SHANGHAI, Feb 28 (Reuters) - Shares of Shenzhen Topraysolar Co, China's first specialist maker of solar power cells to list domestically, soared 400 percent as they began trading on Thursday, beating analysts' forecasts by far.
The shares opened on the Shenzhen Stock Exchange at 54.00 yuan against their initial public offer price of 10.79 yuan. Analysts had expected an opening price of around 45 yuan.
After five minutes of trade, the shares were up 382 percent at 52.00 yuan.
Topraysolar raised about $60 million in its IPO, selling 25 percent of its expanded capital. The offer attracted strong demand because of increasing Chinese investor interest in clean energy shares.
The company plans to invest funds raised in the IPO in expanding production. It earned a net profit of 76.29 million yuan ($10.7 million) in 2007, up 13 percent from 2006.
A number of bigger Chinese solar energy firms, such as SunTech Power and Yingli Green Energy, have listed their shares on U.S. markets over the past several years.
In late December, shares in Xinjiang Goldwind Science & Technology Co, China's biggest maker of wind power generation equipment, far exceeded expectations by soaring 264 percent from their issue price in their Shenzhen debut. ($1 = 7.12 yuan) (Reporting by Claire Zhang, Editing by Andrew Torchia and Edmund Klamann)
Thursday, February 28, 2008
Canadian Solar Signs Wafer Supply Contracts with Four Wafer Suppliers
JIANGSU, China, Feb 27, 2008 /Xinhua-PRNewswire via COMTEX/ -- Canadian Solar Inc. ("the Company" or "CSI") (Nasdaq: CSIQ) today announced it signed solar wafer supply contracts with four suppliers, including Jiangsu Shunda Group Corporation ("Shunda").
Under the contracts, these suppliers will deliver approximately 12 MW of wafers to CSI before the summer of 2008, including 4MW from Shunda. Delivery of wafers to CSI under these contracts commenced in January 2008. In addition, CSI signed a multi-year supply contract with Shunda, which gives CSI the option of two fixed prepayments in late 2008 and 2010 for wafer supplies through 2015 at predetermined prices and schedules. If fully executed, the contract is expected to provide more than 700MW of wafers over the eight-year period.
Dr. Shawn Qu, CEO of CSI, said, "These contracts allow us to immediately diversify our silicon wafer supply sources while giving us the option of securing additional wafers from Shunda through 2015. We continue to execute our balanced supply portfolio strategy, a part of which aims to further strengthen and diversify our supplier base. The ability to develop strategic, win-win relationships with companies across the solar value chain is a strength that CSI continues to demonstrate. We look forward to further advancing our relationships with our loyal supply partners, as the increased visibility into 2008, 2009 and future years gives us added confidence that CSI will meet the robust demand for its products."
About Canadian Solar Inc. (Nasdaq: CSIQ)
Founded in 2001, Canadian Solar Inc. is a vertically integrated manufacturer of solar cell, solar module and customer-designed solar application products serving worldwide customers. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
Under the contracts, these suppliers will deliver approximately 12 MW of wafers to CSI before the summer of 2008, including 4MW from Shunda. Delivery of wafers to CSI under these contracts commenced in January 2008. In addition, CSI signed a multi-year supply contract with Shunda, which gives CSI the option of two fixed prepayments in late 2008 and 2010 for wafer supplies through 2015 at predetermined prices and schedules. If fully executed, the contract is expected to provide more than 700MW of wafers over the eight-year period.
Dr. Shawn Qu, CEO of CSI, said, "These contracts allow us to immediately diversify our silicon wafer supply sources while giving us the option of securing additional wafers from Shunda through 2015. We continue to execute our balanced supply portfolio strategy, a part of which aims to further strengthen and diversify our supplier base. The ability to develop strategic, win-win relationships with companies across the solar value chain is a strength that CSI continues to demonstrate. We look forward to further advancing our relationships with our loyal supply partners, as the increased visibility into 2008, 2009 and future years gives us added confidence that CSI will meet the robust demand for its products."
About Canadian Solar Inc. (Nasdaq: CSIQ)
Founded in 2001, Canadian Solar Inc. is a vertically integrated manufacturer of solar cell, solar module and customer-designed solar application products serving worldwide customers. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
Bright Future Seen For Suntech Power
HONG KONG
With rising demand for solar energy in Europe and the United States, China-based Suntech Power Holdings is expected to increase its profit by 75% and become the world's No. 1 solar module manufacturer in 2008.
In a research report published Wednesday, Citigroup projected that Suntech Power would become the largest supplier of photovoltaic cells and modules in the world this year, with year-end capacity of 1 gigawatt, almost double the production scale it had in 2007. Headquartered in Wuxi, an industrial city in the coastal province of Jiangsu, Suntech was ranked the world's No. 3 solar module producer in 2007, with annual capacity of 540 megawatts.
Citigroup estimated Suntech's sales would grow 53%, to $2.06 billion, in 2008, from $1.3 billion last year. Net profit is forecast to soar by 75%, to $299.5 million, this year, up from the $171.3 million recorded in 2007.
Suntech has been expanding rapidly in the past few years. It was established in 2001 and listed on New York Stock Exchange in December 2005. With four production sites in Wuxi, Luoyang (in Henan province), Qinghai province and Shanghai, Suntech is currently the No. 2 photovoltaic module supplier in Germany, the world’s largest solar market, which accounted 50% of Suntech's sales in 2007.
Citigroup forecast a favorable outlook for China’s solar industry generally, with strong demand growth in Spain, Italy, South Korea and potentially the United States, as well as solid demand from Germany, driven by increased adoption of solar incentives by governments worldwide as a matter of policy. Nevertheless, Citigroup expected the present undersupply of solar polysilicon will continue only through 2008. "By second half in 2009 and entering 2010, a significant increase in new polysilicon capacity would likely cause industry oversupply, resulting in a potential industry cyclical correction which could drive down both polysilicon and module prices." Citigroup anticipated that the industry will be 33% oversupplied by 2010.
Amid fierce competition in the solar industry, the bank chose Suntech as its top pick in the field, the most capable of weathering the coming market correction: "We believe Suntech is among the best positioned in the sector, given its leading scale, low-cost China manufacturing and roadmap for improved cell efficiency." Citigroup initiated coverage on Suntech with a "buy/ high risk" rating, setting a target price of $55.
With rising demand for solar energy in Europe and the United States, China-based Suntech Power Holdings is expected to increase its profit by 75% and become the world's No. 1 solar module manufacturer in 2008.
In a research report published Wednesday, Citigroup projected that Suntech Power would become the largest supplier of photovoltaic cells and modules in the world this year, with year-end capacity of 1 gigawatt, almost double the production scale it had in 2007. Headquartered in Wuxi, an industrial city in the coastal province of Jiangsu, Suntech was ranked the world's No. 3 solar module producer in 2007, with annual capacity of 540 megawatts.
Citigroup estimated Suntech's sales would grow 53%, to $2.06 billion, in 2008, from $1.3 billion last year. Net profit is forecast to soar by 75%, to $299.5 million, this year, up from the $171.3 million recorded in 2007.
Suntech has been expanding rapidly in the past few years. It was established in 2001 and listed on New York Stock Exchange in December 2005. With four production sites in Wuxi, Luoyang (in Henan province), Qinghai province and Shanghai, Suntech is currently the No. 2 photovoltaic module supplier in Germany, the world’s largest solar market, which accounted 50% of Suntech's sales in 2007.
Citigroup forecast a favorable outlook for China’s solar industry generally, with strong demand growth in Spain, Italy, South Korea and potentially the United States, as well as solid demand from Germany, driven by increased adoption of solar incentives by governments worldwide as a matter of policy. Nevertheless, Citigroup expected the present undersupply of solar polysilicon will continue only through 2008. "By second half in 2009 and entering 2010, a significant increase in new polysilicon capacity would likely cause industry oversupply, resulting in a potential industry cyclical correction which could drive down both polysilicon and module prices." Citigroup anticipated that the industry will be 33% oversupplied by 2010.
Amid fierce competition in the solar industry, the bank chose Suntech as its top pick in the field, the most capable of weathering the coming market correction: "We believe Suntech is among the best positioned in the sector, given its leading scale, low-cost China manufacturing and roadmap for improved cell efficiency." Citigroup initiated coverage on Suntech with a "buy/ high risk" rating, setting a target price of $55.
China Solar & Clean Energy Solutions, Inc. Raises $11 Million in Private Placement
LOS ANGELES and BEIJING, Feb. 26 /Xinhua-PRNewswire-FirstCall/ -- China Solar & Clean Energy Solutions, Inc. (BULLETIN BOARD: CSOL) (the "Company"), a premier manufacturer and distributor of solar water heaters, space heating devices and renewable energy solutions in the People's Republic of China (the "PRC"), today announced that it has entered into a Securities Purchase Agreement with certain institutional investors pursuant to which China Solar agreed to issue and sell up to 4.7 million shares of common stock at a purchase price of $2.40 per share, for gross proceeds of up to US$11 million.
The net proceeds of the offering will be utilized to complete the acquisition of Shenzhen PengSangPu, for general working capital, and future acquisitions.
Mr. Deli Du, President and CEO of China Solar said, "We are very pleased to have completed this financing which provides us with additional capital to help fund our future growth, including our recently announced acquisition of Shenzhen PengSangPu. We are also quite pleased with the quality of the institutional investors that participated in our private placement and their confidence in our ability to carry out our strategic vision and become the leading Clean Tech energy solution provider in China."
For more detailed information on the financing referred to in this release, reference is made to the Company's Current Report on Form 8-K and related exhibits thereto being filed with the Securities and Exchange Commission on the date hereof.
The common stock issued in the private placement has not been registered under the Securities Act of 1933, as amended, and may not be subsequently offered or sold by the investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. China Solar has agreed to file a registration statement covering the resale by the investors of the common stock issued in the private placement within 45 days of the closing date.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About China Solar & Clean Energy Solutions, Inc.
China Solar & Clean Energy Solutions, Inc. operates through its wholly owned subsidiaries Bazhou Deli Solar Heating Energy Co. Ltd., Beijing Deli Solar Technology Development Co., Ltd. and its 51% ownership in Tianjin Huaneng Energy Equipment Company, all of which are located in the PRC. The Company manufactures and distributes hot water and space heating devices to customers in the PRC, in addition to waste heat recovery systems. For more information, please visit http://www.cn-cse.com/ .
The net proceeds of the offering will be utilized to complete the acquisition of Shenzhen PengSangPu, for general working capital, and future acquisitions.
Mr. Deli Du, President and CEO of China Solar said, "We are very pleased to have completed this financing which provides us with additional capital to help fund our future growth, including our recently announced acquisition of Shenzhen PengSangPu. We are also quite pleased with the quality of the institutional investors that participated in our private placement and their confidence in our ability to carry out our strategic vision and become the leading Clean Tech energy solution provider in China."
For more detailed information on the financing referred to in this release, reference is made to the Company's Current Report on Form 8-K and related exhibits thereto being filed with the Securities and Exchange Commission on the date hereof.
The common stock issued in the private placement has not been registered under the Securities Act of 1933, as amended, and may not be subsequently offered or sold by the investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. China Solar has agreed to file a registration statement covering the resale by the investors of the common stock issued in the private placement within 45 days of the closing date.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About China Solar & Clean Energy Solutions, Inc.
China Solar & Clean Energy Solutions, Inc. operates through its wholly owned subsidiaries Bazhou Deli Solar Heating Energy Co. Ltd., Beijing Deli Solar Technology Development Co., Ltd. and its 51% ownership in Tianjin Huaneng Energy Equipment Company, all of which are located in the PRC. The Company manufactures and distributes hot water and space heating devices to customers in the PRC, in addition to waste heat recovery systems. For more information, please visit http://www.cn-cse.com/ .
ET Solar Group Announces Agreement with OPDE
NANJING, China, Feb. 26 /Xinhua-PRNewswire/ -- ET Solar Group Corp.("ET Solar"), a Nanjing-based integrated manufacturer of photovoltaic products including ingot, wafer, module, and state-of-the-art dual-axistracking systems with manufacturing facilities located in Taizhou, China, announced today a framework collaborative agreement (the "Agreement") with Spain-based Meca Solar, one of the largest global state-of-the-artmanufacturers of solar tracker systems.
Under the Agreement, Meca Solar will (1) provide technical and technological support and assistance for ET Solar's tracker design and manufacturing, and provide installation training for ET Meca dual-axisprojects; and (2) become a minority share holder of ET Solar. Additionally,with guidance of Meca Solar, ET's engineering staff will become authorized and certified installation technicians
Commenting on the Agreement, Xinghua Wang, CEO and President of ET Solar said: "With our on-going sales over the past 12 months and a recent additional 10MW contract for 2008 with OPDE (Meca Solar's parent company), and now a strong strategic tracker manufacturing partnership with MecaSolar, I have every reason to believe that future opportunities between the two organizations are abundant.
"The strategic investment of a leading foreign system integration company into a fast growing Chinese solar company like this transaction is totally unprecedented. This is an important milestone for ET Solar, staying on the cutting edge of technology, as China becomes the world's largest producer of solar components and equipment.
