PVTIME – Aiko Solar announced last week that according to preliminary calculations, it expects to report a net loss attributable to the shareholders of the listed company of between 20 million yuan to 30 million yuan for the first half of 2021.
Aiko also stated that net loss attributable to the shareholders of the listed company after deducting non-recurring gains and losses is estimated to be between -120 million yuan to -130 million yuan.
Discussing the main reasons for performance loss, Aiko stated that the rising price of raw materials increased the company’s production costs. In the first half of 2021, affected by the rapid rise in the price of silicon materials upstream, the procurement cost of silicon wafers, the company’s main raw materials, increased significantly. Especially since the second quarter, the price rise of silicon wafers accelerated while the cost pressure of cell wafers transmitted slowly to downstream customers, resulting in a significant decline in the gross profit margin of its main business segment.
Furthermore, the rise of industrial chain prices inhibited downstream demand, and the company’s capacity utilization rate decreases during the reporting period. Due to the imbalance between short-term supply and demand in the silicon material link, the supply of silicon wafers was relatively tight, which also affected the company’s capacity utilization. Driven by the continuous rise in the price of silicon materials upstream, the prices in all links of the photovoltaic industry chain generally showed an upward trend, the wait-and-see mindset of downstream customers increased, and the number of orders dwindled, resulting in lower production and sales than expected.
