GCL subsidiary GCL New Energy Inc. (002506.SZ), a provider of one-stop, cutting-edge, integrated energy systems, has revised its forecast for net profit attributable to shareholders in the first half of 2018 to between RMB 20.41 million and RMB 30.02 million (US$3.05 million to US$4.49 million), matching last’s year’s performance and representing a significant turnaround from the loss projected in its the first quarter earnings report.

In GSL-SI’s first quarter report, net loss attributable to shareholders was RMB 147 million, with performance loss in the same period expected to be between RMB 100 million and RMB 0. GCL SI's second quarter profit was estimated to be around RMB 200 million yuan.

According to the second quarter announcement, thanks to a cyclical peak season for the photovoltaic industry, GCL SI had sufficient orders to sustain booming production and sales. Although the impact caused by the “5.31 New Deal”, such as reduced domestic demand for PV products, was felt strongly in the installed capacity of Chinese domestic PV power plants, the company has already shifted its focus to overseas markets to diversify and expand its customer base. The company’s share of sales to overseas markets has rapidly increased from 14% in the first half of 2017 to the current 50%. Big overseas orders have a stabilizing effect on the company’s performance when the domestic PV industry is volatile.

GCL-SI, while adapting to changes in markets, industrial policies and customer needs, has been proactively diversifying its business. By integrating premium social resources, the company is exploring robust second pillar businesses to enhance its risk resilience and profitability.