GCL Technology Shifts Focus to Granular-Polysilicon Production

GCL Technology Reassesses Investment Strategy

GCL Technology (Stock code: 3800.HK) has made a pivotal decision to fully exit its investments related to Siemens-method rod-polysilicon production. This decision follows their recent 2024 annual financial report, where the company highlights a strategic shift towards enhancing their granular-polysilicon production capabilities. Amid competitive pressures in the market, GCL Technology is demonstrating a commitment to improving their operations and profitability.

Financial Highlights of Granular-Polysilicon Production

The company reports impressive financial performance metrics leading into 2024. From January to February 2025, the cash cost of producing granular polysilicon has reached approximately CNY 27.14 per kilogram. In contrast, the selling price has risen to CNY 31.1 per kilogram. This reflects a notable decrease in production costs compared to previous quarters, indicating efficient operational strategies. Furthermore, high-quality granular polysilicon production constitutes more than 95% of their output, solidifying their market position with a substantial 25.76% market share.

Operational Growth and Capacity

By the end of 2024, GCL Technology achieved a remarkable production capacity of 480,000 tons of granular polysilicon, leading to an impressive 32% year-over-year production increase. Shipments also saw a significant rise by 45%, emphasizing the company’s ability to exceed its sales expectations with a sales-to-production ratio of 105%. This growth underscores the efficiency of GCL Technology’s operations across its major production facilities.

Divestment from Xinjiang Goens

GCL Technology has confirmed its complete divestment from the Xinjiang Goens project, thus severing all ties pertaining to the Siemens-method polysilicon production line. This strategic exit was finalized on January 20, 2025. The step follows earlier announcements regarding the company’s plans to withdraw from direct and indirect investments in this region, aligning with their core business objectives focused on sustainability and responsibility.

Commitment to Human Rights and Ethical Business

The company places a strong emphasis on human rights and ethical operations. A representative from GCL Technology articulated their commitment to prioritizing freedom, equality, and maintaining a zero-tolerance policy towards forced labor or discrimination. This proactive stance not only aligns with the company’s operational ethos but also adheres to widely accepted international human rights standards.

SA8000 Certification Achievements

In recognition of its ethical practices, four of GCL Technology’s main production sites have successfully achieved SA8000 certification, which focuses on social accountability. This certification demonstrates the company’s dedication to upholding fair labor practices. Two additional facilities are in the process of certification, showcasing their ongoing commitment to enhancing the social responsibility framework across over 70% of their operational footprint.

Frequently Asked Questions

What is GCL Technology's recent strategic focus?

GCL Technology is redirecting its focus towards improving granular-polysilicon production while divesting from Siemens-method investments.

How has GCL Technology performed financially?

The company reported a sequential reduction in losses and significant improvements in operational fundamentals amid reduced production costs and increased selling prices.

What commitment does GCL Technology have regarding human rights?

GCL Technology emphasizes human rights as a core aspect of its operations, promoting equality and a zero-tolerance approach to discrimination and forced labor.

What certifications have GCL Technology's production bases achieved?

Four production bases have earned SA8000 certification, reinforcing their commitment to social responsibility in their operations.

What is the market position of GCL Technology?

The company holds a notable 25.76% market share in granular polysilicon production, showcasing its strong presence in the industry.

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