Solargiga expects $15 million loss on back of China’s PV policy changes

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The Chinese solar PV module manufacturer has today issued a profit warning, stating it expects to record a loss of around RMB 103.816 million ($15.2 million) in the first half of 2018, compared to a profit in the same period in 2017.

It attributes its poor performance to the PV policy changes announced by the Chinese government on May 31, which resulted in “unexpected” declines in both sales volumes and prices; and an increase in R&D costs.

Its final financial figures for this period are expected to be issued on August 31. No further details were released.

On April 17, Solargia saw both turnover and shipments decline significantly in the first quarter of 2018, as a result of a drop in market prices for monocrystalline silicon wafers.

Last week, China’s GCL-Poly also issued a profit warning, saying it expects profits for the six months ended June 30, 2018, to drop between 60 and 70%, down from the around RMB 1.2 billion (US$173.6 million) it earned in the previous year.

It attributed the decrease, primarily, to the “decline in the selling price of wafer; and increase in finance costs and exchange loss.”

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