GCL Technology (3800) H2 2024 earnings summary

Executive summary

• Revenue dropped 55% year-over-year to RMB 15,098 million, with a significant swing to a net loss of RMB 4,750 million from a profit of RMB 2,510 million in 2023.

• Gross margin turned negative at -16.6%, down from 34.7% last year, reflecting severe margin compression.

• The company exited rod silicon and Siemens method polysilicon, focusing on granular silicon and innovation in perovskite and silicon-carbon anodes.

• Granular polysilicon production rose 32.3% YoY to 269,199 metric tons, with market share surpassing 25% and industry-leading low carbon footprint.

• Major non-recurring items included a RMB1.95 billion gain from Kunshan GCL disposal and a RMB185 million loss from Xuzhou Fund disposal.

Financial highlights

• Revenue: RMB 15,098 million (down 55% YoY).

• Gross profit: -RMB 2,510 million (vs. RMB 11,692 million in 2023).

• EBITDA: -RMB 1,401 million (vs. RMB 12,660 million in 2023).

• Net loss attributable to owners: RMB 4,750 million (vs. profit of RMB 2,510 million in 2023).

• Basic EPS: -17.97 RMB cents (vs. 9.47 RMB cents in 2023).

• Finance costs increased 47.8% to RMB 618 million.

• Impairment losses on financial assets: RMB 989 million (2023: reversal gain of RMB 137 million).

Segment performance

• Solar Material Business revenue fell 55% YoY to RMB 14,957 million; segmental profit swung to a loss of RMB 5,347 million.

• Granular polysilicon production: 269,199 MT, up 32.3%; wafer production: 32,243 MW, down 36.9%.

• Solar Farm Business revenue dropped 35% YoY to RMB 140 million; segmental loss of RMB 267 million.

• Gross margin for Solar Material Business was -16.9% (down from 34.6%); Solar Farm Business margin was 16.9% (down from 46.7%).