PVTIME - According to recently disclosed first 9 months financial results by Aiko Solar, its operating income for the first three quarters reached 6.256 billion yuan, good for a year-on-year increase of 49.95%. Net profit, impacted by COVID-19 and solar cell average price drops, was limited to 374 million yuan during this period, which is a year-on-year decrease of 24.87%.
The company’s net profit fell by 68.42% and 63.33% year-on-year in the first and second quarters of 2020. However, net profit for the third quarter of 2020 increased significantly due to higher sales and average selling price. Thanks to its record breaking third quarter revenue of 2.56 billion yuan, Aiko Solar was able to break the downward trend and post a first 9 month revenue of 6.256 billion yuan which exceeded its 2019 full year revenue of 5.751 billion yuan.
During the reporting period, Aiko steadily increased its production capacity through expansions. At the end of the third quarter, phase II of its high-efficiency PERC solar cell project in Yiwu has been completed and put into operation at full capacity. Phase III of this project is also expected to be put into operation by the end of the year as production line equipment has already been successively delivered and installed. Moreover, phase II of its high efficiency PERC solar cell project in Tianjin is progressing smoothly as most equipment has been installed and debugged. Also, construction of Aiko’s phase IV and phase V high efficiency solar PERC cell projects in Yiwu are well underway with more than half the construction of the main plant currently completed.
It is also worth noting that, during the reporting period, the company raised more than 2.499 billion yuan by means of non-public issuance of shares. After the funds were in place, the company gradually used the funds on the above-mentioned expansion projects. The company also continues to focus on its R&D investment, spending a total of 244 million yuan during the first three quarters, which is a year-on-year increase of 53.04%.
Bank of China securities analysts believe that Aiko Solar’s gradual increase in high-power module production capacity and utilization of large-size cells will further improve the company’s profitability.