(Yicai) Aug. 30 -- Chinese photovoltaic equipment giant Trina Solar warned investors that competition in the industry will intensify, after reporting a 179 percent year-on-year surge in first-quarter profit.

With the expansion of production capacity and the introduction of new technologies, the price of PV products will gradually fall, affecting cost controls and product performance at companies, the Changzhou-based firm said in its latest earnings report released yesterday.

Moreover, large silicon material producers and other material suppliers may see production capacity fluctuate, or unexpected periodic surges in demand from downstream, which will lead to swings in Trina Solar’s raw material costs, it added.

Net profit surged 179 percent to CNY3.5 billion (USD485.6 million) in the six months ended June on a 38 percent gain in revenue to CNY49.4 billion (USD6.8 billion) as a result of higher shipments.

Trina Solar’s production capacity of silicon wafers, batteries, and components will reach 50 gigawatts, 75 GW, and 95 GW, respectively, by the end of the year, the firm said, adding that it raised its annual solar panel shipment target to 65 GW to 70 GW from 60 GW to 65 GW and set its third-quarter goal at about 19 GW.

Shares of Trina Solar [SHA: 688599] closed 0.7 percent down at CNY35.35 (USD4.85) each in Shanghai today.

Editor: Futura Costaglione