"With successful projects dating back half a decade, Meca Solar is currently one of the global leaders of dual-axis tracker projects, achieving turnkey utility scale solar systems as a tracker manufacturer, integrator/installer, system financier and maintenance company.
"With such an experienced global partner, ET Solar will be catapulted into the burgeoning tracker market, offering trackers to our existing portfolio of products available to our global customer base. By focusing on downstream system integration products, ET Solar is keeping in step withour anticipated long term corporate growth strategy."
Commenting further, CEO of OPDE/Meca Solar, Alejandros Chave, added:"We are pleased to be expanding our existing business relationship with ET Solar. This is a very substantial strategic partnership and we look forward to supporting ET Solar with on-going technical and technological support. We have big plans in the near future and look forward to implementing them. I have no doubt that both parties will benefit from this partnership greatly."
About ET Solar:
ET Solar is an integrated solar component manufacturer. Headquartered in Nanjing, China, ET Solar has two manufacturing facilities in Taizhou, China. The Company's diversified products range from mono crystalline ingot, mono and multi crystalline silicon wafer, module, dual-axis tracker systems and BIVP products. ET Solar has been implementing sales through a combination of extensive direct sales and global distribution. Marketing and after-sales services throughout the United States, Germany, Italy and Spain ensure our products are readily accessible in world's major solar markets. With a genuine effort to supply our customers with tailor-made modules for specific customer requirements, ET Solar provides pro-active solutions for everyone's solar energy needs.
About Meca Solar:
Meca Solar is a Spanish company that is dedicated to the design, manufacture and distribution of state-of-the-art dual-axis tracking systems, building turnkey utility scale solar systems with increased energy production of up to 43% (relative to fixed installation).
Under the Agreement, Meca Solar will (1) provide technical and technological support and assistance for ET Solar's tracker design and manufacturing, and provide installation training for ET Meca dual-axisprojects; and (2) become a minority share holder of ET Solar. Additionally,with guidance of Meca Solar, ET's engineering staff will become authorized and certified installation technicians
Commenting on the Agreement, Xinghua Wang, CEO and President of ET Solar said: "With our on-going sales over the past 12 months and a recent additional 10MW contract for 2008 with OPDE (Meca Solar's parent company), and now a strong strategic tracker manufacturing partnership with MecaSolar, I have every reason to believe that future opportunities between the two organizations are abundant.
"The strategic investment of a leading foreign system integration company into a fast growing Chinese solar company like this transaction is totally unprecedented. This is an important milestone for ET Solar, staying on the cutting edge of technology, as China becomes the world's largest producer of solar components and equipment.
"With successful projects dating back half a decade, Meca Solar is currently one of the global leaders of dual-axis tracker projects, achieving turnkey utility scale solar systems as a tracker manufacturer, integrator/installer, system financier and maintenance company.
"With such an experienced global partner, ET Solar will be catapulted into the burgeoning tracker market, offering trackers to our existing portfolio of products available to our global customer base. By focusing on downstream system integration products, ET Solar is keeping in step withour anticipated long term corporate growth strategy."
Commenting further, CEO of OPDE/Meca Solar, Alejandros Chave, added:"We are pleased to be expanding our existing business relationship with ET Solar. This is a very substantial strategic partnership and we look forward to supporting ET Solar with on-going technical and technological support. We have big plans in the near future and look forward to implementing them. I have no doubt that both parties will benefit from this partnership greatly."
About ET Solar:
ET Solar is an integrated solar component manufacturer. Headquartered in Nanjing, China, ET Solar has two manufacturing facilities in Taizhou, China. The Company's diversified products range from mono crystalline ingot, mono and multi crystalline silicon wafer, module, dual-axis tracker systems and BIVP products. ET Solar has been implementing sales through a combination of extensive direct sales and global distribution. Marketing and after-sales services throughout the United States, Germany, Italy and Spain ensure our products are readily accessible in world's major solar markets. With a genuine effort to supply our customers with tailor-made modules for specific customer requirements, ET Solar provides pro-active solutions for everyone's solar energy needs.
About Meca Solar:
Meca Solar is a Spanish company that is dedicated to the design, manufacture and distribution of state-of-the-art dual-axis tracking systems, building turnkey utility scale solar systems with increased energy production of up to 43% (relative to fixed installation).
Hoku Scientific Announces $25 Million Private Placement
Monday, Feb. 25 2008
KAPOLEI, HI, Feb 25, 2008 (MARKET WIRE via COMTEX) -- Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced it has entered into a securities purchase agreement with certain institutional investors, and a wholly owned subsidiary of Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic cells and modules, to raise approximately $25 million through the issuance of 2,893,520 shares of common stock. Suntech's subsidiary has agreed to contribute approximately $20 million of the financing. The financing is expected to close on or before February 29, 2008, subject to the satisfaction of customary closing conditions.
The Company intends to use the net proceeds from this financing for the construction of its planned polysilicon production plant in Pocatello, Idaho, and for general corporate purposes, including working capital.
"This equity financing is a significant step forward to obtain our larger debt financing for the construction and procurement of our planned polysilicon plant in Pocatello, Idaho, as we believe that the proceeds from this offering, plus our other cash commitments to the construction and procurement of the polysilicon plant, will satisfy the Merrill Lynch requirement that we contribute up to $35 million in equity towards the project prior to completing our debt financing," said Dustin Shindo, chairman and CEO of Hoku Scientific. "We are especially pleased that one of our key polysilicon customers, Suntech, has made this investment in our company, as it is a sign of their confidence in our business."
In June 2007, Suntech entered into a supply agreement with Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, to purchase up to $678 million of polysilicon from Hoku Materials over a ten year period, with the first shipment scheduled for delivery in 2009. Under the supply agreement, Suntech is obligated to pay Hoku Materials up to $47 million in prepayments for products, subject to Hoku's successful completion of various milestones. Suntech has paid Hoku $2 million of the prepayment, and the $45 million balance is secured by a letter of credit issued to Hoku by ABN Amro NV. Hoku Materials also announced today that it has amended its supply agreement with Suntech to extend the date for Hoku Materials to complete the financing for its planned polysilicon plant to May 31, 2008. This is the only modification to the agreement and aligns the financing deadline in the Suntech agreement with the financing deadline in Hoku's polysilicon supply contract with Sanyo Electric Co, Ltd. Under the terms of the original agreement and the amendment, Hoku Materials or Suntech may terminate the supply agreement if Hoku Materials has not secured financing for its polysilicon plant by the financing deadline.
"We are pleased to strengthen our partnership with Hoku through this investment," said Dr. Zhengrong Shi, chairman and CEO of Suntech. "Through the long term supply of silicon at prices well below today's spot-market rates, Hoku will play a key role in our plan to produce grid parity solar products. Hoku's polysilicon supply will also enable Suntech to continuously expand its production capacity and deliver the means to generate clean, renewable energy to a growing proportion of the world's population."
Deutsche Bank Securities Inc. acted as the sole placement agent for the transaction.
The securities offered and sold in the private placement were not registered under the Securities Act of 1933, as amended (the "Act"), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws.
Under an agreement with the investors, Hoku Scientific is required to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issued to the investors no later than ten days after the closing and to use best efforts to have the registration statement declared effective as soon as practicable thereafter
KAPOLEI, HI, Feb 25, 2008 (MARKET WIRE via COMTEX) -- Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced it has entered into a securities purchase agreement with certain institutional investors, and a wholly owned subsidiary of Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic cells and modules, to raise approximately $25 million through the issuance of 2,893,520 shares of common stock. Suntech's subsidiary has agreed to contribute approximately $20 million of the financing. The financing is expected to close on or before February 29, 2008, subject to the satisfaction of customary closing conditions.
The Company intends to use the net proceeds from this financing for the construction of its planned polysilicon production plant in Pocatello, Idaho, and for general corporate purposes, including working capital.
"This equity financing is a significant step forward to obtain our larger debt financing for the construction and procurement of our planned polysilicon plant in Pocatello, Idaho, as we believe that the proceeds from this offering, plus our other cash commitments to the construction and procurement of the polysilicon plant, will satisfy the Merrill Lynch requirement that we contribute up to $35 million in equity towards the project prior to completing our debt financing," said Dustin Shindo, chairman and CEO of Hoku Scientific. "We are especially pleased that one of our key polysilicon customers, Suntech, has made this investment in our company, as it is a sign of their confidence in our business."
In June 2007, Suntech entered into a supply agreement with Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, to purchase up to $678 million of polysilicon from Hoku Materials over a ten year period, with the first shipment scheduled for delivery in 2009. Under the supply agreement, Suntech is obligated to pay Hoku Materials up to $47 million in prepayments for products, subject to Hoku's successful completion of various milestones. Suntech has paid Hoku $2 million of the prepayment, and the $45 million balance is secured by a letter of credit issued to Hoku by ABN Amro NV. Hoku Materials also announced today that it has amended its supply agreement with Suntech to extend the date for Hoku Materials to complete the financing for its planned polysilicon plant to May 31, 2008. This is the only modification to the agreement and aligns the financing deadline in the Suntech agreement with the financing deadline in Hoku's polysilicon supply contract with Sanyo Electric Co, Ltd. Under the terms of the original agreement and the amendment, Hoku Materials or Suntech may terminate the supply agreement if Hoku Materials has not secured financing for its polysilicon plant by the financing deadline.
"We are pleased to strengthen our partnership with Hoku through this investment," said Dr. Zhengrong Shi, chairman and CEO of Suntech. "Through the long term supply of silicon at prices well below today's spot-market rates, Hoku will play a key role in our plan to produce grid parity solar products. Hoku's polysilicon supply will also enable Suntech to continuously expand its production capacity and deliver the means to generate clean, renewable energy to a growing proportion of the world's population."
Deutsche Bank Securities Inc. acted as the sole placement agent for the transaction.
The securities offered and sold in the private placement were not registered under the Securities Act of 1933, as amended (the "Act"), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws.
Under an agreement with the investors, Hoku Scientific is required to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issued to the investors no later than ten days after the closing and to use best efforts to have the registration statement declared effective as soon as practicable thereafter
LDK Solar Reports Financial Results for the Fourth Quarter of Fiscal 2007
Monday, February 25, 2008; Posted: 04:17 PM
XINYU CITY, China and SUNNYVALE, Calif., Feb 25, 2008 /PRNewswire-FirstCall via COMTEX/ -- LDK Solar Co., Ltd. (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the fourth quarter ended December 31, 2007.
All financial results are reported in US dollars on a U.S. GAAP basis.
Fourth Quarter 2007 Financial Highlights:
-- Revenue of $192.8 million, up 21.4% quarter-over-quarter
-- Gross profit of $58.0 million, up 18.6% quarter-over-quarter
-- Net income of $49.2 million, or $0.44 per diluted ADS, up 18.2% quarter-over-quarter
-- Signed 9 long-term wafer supply agreements during the fourth quarter
-- Total wafer shipments increased 18.4% sequentially to 93.4MW in the fourth quarter
Net sales for the fourth quarter of fiscal 2007 were $192.8 million, up 21.4% sequentially from $158.7 million for the third quarter of fiscal 2007, and up 212% year-over-year from $61.9 million for the fourth quarter of fiscal 2006.
Gross profit for the fourth quarter of fiscal 2007 was $58.0 million, up 18.6% sequentially from $48.9 million for the third quarter of fiscal 2007, and up 119% year-over-year from $26.6 million for the fourth quarter of fiscal 2006. Gross profit margin for the fourth quarter of fiscal 2007 was 30.1% compared with 30.8% in the third quarter of fiscal 2007 and 42.9% in the fourth quarter of fiscal 2006.
Net income for the fourth quarter of fiscal 2007 was $49.2 million, or $0.44 per diluted ADS, compared to net income of $41.6 million, or $0.37 per diluted ADS for the third quarter of fiscal 2007.
The Company ended the fourth quarter of fiscal 2007 with $83.5 million in cash and cash equivalents.
"The fourth quarter closed a very strong year for LDK marked by record revenue and continued rapid growth," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "During the year, we had a number of significant achievements. We exceeded our annual wafer production capacity target for 2007 by 5% to reach 420 MW. We also broadened our customer base by securing 16 long-term wafer supply contracts during the year. Our success is a testament not only to the quality of our wafers, but also to our strong customer relationships and our leading position amongst multicrystalline solar wafer manufacturers.
"As we enter 2008, we continue to experience strong demand for our wafers coupled with a significant backlog of long-term supply contracts. The construction on our new polysilicon plants is progressing as planned and we expect to enjoy further cost reductions and the advancement of our production processes in 2008."
In accordance with its filing requirements, LDK expects to file its 20-F document which includes detailed financials for the full year 2007 in the second quarter of 2008.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.
For the first quarter of fiscal 2008, LDK estimates its revenue to be in the range of $210 million to $220 million for wafer shipments of 98 MW to 104 MW. The Company also estimates fully diluted earnings per ADS to be in the range of $0.41 to $0.45. The first quarter is typically a seasonally slow period due to Chinese New Year holidays, and this year may have some impact from the severe snow storms.
For the full year 2008, LDK reiterates estimated revenue to be in the range of $960 million to $1.0 billion for wafer shipments of 510 MW to 530 MW. The Company also estimates polysilicon production to be in the range of 100MT to 350MT and gross margins of 26% to 31%.
