Solar cell maker Hainan Drinda New Energy Technology Co. Ltd. (2865.HK; 002865.SZ) announced on Thursday its revenue fell 9.6% year-on-year to 1.69 billion yuan ($248 million) in the first quarter, while it swung to a net profit of 14.16 million yuan from a loss of 105.9 million yuan a year earlier.
The company credited the profitability improvement mainly to higher prices for solar cells, which lifted its margins. During the period, it acquired a stake in Shanghai Xingyi Xinneng Technology and purchased 60% of Shanghai Fuyao Xinghe Aerospace Technology, giving it indirect control of Shanghai Xuntian Qianhe Space Technology to expand application scenarios and develop a second growth curve. Its net cash outflow from operating activities widened to 703.6 million yuan during the quarter, more than doubling year-on-year.
Meanwhile, the company is pushing ahead with cost reductions and efficiency gains for its N-type cells, while ramping up R&D in xBC and perovskite tandem technologies. Overseas, it continues to hold a strong position in India, Turkey and Europe, and is advancing localized capacity expansion.
The company’s stock opened higher on Friday in Hong Kong, closing at HK$29.4, up 0.96%. The stock is up 36.8% year to date.
By Lee Shih Ta
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