The merger of Taiwan-based solar cell makers Neo Solar Power (NSP) and DelSolar, a solar subsidiary of Delta Electronics, will be completed on May 31, 2013, said Quincy Lin, chairman and CSO of NSP. Lin added that the merger occurred at a good timing as the market has been rebounding since the beginning of 2013 compared to 2012.
NSP reported first-quarter and April consolidated revenues on May 6. The firm saw first-quarter consolidated revenues reach NT$2.592 billion (US$87 million), showing an on-quarter growth of 16.5%. Net loss in the first quarter was NT$599 million, said the firm. NSP noted that market demand has been rebounding and the average selling prices (ASPs) of solar products have been increasing; hence shipments in the first quarter showed strong growth compared to the fourth quarter of 2012. However, the firm reported first-quarter gross margin of negative 11%.
NSP also reported April consolidated revenues of NT$1.023 billion, representing an on-month increase of 9.74% but an on-year decrease of 17.31%.
Despite the negative gross margin in the first quarter, Lin believes positive gross margin is possible for the second quarter due to rising product prices. Lin noted that as the result of the EU's anti-dumping and anti-subsidy investigation against China-based firms is likely to be announced in June, installations are likely to be stimulated before the announcement.
As for global demand, the firm is optimistic about the growth of rooftop solar installations for corporations. The firm is also optimistic about solar demand from emerging markets such as South Africa, Thailand, Australia and the Middle East. Lin added the Middle East has potential because the region has abundant sunshine hours, and hence the cost of solar installations are relatively low.
According to Sam Hong, CEO of NSP, 2013 global solar cell demand is about 20GW but cell capacity is around 35-45GW in China and 8GW in Taiwan. This may seem over-capacity but the total cell capacity of tier-one China-based firms is less than 10GW. Hong added that 2013 cell demand in China is likely to be around 5GW. Hong stated that Taiwan is likely to benefit if the punitive tariff from EU's anti-dumping and anti-subsidy investigation reaches 30% or above.
NSP's solar PV system subsidiary General Energy Solutions (GES) aims to complete 70-100MW of solar power plant projects in 2013, according to Thomas Hsu, CFO and senior vice president. GES installed 3.8MW of solar power-generation plants in Taiwan in 2012, added Hsu. GES aims to complete 30MW of solar power projects in the US and 50MW in Japan in 2013, according to Hsu. The firm may seek capital injection in the third quarter or the fourth quarter of 2013, Hsu stated.
