GCL Technology (3800) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 declined 35.3% year-over-year to RMB5,735 million, mainly due to lower average selling prices in the solar material business.

• Gross loss was RMB700 million, with a negative gross margin of 12.2%, compared to a 6.2% negative margin in the prior year.

• Net loss attributable to owners increased 20% year-over-year to RMB1,776 million, with basic loss per share rising 13.4%.

• EBITDA improved significantly to RMB379 million, up 325.8% year-over-year.

• No interim dividend was declared for H1 2025.

Financial highlights

• Total assets as of June 30, 2025, were RMB71.5 billion, down 4.51% from December 2024.

• Net debt was RMB8.8 billion, with total indebtedness of RMB17.7 billion.

• Gearing ratio improved to 42.0% from 43.5% at year-end 2024.

• Administrative expenses decreased 8.5% to RMB625 million, and distribution expenses fell to RMB104 million.

• Net finance costs decreased by 10.5% to RMB273 million.

Segment performance

• Solar material business revenue was RMB5,665 million, down 35.4% year-over-year, with a segmental loss of RMB1,968 million and gross margin at -12.7%.

• Granular silicon production capacity reached 480,000 MT, with average selling price at RMB30.17/kg and cash cost at RMB26.22/kg.

• Market share in granular silicon rose to 24.32% from 14.58% year-over-year.

• Solar farm business revenue was RMB70 million, with installed capacity of 18 MW in the US and 133 MW in China.

• Solar farm business gross margin was 24.9%.