Solargiga Energy Holdings Limited Issues Profit Warning for FY2025

Key Highlights from the Announcement

• Significant Expected Net Loss: Solargiga Energy Holdings Limited (“the Company”) has issued a profit warning, informing shareholders and potential investors that the Group is expected to record an unaudited net loss attributable to owners of the parent company ranging from approximately RMB 270 million to RMB 310 million for the year ended 31 December 2025. This represents a substantial increase from the net loss of approximately RMB 227 million recorded in 2024.
• Challenging Industry Conditions: The photovoltaic industry underwent a phase of transformation and restructuring during the reporting year. Measures to address overcapacity did yield some positive outcomes and helped stabilize certain supply chain prices, but the overall market continued to suffer from a persistent imbalance between supply and demand due to structural overcapacity. This situation resulted in an overall weak performance for the industry.
• Falling Product Prices and Reduced Revenue: The average selling prices of Solargiga’s major products continued to decline throughout the year, leading to a decrease in photovoltaic module revenue. Additionally, low utilization rates of production capacity further compressed gross margins for photovoltaic modules.
• Impairment Losses: The Group recognized significant impairment losses on receivables and contract assets during FY2025, largely due to lawsuits against several customers and concerns about the financial positions of certain debtors. This contrasts with the previous year, when there was a reversal of such impairment losses.
• Asset Impairments: Due to declining sales volumes and market prices, certain asset groups incurred operating losses, leading the Group to conduct impairment assessments on long-term assets and recognize significant impairment losses on property, plant, and equipment.

Implications for Shareholders and Investors

• Potential Share Price Impact: The announcement of a materially higher net loss, coupled with ongoing industry headwinds and impairment charges, is likely to be price sensitive and could negatively affect the Company’s share price in the short term.
• Continued Commitment to Efficiency: The Board stated that the Group will continue efforts to improve operational efficiency and strictly control costs to enhance competitiveness. Despite the current downturn, management remains confident in the Company’s long-term prospects, citing the global drive towards carbon neutrality and clean energy as ongoing growth drivers.
• Results Not Yet Audited: Investors should note that these figures are based on preliminary unaudited management accounts and may be subject to further adjustments. The audited annual results will be published later in accordance with regulatory requirements.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company, given the uncertainties and potential for further negative surprises.

Additional Details

• The Board of Directors comprises Mr. Tan Xin (Chairman), Mr. Wang Junze, Mr. Chen Hai (executive directors), and Dr. Wong Wing Kuen, Albert, Ms. Chung Wai Hang, and Ms. Tan Ying (independent non-executive directors).
• The profit warning was issued on 13 March 2026, with the final audited results for the year ended 31 December 2025 to be released in due course.

Disclaimer

This article is a summary and analysis of Solargiga Energy Holdings Limited’s profit warning announcement. Investors are reminded that the figures disclosed are based on preliminary, unaudited results and may be subject to change. This article does not constitute investment advice. Please refer to the official results announcement and consult professional advisers before making investment decisions.

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