Live News • May 23
GCL Technology Holdings Slides on Steep Revenue Drop and Profitability Concerns GCL Technology Holdings shares declined 6.98% as the wider solar sector showed weakness.
The company reported a 55% year-over-year contraction in revenue.
Net income declined 289%, with management highlighting profitability issues and negative cash flows, while the stock trades at a discount on a P/B basis and analysts currently rate it a Hold ahead of the next earnings report.
The combination of sharply weaker revenue, a steep drop in net income and negative cash flow points to meaningful operational and financial pressure despite the apparent P/B discount.
If you are following the stock, the next earnings release and any commentary on cash management and capacity plans are likely to be key for assessing how the business is handling current solar sector headwinds. Reported Earnings • May 05
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: CN¥0.10 loss per share (improved from CN¥0.18 loss in FY 2024). Revenue: CN¥14.4b (down 4.5% from FY 2024). Net loss: CN¥2.87b (loss narrowed 40% from FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 64%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Announcement • Apr 30
GCL Technology Holdings Limited, Annual General Meeting, May 29, 2026 GCL Technology Holdings Limited, Annual General Meeting, May 29, 2026, at 10:00 China Standard Time. Location: multifunctional room, gcl energy center, no. 28 xinqing road, suzhou industrial park, jiangsu, suzhou, China Reported Earnings • Mar 31
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: CN¥0.10 loss per share (improved from CN¥0.18 loss in FY 2024). Revenue: CN¥14.4b (down 4.5% from FY 2024). Net loss: CN¥2.87b (loss narrowed 40% from FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 64%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 89 percentage points per year, which is a significant difference in performance. Announcement • Mar 18
GCL Technology Holdings Limited to Report Fiscal Year 2025 Results on Mar 30, 2026 GCL Technology Holdings Limited announced that they will report fiscal year 2025 results on Mar 30, 2026 Announcement • Nov 20
GCL Technology Holdings Limited has completed a Follow-on Equity Offering in the amount of HKD 5.445999 billion. GCL Technology Holdings Limited has completed a Follow-on Equity Offering in the amount of HKD 5.445999 billion.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 1,014,782,000
Price\Range: HKD 1.15
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 1,014,783,000
Price\Range: HKD 1.15
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 1,353,043,000
Price\Range: HKD 1.15
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 1,353,043,000
Price\Range: HKD 1.15
Transaction Features: Subsequent Direct Listing New Risk • Nov 12
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Major Estimate Revision • Oct 22
Consensus EPS estimates upgraded to CN¥0.064 loss The consensus outlook for fiscal year 2025 has been updated. 2025 losses forecast to reduce from -CN¥0.075 to -CN¥0.064 per share. Revenue forecast unchanged from CN¥14.4b at last update. Semiconductor industry in Hong Kong expected to see average net income growth of 70% next year. Consensus price target broadly unchanged at HK$1.73. Share price fell 5.3% to HK$1.26 over the past week. Announcement • Sep 16
GCL Technology Holdings Limited has filed a Follow-on Equity Offering in the amount of HKD 5.445999 billion. GCL Technology Holdings Limited has filed a Follow-on Equity Offering in the amount of HKD 5.445999 billion.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 2,029,565,000
Price\Range: HKD 1.15
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 2,706,086,000
Price\Range: HKD 1.15
Transaction Features: Subsequent Direct Listing Reported Earnings • Aug 31
First half 2025 earnings: EPS and revenues miss analyst expectations First half 2025 results: CN¥0.064 loss per share (further deteriorated from CN¥0.056 loss in 1H 2024). Revenue: CN¥5.73b (down 35% from 1H 2024). Net loss: CN¥1.78b (loss widened 20% from 1H 2024). Revenue missed analyst estimates by 24%. Earnings per share (EPS) also missed analyst estimates by 27%. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 87 percentage points per year, which is a significant difference in performance. Announcement • Aug 15
GCL Technology Holdings Limited to Report First Half, 2025 Results on Aug 29, 2025 GCL Technology Holdings Limited announced that they will report first half, 2025 results on Aug 29, 2025 Major Estimate Revision • Aug 02
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥17.0b to CN¥16.8b. Losses expected to increase from CN¥0.023 per share to CN¥0.03. Semiconductor industry in Hong Kong expected to see average net income growth of 70% next year. Consensus price target broadly unchanged at HK$1.50. Share price fell 5.7% to HK$1.16 over the past week. Major Estimate Revision • May 08
Consensus EPS estimates upgraded to CN¥0.0056 loss, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from CN¥18.6b to CN¥17.6b. 2025 losses expected to reduce from -CN¥0.0107 to -CN¥0.0056 per share. Semiconductor industry in Hong Kong expected to see average net income growth of 81% next year. Consensus price target broadly unchanged at HK$1.49. Share price was steady at HK$0.80 over the past week. Reported Earnings • May 01
