GCL Technology (3800) H1 2025 earnings summary

Executive summary

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

• Loss attributable to owners increased to RMB1,776 million from RMB1,480 million year-over-year, with basic and diluted loss per share at RMB(6.35) cents.

• Gross loss for H1 2025 was RMB700 million, with a negative gross profit margin of 12.2%, compared to a 6.2% negative margin in H1 2024.

• The PV industry saw a sharp rebound in polysilicon prices at the end of June, with a 36% surge in four weeks, driven by anti-involution policies and industry self-regulation.

• No interim dividend was declared for H1 2025.

Financial highlights

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

• Finance costs dropped 10.5% to RMB273 million, reflecting lower average interest-bearing debts.

• Net cash used in operating activities was RMB2,868 million, with a net decrease in cash and cash equivalents of RMB658 million.

• Other income was RMB462 million, mainly from scrap sales, interest, government grants, and compensation.

• Impairment losses on financial assets rose to RMB264 million.

Outlook and guidance

• The company expects continued industry recovery as excess polysilicon capacity is cleared and supply-demand balance is restored.

• Focus remains on technology-driven, digital, and green initiatives, with granular silicon and perovskite technologies leading future growth.

• Proceeds from recent share placement will fund solar business expansion and working capital over the next 3-4 years.