GCL Technology’s QQ1 2025 results show a material top-line decline with continued profitability headwinds. Revenue fell to 2.8673 billion CNY, down 35.30% year over year and 8.02% quarter over quarter, driven by pressure in the Solar Materials segment and weaker pricing environments. The quarter produced a gross loss of 350.1 million CNY, producing a gross margin of -12.21%, and an overall operating loss of 1.0230 billion CNY, with EBITDA of -55.75 million CNY. Net income amounted to -888.05 million CNY, translating to a negative earnings per share of -0.0318. Despite a modest sequential improvement in some profitability metrics (e.g., operating income margin -35.68% vs the reported figure reflects the quarterly loss), the company remains unprofitable on both a gross and net basis for QQ1 2025.
GCL Technology operates across three segments: Solar Material, Solar Farm, and New Energy. In QQ1 2025, the Solar Material Business continued to bear the brunt of cost of revenue exceeding revenues, contributing to a negative gross result. The Solar Farm and New Energy segments carry asset-light potential, but project ramp-up and revenue recognition lags appear to constrain near-term profitability. The company’s asset base includes 18 MW of US solar farms, about 150 MW in South Africa, and 5 MW in China, underscoring a diversified but capital-intensive footprint that requires sustained capital deployment and favorable project economics.
From a management perspective, QQ1 2025 signals a strategic pivot toward leveraging the New Energy and Solar Farm platforms to stabilize cash generation and leverage capacity in utility-scale contexts. However, management commentary and forward-looking targets were not disclosed in the provided data, leaving the near-term trajectory highly dependent on macro solar demand, polysilicon/wafers cost dynamics, and project pipeline execution. In the absence of explicit guidance, investors should monitor revenue recovery signals, gross margin stabilization, and the cadence of capex and project development for the New Energy and Solar Farm segments.