributed approximately 59.2% to total revenue, compared to approximately 62.8% in the prior year period. The company noted that it was in the final phases of having a new qualified customer.