Gintech Energy Corporation (Gintech) announced its financial results for the fourth quarter of 2015 and the full year 2015. The company successfully got rid of the weak performance in 2014 and saw a 17% y-o-y increase in solar product shipment. The net loss has been lessen from NT$378 million in 2014 to NT$99 million in 2015.
According to Gintech’s report, net sales in full year 2015 were NT$15,748 million, an increase of 1.2% year-over-year from NT$15,567 million in 2014. Gross profit in 2015 was NT$763 million and gross margin was 4.8%, compared to gross profit of NT$588 million and gross margin of 3.8% in full year 2014, respectively. The company’s Thailand branch, which began mass production in December 2015, contributed to margin expansion.
The 2015 operating profit was NT$75 million and operating margin was 0.5%, compared to operating loss of NT$108 million and operating margin of -0.7% in full year 2014, respectively. Gintech’s wafer subsidiary, Utech, drove gains in non-operating items in 4Q15 because of turnaround and foreign exchange gains.
Although Gintech met a net loss of NT$99 million in 2015, it was rapidly higher than net loss of NT$378 million in 2014. Gintech plans to reach higher margin as a result of higher blended ASP driven by the ramp up of Gintech (Thailand) with its 15% ASP premium. The company also expects stronger performances in the second half of 2016 than in the first half. To improve its capital structure, Gintech is launching a right issue of no greater than 80 million shares.
Key financial results for the fourth quarter of 2015 are as following: