Taiwan-based PV cell manufacturer Gintech Energy unveiled its unaudited monthly revenue for August, 2016. Net sales in August rapidly decreased due to market demand slump and lower average selling prices (ASP).
Gintech reported net sales in August of NT$604 million, decreased by 28.7% MoM from NT$847 million in July, and decreased by 57.9% YoY from NT$1,435 million in August 2015.
Gintech is taking aggressive cost reduction measures, especially on raw material procurement including wafers and pastes, to mitigate the pricing pressure. This measure was regarded helpful as Gintech “see material prices come off sharply and partially alleviate our cost pressure.”
Besides, the company will gradually introduce new technology to enable lower-costs and higher-efficiency products.
Gintech strategically delayed certain shipments without guaranteed payments so the account receivable risks were managed in August. However, this strategy brought low shipment volumes in the past month. Gintech has reduced utilization rate in Taiwan to control inventory level while its Thailand facility remained at full capacity.
Gintech deployed 350MW of production capacity in Thailand and is expected to expand to 700MW in this year.