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: CN¥0.18 loss per share (down from CN¥0.095 profit in FY 2023). Revenue: CN¥15.1b (down 55% from FY 2023). Net loss: CN¥4.75b (down 289% from profit in FY 2023). Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 41 percentage points per year, which is a significant difference in performance. Announcement • Apr 29
GCL Technology Holdings Limited, Annual General Meeting, May 30, 2025 GCL Technology Holdings Limited, Annual General Meeting, May 30, 2025, at 10:00 China Standard Time. Location: multifunctional room, gcl energy center, no. 28 xinqing road, suzhou industrial park, suzhou, jiangsu, China Reported Earnings • Mar 30
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: CN¥0.18 loss per share (down from CN¥0.095 profit in FY 2023). Revenue: CN¥15.1b (down 55% from FY 2023). Net loss: CN¥4.75b (down 289% from profit in FY 2023). Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Mar 21
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2024 has been updated. 2024 expected loss increased from -CN¥0.121 to -CN¥0.136 per share. Revenue forecast of CN¥18.3b unchanged since last update. Semiconductor industry in Hong Kong expected to see average net income growth of 59% next year. Consensus price target broadly unchanged at HK$1.69. Share price fell 7.1% to HK$1.05 over the past week. Announcement • Mar 18
GCL Technology Holdings Limited to Report Fiscal Year 2024 Results on Mar 28, 2025 GCL Technology Holdings Limited announced that they will report fiscal year 2024 results on Mar 28, 2025 New Risk • Jan 15
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.7% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Shareholders have been diluted in the past year (5.7% increase in shares outstanding). Significant insider selling over the past 3 months (HK$5.4m sold). Recent Insider Transactions • Nov 03
Executive President recently sold HK$5.4m worth of stock On the 29th of October, Zhanjun Zhu sold around 3m shares on-market at roughly HK$1.59 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Zhanjun's only on-market trade for the last 12 months. Announcement • Oct 31
GCL Technology Holdings Limited Appoints Li Junfeng as an Independent Non-Executive Director, A Member of the Corporate Governance Committee, A Member of the Strategy & Investment Committee and A Member of the Environmental, Social and Governance Committee, Effective from 1 November 2024 GCL Technology Holdings Limited announced that Mr. Li Junfeng ("Mr. Li") will be appointed as an independent non-executive director, a member of the Corporate Governance Committee, a member of the Strategy & Investment Committee and a member of the Environmental, Social and Governance Committee of the Company with effect from 1 November 2024. Li Junfeng, aged 68, has been committed to the research of energy economics and the theory of energy and environment. From 1982 to 2011, Mr. Li successively served as an intern researcher, associate researcher, deputy researcher and researcher of the Energy Research Institute under the National Development and Reform Commission. From 2011 to 2017, Mr. Li served as the director of the National Center for Climate Change Strategy and International Cooperation. Since 2021, Mr. Li has served as a standing director of the China Energy Research Society. Mr. Li is currently also a doctoral supervisor of Renmin University of China, an investment partner of HongShan, the head of HongShan Carbon Neutrality Research Institute and the chairman of HongShan Envision Carbon Neutral Fund. Mr. Li won the Zayed Future Energy PrizeLifetime Achievement Award in 2017. Mr. Li graduated from the Shandong Institute of Mining and Technology in 1982 with a bachelor's degree in engineering. Major Estimate Revision • Oct 29
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2024 has been updated. 2024 expected loss increased from -CN¥0.088 to -CN¥0.104 per share. Revenue forecast unchanged at CN¥19.4b. Semiconductor industry in Hong Kong expected to see average net income growth of 41% next year. Consensus price target up from HK$1.55 to HK$1.69. Share price rose 33% to HK$1.59 over the past week. Announcement • Sep 25
Gcl Technology Holdings Limited Appoints Mr. Lan Tianshi as Member of Environmental, Social and Governance Committee The board of directors of GCL Technology Holdings Limited announced that Mr. Lan Tianshi, an executive director of the Company, has been appointed as a member of the Environmental, Social and Governance Committee of the Company with effect from 25 September 2024. Reported Earnings • Aug 31
First half 2024 earnings released: CN¥0.056 loss per share (vs CN¥0.21 profit in 1H 2023) First half 2024 results: CN¥0.056 loss per share (down from CN¥0.21 profit in 1H 2023). Revenue: CN¥8.86b (down 58% from 1H 2023). Net loss: CN¥1.48b (down 127% from profit in 1H 2023). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Hong Kong. Major Estimate Revision • Aug 22
Consensus EPS estimates fall by 56% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥28.0b to CN¥26.9b. EPS estimate also fell from CN¥0.107 per share to CN¥0.047 per share. Net income forecast to shrink 44% next year vs 31% growth forecast for Semiconductor industry in Hong Kong . Consensus price target up from HK$1.64 to HK$1.68. Share price fell 3.5% to HK$1.10 over the past week. Announcement • Aug 20
