Asia Tech Wire (July 3) -- Chinese solar panel maker Trina Solar (688599.SH) expects its operating cash flow to turn positive in the second quarter of this year.

Trina Solar said in a recent institutional research that the company's negative operating cash flow in the first quarter is mainly due to the seasonal characteristics of the industry, "basically all negative cash flow in the industry in the first quarter."

"The main reason is that the first quarter is the off-season for installation, and the downstream pick-up demand is low," it said. "But it will start rebounding in the second quarter, so the company will stock up based on orders."

Trina Solar said the company's operating cash flow will continue to improve as production proceeds and orders are delivered, and it expects operating cash flow to turn positive in the second quarter.

The solar panel maker expects continued improvement in the second half of the year, achieving a positive full-year net operating cash flow.

In the first quarter of 2024, Trina Solar realized operating revenues of 18.26 billion yuan and net income of 516 million yuan, down 14.37% and 70.83% year-over-year, respectively.

The company's net cash flow from operating activities amounted to negative 4.39 billion yuan during the same period, a significant decrease of 391.51% year-on-year.