GCL China expects to receive more information on polysilicon soon

In a Sunday call with investors, a GCL Technology Holdings representative indicated that more information about a plan to restructure China’s polysilicon sector would be released shortly.

In response to a query about an acquisition fund, GCL's Chief Finance Officer Yang Wenzhong stated that "we believe more information will be available soon regarding the reform and we will know how our cash flow will move in the future." He said that he was "not 100% certain" the reform would take place this year.

Yang stated that GCL could use its own funds to support reform, but did not know the exact amount. The company was therefore being extremely careful with its money.

GCL's previous proposal to restructure industry, about which the management didn't provide any further details at the meeting, called for GCL and top producers to buy up and close down approximately one-third the industry’s capacity. The expectation is that the prices will increase and then be passed along to the solar panel industry, which is currently losing money.

Analysts say it's unclear where money will come from for the heavily indebted sector, but banks are likely to be a source of funding.

Yang told investors that GCL Technology was likely to make a profit between August and September. Polysilicon spot price has risen since Chinese regulators signaled they will crackdown on companies that sell at too low a price.

GCL reported Friday that its losses in the first half 2025 before the anti-price movement grew to 1.78 billion Yuan ($249.6 millions).

(source: Reuters)