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Company News

Profit of the Solar Energy Business surged 309% in 2016

(30 March 2017, Hong Kong) GCL New Energy Holdings Limited (“GCL New Energy” or the “Company”, Stock Code: 451.HK) is pleased to announce the annual results of the Company and its subsidiaries (together, the “Group”) for the year ended 31 December 2016.

Significant Growth in the Solar Energy Business

GCL New Energy had a total installed capacity of 3,511MW in China, representing a significant growth of 114% year-on-year, making it the world’s second largest by installed capacity; Electricity sales amounted to approximately 2,784 million kWh, representing a phenomenal growth of 220% as compared to 2015

The in-house development projects as a percentage of newly installed capacity increased substantially from 18% in 2015 to 48% in 2016

Approximately 80% of the Company’s solar power plants are located outside the northwestern region in zone 2 and zone 3. These solar power plants will not only enjoy higher benchmark on-grid tariff, but will also be able to effectively avoid solar power curtailment; only 7% of the total installed capacity is located in areas with heavy curtailment

Managed to award 5 projects with a total capacity of 360MW at 7 national open tendering for Frontrunner Program, making the Company ranked 3rd in the nation

Obtained 250MW of poverty alleviation projects approved by the NEA, ranking 1st in the country

Profit Surge on Strong Solar Energy Business

Revenue of the Solar Energy Business surged by approximately 226%, year-on-year, to RMB2,246 million; Shareholders of GCL New Energy approved the disposal of printed circuit board business in February 2017. The disposal will allow resources to be more focus on the Solar Energy Business. Excluding the impact of the printed circuit board business, profit of the Company’s Solar Energy Business for 2016 amounted to RMB309 million, representing a surging 309% growth over 2015

By stepping up the Company’s in-house development, the average unit cost per watt for typical solar power plants decreased by 16% from approximately RMB8.6 in 2015 to approximately RMB7.2 in 2016. The Group is aiming to further reduce the average unit cost per watt of the solar power plant to a range of RMB6.0 to RMB6.5 in 2017

The centralized regional operation and maintenance centres and real-time operation platforms were introduced to perform functional inter-connection and central monitoring for projects, and achieve unattended operations step-by-step, in hope of improving the operation and maintenance standard of the solar power plants. In Ningxia, a centralized regional operation and maintenance centre covering within 200-km was established to simultaneously monitor the operation of over 6 solar power plants. The Group is planning to establish at least 5 regional centres in 2017, so as to strengthen central monitoring and effectively reduce operation and maintenance costs to approx. RMB0.06 per watt in 2016, from approximately RMB0.08 per watt (excluding land fees) in 2015, with an aim to further lower to a range of RMB0.05 to RMB0.055 in 2017