GCL parent group issues profit warning

Facebook
Twitter
LinkedIn
Reddit
Email
GCL issued the warning to shareholders and prospective investors. Image: GCL New Energy.

GCL New Energy Holdings, parent company to GCL-Poly and developer GCL New Energy, has issued a profit warning to the Hong Kong Stock Exchange, with which the company is listed.

GCL New Energy Holdings informed its shareholders and potential investors that a potential loss could be recorded at the end of this calendar year. The loss for the Chinese group is a possibility, due to impairment – a decrease in value – of a factory with registered capital of HK$250 million (US$32.25 million) that the company owns in Dongguan. The Dongguan Red Board factory makes printed circuit boards and is one of two that the parent company has.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The loss looked possible, GCL said, despite the group recording profits up to 20 June this year of around HK$90.2 million in its interim results. GCL subsidiaries also announced the sale of projects totalling 90MW to GCL New Energy. The company also said its target of owning 2GW of PV capacity by the end of 2015 would be achived during the first quarter of 2016.

According to GCL, the factory’s recent performance, as well as “the costs and uncertainty in complying with the environmental policies of the Dongguan Factory,” were among the main probable causes of the loss. It added that environmental issues could lead to profit margins from the facility being “slashed”. GCL could now be looking to either discontinue operations at the factory altogether or sell it off. GCL said it also still had to pay off costs related to the issue of around half a billion share options that took place in summer.

Only the first 10 full months of the year have been included in the company’s assessment of its accounts. The costs of the above potential loss-incurring measures have not been determined by the board and once this has been done will be agreed with an auditor, GCL said.   

PV Tech China contacted the company for comment but it declined as it is currently in a quiet period.

10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

October 7, 2025
Solar PV will account for almost 80% of the 4.6TW of new renewable power expected to be added by 2030, according to the International Energy Agency (IEA).
October 3, 2025
Chinese government policies and supply-side production cuts will drive a significant increase in solar and storage component costs.
September 30, 2025
Chinese solar firm SoleFiori (Hongjun New Energy) has signed an agreement with the Saudi Arabian government to build a 6GW heterojunction technology (HJT) module production facility in the country.
September 26, 2025
Chinese president Xi Jinping has unveiled a new climate target for China at the United Nations Climate Change Summit, which aims to cut by 7-10% China's peak greenhouse gas emissions by 2035.
Sponsored
September 26, 2025
Over the past three years, Tongwei has made a remarkable leap in the solar sector, shipping over 100GW of modules at record-breaking speed.
September 23, 2025
JinkoSolar and LONGi Green Energy have agreed to terminate ongoing patent lawsuits, and enter into a 'cross-licensing agreement'/

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA
Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland