BRIEF: Solargiga sees red as PV price war bites
Solar equipment maker Solargiga Energy Holdings Ltd. (0757.HK) warned on Tuesday it swung to the red last year, hit by an ongoing price war in the Chinese photovoltaic sector. The company said it expects to report a net loss of 200 million yuan ($25.7 million) to 240 million yuan for 2024, reversing a profit of 112 million yuan in 2023.
The company attributed the loss to oversupply across the entire PV industry chain. Fierce competition, marked by rapid price cuts as companies try to gain market share, has driven PV product prices significantly below costs. As a result, shipments of the company’s core products declined, leading to losses and the idling of some production lines. The company said it also expects to record impairment losses on properties, plants, and equipment.
Solargiga Energy said that it will intensify efforts to improve its operational efficiency and strictly control costs while continuing to enhance its competitive edge. It added its board and management remain confident in the company’s long-term development. The company’s stock opened 5.7% lower at HK$0.065 on Wednesday, and closed down 2.9% at HK$0.067 by the midday break.
By Lee Shih Ta
To subscribe to Bamboo Works weekly free newsletter, click here
