GCL-Poly Energy Holdings (HKG:3800) announces business performance for first quarter of 2012.

The group sold 3,041 metric ton (MT) of polysilicon during the first quarter of 2012, compared with 914 MT and 945 MT of polysilicon sold during the first and fourth quarter of 2011, respectively. As the group has commenced wafer production since the first quarter of 2010, most of the polysilicon produced was consumed in-house for the wafer production. The average selling price of polysilicon sold was US$25.98 per kg for the first quarter of 2012 (1st quarter of 2011: US$62.17 per kg; 4th quarter of 2011: US$26.20 per kg).

The group’s total wafer sales volume for the first quarter of 2012 was 1,234 megawatt (MW), representing an increase of approximately 28.68% and a decrease of approximately 0.64% compared with 959 MW and 1,242 MW over the same period and the fourth quarter of last year, respectively. Average selling price of wafer sold was US$0.28 per watt for the first quarter of 2012 (1st quarter of 2011: US$0.76 per watt; 4th quarter of 2011: US$0.32 per watt).

The group’s total electricity sales volume for the first quarter of 2012 was approximately 1.259 million megawatt-hour (MWh), representing an increase of approximately 11.93% compared with the same period of last year. The total steam sales volume for the first three months of 2012 was approximately 2.107 million tonnes , representing an increase of approximately 5.65% compared with the same period of 2011.

During the period from the second half last year to the first quarter of 2012, due to the economic downturn in Europe and the US, the survival of the fittest and over-capacity situation still prevailing in the industry. However, consolidation within the industry is expected to end soon and the group expects a turnaround to happen in the second half of this year. The group expects there will be limited room for further decrease in the selling prices of polysilicon and wafer and the prices will be stable in the second half of 2012.