Taiwan-based solar cell maker Gintech Energy has swung to profitability from the historically worst operational performance in the first half of 2009, during which the company recorded a large net loss of NT$1.44 billion (US$43.8 million), according to company president Ellick Liao at an institutional investors conference on September 29.
After amending solar wafer supply contracts signed with US-based MEMC Electronic Materials, China-based LDK Solar and a Korea-based maker, Gintech has regularly renegotiated contract prices for each quarter based on changes in spot prices, Liao indicated.
The contract prices for the fourth quarter have been set at US$3.1-3.2/wafer, close to the present spot prices, Liao noted.
The contract amendments have added strength to Gintech's competition with Taiwan- and China-based fellow makers in terms of material cost, Liao said.
Gintech's total shipment volume during the third quarter of 2009 is expected to exceed that for the first half of this year and increase by 60% on year, Liao indicated, adding that Gintech's inventory level has decreased from an average of 90 days in the first half of 2009 to 20 days currently.
Article translated by Adam Hwang