XINYU CITY, China and SUNNYVALE, Calif., Feb 25, 2008 /PRNewswire-FirstCall via COMTEX/ -- LDK Solar Co., Ltd. (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the fourth quarter ended December 31, 2007.
All financial results are reported in US dollars on a U.S. GAAP basis.
Fourth Quarter 2007 Financial Highlights:
-- Revenue of $192.8 million, up 21.4% quarter-over-quarter
-- Gross profit of $58.0 million, up 18.6% quarter-over-quarter
-- Net income of $49.2 million, or $0.44 per diluted ADS, up 18.2% quarter-over-quarter
-- Signed 9 long-term wafer supply agreements during the fourth quarter
-- Total wafer shipments increased 18.4% sequentially to 93.4MW in the fourth quarter
Net sales for the fourth quarter of fiscal 2007 were $192.8 million, up 21.4% sequentially from $158.7 million for the third quarter of fiscal 2007, and up 212% year-over-year from $61.9 million for the fourth quarter of fiscal 2006.
Gross profit for the fourth quarter of fiscal 2007 was $58.0 million, up 18.6% sequentially from $48.9 million for the third quarter of fiscal 2007, and up 119% year-over-year from $26.6 million for the fourth quarter of fiscal 2006. Gross profit margin for the fourth quarter of fiscal 2007 was 30.1% compared with 30.8% in the third quarter of fiscal 2007 and 42.9% in the fourth quarter of fiscal 2006.
Net income for the fourth quarter of fiscal 2007 was $49.2 million, or $0.44 per diluted ADS, compared to net income of $41.6 million, or $0.37 per diluted ADS for the third quarter of fiscal 2007.
The Company ended the fourth quarter of fiscal 2007 with $83.5 million in cash and cash equivalents.
"The fourth quarter closed a very strong year for LDK marked by record revenue and continued rapid growth," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "During the year, we had a number of significant achievements. We exceeded our annual wafer production capacity target for 2007 by 5% to reach 420 MW. We also broadened our customer base by securing 16 long-term wafer supply contracts during the year. Our success is a testament not only to the quality of our wafers, but also to our strong customer relationships and our leading position amongst multicrystalline solar wafer manufacturers.
"As we enter 2008, we continue to experience strong demand for our wafers coupled with a significant backlog of long-term supply contracts. The construction on our new polysilicon plants is progressing as planned and we expect to enjoy further cost reductions and the advancement of our production processes in 2008."
In accordance with its filing requirements, LDK expects to file its 20-F document which includes detailed financials for the full year 2007 in the second quarter of 2008.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.
For the first quarter of fiscal 2008, LDK estimates its revenue to be in the range of $210 million to $220 million for wafer shipments of 98 MW to 104 MW. The Company also estimates fully diluted earnings per ADS to be in the range of $0.41 to $0.45. The first quarter is typically a seasonally slow period due to Chinese New Year holidays, and this year may have some impact from the severe snow storms.
For the full year 2008, LDK reiterates estimated revenue to be in the range of $960 million to $1.0 billion for wafer shipments of 510 MW to 530 MW. The Company also estimates polysilicon production to be in the range of 100MT to 350MT and gross margins of 26% to 31%.
Yingli Green Energy Signs Two Polysilicon Supply Agreements with DC Chemical
Monday, Feb. 25, 2008
BAODING, China — Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced that it has signed two polysilicon supply agreements with DC Chemical Co., Ltd. ("DC Chemical"), a leading Korean chemicals producer. Under the first agreement, DC Chemical will supply polysilicon with a value of approximately US$27 million to Yingli Green Energy in 2008. Under the second agreement, DC Chemical will supply polysilicon with a total value of approximately US$188 million to Yingli Green Energy from 2009 to 2013.
"We are very pleased to initiate a new relationship with such a well-respected company as DC Chemical," commented Mr. Liansheng Miao, Chairman and CEO of Yingli Green Energy. "One of our key strategies on the procurement side has been to establish long-term relationships with some of the most respected polysilicon suppliers around the world. These two supply agreements demonstrate our ability to work with major suppliers in the industry and we believe our relationship with DC Chemical will help us further secure our polysilicon needs in the short and long term."
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated photovoltaic (PV) product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of the limited numbers of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States. For more information, please visit www.yinglisolar.com.
About DC Chemical
DC Chemical Co., Ltd (KRX:10060) is a leading Korean chemicals producer, covering a wide range of chemicals in the areas of inorganic chemicals, coal and petrochemicals and fine chemicals, including hydrogen peroxide, soda ash, sodium carbonate peroxyhydrate, fumed silica, carbon black, pitch, TDI and PVA. With its nearly 50 years experience in chemical industry, DC Chemical has selected polysilicon business as the core business of next generation.
BAODING, China — Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced that it has signed two polysilicon supply agreements with DC Chemical Co., Ltd. ("DC Chemical"), a leading Korean chemicals producer. Under the first agreement, DC Chemical will supply polysilicon with a value of approximately US$27 million to Yingli Green Energy in 2008. Under the second agreement, DC Chemical will supply polysilicon with a total value of approximately US$188 million to Yingli Green Energy from 2009 to 2013.
"We are very pleased to initiate a new relationship with such a well-respected company as DC Chemical," commented Mr. Liansheng Miao, Chairman and CEO of Yingli Green Energy. "One of our key strategies on the procurement side has been to establish long-term relationships with some of the most respected polysilicon suppliers around the world. These two supply agreements demonstrate our ability to work with major suppliers in the industry and we believe our relationship with DC Chemical will help us further secure our polysilicon needs in the short and long term."
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated photovoltaic (PV) product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of the limited numbers of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States. For more information, please visit www.yinglisolar.com.
About DC Chemical
DC Chemical Co., Ltd (KRX:10060) is a leading Korean chemicals producer, covering a wide range of chemicals in the areas of inorganic chemicals, coal and petrochemicals and fine chemicals, including hydrogen peroxide, soda ash, sodium carbonate peroxyhydrate, fumed silica, carbon black, pitch, TDI and PVA. With its nearly 50 years experience in chemical industry, DC Chemical has selected polysilicon business as the core business of next generation.
Canadian Solar Building Silicon Wafer Plant
Monday, February 25, 2008; Posted: 04:45 AM
SUZHOU, Feb 25, 2008 (SinoCast via COMTEX) -- Canadian Solar Inc. (Nasdaq: CSIQ), a Chinese photovoltaic (PV) company registered in Canada, is creating a large-scale silicon wafer plant in the northern Chinese city of Luoyang, extending its industry chain, said Shawn Qu, the company's chairman.
In the past, the company always specialized in manufacturing solar modules. With a view to having the initiative in raw materials supply and further consolidating its position in industry, Canadian Solar decided to actively march into the upstream PV realm.
Last year, it began to build a 3,000-ton silicon wafer project with a total investment of CNY 1.2 billion, which was predicted to achieve annual sales revenues of CNY 6 billion once completed. The equipment for the Phase I will be installed in April 2008, and Canadian Solar is likely to put the Phase I into production this summer.
Canadian Solar Chairman Shawn Qu added that the company would support the project above, by virtue of the purchase of silicon material from overseas markets as before. Meanwhile, it has recently inked long-term silicon material supply contracts with many domestic polysilicon producers, such as Luoyang Zhonggui High-tech Co., Ltd.
Established in 2001, Canadian Solar settled its China headquarter in Suzhou, a coastal city in east China. So far, it has grown into a global provider of solar power products.
Currently, more Chinese investors are swarming into PV industry, and the polycrystalline silicon market has to witness extremely overheated investments. For instance, the market has allured Baoding Tianwei Baobian Electric Co.,Ltd.(SHSE: 600550), Sichuan Chuantou Energy Co., ltd. (SHSE: 600674), Leshan Electric Power Co.,Ltd.(SHSE: 600644), and Sichuan Minjiang Hydropower Co., Ltd. (SHSE: 600131).
However, Shi Zhengrong, chairman of Wuxi Suntech Power Co., Ltd. (NYSE: STP), one of China's solar energy giants, declared on December 12, 2007 that polysilicon investment misfitted the nation.
"As a matter of fact, it is not practical for China to produce polysilicon, mainly due to such a high electricity charge," said the chairman. "Therefore, I suggest that investors should seek more development opportunities in Canada, the US, Australia, and other countries with a lower electricity charge."
Till now, the total production capacity of China's companies, who are ready for polysilicon projects, has reached 30,000 tons, so that it is hard to say whether the heating investments in PV markets is good news or not, the domestic PV expert Mr. Wang Sicheng said anxiously.
SUZHOU, Feb 25, 2008 (SinoCast via COMTEX) -- Canadian Solar Inc. (Nasdaq: CSIQ), a Chinese photovoltaic (PV) company registered in Canada, is creating a large-scale silicon wafer plant in the northern Chinese city of Luoyang, extending its industry chain, said Shawn Qu, the company's chairman.
In the past, the company always specialized in manufacturing solar modules. With a view to having the initiative in raw materials supply and further consolidating its position in industry, Canadian Solar decided to actively march into the upstream PV realm.
Last year, it began to build a 3,000-ton silicon wafer project with a total investment of CNY 1.2 billion, which was predicted to achieve annual sales revenues of CNY 6 billion once completed. The equipment for the Phase I will be installed in April 2008, and Canadian Solar is likely to put the Phase I into production this summer.
Canadian Solar Chairman Shawn Qu added that the company would support the project above, by virtue of the purchase of silicon material from overseas markets as before. Meanwhile, it has recently inked long-term silicon material supply contracts with many domestic polysilicon producers, such as Luoyang Zhonggui High-tech Co., Ltd.
Established in 2001, Canadian Solar settled its China headquarter in Suzhou, a coastal city in east China. So far, it has grown into a global provider of solar power products.
Currently, more Chinese investors are swarming into PV industry, and the polycrystalline silicon market has to witness extremely overheated investments. For instance, the market has allured Baoding Tianwei Baobian Electric Co.,Ltd.(SHSE: 600550), Sichuan Chuantou Energy Co., ltd. (SHSE: 600674), Leshan Electric Power Co.,Ltd.(SHSE: 600644), and Sichuan Minjiang Hydropower Co., Ltd. (SHSE: 600131).
However, Shi Zhengrong, chairman of Wuxi Suntech Power Co., Ltd. (NYSE: STP), one of China's solar energy giants, declared on December 12, 2007 that polysilicon investment misfitted the nation.
"As a matter of fact, it is not practical for China to produce polysilicon, mainly due to such a high electricity charge," said the chairman. "Therefore, I suggest that investors should seek more development opportunities in Canada, the US, Australia, and other countries with a lower electricity charge."
Till now, the total production capacity of China's companies, who are ready for polysilicon projects, has reached 30,000 tons, so that it is hard to say whether the heating investments in PV markets is good news or not, the domestic PV expert Mr. Wang Sicheng said anxiously.
LDK to supply Hyundai Heavy Industries with solar wafers
February 22, 2008
The eight-year agreement is for 450 megawatts of multicrystalline solar wafers.
Xinyu, China-based LDK Solar (NYSE: LDK) announced today that it signed a contract to supply solar wafers to South Korea's Hyundai Heavy Industries.
LDK did not disclose the financial terms of the contract, but said the eight-year deal is for 450 megawatts of multicrystalline solar wafers.
"This latest long-term wafer supply agreement with Hyundai Heavy Industries Co., Ltd. further exemplifies the strong demand levels for our high quality wafers," said Xiaofeng Peng, chairman and CEO of LDK.
LDK said the supply would begin later this year and run through 2015, with Hyundai Heavy Industries making an undisclosed advanced payment to LDK Solar.
"Having visited LDK Solar's polysilicon plant in Xinyu City, China, several times, we are confident that both their wafers and new manufacturing facilities will meet the highest industry standards," said Kwon-Tae Kim, executive VP at Hyundai Heavy Industries.
The eight-year agreement is for 450 megawatts of multicrystalline solar wafers.
Xinyu, China-based LDK Solar (NYSE: LDK) announced today that it signed a contract to supply solar wafers to South Korea's Hyundai Heavy Industries.
LDK did not disclose the financial terms of the contract, but said the eight-year deal is for 450 megawatts of multicrystalline solar wafers.
"This latest long-term wafer supply agreement with Hyundai Heavy Industries Co., Ltd. further exemplifies the strong demand levels for our high quality wafers," said Xiaofeng Peng, chairman and CEO of LDK.
LDK said the supply would begin later this year and run through 2015, with Hyundai Heavy Industries making an undisclosed advanced payment to LDK Solar.
"Having visited LDK Solar's polysilicon plant in Xinyu City, China, several times, we are confident that both their wafers and new manufacturing facilities will meet the highest industry standards," said Kwon-Tae Kim, executive VP at Hyundai Heavy Industries.
Aleo Solar, Sunvim Form Venture to Build Module Plant in China
By Nicholas Comfort
Feb. 22 (Bloomberg) -- Aleo Solar AG, a German maker of solar-energy products, will form a joint venture with Sunvim Group Co. Ltd. to build a production plant for modules in Gaomi, in the Chinese province of Shandong.
