GCL Technology (3800) H2 2024 earnings summary

Executive summary

• Revenue fell 55.2% year-over-year to RMB15.1 billion, with a gross loss of RMB2.5 billion versus a gross profit of RMB11.7 billion in 2023.

• Net loss attributable to owners was RMB4.75 billion, compared to a profit of RMB2.51 billion last year.

• 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 32.2% year-over-year, 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: RMB15.1 billion, down from RMB33.7 billion year-over-year.

• Gross margin: -16.6% (2023: 34.7%).

• Net loss attributable to owners: RMB4.75 billion (2023: profit of RMB2.51 billion).

• Adjusted EBITDA: -RMB1.4 billion (2023: RMB12.7 billion).

• Finance costs increased 47.8% to RMB618 million.

• Impairment losses on financial assets: RMB989 million (2023: reversal gain of RMB137 million).

Outlook and guidance

• Company expects continued focus on granular silicon, perovskite, and silicon-carbon anode innovation.

• AI-driven R&D and manufacturing to accelerate product development and efficiency.

• Targeting further cost reductions and efficiency gains in polysilicon and perovskite modules.

• Expansion into new energy materials and internationalization efforts to drive future growth.