Chinese solar products manufacturer GCL Technology Holdings Ltd, formerly known as GCL-Poly Energy Holdings Ltd, has issued a profit warning for the nine months ending in September.
The company anticipates a loss of approximately CNY 2.971 billion (USD 416.8 million) over this period, primarily attributed to a substantial decline in average market prices for polysilicon and silicon wafers.
GCL Technology reported a modest profit of CNY 33,000 in the first quarter, followed by losses in the subsequent quarters, marking a shift from the CNY 2.51 billion profit it reported for the full year ending December 31, 2023.
The company's solar materials segment, which focuses on polysilicon and silicon wafers, is projected to post a Q3 loss of around CNY 1.8 billion.
Despite challenges, GCL Tech noted that it achieved significant cost efficiencies in granular silicon production, with per-kilogram costs decreasing from CNY 37.84 in Q1 to CNY 33.18 in Q3.
Though industry-wide polysilicon prices have fallen below production costs, GCL Tech's granular silicon sales remain steady, supported by cost optimizations and technological upgrades.
