Aiko Solar Energy, a Chinese solar cell and module manufacturer, is predicting a return to profit in the second quarter, making it the first leading company in China’s troubled photovoltaic industry to turn things around during the current downturn.
Aiko is bracing for a net loss of between CNY170 million (USD23.7 million) and CNY280 million in the first half, which is less than the net loss it posted in the first quarter, indicating that the firm turned a profit in the second quarter, the Shanghai-based company said yesterday, citing preliminary financial estimates.
Aiko reported a net loss of CNY300 million (USD41.8 million) in the first three months. This means that it likely made a net profit of between CNY20 million (USD2.7 million) and CNY130 million in the second quarter, marking its first profitable quarter since the final quarter of 2023.
The performance is a huge improvement from last year when it logged a net loss of CNY1.7 billion (USD237.1 million) in the first six months.
Aiko attributed its improved performance to growing market recognition of its all-back-contact battery technology and its strategic focus on high-value overseas markets such as Europe, Australia and Japan. Rising international sales have boosted the firm’s gross profit margins, it said.
Aiko still expects to rack up a net loss of between CNY410 million (USD57.1 million) and CNY520 million in the first half, after removing non-recurring gains and losses, it said. In the first quarter alone, it had a net loss of CNY466 million (USD65 million) after the same adjustment.
China’s solar industry has been struggling with severe oversupply and plummeting prices since last year due to overcapacity. To counter this, authorities have been urging major manufacturers to cut production and stop the destructive price wars.
Minister of Industry and Information Technology Li Lecheng met with executives from 14 leading solar firms, including Tongwei Group, GCL Group and Longi Green Energy Technology, on July 3, calling on them to put an end to disorganized price cuts, improve product quality and gradually phase out outdated production lines.
Aiko’s share price [SHA:600732] surged as much as 4.8 percent at market open to hit CNY15.47, but then it quickly started to tumble. The stock closed down 0.75 percent at CNY14.65 (USD2).
