Business / Industries

Solar firms forecast earnings slump

By He Wei in Shanghai ( Updated: 2012-12-03 14:02

More than half of China-listed solar firms project a profit slump in 2012, further hitting the industry with a severe supply glut.

By Monday, 53 of the 79 A share-listed solar firms had released earnings forecasts. Of them, 29 foresee a drop in net profit, accounting for 55 percent.

These companies project a profit decrease of 12 percent. In 2011, the net profit attributable to shareholders of parent companies rose by 9.35 percent.

What's more, the predicted median profit hit 249 million yuan ($40 million), down by 20 percent from last year's 311 million yuan.

But some companies managed to see revenue bounce back quickly. For instance, Shanghai Chaori Solar Energy Science and Technology Co Ltd expected its net profit to reach 10 million to 35 million yuan, after bleeding money in the previous year.

In 2012, the company shifted its core business from module making to building power stations.

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