Thursday, September 20, 2007

Tangshan Silicon Launches its Polysilicon Project

September 18th 2007 Tangshan Silicon broke ground its polysilicon project in Tangshan city.

The total investment is 700 million RMB, its polysilicon production capacity is 1000 tons per year.

Solar polysilicon project breaks ground in Baotou

On September 8th 2007 Zhongjing Huaye polysilicon project broke ground in Baotou city.

The total investment is 1.23 billion RMB, the first phase project will be completed in early 2008, and then Zhongjing Huaye will be able to produce 32.4 million pieces of monosilicon wafers per year. The whole project will be completed by the end of 2010, Zhongjing Huaye then will have the polysilicon annual production capacity of 1200 tons.

Zhongjing Huaye is one state owned import and export company, and it is the subsidiary of China National Arts & Grafts (Group) Cooperation.

China builds one 205KW Desert Demonstration PV Power Plant in Inner Mongolia

The power plant was invested by Yitai Coal Group. The system consists of 200KW CSP PV system and 5KW conventional solar PV system for comparison.

This project was led by professor, Chen Yingtian. They adopt solar concentrators to track and focus the sunlight to the solar cell to lower the power generation cost.

The total investment is 9 million RMB, and it is just the 75% of the conventional PV power generation system with the same capacity.

The power output of the solar photovoltaic panel in this project is increased to 3 to 4 times.

China Sunergy was sued in U.S.A by stock investor.

China Sunergy, certain of its officers and directors, and the Company's underwriters are charged with including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement and Prospectus issued in connection with the IPO, in violation of the Securities Act of 1933 by one stock investor, Thomas Brown, at New York South District court on September 7th.

Particularly, the Complaint charges that China Sunergy raised over $107.52 million through the issuance of 9.775 million shares, despite the Registration Statement's false and misleading statements that the Company: (1) was a "leading manufacturer of solar cell products, as measured by production capacity" that was experiencing remarkable revenue growth; and (2) had secured a sufficient supply of polysilicon, a raw material necessary to the continued production of its solar cell products. Yet at the time of the IPO and unbeknownst to shareholders, the Registration Statement failed to disclose that China Sunergy was already having difficulty obtaining a sufficient supply of polysilicon, which foreseeably would have a near-term adverse impact on earnings.

On July 3, 2007, only weeks after the IPO, China Sunergy issued a press release announcing preliminary results for 2Q:07 well below guidance, and claimed that it could suddenly not obtain critical raw materials necessary for production and its revenue goals. The Company's press release stated that "the relatively tight supply of polysilicon affected the quality, quantity and delivery of wafers and drove up overall wafer prices in the spot market, resulting in increased pressure on China Sunergy's margins."

The complaint further alleges that on this news, shares of China Sunergy fell nearly 25% in a single trading day, from a high of $14.90 on July 2, 2007, to a close of $11.28 the following day, on exceedingly high volume of 3.659 million shares. As the impact of China Sunergy's belated disclosures resonated in the market, shares of the Company continued to decline, to about $7.50 per share by August 23, 2007. Shares fell significantly lower days later, to below $5.00 per share -- on news that the Company's CFO was resigning – after China Sunergy revealed a loss of at least $.14 per share for 2Q:07. In all, China Sunergy shares fell from $16.70 per share from the highs following the IPO, to a low of below $5.00 per share -- all within approximately 10 weeks.

Great Solar Photovoltaic Potential in China

According to the China Solar Photovoltaic Development Report released at World Solar Congress 2007 in Beijing, the cost of solar photovoltaic power in China will be reduced to almost the same level of the conventional power by 2030, and solar photovoltaic power will become one mainstream power.

The report says that the installed solar photovoltaic power generation capacity in China will reach 100 million KW, and the annual power generation output will reach 130 billion KW by 2030.

At present China is the third largest solar cell producing country, but 90% of the solar photovoltaic products are exported, and the domestic solar photovoltaic applications are installed in the remote or rural regions. The solar photovoltaic development is hindered by the high power generation cost.