(Yicai Global) Aug. 27 -- Shares in Wuxi Shangji Automation reached a record high today after the Chinese solar wafer producer and photovoltaic equipment maker announced a more than five-time surge in first-half profit as the demand for green energy boosts orders.

Shangji Automation’s share price [SHA: 603185] closed up 7.24 percent at CNY326 (USD50.33). Earlier in the day it hit CNY332.80. The stock has gained six-fold in the past year.

Shangji Automation raked in net profit of CNY849 million (USD131 million) in the six months ended June 30, according to the Wuxi, southeastern Jiangsu province-based firm’s latest earnings report released yesterday.

The firm is planning to increase its output of monocrystalline silicon wafers, one of its most profitable businesses, by 50 percent by building a 10-gigawatt plant in Baotou, northern Inner Mongolia Autonomous Region, it said yesterday. Costing around CNY2.5 billion (USD386 million), the company plans to raise the funds by issuing convertible bonds.

Revenue more than tripled in the first half from the same period last year to CNY3.6 billion (USD556 million) as a further 13 GW of capacity came into operation and product prices increased, it said.

Long-term purchase contracts with suppliers have enabled Shangji Automation to keep production running smoothly despite a shortage of some major raw materials like polycrystalline silicon.

At current growth rates, the world is facing a shortfall of silicon wafers. Some 380 GW of wafers will be needed to meet global demand by 2025, according to data from the China Photovoltaic Industry Association. As of the end of the last year, the whole industry only had an output of 205 GW.

Editor: Kim Taylor