GCL Technology Holdings Limited to Report First Half, 2024 Results on Aug 29, 2024 GCL Technology Holdings Limited announced that they will report first half, 2024 results on Aug 29, 2024 Announcement • Aug 17
GCL Technology Holdings Limited Provides Group Earnings Guidance for the Six Months Ended 30 June 2024 GCL Technology Holdings Limited provided group earnings guidance for the six months ended 30 June 2024. The company announced that for the six months ended 30 June 2024 (the first half of 2024), the loss attributable to the owners of the company is expected to be approximately RMB 1.45 billion, as compared to the unaudited profit attributable to the owners of the company of approximately RMB 5.52 billion in the corresponding period of 2023. Based on currently available information, the board believes that the reasons for the loss attributable to the owners of the company expected to record for the first half of 2024 was mainly attributable to: significant decrease in the average selling price of polysilicon and wafer products in the market for the first half of 2024 (compared that of the six months ended 30 June 2023); and inventories impairment as a result of the decrease in selling price of products. Reported Earnings • May 01
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.095 (down from CN¥0.61 in FY 2022). Revenue: CN¥33.7b (down 6.2% from FY 2022). Net income: CN¥2.51b (down 85% from FY 2022). Profit margin: 7.4% (down from 46% in FY 2022). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 58%. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Announcement • May 01
GCL Technology Holdings Limited, Annual General Meeting, May 31, 2024 GCL Technology Holdings Limited, Annual General Meeting, May 31, 2024, at 10:00 China Standard Time. Location: Multifunctional Room, GCL Energy Center, No. 28 Xinqing Road, Suzhou Industrial Park, Suzhou Jiangsu Province China Agenda: To receive and consider the audited consolidated financial statements and the reports of the Directors and auditor ("Auditor") for the financial year ended 31 December 2023;To re-elect Mr. Zhu Gongshan as an executive director of the Company; To re-elect Mr. Lan Tianshi as an executive director of the Company; To re-elect Ir. Dr. Ho Chung Tai, Raymond as an independent non-executive director of the Company; To authorise the board (the "Board") of the directors to fix the remuneration of the directors; and to discuss other matters. Major Estimate Revision • Mar 22
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥32.7b to CN¥32.1b. EPS estimate also fell from CN¥0.197 per share to CN¥0.171 per share. Net income forecast to grow 96% next year vs 25% growth forecast for Semiconductor industry in Hong Kong. Consensus price target up from HK$1.66 to HK$1.75. Share price rose 7.0% to HK$1.38 over the past week. Reported Earnings • Mar 16
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.095 (down from CN¥0.64 in FY 2022). Revenue: CN¥33.7b (down 6.2% from FY 2022). Net income: CN¥2.51b (down 85% from FY 2022). Profit margin: 7.4% (down from 47% in FY 2022). The decrease in margin was primarily driven by higher expenses. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 58%. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$1.32, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 11x in the Semiconductor industry in Hong Kong. Total loss to shareholders of 40% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$1.11 per share. Announcement • Sep 22
GCL Technology Holdings Limited Announces 100,000-Tonne Granular Silicon Project of Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. Officially Put into Production The board of directors of GCL Technology Holdings Limited announced that the 100,000-tonne granular silicon project of Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd., an indirect subsidiary of the Company (the Hohhot Base), has been officially put into production on 21 September 2023, and the output quality fully meets the production needs of N-type products. Hohhot Base is the fourth granular silicon production base of the Company after Xuzhou base, Leshan base and Baotou base. The construction of the project was officially commenced on 21 November 2022, with a construction period of 10 months in total, setting the world's fastest record of the construction speed of 100,000-tonne polysilicon project. With the continuous improvement of granular silicon modularization system, it is expected that its effective production capacity will reach 120,000 tonnes after the Hohhot Base project reaches its full capacity, and the maximum effective production capacity of the existing bases will continue to increase. With the iteration of granular silicon production for 20,000-tonne module to 60,000-tonne module, the investment cost and production cost per unit of polysilicon will be further reduced, which will promote the cost reduction and efficiency improvement of the photovoltaic industry. Shareholders and potential investors of the Company are reminded to exercise caution when dealing in the securities of the Company. New Risk • Sep 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 40% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 21% per year for the foreseeable future. High level of non-cash earnings (40% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 30
