Chinese module manufacturer GCL System Integration (GCL SI) has estimated its preliminary net profit for the first half of 2023 to be around RMB100-120 million (US$14-16.7 million), up 160.6-219.9% from the same period last year.
The strong results were accompanied by rapid growth in the company’s performance as it moved forward in the adjustment of its production capacity structure. This comes on top of an already stellar result for the company in 2022 when it recorded net profits of at least RMB15.5 billion, a 204% year-on-year increase.
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In its preliminary financial results for H1 2023, the company expects an H1 2023 income between RMB5.3-5.87 billion, an increase of up to 109.7% year-on-year. The accelerated growth of the company has been accompanied by an increase in module sales volume due to GCL SI increasing its production capacity in the past few years.
GCL SI is currently building three module assembly plants. The largest in Hefei is targeted to have an annual capacity of 60GW once the project is completed. The first phase of project reached full capacity of 15GW last year. It is also building a 20GW plant dedicated to n-type high efficiency modules in Wuhu, with the first phase in the process of installing equipment and expected to be commissioned by the end of July 2023 and with an annual capacity of 10GW. The third plant, located in Funing, with an annual capacity of 12GW of high-efficiency modules is expected to be operational before the end of October 2023.
These expansions are expected to reduce the production costs for the module manufacturer, which will also allow for improvement in gross profit margin, according to the company.
Overall, GCL SI expects to reach an annual module capacity of 30GW before the end of the year between all its plants.