In the first quarter, the average prices of polysilicon and silicon wafers at GCL-Poly saw increases and decreases, both exceeding 20%

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On the evening of May 17, GCL-Poly, a leading player in the photovoltaic industry, released its financial results for the first quarter of 2017. Its production volumes of polysilicon and silicon wafers were 19,508 tons and 5,038 megawatts respectively, showing varying degrees of growth compared to the record-breaking levels achieved in 2016. Management states that there is currently high demand in the market for diamond wire used to cut wafers, and the company is expanding its production capacity without incurring additional capital expenditures; it is expected to be able to supply over 100 million wafers per month to the market in the third quarter. According to the announcement, GCL-Poly’s polysilicon production in the first quarter was 19,508 tons, representing a 6.9% increase year-on-year; the average selling price was 17.25 dollars per kilogram, up 23.6% on a year-on-year basis ； The production and sales volumes of silicon wafers were 5,038 megawatts and 4,916 megawatts respectively, representing year-on-year increases of 19.2% and 10.6% respectively ； The average selling price of silicon wafers was 0.14 dollars per watt, a decrease of 26.3% compared to the same period last year. Affected by market supply and demand, the average prices of polysilicon and silicon wafers have risen and fallen respectively, with fluctuations exceeding 20%; as a result, the contribution ratio of these two business areas to overall performance has changed. The announcement shows that the average selling price of silicon wafers in the company’s first quarter of 2017 increased compared to the fourth quarter of the previous year, while the price of polysilicon remained at a high level, resulting in overall improved profitability. During the phone conference that evening, the management of GCL-Poly said that in the first quarter the company’s silicon wafer production increased significantly, while processing costs dropped markedly. These two factors largely offset the impact of falling silicon wafer prices, keeping the company’s overall profitability at a level leading in the industry. Zhu Zhanjun, CEO of GCL-Poly, noted that in the first quarter, the company’s various major R&D and technological improvement initiatives progressed smoothly. These efforts not only helped to increase production and reduce costs but also improved product quality, thereby enhancing the market competitiveness of the company’s products. Zhu Zhanjun said that currently, diamond wire cutting for polycrystalline silicon wafers is very popular due to its better cost-performance ratio. The company has been working full steam ahead since March this year to upgrade the machines used for diamond wire cutting of polycrystalline silicon, in order to increase production and meet market demands as much as possible. The current production volume of diamond wire wafers amounts to about 60 million wafers per month, accounting for roughly 20% of the total; this figure is set to increase rapidly in the future. As production capacity is unlocked, the cost-effectiveness of using diamond wires for cutting polycrystalline silicon wafers will become even more evident. “Batteries using the \"diamond wire cutting of polycrystalline cells + black silicon + PERC\" technology can achieve a production efficiency of 20.5%. This not only reduces costs significantly but also narrows the efficiency gap compared to monocrystalline cells, making it a highly competitive product solution. He specifically emphasized that the renovation of the polycrystalline cutting machines using diamond wire was carried out based on GCL-Poly’s own technical solutions, resulting in lower costs and no need for additional capital expenditures. Zhu Gongshan, Chairman of GCL-Poly, said that in the first half of the year, policies related to the global photovoltaic market showed an overall positive trend, with continuous growth in new installations. The global photovoltaic industry maintained a steady pace of growth, and leading companies in this sector will be able to capture a larger share of the market and strengthen their competitive advantages. At present, the company is gradually completing the transfer of assets and the introduction of proprietary technologies from American SunEdison, accelerating the mass production of cost-effective new products to continuously enhance their competitiveness, thereby securing a favorable position in future market competition.