First half 2023 earnings released: EPS: CN¥0.21 (vs CN¥0.26 in 1H 2022) First half 2023 results: EPS: CN¥0.21 (down from CN¥0.26 in 1H 2022). Revenue: CN¥20.9b (up 37% from 1H 2022). Net income: CN¥5.52b (down 20% from 1H 2022). Profit margin: 26% (down from 45% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 3.0% p.a. on average during the next 3 years, while revenues in the Semiconductor industry in Hong Kong are expected to grow by 14%. Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has only increased by 69% per year, which means it is significantly lagging earnings growth. Announcement • Aug 16
GCL Technology Holdings Limited to Report First Half, 2023 Results on Aug 29, 2023 GCL Technology Holdings Limited announced that they will report first half, 2023 results on Aug 29, 2023 Recent Insider Transactions • Jun 29
Joint CEO & Executive Director recently bought HK$1.6m worth of stock On the 26th of June, Tianshi Lan bought around 980k shares on-market at roughly HK$1.68 per share. This transaction amounted to 65% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Tianshi has been a net seller over the last 12 months, reducing personal holdings by HK$1.1m. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.74, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 14x in the Semiconductor industry in Hong Kong. Total returns to shareholders of 707% over the past three years. Upcoming Dividend • May 26
Upcoming dividend of HK$0.06 per share at 3.2% yield Eligible shareholders must have bought the stock before 02 June 2023. Payment date: 29 June 2023. Trailing yield: 3.2%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (2.2%). Reported Earnings • Mar 31
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: CN¥0.61 (up from CN¥0.21 in FY 2021). Revenue: CN¥35.9b (up 82% from FY 2021). Net income: CN¥16.4b (up 223% from FY 2021). Profit margin: 46% (up from 26% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has only increased by 103% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be HK$2.39, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 44% in 2 years. Earnings is forecast to grow by 18% in the next 2 years. Announcement • Feb 20
GCL Technology Holdings Limited Provides Consolidated Earnings Guidance for the Year Ended 31 December 2022 GCL Technology Holdings Limited provided consolidated earnings guidance for the year ended 31 December 2022. The group expects to record a net profit attributable to the owners of the company of not less than RMB 15.5 billion for the year ended 31 December 2022, representing a year-on-year increase of not less than 204% as compared to the net profit attributable to the owners of the company of approximately RMB 5.1 billion for the year ended 31 December 2021. Buying Opportunity • Jan 09
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 6.3%. The fair value is estimated to be HK$2.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 44% in 2 years. Earnings is forecast to grow by 26% in the next 2 years. Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment deteriorated over the past week After last week's 16% share price decline to HK$2.06, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 12x in the Semiconductor industry in Hong Kong. Total returns to shareholders of 714% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$2.80 per share. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 5 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Non-Executive Director Wenzhong Shen was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improved over the past week After last week's 19% share price gain to HK$2.37, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 10x in the Semiconductor industry in Hong Kong. Total returns to shareholders of 658% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.21 per share. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment deteriorated over the past week After last week's 16% share price decline to HK$2.11, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 8x in the Semiconductor industry in Hong Kong. Total returns to shareholders of 535% over the past three years. Major Estimate Revision • Oct 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from CN¥50.2b to CN¥35.1b. EPS estimate reaffirmed at CN¥0.55. Net income forecast to grow 49% next year vs 33% growth forecast for Semiconductor industry in Hong Kong. Consensus price target broadly unchanged at HK$4.43. Share price fell 2.8% to HK$2.40 over the past week. Major Estimate Revision • Sep 06
Consensus revenue estimates increase by 12% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from CN¥27.0b to CN¥30.2b. EPS estimate increased from CN¥0.45 to CN¥0.49 per share. Net income forecast to grow 39% next year vs 28% growth forecast for Semiconductor industry in Hong Kong. Consensus price target broadly unchanged at HK$4.43. Share price fell 5.7% to HK$2.82 over the past week. Reported Earnings • Sep 01
