GCL Technology (03800) announced its results for the first quarter of 2024. The company's unaudited owners should account for approximately human profits...
According to the Zhitong Finance App, GCL Technology (03800) announced its results for the first quarter of 2024. The profit attributable to the company's unaudited owners was approximately RMB 33 million, and revenue was approximately RMB 5.47 billion.
According to the announcement, the main reasons for the year-on-year decline in profits attributable to the company's unaudited owners in the first quarter of 2024 are: (1) the average market price of polysilicon and silicon wafer products in the first quarter of 2024 fell sharply compared to the first quarter of 2023; (2) the company's new production capacity in Hohhot, Inner Mongolia is on a climbing period. It is expected that after full production is achieved in the second half of 2024, the company's overall average cost of granular silicon will be further reduced, and profitability will increase significantly; (3) Continued production of perovskite monocrystalline and laminated materials, CCz, silane, silicon-carbon anode materials and silicon particles R&D investment in core areas such as clean materials exceeded RMB 400 million in the first quarter of 2024; and (4) losses in the silicon wafer side business were mainly due to the rapid decline in the silicon wafer side market in the first quarter of 2024, which led to a decline in year-on-year sales revenue.
The PV industry chain is becoming more competitive, and market prices are being greatly impacted and squeezed. In this context, although the Group's profitability and profit margins have been negatively affected, the quality of the Group's granular silicon has been rising steadily. During the first quarter of 2024, the Group produced about 65,494 metric tons of granular silicon, shipped about 65,189 metric tons (including internal sales of about 3,300 metric tons), and the average external sales price (tax included) was approximately RMB 55/ kg.
During March 2024, the turbidity level of the Group's granular silicon was basically reduced to less than 120 NTU. More importantly, the proportion of products with a turbidity level of granular silicon below 100 NTU was as high as 75%, which will be further reduced in the future.
Furthermore, the Group's granular silicon is at the top level in the industry in terms of metal impurity control, and the application effect in the downstream N-type market is among the highest. During March 2024, the proportion of products with 5 elements of granular silicon with total metal impurities ≤ 0.5 ppbw exceeded 90%, while the proportion of products with 18 elements of total metal impurities ≤ 1 ppbw exceeded 60%. The level of metal impurity control will likely be further improved.