The Chinese plant will have an initial capacity to produce equipment with 50 megawatts of potential, Oldenburg, Germany- based Aleo Solar said in a statement on the PR Newswire today.
Feb. 22 (Bloomberg) -- Aleo Solar AG, a German maker of solar-energy products, will form a joint venture with Sunvim Group Co. Ltd. to build a production plant for modules in Gaomi, in the Chinese province of Shandong.
The Chinese plant will have an initial capacity to produce equipment with 50 megawatts of potential, Oldenburg, Germany- based Aleo Solar said in a statement on the PR Newswire today.
Wednesday, February 20, 2008
Suntech Reports Fourth Quarter and Full Year 2007 Financial Results
SAN FRANCISCO, Feb. 20 /Xinhua-PRNewswire/ -- Suntech Power HoldingsCo., Ltd. , one of the world's leading manufacturers ofphotovoltaic (PV) cells and modules, today announced fourth quarter andfull year 2007 financial results.
Fourth Quarter and Full Year 2007 Highlights(1)
-- Fourth quarter 2007 total shipments were approximately 110MW and total net revenues grew 82.5% year-over-year to $397.5 million.
-- Full year 2007 total shipments were approximately 364MW and total net revenues grew 125.1% year-over-year to $1,348.3 million.
-- On a non-GAAP(2) basis, Suntech's net income for the fourth quarter 2007 was $58.2 million or $0.34 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
-- On a non-GAAP basis, Suntech's net income for the full year 2007 was $201.0 million or $1.19 per diluted American Depository Share (ADS).
-- Suntech group's non-GAAP gross margin in its core Wafer-to-Module business was 23.3% for the fourth quarter of 2007 and 23.6% for the full year 2007.
-- Achieved second sequential quarter of positive operating cash flow due to improved inventory management and cash management in the fourth quarter of 2007.
-- Suntech's PV cell production capacity increased to 540MW as of year end 2007. The company is on track to reach 1GW PV cell production capacity by the end of 2008.
"I am pleased to report healthy revenue growth and exceptional market demand for Suntech's solar products in the fourth quarter," said Dr.Zhengrong Shi, Suntech's Chairman and CEO. "We have a strong sales pipeline for the full year 2008 and expect robust demand to continue in 2009 as new solar markets in countries such as Italy, Greece and South Korea grow to complement demand in Germany, Spain and the U.S. Suntech is in a strong position to capitalize on this demand as we implement a range of cost reduction initiatives and we expect to simultaneously grow revenues and margins in 2009."
"In 2007, Suntech more than doubled revenues, successfully transitioned our 20% efficiency Pluto technology into pilot production, diversified our sales markets and expanded our product range. These achievements have laid a strong foundation for 2008 and we are confident that over the coming year our strategies for rapid capacity growth, low cost innovation, sales region and product diversification, and balanced silicon procurement will increasingly differentiate Suntech as a leading player in the solar industry," Dr. Shi concluded.
Commenting on Suntech's silicon supply, Dr. Shi said, "We successfully developed a strong silicon supply pipeline of 530MW for 2008. Suntech's silicon outlook for 2009 is even more promising. Due to the silicon supply contracts we signed in the fourth quarter with Asia Silicon (Qinghai), Nitol Solar, Renesola and a Korean conglomerate, we believe that our silicon costs will fall more than twice as fast as our projections of our average sales prices in 2009. We are confident that this will enable Suntech to expand production and improve profitability in 2009."
Suntech increased PV cell production capacity from 420MW at the end of the third quarter of 2007 to 540MW at the end of 2007. Dr. Shi commented,"Our current capacity expansion is on track to hit our stated goal of 1GWPV cell production capacity by the end of 2008. The majority of this expansion will occur in the second half of 2008. To optimize our production volume and margins, approximately 60% of our full year production target of530MW will be produced in the second half of 2008."
Recent Business Highlights
Products and Projects
-- Suntech announced a license agreement with Akeena Solar to distribute Akeena's state-of-the-art solar panel technology, Andalay, in Europe, Japan and Australia. A valuable addition to Suntech's growing portfolio of solar products, Suntech targets sales of over 10MW of the Andalay solar panels to the licensed regions in 2008.
-- Suntech was granted the National Export Inspection Exemption by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of the People's Republic of China. The export inspection exemption is China's highest honor awarded to companies that demonstrate exceptional internal product quality management and control. Suntech is the first Chinese solar company to receive this national recognition.
-- Suntech supplied PV modules for a solar energy system on the roof of the town hall in Genk, Belgium. The project was engineered by Netherlands-based Oskomera Solar Power Solutions (OSPS) in collaboration with Belgium-based ENECO Energie. The system was constructed with approximately 1,260 Suntech solar modules with a capacity of 239kW.
Global Offices
-- Suntech opened sales offices in Germany and Spain to strengthen its European sales network and broaden Suntech's ability to serve customers. Suntech expects these offices to increase the Company's ability to respond to demands in these new markets, enhance customer relationships and help build Suntech's market position.
-- Suntech opened a sales office in South Korea to accelerate its business development efforts and customer service capabilities in Asia. Through this new location, Suntech seeks to expand its collaborations with key partners in South Korea and further solidify its position as a leading supplier of PV modules in South Korea. With a growing sales team in South Korea, the Company targets five-fold sales growth in that region from 2007 to 2008.
Industry Support and Recognition
-- Dr. Zhengrong Shi was named one of China's Green Persons of the Year for his outstanding contribution to environmental protection initiatives and environmental awareness within China. The national award, sponsored by seven Chinese government institutions, is China's highest honor for those that make exceptional contributions to environmental protection.
-- Suntech hosted the 2007 Chinese PV Industry International Competitiveness Forum on behalf of the China Renewable Energy Association on December 12, 2007, in Wuxi, Jiangsu Province, China.
-- In November 2007, Suntech supported The Green Long March initiative to promote increased understanding of environmental successes and challenges in China, and encourage sustainable development.
Fourth Quarter 2007 Results
Net Revenues, % of Net Revenues,Non-GAAP Gross Profit,Non-GAAP Gross Margin
(in $ millions) (in $ millions) (%)
Standard PV Modules $392.9, 98.8%, $87.1, 22.2%
- Wafer to Modules 365.5, 91.9%, 85.0, 23.3%
- Cell to Modules 27.4, 6.9%, 2.1, 7.6%
Others 4.6, 1.2%, (1.3), (27.1%)
Total Net Revenues $397.5, 100%, $85.8, 21.6%
Total net revenues for the fourth quarter of 2007 were $397.5 million, representing an increase of 82.5% from the corresponding period in 2006.
Non-GAAP gross profit for the fourth quarter of 2007 was $85.8 million,an increase of 74.9% year-over-year. Non-GAAP gross margin for theCompany's core wafer-to-module business was 23.3% and non-GAAP consolidatedgross margin was 21.6%.
Non-GAAP operating expenses in the fourth quarter of 2007 totaled $27.3million and accounted for 6.9% of total net revenues. The increase ofoperating expenses was primarily due to foreign exchange losses related tothe depreciation of the USD against the CNY in the fourth quarter 2007.Foreign currency exchange loss recorded in operating expenses was $6.3million in the fourth quarter of 2007, compared to $1.2 million in thethird quarter 2007.
Non-GAAP income from operations for the fourth quarter of 2007 was$58.5 million, an increase of 71.2% year-over-year. Non-GAAP operatingmargin was 14.7%.
Non-GAAP net income for the fourth quarter of 2007 was $58.2 million,an increase of 64.0% year-over-year, or $0.34 per non-GAAP diluted ADS.
On a GAAP basis, for the fourth quarter of 2007 gross profit was $82.7million, an increase of 70.6% year-over-year. Gross margin for the corewafer to module business was 22.4%. Consolidated gross margin was 20.8% forthe fourth quarter of 2007 compared to 22.3% for the fourth quarter of2006. The year-over-year decrease in consolidated gross margin was mainlydue to increased wafer costs, the appreciation of the CNY and increasedproduction of modules utilizing third party PV cells in 2007.
On a GAAP basis, operating expenses for the fourth quarter of 2007 were$32.1 million. Income from operations was $50.6 million for the fourthquarter of 2007, an increase of 70.3% year-over-year. Operating margin was12.7%. Net income was $50.6 million, an increase of 61.1% year-over-year,or $0.29 per diluted ADS.
In the fourth quarter of 2007, capital expenditures, which wereprimarily related to production capacity expansion and the construction ofSuntech's new production facilities, totaled $42.3 million and depreciationand amortization expenses totaled $4.3 million.
Full Year 2007 Results
Net Revenues, % of Net Revenues,Non-GAAP Gross Profit,Non-GAAP Gross Margin
(in $ millions) (in $ millions) (%)
Standard PV Modules $1,331.7, 98.8%, $284.6, 21.4%
- Wafer to Modules 1,172.8, 87.0%, 276.4, 23.6%
- Cell to Modules 158.9, 11.8%, 8.2, 5.2%
Others 16.6, 1.2%, 0.2, 1.5%
Total Net Revenues $1,348.3, 100%, $284.8, 21.1%
Total net revenues for the full year 2007 were $1,348.3 million, representing a 125.1% increase from 2006.
On a non-GAAP basis, for the full year 2007 gross profit was $284.8 million, an increase of 88.3% year-over-year. Gross margin for the Company's core wafer-to-module business was 23.6% for the full year 2007. 2007 consolidated gross margin was 21.1% compared to 25.3% in 2006. Income from operations was $202.7 million, an increase of 71.9% year-over-year. Net income was $201.0 million, an increase of 67.8% year-over-year, or $1.19 per diluted ADS.
On a GAAP basis, for the full year 2007 gross profit was $274.1 million, an increase of 84.1% year-over-year. Gross margin for the Company's core wafer-to-module business was 22.7% for the full year 2007. 2007 gross margin was 20.3% compared to 24.9% in 2006. Income from operations was $171.6 million, an increase of 66.2% year-over-year. Net income was $171.3 million, an increase of 61.6% year-over-year, or $1.02 per diluted ADS.
In the full year 2007, capital expenditures, which were primarily related to production capacity expansion and the construction of Suntech's new production facilities, totaled $162.7 million and depreciation and amortization expenses totaled $20.5 million.
Suntech's balance of cash and cash equivalents was $521.0 million at December 31, 2007, compared to $588.6 million at September 30, 2007. Inventory totaled $176.2 million at December 31, 2007, compared to $164.3 million at September 30, 2007.
Business Outlook
Based on current operating conditions, Suntech expects revenues for the first quarter of 2008 to be in the range of $370 million to $380 million. Non-GAAP consolidated gross margin in the first quarter of 2008 is expected to be slightly higher than the fourth quarter of 2007. These expectations also take into account what is a seasonally slow quarter for Suntech due to the shorter month of February and the Chinese New Year holidays which were somewhat worsened by the severe weather conditions experienced in the first quarter of 2008.
For the full year 2008, Suntech expects total PV module shipments to be 530MW and revenues to be in the range of $1.9 billion to $2.1 billion. Within 2008, Suntech believes that approximately 40% of this will be achieved in the first half of 2008 and 60% in the second half of 2008. Suntech expects that greater quantities of reasonably priced silicon will become increasingly available from mid-2008. Suntech targets to reach 1GW of installed PV cell production capacity by year-end 2008.
Senior Management Hires
Mr. Jeffrey Shubert was hired as Director of Marketing of Suntech America and Director of Global Marketing Strategy, based at Suntech's U.S. headquarters in San Francisco. He will lead the marketing team in the U.S. to position Suntech for future sales growth in the key Americas region and provide strategic leadership to the global marketing team to ensure that all marketing programs are developed and executed for maximum impact and results. Mr. Shubert has over 20 years experience in strategic marketing, in the U.S. and internationally, working with a broad range of companies in many industry sectors. Most recently he was Vice President, Client Service for Nimblefish Technologies, a major developer and operator of marketing engines and was a consultant to Cisco Systems. Mr. Shubert also spent six years in Asia, serving as a Senior Vice President at Foote Cone & Belding International and President of Foote Cone & Belding International Japan.
Fourth Quarter and Full Year 2007 Highlights(1)
-- Fourth quarter 2007 total shipments were approximately 110MW and total net revenues grew 82.5% year-over-year to $397.5 million.
-- Full year 2007 total shipments were approximately 364MW and total net revenues grew 125.1% year-over-year to $1,348.3 million.
-- On a non-GAAP(2) basis, Suntech's net income for the fourth quarter 2007 was $58.2 million or $0.34 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
-- On a non-GAAP basis, Suntech's net income for the full year 2007 was $201.0 million or $1.19 per diluted American Depository Share (ADS).
-- Suntech group's non-GAAP gross margin in its core Wafer-to-Module business was 23.3% for the fourth quarter of 2007 and 23.6% for the full year 2007.
-- Achieved second sequential quarter of positive operating cash flow due to improved inventory management and cash management in the fourth quarter of 2007.
-- Suntech's PV cell production capacity increased to 540MW as of year end 2007. The company is on track to reach 1GW PV cell production capacity by the end of 2008.
