Leading polysilicon and multicrystalline wafer producer GCL-Poly Energy Holdings has reported first half 2016 financial results that as expected benefited from the downstream boom in China that kept both polysilicon and wafer prices high. 

GCL-Poly reported total Group revenue in the first half of 2016 of RMB 13,159 million (US$1.97 billion), up 28.7%, compared to US$1.53 billion in the prior year period. 

Net profit was RMB 1,389 million (US$208.7 million), up 137.6%, compared to the prior year period. 

Solar Material Business segment reported polysilicon annual production capacity remained at 70,000MT and operated at full capacity through the period. A total of approximately 36,328MT of polysilicon was produced in the period, slightly lower than the 36,768MT for the same period in 2015. 

GCL-Poly sold 6,389MT of polysilicon to third parties in the first half of the year. The average selling price of polysilicon was US$15.3/kg in the reporting period.

The Group’s annual wafer production capacity increased to 17GW (including 16GW for multicrystalline silicon wafer production and 1GW for monocrystalline silicon wafer production at the end of the first half of 2016.

GCL-Poly produced approximately 8,643MW of wafers (including processing business with supplied materials), representing an increase of 21.7% from 7,102MW in the prior year period. 

The average selling price wafers were approximately US$0.187/W for the six months ended 30 June 2016. 

GCL-Poly noted that the strong increase in volume sales and an increase in wafer ASP’s in the first half of 2016, led to external customers sales reaching RMB 11,221 million (US$1.68 billion), up 24.4% from US$1.34 billion in the prior year period.

The net profit margin in its Solar Material Business segment was 15.6%, compared with a net profit margin of 8.7% in the same period in 2015. 

Management claimed that its global market share of polysilicon and wafer sectors reached 30% and 40%, respectively, retaining its leadership position in both sectors.

The company as expected did not provide a business outlook for the full-year and did not provide commentary on the rapidly changing dynamics, notably in the wafer sector where ASP’s are expected to decline around 20% in the third quarter on the back of weak demand and polysilicon price declines expected to take holed in the fourth quarter of the year. 

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