First half 2022 earnings released: EPS: CN¥25.80 (vs CN¥0.099 in 1H 2021) First half 2022 results: EPS: CN¥25.80 (up from CN¥0.099 in 1H 2021). Revenue: CN¥15.3b (up 75% from 1H 2021). Net income: CN¥6.91b (up 187% from 1H 2021). Profit margin: 45% (up from 27% in 1H 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 20%, compared to a 28% growth forecast for the Semiconductor industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has increased by 108% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment deteriorated over the past week After last week's 16% share price decline to HK$3.15, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Semiconductor industry in Hong Kong. Total returns to shareholders of 708% over the past three years. Major Estimate Revision • Jul 16
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from CN¥23.9b to CN¥25.0b. EPS estimate increased from CN¥0.38 to CN¥0.43 per share. Net income forecast to grow 126% next year vs 3.9% growth forecast for Semiconductor industry in Hong Kong. Consensus price target up from HK$4.11 to HK$4.41. Share price was steady at HK$3.81 over the past week. Recent Insider Transactions Derivative • Jul 01
Executive Director exercised options and sold HK$5.6m worth of stock On the 23rd of June, Xiongjiu Zheng exercised 3m options at a strike price of around HK$1.16 and sold these shares for an average price of HK$3.38 per share. This trade did not impact their existing holding. Since December 2021, Xiongjiu's direct individual holding has decreased from 250.00k shares to . This was the only transaction from an insider over the last 12 months. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment improved over the past week After last week's 19% share price gain to HK$3.92, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Semiconductor industry in Hong Kong. Total returns to shareholders of 801% over the past three years. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improved over the past week After last week's 19% share price gain to HK$3.33, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Semiconductor industry in Hong Kong. Total returns to shareholders of 657% over the past three years. Reported Earnings • Apr 28
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: CN¥0.21 (up from CN¥0.28 loss in FY 2020). Revenue: CN¥19.7b (up 34% from FY 2020). Net income: CN¥5.08b (up CN¥10.8b from FY 2020). Profit margin: 26% (up from net loss in FY 2020). The move to profitability was primarily driven by higher revenue. Revenue exceeded analyst estimates by 16%. Earnings per share (EPS) also surpassed analyst estimates by 5.7%. Over the next year, revenue is forecast to grow 19%, compared to a 31% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has increased by 65% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Apr 27
Consensus revenue estimates increase by 14% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from CN¥20.6b to CN¥23.5b. EPS estimate increased from CN¥0.33 to CN¥0.35 per share. Net income forecast to grow 88% next year vs 17% growth forecast for Semiconductor industry in Hong Kong. Consensus price target up from HK$3.98 to HK$4.06. Share price fell 5.0% to HK$2.49 over the past week. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 4 highly experienced directors. 4 independent directors (7 non-independent directors). Independent Non-Executive Director Francis Wong was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 30
Full year 2021 earnings: Revenues exceed analyst expectations Full year 2021 results: Revenue: CN¥19.7b (up 35% from FY 2020). Net income: CN¥5.08b (up CN¥10.8b from FY 2020). Profit margin: 26% (up from net loss in FY 2020). Revenue exceeded analyst estimates by 16%. Over the next year, revenue is forecast to grow 2.5%, compared to a 32% growth forecast for the industry in Hong Kong. Breakeven Date Change • Dec 31
Forecast breakeven date pushed back to 2022 The 3 analysts covering GCL-Poly Energy Holdings previously expected the company to break even in 2021. New consensus forecast suggests the company will make a profit of CN¥6.06b in 2022. Average annual earnings growth of 31% is required to achieve expected profit on schedule. Reported Earnings • Nov 09
First half 2021 earnings released: EPS CN¥0.099 (vs CN¥0.10 loss in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥8.78b (up 22% from 1H 2020). Net income: CN¥2.41b (up CN¥4.40b from 1H 2020). Profit margin: 27% (up from net loss in 1H 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 142 percentage points per year, which is a significant difference in performance. Breakeven Date Change • Nov 02
Forecast to breakeven in 2021 The analyst covering GCL-Poly Energy Holdings expects the company to break even for the first time. New forecast suggests the company will make a profit of CN¥5.54b in 2021. Earnings growth of 42% is required to achieve expected profit on schedule. Board Change • Nov 02
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 3 highly experienced directors. 4 independent directors (6 non-independent directors). Independent Non-Executive Director Francis Wong was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Breakeven Date Change • Nov 02
Forecast to breakeven in 2021 The analyst covering GCL-Poly Energy Holdings expects the company to break even for the first time. New forecast suggests the company will make a profit of CN¥5.54b in 2021. Earnings growth of 42% is required to achieve expected profit on schedule. 
