Neo Solar Power Corporation , a world-class leading manufacturer of high quality solar cells and modules in Hsinchu, Taiwan,recently announced its 2016 Q2 & H1 financial report. According to 2016 H1 financial results, the company delivered NT$10,408 million in Net Revenues. Net Loss was NT$834 million while the underlying EPS closed at NT$ -0.90. For 2016 Q2, the company’s Net Loss was NT$942 million while the underlying EPS closed at NT$ -0.96. According to NSP 2016 Q2 consolidated financial report, the company delivered NT$4,504 million in Net Revenues, a QoQ decrease of 23.71% as compared with last quarter.
Due to continuing capacity relocation to overseas which led to the loss of utilized capacity and increase of manufacturing cost per unit, plus the declined ASP, it led to Realized Gross Loss of NT$401 million with Gross Margin of -8.90%. In addition, due to recognizing allowances, and related expenses for the NSP subsidiary which is consolidated into financial report for the first time, Operating Expenses reached to 468 million. Operating Loss was NT$991 million with Operating Margin of -22.00%. Net Loss for 2016 Q2 was NT$942 million while the underlying EPS closed at NT$ -0.96. Looking forward the second half of this year, the capacity relocation is expected be completed in third quarter.
In addition, the solar system projects of NSP & GES with projects mainly in the United States, Japan and Taiwan will gradually be COD and sold. The total installed capacity is around 200MW, and planned projects sold by the end of this year will close to 80MW. Both aforementioned actions are believed to improve future NSP revenue and profit. NSP has completed NT$2.88 billion local rights issue in late April, and has abundant cash on the balance sheet. Cash on hand as of 2016 Q2 was NT$10,504 million and Debt to Asset ratio was maintained at relatively low level of 44%. As a whole, NSP has solid financial structure.