After a preliminary assessment of its business numbers for Q1/2019, Xinte Energy has issued a profit warning for the quarter, which it says it due to significant fall in polysilicon ASPs.
- Xinte Energy has issued a profit warning for its Q1/2019 business thanks to 44.62% fall in ASP of polysilicon
- As against its profit of RMB 404.42 million in Q1/2018, Xinte has guided for consolidated profits to come down by 75% to 80% YoY
- This would bring down its profits anywhere in the range of between RMB 80.88 million to RMB 101.11 million ($12 million to $15 million)
Chinese polysilicon producer Xinte Energy Co., Ltd. expects its consolidated profits during Q1/2019 to come down by as much as 75% to 80% to between RMB 80.88 million to RMB 101.11 million ($12 million to $15 million). In the previous year, its Q1/2018 profits amounted to RMB 404.42 million ($60.28 million).
In a profit warning issued and communicated to the Hong Kong stock exchange, it said its preliminary assessment for the first quarter of the year ended March 31, 2019 shows the loss, attributing it to the significant fall in average sales price (ASP) of polysilicon during the period.
To show the comparison, it says in Q1/2019, the ASP for polysilicon was RMB 75,600 ($11,268) per ton, 44.6% less than RMB 136,500 ($20,345) per ton in Q1/2018. Both these prices include tax. Final numbers for the quarter will be published by the end of April 2019.
In January 2019, Xinte secured a 32,000 metric ton (MT) polysilicon supply deal for a price of RMB 79.10 million ($11.78 million) per MT with wafer producer Wuhai Jingyuntong New Materials between 2019 and 2021 (see Xinte Energy Gets 32,000 Polysilicon Supply Deal).