1370%-1660% Drop! Lingda Group to Post Huge Loss in 2023

PVTIME – Lingda Group Co., Ltd. (300125.SZ), a leading engineering technology company specialising in new energy development, environmental improvement and energy conservation, recently announced its revised earnings forecast for 2023.

Its net loss attributable to parent company is estimated to be 249 million yuan to 298 million yuan, previously forecast a loss of 19 million yuan to 38 million yuan, representing a decrease of 1370%-1660% year on year. And its revenue in 2023 is about 800 million yuan to 1 billion yuan.

The update is due to the temporary shutdown of the production base of GRET Solar, a wholly owned subsidiary of Lingda Group. In order to reduce the loss and overall risks from the unstable or downward trend of the photovoltaic solar market, these solar cell production lines have been stopped from 14 March 2024 to 15 April 2024, which led an impairment provision of227.8 million yuan on the relevant assets of GRET Solar based on the preliminary valuation, and the adjustment resulted in the correction of the financial indicators.

Lingda Group’s revenue is mainly generated by GRET Solar, with revenue from its monocrystalline solar cells accounting for more than 90% of its total revenue. The temporary suspension of production resulted in the risk of depreciation of plant, inventory and equipment and other assets, which will reduce its main business revenue by 38.7 million yuan, while reducing losses by 5.5 million yuan, according to data from 2023 and prices in 2024.

In addition, the construction of another Lingda Group facility was delayed and then stopped in March 2024. The project was launched on 15 June 2023, with Lingda investing 9.15 billion yuan to build a solar cell production base with a production capacity of 20GW. The first phase of the project aims to achieve a production capacity of 10GW of TOPCon solar cells, which was scheduled to be operational in June 2024, and the second phase will achieve 5GW of TOPCon cells and 5GW of HJT cells. However, the first phase of the project has not met the company’s expectations due to a number of factors affecting construction progress. Lingda claimed that the required investment of 4.1 billion yuan for the first phase is more than the company’s current funds, and the timing of the financing is uncertain, as the company is suffering great pressure on its operations due to the recent decline in the price of high-efficiency photovoltaic solar cells.

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