(Yicai) Jan. 3 -- Shares in GCL Technology tumbled today after the Chinese photovoltaic materials giant said it is selling its stake in silicon rod manufacturer Xinjiang Goens Energy Technology, effectively terminating its production of the raw material used to make solar panels, to concentrate on granular silicon, which is another form of processed silicon and has a higher profit margin. 

GCL Technology’s share price [HKG:3800] closed down 5.9 percent at HKD1.10 (USD0.14) today, the first trading day of the new year. 

Xinjiang Goens, which produces 60,000 tons of silicon rods a year, is buying back all the equity held by GCL Technology’s unit Jiangsu Zhongneng Polysilicon Technology Development, the Suzhou-based company said on Dec. 29. 

It follows the halting of GCL Technology’s silicon rod production at its Xuzhou facility in June last year. 

GCL Technology said in its 2022 annual financial report that it will stop all silicon rod manufacturing by the end of 2023, in order to dedicate its limited production capacity to granular silicon, which is more profitable. The company currently has an annual output of 360,000 tons of granular silicon. 

GCL Technology is also planning to set up a granular silicon factory overseas, with an annual output of 120,000 tons, which will be up and running by next year at the earliest, the firm said earlier. The Middle East has been selected as the potential site, it added.

Editors: Shi Yi, Kim Taylor