Executive Summary
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.
Key Performance Indicators
QoQ: -8.02% | YoY:-35.30%
QoQ: 64.23% | YoY:-26.71%
QoQ: 45.70% | YoY:-20.04%
QoQ: 48.63% | YoY:-13.57%
Key Insights
Revenue: 2,867,330,000 CNY; YoY -35.30%, QoQ -8.02%
Gross Profit: -350,124,000 CNY; YoY -26.71%, QoQ +64.23%
Gross Margin: -12.21%
Operating Income: -1,022,995,500 CNY; YoY +2.44%, QoQ +46.15%
Operating Margin: -35.68%
EBITDA: -55,750,000 CNY; EBITDA Margin: -1.94%
Net Income: -888,054,000 CNY; YoY -20.04%, QoQ +45.70%
Net Margin: -30.97%
EPS (Diluted): -0.0318 CNY; YoY -13.57%, QoQ +48.63%
Weighted Average Shares: 27,965,800,661 (basic); 27,965,311,000 (diluted)...
Financial Highlights
Revenue: 2,867,330,000 CNY; YoY -35.30%, QoQ -8.02%
Gross Profit: -350,124,000 CNY; YoY -26.71%, QoQ +64.23%
Gross Margin: -12.21%
Operating Income: -1,022,995,500 CNY; YoY +2.44%, QoQ +46.15%
Operating Margin: -35.68%
EBITDA: -55,750,000 CNY; EBITDA Margin: -1.94%
Net Income: -888,054,000 CNY; YoY -20.04%, QoQ +45.70%
Net Margin: -30.97%
EPS (Diluted): -0.0318 CNY; YoY -13.57%, QoQ +48.63%
Weighted Average Shares: 27,965,800,661 (basic); 27,965,311,000 (diluted)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.87B |
-35.30% |
-8.02% |
| Gross Profit |
-350.12M |
-26.71% |
64.23% |
| Operating Income |
-1.02B |
2.44% |
46.15% |
| Net Income |
-888.05M |
-20.04% |
45.70% |
| EPS |
-0.03 |
-13.57% |
48.63% |
Management Commentary
Transcript highlights not provided in the input data. No earnings-call quotes or management commentary excerpts are available to synthesize insights beyond the disclosed financials.
Forward Guidance
No explicit forward guidance was included in the provided data. Given the revenue collapse and continued losses in QQ1 2025, near-term guidance would likely hinge on: (i) stabilization or recovery of polysilicon/wafer selling prices and cost of sales, (ii) project cadence and revenue recognition in Solar Farm and New Energy segments, (iii) capex plans and working capital management, and (iv) potential subsidies or policy supports relevant to solar assets. Management commentary, absent in the data, would be critical to assess achievability of any medium-term profitability targets. Key factors investors should monitor include: quarterly revenue trajectory, gross margin normalization, capex intensity and deployment efficiency, project backlog and margins in the Solar Farm and New Energy segments, and liquidity/working capital dynamics.