GCL-Poly made a loss in first ten months of 2018, sells wafer unit

Leading China-based polysilicon and wafer maker GCL-Poly Energy Holdings made a loss of approx. RMB534 million (US$77.7 million) in the first ten months of 2018; the group will dispose its subsidiary Suzhou Kezhun Photovoltaic Technologies.

GCL-Poly cites the decline in the wafer selling price as well as increases in finance costs and exchange losses as reasons for its deteriorating performance.

On December 28, 2018, GCL’s wafer subsidiary Suzhou GCL Photovoltaic Technologies Co., Ltd. entered into an agreement with the equity investor Liaoning Huajun Asset Management Co., Ltd. to sell Suszhou Kezhun for a purchase price of RMB850 million (US$123.6 million). GCL-Poly expects to record a gain of approx. RMB446 million (US$64.9 million) from the disposal.

Suszhou Kezhun was incorporated as late as November 29, 2018, obviously in preparation of disposing redundant multicrystalline wafer capacity of Suzhou GCL after it switched to more efficient diamond wire saws in 2017. GCL is planning to dispose further high-cost wafer capacity in Xuzhou, in favor of its monocrystalline wafer joint venture with Zhonghuan Semiconductor in low-cost Inner Mongolia.