"I am pleased to report healthy revenue growth and exceptional market demand for Suntech's solar products in the fourth quarter," said Dr.Zhengrong Shi, Suntech's Chairman and CEO. "We have a strong sales pipeline for the full year 2008 and expect robust demand to continue in 2009 as new solar markets in countries such as Italy, Greece and South Korea grow to complement demand in Germany, Spain and the U.S. Suntech is in a strong position to capitalize on this demand as we implement a range of cost reduction initiatives and we expect to simultaneously grow revenues and margins in 2009."
"In 2007, Suntech more than doubled revenues, successfully transitioned our 20% efficiency Pluto technology into pilot production, diversified our sales markets and expanded our product range. These achievements have laid a strong foundation for 2008 and we are confident that over the coming year our strategies for rapid capacity growth, low cost innovation, sales region and product diversification, and balanced silicon procurement will increasingly differentiate Suntech as a leading player in the solar industry," Dr. Shi concluded.
Commenting on Suntech's silicon supply, Dr. Shi said, "We successfully developed a strong silicon supply pipeline of 530MW for 2008. Suntech's silicon outlook for 2009 is even more promising. Due to the silicon supply contracts we signed in the fourth quarter with Asia Silicon (Qinghai), Nitol Solar, Renesola and a Korean conglomerate, we believe that our silicon costs will fall more than twice as fast as our projections of our average sales prices in 2009. We are confident that this will enable Suntech to expand production and improve profitability in 2009."
Suntech increased PV cell production capacity from 420MW at the end of the third quarter of 2007 to 540MW at the end of 2007. Dr. Shi commented,"Our current capacity expansion is on track to hit our stated goal of 1GWPV cell production capacity by the end of 2008. The majority of this expansion will occur in the second half of 2008. To optimize our production volume and margins, approximately 60% of our full year production target of530MW will be produced in the second half of 2008."
Recent Business Highlights
Products and Projects
-- Suntech announced a license agreement with Akeena Solar to distribute Akeena's state-of-the-art solar panel technology, Andalay, in Europe, Japan and Australia. A valuable addition to Suntech's growing portfolio of solar products, Suntech targets sales of over 10MW of the Andalay solar panels to the licensed regions in 2008.
-- Suntech was granted the National Export Inspection Exemption by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of the People's Republic of China. The export inspection exemption is China's highest honor awarded to companies that demonstrate exceptional internal product quality management and control. Suntech is the first Chinese solar company to receive this national recognition.
-- Suntech supplied PV modules for a solar energy system on the roof of the town hall in Genk, Belgium. The project was engineered by Netherlands-based Oskomera Solar Power Solutions (OSPS) in collaboration with Belgium-based ENECO Energie. The system was constructed with approximately 1,260 Suntech solar modules with a capacity of 239kW.
Global Offices
-- Suntech opened sales offices in Germany and Spain to strengthen its European sales network and broaden Suntech's ability to serve customers. Suntech expects these offices to increase the Company's ability to respond to demands in these new markets, enhance customer relationships and help build Suntech's market position.
-- Suntech opened a sales office in South Korea to accelerate its business development efforts and customer service capabilities in Asia. Through this new location, Suntech seeks to expand its collaborations with key partners in South Korea and further solidify its position as a leading supplier of PV modules in South Korea. With a growing sales team in South Korea, the Company targets five-fold sales growth in that region from 2007 to 2008.
Industry Support and Recognition
-- Dr. Zhengrong Shi was named one of China's Green Persons of the Year for his outstanding contribution to environmental protection initiatives and environmental awareness within China. The national award, sponsored by seven Chinese government institutions, is China's highest honor for those that make exceptional contributions to environmental protection.
-- Suntech hosted the 2007 Chinese PV Industry International Competitiveness Forum on behalf of the China Renewable Energy Association on December 12, 2007, in Wuxi, Jiangsu Province, China.
-- In November 2007, Suntech supported The Green Long March initiative to promote increased understanding of environmental successes and challenges in China, and encourage sustainable development.
Fourth Quarter 2007 Results
Net Revenues, % of Net Revenues,Non-GAAP Gross Profit,Non-GAAP Gross Margin
(in $ millions) (in $ millions) (%)
Standard PV Modules $392.9, 98.8%, $87.1, 22.2%
- Wafer to Modules 365.5, 91.9%, 85.0, 23.3%
- Cell to Modules 27.4, 6.9%, 2.1, 7.6%
Others 4.6, 1.2%, (1.3), (27.1%)
Total Net Revenues $397.5, 100%, $85.8, 21.6%
Total net revenues for the fourth quarter of 2007 were $397.5 million, representing an increase of 82.5% from the corresponding period in 2006.
Non-GAAP gross profit for the fourth quarter of 2007 was $85.8 million,an increase of 74.9% year-over-year. Non-GAAP gross margin for theCompany's core wafer-to-module business was 23.3% and non-GAAP consolidatedgross margin was 21.6%.
Non-GAAP operating expenses in the fourth quarter of 2007 totaled $27.3million and accounted for 6.9% of total net revenues. The increase ofoperating expenses was primarily due to foreign exchange losses related tothe depreciation of the USD against the CNY in the fourth quarter 2007.Foreign currency exchange loss recorded in operating expenses was $6.3million in the fourth quarter of 2007, compared to $1.2 million in thethird quarter 2007.
Non-GAAP income from operations for the fourth quarter of 2007 was$58.5 million, an increase of 71.2% year-over-year. Non-GAAP operatingmargin was 14.7%.
Non-GAAP net income for the fourth quarter of 2007 was $58.2 million,an increase of 64.0% year-over-year, or $0.34 per non-GAAP diluted ADS.
On a GAAP basis, for the fourth quarter of 2007 gross profit was $82.7million, an increase of 70.6% year-over-year. Gross margin for the corewafer to module business was 22.4%. Consolidated gross margin was 20.8% forthe fourth quarter of 2007 compared to 22.3% for the fourth quarter of2006. The year-over-year decrease in consolidated gross margin was mainlydue to increased wafer costs, the appreciation of the CNY and increasedproduction of modules utilizing third party PV cells in 2007.
On a GAAP basis, operating expenses for the fourth quarter of 2007 were$32.1 million. Income from operations was $50.6 million for the fourthquarter of 2007, an increase of 70.3% year-over-year. Operating margin was12.7%. Net income was $50.6 million, an increase of 61.1% year-over-year,or $0.29 per diluted ADS.
In the fourth quarter of 2007, capital expenditures, which wereprimarily related to production capacity expansion and the construction ofSuntech's new production facilities, totaled $42.3 million and depreciationand amortization expenses totaled $4.3 million.
Full Year 2007 Results
Net Revenues, % of Net Revenues,Non-GAAP Gross Profit,Non-GAAP Gross Margin
(in $ millions) (in $ millions) (%)
Standard PV Modules $1,331.7, 98.8%, $284.6, 21.4%
- Wafer to Modules 1,172.8, 87.0%, 276.4, 23.6%
- Cell to Modules 158.9, 11.8%, 8.2, 5.2%
Others 16.6, 1.2%, 0.2, 1.5%
Total Net Revenues $1,348.3, 100%, $284.8, 21.1%
Total net revenues for the full year 2007 were $1,348.3 million, representing a 125.1% increase from 2006.
On a non-GAAP basis, for the full year 2007 gross profit was $284.8 million, an increase of 88.3% year-over-year. Gross margin for the Company's core wafer-to-module business was 23.6% for the full year 2007. 2007 consolidated gross margin was 21.1% compared to 25.3% in 2006. Income from operations was $202.7 million, an increase of 71.9% year-over-year. Net income was $201.0 million, an increase of 67.8% year-over-year, or $1.19 per diluted ADS.
On a GAAP basis, for the full year 2007 gross profit was $274.1 million, an increase of 84.1% year-over-year. Gross margin for the Company's core wafer-to-module business was 22.7% for the full year 2007. 2007 gross margin was 20.3% compared to 24.9% in 2006. Income from operations was $171.6 million, an increase of 66.2% year-over-year. Net income was $171.3 million, an increase of 61.6% year-over-year, or $1.02 per diluted ADS.
In the full year 2007, capital expenditures, which were primarily related to production capacity expansion and the construction of Suntech's new production facilities, totaled $162.7 million and depreciation and amortization expenses totaled $20.5 million.
Suntech's balance of cash and cash equivalents was $521.0 million at December 31, 2007, compared to $588.6 million at September 30, 2007. Inventory totaled $176.2 million at December 31, 2007, compared to $164.3 million at September 30, 2007.
Business Outlook
Based on current operating conditions, Suntech expects revenues for the first quarter of 2008 to be in the range of $370 million to $380 million. Non-GAAP consolidated gross margin in the first quarter of 2008 is expected to be slightly higher than the fourth quarter of 2007. These expectations also take into account what is a seasonally slow quarter for Suntech due to the shorter month of February and the Chinese New Year holidays which were somewhat worsened by the severe weather conditions experienced in the first quarter of 2008.
For the full year 2008, Suntech expects total PV module shipments to be 530MW and revenues to be in the range of $1.9 billion to $2.1 billion. Within 2008, Suntech believes that approximately 40% of this will be achieved in the first half of 2008 and 60% in the second half of 2008. Suntech expects that greater quantities of reasonably priced silicon will become increasingly available from mid-2008. Suntech targets to reach 1GW of installed PV cell production capacity by year-end 2008.
Senior Management Hires
Mr. Jeffrey Shubert was hired as Director of Marketing of Suntech America and Director of Global Marketing Strategy, based at Suntech's U.S. headquarters in San Francisco. He will lead the marketing team in the U.S. to position Suntech for future sales growth in the key Americas region and provide strategic leadership to the global marketing team to ensure that all marketing programs are developed and executed for maximum impact and results. Mr. Shubert has over 20 years experience in strategic marketing, in the U.S. and internationally, working with a broad range of companies in many industry sectors. Most recently he was Vice President, Client Service for Nimblefish Technologies, a major developer and operator of marketing engines and was a consultant to Cisco Systems. Mr. Shubert also spent six years in Asia, serving as a Senior Vice President at Foote Cone & Belding International and President of Foote Cone & Belding International Japan.
Suntech Opens Sales Offices in Germany and Spain
Tue, 19 Feb 2008
Sales Offices Strengthen Suntech's European Network and Broaden Ability to Serve Local Customer Base
SAN FRANCISCO, Calif., Feb. 19 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced the opening of sales offices in Germany and Spain to strengthen Suntech's European sales network and broaden local customer service capabilities.
''We are very pleased to expand our sales and customer service capabilities in Europe with the opening of these two offices in Germany and Spain. Our on the ground presence will help us to manage the exceptional demand for Suntech solar products that we are seeing in both Germany and Spain in 2008,'' said Dr. Zhengrong Shi, Suntech's Chairman and CEO. ''Establishing regional sales centers and localizing our sales staff is central to our commitment to deliver exceptional customer service and we are confident it will enable us to forge stronger customer relationships and improve our ability to respond to customer needs.''
''Due to our significant installation base and collaboration on the development of landmark PV projects across Europe, Suntech is well known for delivering high quality PV products and we have established a healthy market share. In fact, we believe that Suntech is already the largest PV module supplier to Spain and the second largest supplier to Germany,'' continued Dr. Shi. ''We are determined to expand our market share, and have already developed a strong pipeline in both countries in 2008. We are confident that an expanded local presence in Germany and Spain will generate even greater recognition of Suntech's brand and product quality in the coming years.''
Jerry Stokes, President of Suntech Europe, noted that Suntech plans to continue to open offices in Europe to further strengthen Suntech's sales network and distribution channels. Mr. Stokes said, ''These two new offices will complement our existing European headquarters in London providing greater geographic coverage and access for our customers. Over the next 12 months we will continue to extend our European network with offices in Italy, Greece and Switzerland giving us a network of local support in key European solar markets and financial centers. We believe this will increase our agility and ability to respond to new markets, enhance our local relationships and help build our market position.''
The contact details for Suntech's new office in Germany are: Landsberger Strasse 155, 80687 Munchen, Germany Tel: +49-89-579-59-195 Fax: +49-89-579-59-200 The contact details for Suntech's new office in Spain are: Avenida Ramon y Cajal 36, 28002 Madrid, Spain Tel: +34-91-510-3682 Fax: +34-91-510-3681
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK brand. Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com/ .
Sales Offices Strengthen Suntech's European Network and Broaden Ability to Serve Local Customer Base
SAN FRANCISCO, Calif., Feb. 19 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced the opening of sales offices in Germany and Spain to strengthen Suntech's European sales network and broaden local customer service capabilities.
''We are very pleased to expand our sales and customer service capabilities in Europe with the opening of these two offices in Germany and Spain. Our on the ground presence will help us to manage the exceptional demand for Suntech solar products that we are seeing in both Germany and Spain in 2008,'' said Dr. Zhengrong Shi, Suntech's Chairman and CEO. ''Establishing regional sales centers and localizing our sales staff is central to our commitment to deliver exceptional customer service and we are confident it will enable us to forge stronger customer relationships and improve our ability to respond to customer needs.''
