GCL-Poly issues dire profit warning

China’s GCL-Poly, the country’s largest polysilicon producer, has warned investors that it intends to swallow a “substantial loss” in 2012, blaming “viciously low-priced” polysilicon it accuses Western and Korean rivals of dumping on the Chinese market.

The company intends to write down the value of its inventory, accounts receivables and production facilities in 2012 due to falling polysilicon prices, which recorded a “particularly significant” drop in the final quarter of the year.

However, GCL-Poly – considered one of the world’s “big four” producers – says polysilicon prices stabilised during December and “there are signs” that the market has finally bottomed out. Some analysts disagree with that assessment.

The company followed its 2011 full-year profit of HK$4.3bn ($555m) with a HK$330m loss in the first six months of 2012.

Given its…

Become a Recharge subscriber!

Or try our free trial.

Order Subscription

Already a member?

Login

Recharge App


Dowload the Recharge Mobile App
Get the free Recharge subscriber app on your device running iOS or Android.
Read Recharge anytime and anywhere.
Recharge IOS App