Neo Solar Power’s December revenue spikes by 30%

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It attributed the gains to higher shipments of PV modules

However, cumulative 2016 revenue fell 25.38% on the year to NT$16.6 billion.

The year-to-date decline in revenue was primarily due to NSP’s efforts to shift 270MW of production capacity from Taiwan to undisclosed locations in Southeast Asia, a company spokesperson said.

The company also moved 400MW of production lines in mainland China to Nanchang, Jiangxi province. Idled capacity accounted for roughly 30% of NSP’s total manufacturing base in 2016, the spokesperson said.

In addition, the Hsinchu-based said that a 30-40% decline in average selling prices of its PV modules also weighed on revenue throughout 2016, mainly due to sluggish demand in China after June.

NSP expects a slight rise in mainland Chinese demand in the first half of 2017 as developers rush to complete projects ahead of changes to the feed-in tariff (FIT) after June 30.

However, the installation rush will not be as strong as the build-out seen in the months leading to the last round of FIT changes in 2016, NSP said in an online statement.

As a result, the company only expects a “ mild cyclical rebound” in the first quarter of 2017.

In October, NSP — which is steadily trying to expand its production capacity — raised $120 million in a bond offering.

It posted a net loss of NT826 million the first half of 2016, partly due to the expansion of its factory in Malaysia.

Author: Brian Publicover

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