''Due to our significant installation base and collaboration on the development of landmark PV projects across Europe, Suntech is well known for delivering high quality PV products and we have established a healthy market share. In fact, we believe that Suntech is already the largest PV module supplier to Spain and the second largest supplier to Germany,'' continued Dr. Shi. ''We are determined to expand our market share, and have already developed a strong pipeline in both countries in 2008. We are confident that an expanded local presence in Germany and Spain will generate even greater recognition of Suntech's brand and product quality in the coming years.''
Jerry Stokes, President of Suntech Europe, noted that Suntech plans to continue to open offices in Europe to further strengthen Suntech's sales network and distribution channels. Mr. Stokes said, ''These two new offices will complement our existing European headquarters in London providing greater geographic coverage and access for our customers. Over the next 12 months we will continue to extend our European network with offices in Italy, Greece and Switzerland giving us a network of local support in key European solar markets and financial centers. We believe this will increase our agility and ability to respond to new markets, enhance our local relationships and help build our market position.''
The contact details for Suntech's new office in Germany are: Landsberger Strasse 155, 80687 Munchen, Germany Tel: +49-89-579-59-195 Fax: +49-89-579-59-200 The contact details for Suntech's new office in Spain are: Avenida Ramon y Cajal 36, 28002 Madrid, Spain Tel: +34-91-510-3682 Fax: +34-91-510-3681
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK brand. Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com/ .
Yingli Green Energy Reports Fourth Quarter and Full Year 2007 Financial Results
BAODING, China - Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2007.
Fourth Quarter 2007 Financial and Operating Highlights
Total net revenues were RMB 1,453.2 million (US$199.2 million), an increase of 13.8% from the third quarter of 2007 and an increase of 167.8% from the fourth quarter of 2006.
PV module shipments were 50.9 MW, an increase of 10.8% from 45.9 MW in the third quarter of 2007 and an increase of 215.8% from 16.1 MW in the fourth quarter of 2006.
Gross profit was RMB 359.6 million (US$49.3 million), an increase of 18.7% from the third quarter of 2007 and an increase of 187.9% from the fourth quarter of 2006.
Gross margin was 24.7% in the fourth quarter of 2007, an increase from 23.7% in the third quarter of 2007 and an increase from 23.0% in the fourth quarter of 2006.
Net income was RMB 138.4 million (US$19.0 million) and fully diluted earnings per ordinary share and per American depositary share ("ADS") were RMB 1.07 (US$0.15).
On an adjusted non-GAAP1 basis, net income was RMB 157.3 million (US$21.6 million) and fully diluted earnings per ordinary share and per ADS were RMB 1.21 (US$0.17).
Full Year 2007 Financial and Operating Highlights
Total net revenues for the full year 2007 were RMB 4,059.3 million (US$556.5 million), which exceeded the Company's guidance and represents a 147.7% increase from the combined2 year of 2006.
PV module shipments for the full year 2007 were 142.5 MW, which exceeded the Company's guidance and represents a 177.7% increase from 51.3 MW in the combined year of 2006.
Gross profit for the full year 2007 was RMB 956.8 million (US$131.2 million), representing a 111.6% increase from the combined year of 2006.
Net income for the full year 2007 was RMB 389.0 million (US$53.3 million) and fully diluted earnings per ordinary share and per ADS were RMB 2.89 (US$0.40) in 2007.
On an adjusted non-GAAP basis, net income for the full year 2007 was RMB 450.9 million (US$61.8 million) and fully diluted earnings per ordinary share and per ADS were RMB 3.42 (US$0.47).
"I am very pleased to announce our first full year results as a public company," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "We had a great year in 2007. Our revenues continued to grow strongly in the fourth quarter and our overall results came in ahead of our expectations. I believe our impressive performance helps demonstrate our ability to successfully execute our strategies and sets a solid foundation for our future business development. Moreover, we successfully increased our total annual production capacity of each of polysilicon ingots and wafers, PV cells and PV modules to 200 MW in July 2007 and expect that we will reach our goal of 600 MW for each in 2009. In the fourth quarter of 2007, we successfully completed a convertible notes offering which we believe will financially support our capabilities to achieve our production expansion goal and to secure additional polysilicon supply. We were also selected by several leading global renewable energy companies to be one of their suppliers of choice. I believe our long-term commitment to superior product quality and our growing brand recognition have not only helped us expand our customer base, but have also been instrumental to our continued fast pace of growth."
Fourth Quarter 2007 Business Highlights
Entered into three polysilicon supply contracts with a leading polysilicon manufacturer in November 2007 that should allow the Company to produce over 40 MW of PV modules over the life of the contracts. The Company expects that the delivery of the polysilicon under the contracts will be completed by the end of the first quarter of 2008. Incorporated Yingli Energy (China) Company Ltd. ("Yingli China") in October 2007 to strengthen the Company's ability to effectively execute its strategies. Also incorporated Yingli Energy (Beijing) Co., Ltd. in November 2007 to advance the Company's strategic execution and development by taking advantage of Beijing's location and diversified professional talent and Yingli Green Energy Europe GmbH in Munich, Germany to further expand into the European PV market. Issued US$172.5 million zero coupon convertible senior notes due on December 15, 2012, in part to make an equity contribution of approximately US$100 million to Yingli China to fund part of its planned construction of 200 MW of production capacity for each of polysilicon ingots and wafers, PV cells and PV modules by the end of 2009. Ranked No. 9 in the "Deloitte Technology Fast 50 China 2007" published in October 2007. Recognized in the "Deloitte Technology Fast 500 Asia Pacific" published in December 2007, which names technology companies that have achieved the fastest rates of annual revenue growth in the Asia Pacific region during the past three years.
Yingli Green Energy Holding Company Limited
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world. Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States.
Fourth Quarter 2007 Financial and Operating Highlights
Total net revenues were RMB 1,453.2 million (US$199.2 million), an increase of 13.8% from the third quarter of 2007 and an increase of 167.8% from the fourth quarter of 2006.
PV module shipments were 50.9 MW, an increase of 10.8% from 45.9 MW in the third quarter of 2007 and an increase of 215.8% from 16.1 MW in the fourth quarter of 2006.
Gross profit was RMB 359.6 million (US$49.3 million), an increase of 18.7% from the third quarter of 2007 and an increase of 187.9% from the fourth quarter of 2006.
Gross margin was 24.7% in the fourth quarter of 2007, an increase from 23.7% in the third quarter of 2007 and an increase from 23.0% in the fourth quarter of 2006.
Net income was RMB 138.4 million (US$19.0 million) and fully diluted earnings per ordinary share and per American depositary share ("ADS") were RMB 1.07 (US$0.15).
On an adjusted non-GAAP1 basis, net income was RMB 157.3 million (US$21.6 million) and fully diluted earnings per ordinary share and per ADS were RMB 1.21 (US$0.17).
Full Year 2007 Financial and Operating Highlights
Total net revenues for the full year 2007 were RMB 4,059.3 million (US$556.5 million), which exceeded the Company's guidance and represents a 147.7% increase from the combined2 year of 2006.
PV module shipments for the full year 2007 were 142.5 MW, which exceeded the Company's guidance and represents a 177.7% increase from 51.3 MW in the combined year of 2006.
Gross profit for the full year 2007 was RMB 956.8 million (US$131.2 million), representing a 111.6% increase from the combined year of 2006.
Net income for the full year 2007 was RMB 389.0 million (US$53.3 million) and fully diluted earnings per ordinary share and per ADS were RMB 2.89 (US$0.40) in 2007.
On an adjusted non-GAAP basis, net income for the full year 2007 was RMB 450.9 million (US$61.8 million) and fully diluted earnings per ordinary share and per ADS were RMB 3.42 (US$0.47).
"I am very pleased to announce our first full year results as a public company," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "We had a great year in 2007. Our revenues continued to grow strongly in the fourth quarter and our overall results came in ahead of our expectations. I believe our impressive performance helps demonstrate our ability to successfully execute our strategies and sets a solid foundation for our future business development. Moreover, we successfully increased our total annual production capacity of each of polysilicon ingots and wafers, PV cells and PV modules to 200 MW in July 2007 and expect that we will reach our goal of 600 MW for each in 2009. In the fourth quarter of 2007, we successfully completed a convertible notes offering which we believe will financially support our capabilities to achieve our production expansion goal and to secure additional polysilicon supply. We were also selected by several leading global renewable energy companies to be one of their suppliers of choice. I believe our long-term commitment to superior product quality and our growing brand recognition have not only helped us expand our customer base, but have also been instrumental to our continued fast pace of growth."
Fourth Quarter 2007 Business Highlights
Entered into three polysilicon supply contracts with a leading polysilicon manufacturer in November 2007 that should allow the Company to produce over 40 MW of PV modules over the life of the contracts. The Company expects that the delivery of the polysilicon under the contracts will be completed by the end of the first quarter of 2008. Incorporated Yingli Energy (China) Company Ltd. ("Yingli China") in October 2007 to strengthen the Company's ability to effectively execute its strategies. Also incorporated Yingli Energy (Beijing) Co., Ltd. in November 2007 to advance the Company's strategic execution and development by taking advantage of Beijing's location and diversified professional talent and Yingli Green Energy Europe GmbH in Munich, Germany to further expand into the European PV market. Issued US$172.5 million zero coupon convertible senior notes due on December 15, 2012, in part to make an equity contribution of approximately US$100 million to Yingli China to fund part of its planned construction of 200 MW of production capacity for each of polysilicon ingots and wafers, PV cells and PV modules by the end of 2009. Ranked No. 9 in the "Deloitte Technology Fast 50 China 2007" published in October 2007. Recognized in the "Deloitte Technology Fast 500 Asia Pacific" published in December 2007, which names technology companies that have achieved the fastest rates of annual revenue growth in the Asia Pacific region during the past three years.
Yingli Green Energy Holding Company Limited
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world. Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States.
China Sunergy Announces Signing of a Supplementary Agreement With aleo solar AG
February 18, 2008 8:00 AM EST
NANJING, China, Feb. 18 /Xinhua-PRNewswire/ -- China Sunergy Co., Ltd. ("China Sunergy"), a specialized solar cell manufacturer based in Nanjing, China, today provided information on a supplementary agreement (the "Agreement") it recently signed with aleo solar AG ("aleo solar"). Under the Agreement, more than 20% of the supply will now be in the form of high-efficiency selective emitter ("SE") cells.
aleo solar, a leading German solar module manufacturer, signed an initial solar cell supply agreement with China Sunergy in October 2007. The total shipment volume under the new Agreement will remain at 30MW for 2008 but will now comprise of 7MW supplied in the form of SE cells. 2MW of the 10MW to be supplied during the first half of this year will now be in the form of SE cells. The remainder of the cells will be shipped by the end of 2008.
Commenting on the Agreement, Allen Wang, CEO of China Sunergy, said: "SE cells represent a growing proportion of our total production and shipment levels, and we are very pleased with the response our customers have shown towards these products. As we continue to increase the overall ratio of SE cells shipped, and expand our SE production capacity, we expect to see an improvement in our 2008 gross margin as overall conversion efficiencies improve and our usage of polysilicon is reduced."
Commenting further, Jakobus Smit, CEO of aleo solar, added: "The efficiency levels China Sunergy is achieving with its SE cells are some of the best in the industry so we decided that these cells should form a greater proportion of our overall supply. Going forward we look forward to building closer ties with China Sunergy and view them as an important long-term supplier."
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. ("China Sunergy") is a leading manufacturer of solar cell products in China as measured by production capacity. China Sunergy manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. China Sunergy sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets. For more information please visit http://www.chinasunergy.com .
NANJING, China, Feb. 18 /Xinhua-PRNewswire/ -- China Sunergy Co., Ltd. ("China Sunergy"), a specialized solar cell manufacturer based in Nanjing, China, today provided information on a supplementary agreement (the "Agreement") it recently signed with aleo solar AG ("aleo solar"). Under the Agreement, more than 20% of the supply will now be in the form of high-efficiency selective emitter ("SE") cells.
aleo solar, a leading German solar module manufacturer, signed an initial solar cell supply agreement with China Sunergy in October 2007. The total shipment volume under the new Agreement will remain at 30MW for 2008 but will now comprise of 7MW supplied in the form of SE cells. 2MW of the 10MW to be supplied during the first half of this year will now be in the form of SE cells. The remainder of the cells will be shipped by the end of 2008.
Commenting on the Agreement, Allen Wang, CEO of China Sunergy, said: "SE cells represent a growing proportion of our total production and shipment levels, and we are very pleased with the response our customers have shown towards these products. As we continue to increase the overall ratio of SE cells shipped, and expand our SE production capacity, we expect to see an improvement in our 2008 gross margin as overall conversion efficiencies improve and our usage of polysilicon is reduced."
Commenting further, Jakobus Smit, CEO of aleo solar, added: "The efficiency levels China Sunergy is achieving with its SE cells are some of the best in the industry so we decided that these cells should form a greater proportion of our overall supply. Going forward we look forward to building closer ties with China Sunergy and view them as an important long-term supplier."
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. ("China Sunergy") is a leading manufacturer of solar cell products in China as measured by production capacity. China Sunergy manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. China Sunergy sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets. For more information please visit http://www.chinasunergy.com .
