L R AS Published on Sunday 8 September 2019 - n° 288 - Categories:the manufacturers, China
Chinese production in the first half of the year. Comtec wants to withdraw from the market
The gigantic projects of certain Chinese manufacturers make Comtec fear industrial overcapacity and a deadly struggle between market players. The management prefers to give up its factories and subcontract its production, while the storm passes, and devote itself to the development of the new products.
projects or commercial opportunities for lithium batteries and electric vehicles.
Thus, management is continuing to reduce its workforce and is ready to dispose of fixed assets with low utilisation.
All manufacturers in the photovoltaic sector are following a reverse approach, that of considerably increasing their manufacturing output. For example, the China PV Industry Association (CPIA) reports that in the first six months of this year compared to the same period in 2018, Chinese manufacturers produced 26% more wafers, bringing production to 63 GW. They manufactured 31% more solar cells. They produced 12% more panels, reaching 47 GW.
In the first half of the year, Comtec suffered a 33% drop in sales to RMB 67 million and reduced its net loss by 76% to RM 24 million ($3.4 million), still a negative net margin of 36%, which is considerable. This loss, according to the company, was due to the renegotiation of long-term silicon purchases.
In order to maintain its listing on the Hong Kong stock exchange, the company has issued shares to raise capital for downstream investments, including commercial PV systems on industrial and industrial rooftops. In the first half of the year, Comtec connected 15.3 MW and sold five grid-connected rooftop projects. The company has started work on 20 MW of projects
PV Magazine of 6 September
Editor's note Comtec is only drawing the consequences of the willingness of large manufacturers to occupy the market and eliminate small producers. This decision is wise because waiting for more would have led the company to bankruptcy. It may have a chance of survival.
The decision to invest in power plants ties up large amounts of capital. Comtec does not have much left.
