Coupled to a much improved supply/demand dynamic major polysilicon producer, GCL-Poly reported strong first half year results, benefiting from high-utilisation rates and stable pricing.

GCL-Poly produced approximately 32,341MT of polysilicon, an increase of 47.1%, compared to 21,980 MT for the same period in 2013. Annual nameplate polysilicon production capacity was maintained at 65,000MT, according to the company, benefiting from the highest utilisation rates since completing major expansion plans several years ago.

The high utilisation rates helped lower production costs, which were reported to have been lowered by 9.2% to US$15.7/kg, compared to US$17.3/kg in the same period a year ago.

Polysilicon ASPs were reported to have been US$22.1/kg in the first six months of 2014, compared to US$17.0/kg in the year ago period.

GCL-Poly reported revenue from its solar material business of HK$11,888 million, a 55.5% increase from the prior year period, generating a profit of HK$1,135 million. Sales of polysilicon were KK$1,275 million in the period.

To meet demand, GCL-Poly had recently announced multicrystalline ingot/wafer production had been expanded by 1GW to 12 GW.

Wafer production reached 5,903MW in the period, up 71%, while wafer sales topped 5,776MW, a decrease of 11.9%, compared with the prior year period.

Benefiting from further ingot/wafer cost reductions such as increased raw material recycling and an in increase in production yield, GCL-Poly said its average non-silicon wafer processing cost declined 16% in the first six months of 2014, to US$0.0970/W. Wafer sales topped HK$10,049 million in the period.

Management noted production of its high-efficiency S3 wafers had been increased to 110 million pieces per month, while its The full-size monocrystalline ingot project was progressing well, with plans to introduce the product in the second half of the year.