SunPower to Get Polysilicon From Qingdao
SunPower Enters Six-Year Polysilicon Supply Agreement With Qingdao for Undisclosed Terms
February 14, 2008: 10:34 AM EST
NEW YORK (Associated Press) - SunPower Corp. said Thursday it has entered a six-year polysilicon supply agreement with Qingdao DTK Industries Co.
The solar-power product maker will receive enough polysilicon supplies to produce solar cells with over three gigawatts of annual generating capacity. Supplies will be delivered from 2010 through 2016.
The companies did not disclose pricing terms.
A one-megawatt plant running continuously at full capacity can power 778 households each year, according to the U.S. Department of Energy. Solar technology has lower capacity since its power generation is constrained by availability of the sun.
China-based Qingdao will sell the products through its Jupiter Corp. Ltd. business.
February 14, 2008: 10:34 AM EST
NEW YORK (Associated Press) - SunPower Corp. said Thursday it has entered a six-year polysilicon supply agreement with Qingdao DTK Industries Co.
The solar-power product maker will receive enough polysilicon supplies to produce solar cells with over three gigawatts of annual generating capacity. Supplies will be delivered from 2010 through 2016.
The companies did not disclose pricing terms.
A one-megawatt plant running continuously at full capacity can power 778 households each year, according to the U.S. Department of Energy. Solar technology has lower capacity since its power generation is constrained by availability of the sun.
China-based Qingdao will sell the products through its Jupiter Corp. Ltd. business.
Suntech Opens Sales Office in South Korea
New Office to Accelerate Business Development in South Korea and Expand Customer Service Capabilities
SAN FRANCISCO, Calif., Feb. 13 /Xinhua-PRNewswire/ -- Suntech PowerHoldings Co., Ltd. one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced the opening of a sales office in South Korea to accelerate Suntech's business development and broaden local customer service capabilities.
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: "The South Koreanmarket for solar energy has quickly developed into one of the key drivers for solar demand in Asia and we are very pleased to have established a base there. In a short time frame, we have put together a strong team consisting of four people with over 15 years of combined experience in the PV industry. Our team will focus on building strong customer relationships and delivering exceptional pre and post sales service. This office is integral to Suntech's plan of developing and maintaining key customers in diverse markets with long term growth potential."
South Korea is one of the foremost supporters of the solar industry,with attractive feed-in-tariffs of more than US$0.70/kWh and an impressive target of 1.3GW installed PV capacity by 2011.
"The government's strong commitment to renewable energy has set a firm foundation for long-term, sustainable growth of the solar industry in South Korea and Suntech is determined to support this goal through the supply of high quality and reliable solar products. With our growing team in South Korea, we target to expand our sales five-fold from 2007 to 2008,"continued Dr. Shi.
In November 2007, Suntech collaborated with Hyosung Corporation to complete the first stage of a 3MW solar energy system for WEPCO (KoreaWestern Power Co., Ltd.). WEPCO is a subsidiary of KEPCO (Korea Electric Power Corporation), South Korea's largest power company.
"It is our hope that this new office will enable us to expand our collaborations with key partners such as WEPCO and Hyosung and further solidify our position as a leading supplier of PV modules in South Korea,"added Dr. Shi.
The contact details for Suntech's new office in South Korea are:
Room 818-819, Hanshin Inter Velly 24 East Bldg, 707-34 Yeoksam dong, Gangnam-gu, South Korea 135-080, Tel: +82-2-2183-2822, Fax: +82-2-2183-2825
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK brand. Suntech has sales offices worldwide and is a marketshare leader in key global solar markets. For more information, please visit http://www.suntech-power.com .
SAN FRANCISCO, Calif., Feb. 13 /Xinhua-PRNewswire/ -- Suntech PowerHoldings Co., Ltd. one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced the opening of a sales office in South Korea to accelerate Suntech's business development and broaden local customer service capabilities.
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: "The South Koreanmarket for solar energy has quickly developed into one of the key drivers for solar demand in Asia and we are very pleased to have established a base there. In a short time frame, we have put together a strong team consisting of four people with over 15 years of combined experience in the PV industry. Our team will focus on building strong customer relationships and delivering exceptional pre and post sales service. This office is integral to Suntech's plan of developing and maintaining key customers in diverse markets with long term growth potential."
South Korea is one of the foremost supporters of the solar industry,with attractive feed-in-tariffs of more than US$0.70/kWh and an impressive target of 1.3GW installed PV capacity by 2011.
"The government's strong commitment to renewable energy has set a firm foundation for long-term, sustainable growth of the solar industry in South Korea and Suntech is determined to support this goal through the supply of high quality and reliable solar products. With our growing team in South Korea, we target to expand our sales five-fold from 2007 to 2008,"continued Dr. Shi.
In November 2007, Suntech collaborated with Hyosung Corporation to complete the first stage of a 3MW solar energy system for WEPCO (KoreaWestern Power Co., Ltd.). WEPCO is a subsidiary of KEPCO (Korea Electric Power Corporation), South Korea's largest power company.
"It is our hope that this new office will enable us to expand our collaborations with key partners such as WEPCO and Hyosung and further solidify our position as a leading supplier of PV modules in South Korea,"added Dr. Shi.
The contact details for Suntech's new office in South Korea are:
Room 818-819, Hanshin Inter Velly 24 East Bldg, 707-34 Yeoksam dong, Gangnam-gu, South Korea 135-080, Tel: +82-2-2183-2822, Fax: +82-2-2183-2825
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK brand. Suntech has sales offices worldwide and is a marketshare leader in key global solar markets. For more information, please visit http://www.suntech-power.com .
Staffing Completed For China Nuvo Solar's Pilot Project
Monday, February 11, 2008
Feb 11, 2008 (financialwire.net via COMTEX) -- February 11, 2008 (FinancialWire) Pioneer Materials Inc., a collaboration development agreement partner with China Nuvo Solar Energy Inc. (OTCBB: CNUV), has completed staffing for the company's pilot production project in Chengdu, China.
The leader of this project is Leon Chiu, president and chief executive officer of PMI. The principal investigator and solar engineer for work at the Chengdu facility will be Lixin Dong, assistant professor of materials science at Southwest Jiaotung University.
The initial project focus is to develop a single junction solar cell with commercial efficiency utilizing materials provided by PMI and incorporated into the company's ceramic sleeve solar technology. The company believes this will provide the baseline for development of a multi-stacked solar cell that could provide an even higher degree of efficiency. The ultimate goal of the project is to develop and produce a highly efficient, commercially viable, lower cost-per-watt solar energy cell.
China Nuvo Solar Energy is a development stage company that owns a patent pending solar technology and is working to develop a commercially viable higher efficiency stacked solar cell.
Feb 11, 2008 (financialwire.net via COMTEX) -- February 11, 2008 (FinancialWire) Pioneer Materials Inc., a collaboration development agreement partner with China Nuvo Solar Energy Inc. (OTCBB: CNUV), has completed staffing for the company's pilot production project in Chengdu, China.
The leader of this project is Leon Chiu, president and chief executive officer of PMI. The principal investigator and solar engineer for work at the Chengdu facility will be Lixin Dong, assistant professor of materials science at Southwest Jiaotung University.
The initial project focus is to develop a single junction solar cell with commercial efficiency utilizing materials provided by PMI and incorporated into the company's ceramic sleeve solar technology. The company believes this will provide the baseline for development of a multi-stacked solar cell that could provide an even higher degree of efficiency. The ultimate goal of the project is to develop and produce a highly efficient, commercially viable, lower cost-per-watt solar energy cell.
China Nuvo Solar Energy is a development stage company that owns a patent pending solar technology and is working to develop a commercially viable higher efficiency stacked solar cell.
Yingli Signs Deal With Recurrent Energy
Yingli to Provide Recurrent Energy With Solar-Power Modules in Last 9 Months of 2008
February 06, 2008: 11:53 AM EST
NEW YORK (Associated Press) - Yingli Green Energy Holding Co. said Wednesday it agreed to provide Recurrent Energy Inc. with solar-power modules during the last nine months of 2008.
San Francisco-based Recurrent is required to buy a minimum quantity of solar products from Yingli during the period, with options to buy more. The companies did not provide financial terms of the deal or disclose the minimum purchase requirement.
Recurrent develops and operates large rooftop solar-panel installations.
February 06, 2008: 11:53 AM EST
NEW YORK (Associated Press) - Yingli Green Energy Holding Co. said Wednesday it agreed to provide Recurrent Energy Inc. with solar-power modules during the last nine months of 2008.
San Francisco-based Recurrent is required to buy a minimum quantity of solar products from Yingli during the period, with options to buy more. The companies did not provide financial terms of the deal or disclose the minimum purchase requirement.
Recurrent develops and operates large rooftop solar-panel installations.
LDK Solar's polysilicon production goes fluid
By Mark Osborne
05 February 2008
Having announced very aggressive polysilicon production targets last year, LDK Solar turned heads, while also turning some market/financial analysts bearish on oversupply issues by 2010.
Industry veterans didn't believe that LDK Solar could build and ramp production to the levels stated in the timeframes. Others noted that Chinese companies have a habit of proving others wrong and so those targets could well be in line with what could be achievable.
However, in the case of LDK Solar, the metric ton production targets by the end of 2008 have been fluid to say the least and that's just in the last five months! In September 2007 we reported that LDK expected to reach 7,000 metric tons of polysilicon capacity by the end of 2008, up 1,000 metric tons due to availability of extra furnaces not originally anticipated.
In January we reported that the company expected to reach 350 metric tons in 2008, a massive change from just a short time ago!
Now in February the company is stating that it expects to produce (from a wide guidance range) between 100 metric tons and 350 metrics tons in 2008.
Industry veterans didn't believe LDK Solar last year and, based on the latest company projections, have little faith in the current revised outlook.
Building and ramping a polysilicon plant takes as long as a piece of string! Even the veterans don't really know exactly how long that piece of string is going to be.
Hopefully we now have more realistic projections from LDK, which the financial market will like, customers will like and LDK will eventually like as they will be seen as being able to meet and possibly beat more realistic targets going forward.
05 February 2008
Having announced very aggressive polysilicon production targets last year, LDK Solar turned heads, while also turning some market/financial analysts bearish on oversupply issues by 2010.
Industry veterans didn't believe that LDK Solar could build and ramp production to the levels stated in the timeframes. Others noted that Chinese companies have a habit of proving others wrong and so those targets could well be in line with what could be achievable.
However, in the case of LDK Solar, the metric ton production targets by the end of 2008 have been fluid to say the least and that's just in the last five months! In September 2007 we reported that LDK expected to reach 7,000 metric tons of polysilicon capacity by the end of 2008, up 1,000 metric tons due to availability of extra furnaces not originally anticipated.
In January we reported that the company expected to reach 350 metric tons in 2008, a massive change from just a short time ago!
Now in February the company is stating that it expects to produce (from a wide guidance range) between 100 metric tons and 350 metrics tons in 2008.
Industry veterans didn't believe LDK Solar last year and, based on the latest company projections, have little faith in the current revised outlook.
Building and ramping a polysilicon plant takes as long as a piece of string! Even the veterans don't really know exactly how long that piece of string is going to be.
Hopefully we now have more realistic projections from LDK, which the financial market will like, customers will like and LDK will eventually like as they will be seen as being able to meet and possibly beat more realistic targets going forward.
LDK Solar Gives Q1 Outlook; Backs FY08 Revenue Forecast
2/5/2008
LDK Solar Co., Ltd. (LDK) said on Tuesday that it expects first-quarter earnings per ADS in the range of $0.39 - $0.44. The company also sees revenues between $195 million and $210 million and wafer shipments between 93 MW and 98 MW for the quarter.
On average, four analysts polled by First Call/Thomson Financial expect the company to earn $0.39 per share in the first quarter, on revenues of $221.79 million.
The company said that it experienced some shipment delays due to the recent severe weather conditions in China. The company expects this disruption to be minor and plans to return to a normal operating schedule by February 12, 2008.
The company also stated that the severe weather would have no significant impact on the progress of the polysilicon plant construction and reiterated its polysilicon production target of 100 metric tons to 350 metric tons in 2008.
Further, LDK Solar said that it is not revising its previously provided full-year 2008 financial outlook. The company estimates fiscal 2008 revenues between $960 million and $1 billion and wafer shipments between 510 MW and 530 MW. The analysts expect revenues of $1.05 billion for the year 2008.
LDK Solar Co., Ltd. (LDK) said on Tuesday that it expects first-quarter earnings per ADS in the range of $0.39 - $0.44. The company also sees revenues between $195 million and $210 million and wafer shipments between 93 MW and 98 MW for the quarter.
On average, four analysts polled by First Call/Thomson Financial expect the company to earn $0.39 per share in the first quarter, on revenues of $221.79 million.
The company said that it experienced some shipment delays due to the recent severe weather conditions in China. The company expects this disruption to be minor and plans to return to a normal operating schedule by February 12, 2008.
The company also stated that the severe weather would have no significant impact on the progress of the polysilicon plant construction and reiterated its polysilicon production target of 100 metric tons to 350 metric tons in 2008.
Further, LDK Solar said that it is not revising its previously provided full-year 2008 financial outlook. The company estimates fiscal 2008 revenues between $960 million and $1 billion and wafer shipments between 510 MW and 530 MW. The analysts expect revenues of $1.05 billion for the year 2008.
