GCL-SI eked out small operating profit in 2018 as revenue declined 23%

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

‘Solar Module Super League’ (SMSL) member GCL System Integration Technology (GCL-SI) has reported preliminary ‘express’ financial results for 2018, noting a return to a small profit, despite ASP declines impacting total revenue. 

The SMSL reported preliminary full-year 2018 revenue of around RMB 11.12 billion (US$1.65 billion), down 23% from RMB 14.44 billion in the previous year.

GCL System Integration Technology reported preliminary full-year 2018 revenue of around RMB 11.12 billion (US$1.65 billion), down 23% from RMB 14.44 billion in the previous year.

GCL-SI reported it had eaked out a small operating profit in 2018 of RMB 70.9 million (US$10.5 million), compared to an operating loss of RMB 30.9 million in 2017, equating to a 329.06% increase over the previous year. 

The net profit attributable to shareholders declined 42.7% in 2018 to RMB 41.5 million (US$6.1 million).
The SMSL noted that the operating income was affected by the decline in the market price of module products, after the implementation of the China 531 New Deal at the end of May, 2018.

However, GCL-SI said that it was able to maintain module shipments in-line with shipment figures in 2017. This was achieved by increasing its overseas business to account for over 50% of shipment totals. The company was represented in 40 countries in 2018, according to the company. 

Efforts were also implemented to reduce production costs, intended to limit gross profit margin declines, as well as reducing debt via asset sales and turning to an asset-lite business model. The company also sought to improve its account receivables, via a factoring deal to improve its balance sheet. 

Read Next

October 26, 2021
Trade body the Solar Energy Industries Association (SEIA) has urged the US Department of Commerce (DOC) to throw out petitions from an alliance of companies that are pushing for investigations into alleged circumvention of antidumping and countervailing duties (AD/CVD) on solar PV cells from China.
October 25, 2021
Despite delays and supply chain disruptions caused by COVID-19, global solar PV employment increased by 6% last year to reach nearly 4 million, according to a new report from the International Renewable Energy Agency (IRENA).
October 19, 2021
Lightsource bp has announced its entry into Poland’s solar market through a co-development deal which will see the developer proceed with a 757MWp pipeline in the country.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021