Yingli slims down its solar wafers
February 4, 2008
The company says its wafers are now 180 microns thick instead of 200 microns, reducing its polysilicon usage.
Baoding, China-based Yingli Green Energy Holding said today it trimmed the thickness of its solar wafers by 10 percent, cutting the amount of polysilicon needed and reducing the cost of production.
The company said that it successfully reduced its wafers to 180 microns, down from 200 microns, reducing polysilicon usage per watt and increasing wafer output per ingot.
"We are pleased to announce the reduction in our wafer thickness and that over 70 percent of our estimated polysilicon needs for 2008 has been contracted," said Liansheng Miao, chairman and CEO of Yingli Green Energy.
Yingli said most of its supply will be virgin polysilicon.
The company also announced that it expects its photovoltaic module shipment target for the full year of 2008 to be in the range of 255 megawatts and 265 MW.
"Our continued efforts to improve operating efficiencies and reduce wafer thickness have demonstrated the success of our R&D and other strategic initiatives and we believe these achievements will help us to be more competitive in 2008."
Yingli currently has 200 MW of total annual production capacity in each of polysilicon ingots and wafers, photovoltaic cells and photovoltaic modules.
The company plans to expand its capacity to 400 MW by the end of 2008 and to 600 MW by the end of 2009.
Slimming wafer thickness has been a stated cost-cutting strategy of most silicon solar cell manufacturers.
The company says its wafers are now 180 microns thick instead of 200 microns, reducing its polysilicon usage.
Baoding, China-based Yingli Green Energy Holding said today it trimmed the thickness of its solar wafers by 10 percent, cutting the amount of polysilicon needed and reducing the cost of production.
The company said that it successfully reduced its wafers to 180 microns, down from 200 microns, reducing polysilicon usage per watt and increasing wafer output per ingot.
"We are pleased to announce the reduction in our wafer thickness and that over 70 percent of our estimated polysilicon needs for 2008 has been contracted," said Liansheng Miao, chairman and CEO of Yingli Green Energy.
Yingli said most of its supply will be virgin polysilicon.
The company also announced that it expects its photovoltaic module shipment target for the full year of 2008 to be in the range of 255 megawatts and 265 MW.
"Our continued efforts to improve operating efficiencies and reduce wafer thickness have demonstrated the success of our R&D and other strategic initiatives and we believe these achievements will help us to be more competitive in 2008."
Yingli currently has 200 MW of total annual production capacity in each of polysilicon ingots and wafers, photovoltaic cells and photovoltaic modules.
The company plans to expand its capacity to 400 MW by the end of 2008 and to 600 MW by the end of 2009.
Slimming wafer thickness has been a stated cost-cutting strategy of most silicon solar cell manufacturers.
Trina Solar Announces Operational Milestones
January 29, 2008
CHANGZHOU, China, Jan. 29 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, announced today the following updates relating to its previously stated capacity, operational, and technology roadmap targets that were achieved in the quarter ended December 31, 2007:
-- 150MW integrated capacity achieved for ingot, wafer, cell and module production
-- Successful ramp up of new cell production lines No. 3-6
-- Increased in-house cell processing to over 75% for the Q4 2007 production
-- Realized in-house cell efficiency rates of up to 17.0% (monocrystalline) and 15.6% (multicrystalline)
-- Commenced commercial production of 220-watt multicrystalline-based modules
"We are extremely pleased to have reached several operational goals in the fourth quarter of 2007," said Trina Solar's Chairman and CEO, Jifan Gao. "We achieved all-time highs in both in-house cell efficiency and output rates for our six cell manufacturing lines, which will have notable impact on our margin expansion. Going forward, we will continue to focus on decreasing module manufacturing costs through additional gains in cell efficiencies, reduced polysilicon usage, and production scale advantages achieved by the execution of our technology roadmap. These advancements will continue to be driven by technology transfer, operational synergies and quality assurance advantages provided through our vertical manufacturing platform."
2008 Sales and Technology Roadmap Update
As of this date, the Company has pre-sold 100% and 75% of its first and second half 2008 targeted module production, respectively, representing approximately 85% of its targeted module production of 200-210 MW for 2008.
The Company plans to initiate production tests of 180 micron wafers and cells in the first half of the year, with goals to reduce thickness to 140 and 160 microns by 2010 for its mono- and multicrystalline-based cells, respectively. Cell efficiency rates are expected to reach approximately 19% and 18% by 2010 for mono- and multicrystalline-based cells, respectively, yielding module power to approximately 240-250 watts. In December 2007, the Company's existing and newly launched multicrystalline cell lines achieved average cell efficiency rates of 16.6% and 15.3%, respectively.
2008 and 2009 Silicon Feedstock
The Company has now secured over 80% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 165MW based on a module production target of 200-210MW of module output. Through its established supply channels and proprietary in-house processes, the Company continues to source up to 80% of its feedstock requirements from reclaimed silicon sources, resulting in cost savings of 30-50% over the spot market cost for virgin polysilicon. For its 2009 planned module production of 400MW, the Company has secured approximately 60% of its total feedstock requirements, or an equivalent of approximately 240MW. The Company's long-term polysilicon contracts currently account for over 40% of its total 2009 silicon requirements.
About Trina Solar Limited
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd., is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December, 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
CHANGZHOU, China, Jan. 29 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, announced today the following updates relating to its previously stated capacity, operational, and technology roadmap targets that were achieved in the quarter ended December 31, 2007:
-- 150MW integrated capacity achieved for ingot, wafer, cell and module production
-- Successful ramp up of new cell production lines No. 3-6
-- Increased in-house cell processing to over 75% for the Q4 2007 production
-- Realized in-house cell efficiency rates of up to 17.0% (monocrystalline) and 15.6% (multicrystalline)
-- Commenced commercial production of 220-watt multicrystalline-based modules
"We are extremely pleased to have reached several operational goals in the fourth quarter of 2007," said Trina Solar's Chairman and CEO, Jifan Gao. "We achieved all-time highs in both in-house cell efficiency and output rates for our six cell manufacturing lines, which will have notable impact on our margin expansion. Going forward, we will continue to focus on decreasing module manufacturing costs through additional gains in cell efficiencies, reduced polysilicon usage, and production scale advantages achieved by the execution of our technology roadmap. These advancements will continue to be driven by technology transfer, operational synergies and quality assurance advantages provided through our vertical manufacturing platform."
2008 Sales and Technology Roadmap Update
As of this date, the Company has pre-sold 100% and 75% of its first and second half 2008 targeted module production, respectively, representing approximately 85% of its targeted module production of 200-210 MW for 2008.
The Company plans to initiate production tests of 180 micron wafers and cells in the first half of the year, with goals to reduce thickness to 140 and 160 microns by 2010 for its mono- and multicrystalline-based cells, respectively. Cell efficiency rates are expected to reach approximately 19% and 18% by 2010 for mono- and multicrystalline-based cells, respectively, yielding module power to approximately 240-250 watts. In December 2007, the Company's existing and newly launched multicrystalline cell lines achieved average cell efficiency rates of 16.6% and 15.3%, respectively.
2008 and 2009 Silicon Feedstock
The Company has now secured over 80% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 165MW based on a module production target of 200-210MW of module output. Through its established supply channels and proprietary in-house processes, the Company continues to source up to 80% of its feedstock requirements from reclaimed silicon sources, resulting in cost savings of 30-50% over the spot market cost for virgin polysilicon. For its 2009 planned module production of 400MW, the Company has secured approximately 60% of its total feedstock requirements, or an equivalent of approximately 240MW. The Company's long-term polysilicon contracts currently account for over 40% of its total 2009 silicon requirements.
About Trina Solar Limited
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd., is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December, 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
Solargiga Postpones IPO To Avoid Market "Turmoil"
Jan 29, 2008
Solargiga Energy Holdings Limited has tabled its plans for a Hong Kong initial public offering (IPO) until "adverse market conditions" subside, according to the company's January 28 filing with the Hong Kong Exchange (HKEx). Net proceeds from the IPO were expected to exceed HK$1 billion by mid-range estimates.
The company originally planned to begin trading on the main board of the HKEx on Friday, February 1. Solargiga manufactures monocrystalline silicon ingots used for PV cell components of solar energy generating systems.
Solargiga Energy Holdings Limited has tabled its plans for a Hong Kong initial public offering (IPO) until "adverse market conditions" subside, according to the company's January 28 filing with the Hong Kong Exchange (HKEx). Net proceeds from the IPO were expected to exceed HK$1 billion by mid-range estimates.
The company originally planned to begin trading on the main board of the HKEx on Friday, February 1. Solargiga manufactures monocrystalline silicon ingots used for PV cell components of solar energy generating systems.
Trina Solar and SolarAccess Announce Inauguration of 2007's Largest PV system installation in the Netherlands
January 29, 2008
CHANGZHOU, China, Jan. 29 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company") and SolarAccess announce the inauguration of 2007's largest PV system installation in the Netherlands, a roof integrated system at the new Amsterdam Library (Openbare Bibliotheek Amsterdam).
The project was carried out by SolarAccess, an international provider of PV installations with business in the Netherlands, Belgium, Germany, and France. Trina Solar, a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers, and cells to the assembly of PV modules, supplied over 450 units of their 180W solar modules needed for this key project to SolarAccess as part of the long-term relationship between both companies.
"We are very pleased to have supplied high quality modules of approximately 82kW in power for this landmark project that SolarAccess carried out for the new Amsterdam Library, representing the largest PV project installed in the Netherlands in 2007," remarked Jifan Gao, Trina Solar's Chairman and CEO. "We are delighted to work with SolarAccess to promote Trina Solar's brand in the Netherlands, a market we view as having great potential".
This PV system installation at the Amsterdam Library represents an important milestone for both Trina Solar and SolarAccess in Europe, as they continue their path to become leaders in the growing PV sector.
About Trina Solar Limited
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd., is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About SolarAccess
SolarAccess is an international project developer, supplier, and operator of high quality photovoltaic solar systems. With presence in Belgium, the Netherlands, Germany, France, and Spain, its service offerings include system consultancy, supply, and turn key realisation. SolarAccess is part of the SolarTrust Holding group which has over twenty years of experience in the fast growing and dynamic field of photovoltaics. For further information, please visit the SolarAccess website at http://www.solaraccess.nl .
CHANGZHOU, China, Jan. 29 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company") and SolarAccess announce the inauguration of 2007's largest PV system installation in the Netherlands, a roof integrated system at the new Amsterdam Library (Openbare Bibliotheek Amsterdam).
The project was carried out by SolarAccess, an international provider of PV installations with business in the Netherlands, Belgium, Germany, and France. Trina Solar, a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers, and cells to the assembly of PV modules, supplied over 450 units of their 180W solar modules needed for this key project to SolarAccess as part of the long-term relationship between both companies.
"We are very pleased to have supplied high quality modules of approximately 82kW in power for this landmark project that SolarAccess carried out for the new Amsterdam Library, representing the largest PV project installed in the Netherlands in 2007," remarked Jifan Gao, Trina Solar's Chairman and CEO. "We are delighted to work with SolarAccess to promote Trina Solar's brand in the Netherlands, a market we view as having great potential".
This PV system installation at the Amsterdam Library represents an important milestone for both Trina Solar and SolarAccess in Europe, as they continue their path to become leaders in the growing PV sector.
About Trina Solar Limited
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd., is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About SolarAccess
SolarAccess is an international project developer, supplier, and operator of high quality photovoltaic solar systems. With presence in Belgium, the Netherlands, Germany, France, and Spain, its service offerings include system consultancy, supply, and turn key realisation. SolarAccess is part of the SolarTrust Holding group which has over twenty years of experience in the fast growing and dynamic field of photovoltaics. For further information, please visit the SolarAccess website at http://www.solaraccess.nl .
China's ReneSola sells $130 mln in ADRs
HONG KONG, Jan 29 (Reuters) - China's ReneSola Ltd, which makes silicon wafers for solar panels, raised US$130 million in a sale of American Depositary Receipts late on Monday at a discount of 9.8 percent to their last trading price, a source familiar with the deal said.
The company, listed on London's secondary AIM bourse, sold 10 million ADRs at US$13.00 each in a deal handled by Credit Suisse and Deutsche Bank, the source said.
The ADRs are the first to be issued by the company and will begin trading late on Tuesday on the New York Stock Exchange under the symbol "SOL" SOL.N.
Of the shares sold, more than 9.2 million are new and the remainder were existing. The offering represents 15.6 percent of the firm's share capital.
Proceeds of the offering will be used in part to expand ReneSola's manufacturing facilities and to buy equipment. (Reporting by Tony Munroe; editing by Anne Marie Roantree)
The company, listed on London's secondary AIM bourse, sold 10 million ADRs at US$13.00 each in a deal handled by Credit Suisse and Deutsche Bank, the source said.
The ADRs are the first to be issued by the company and will begin trading late on Tuesday on the New York Stock Exchange under the symbol "SOL" SOL.N.
Of the shares sold, more than 9.2 million are new and the remainder were existing. The offering represents 15.6 percent of the firm's share capital.
Proceeds of the offering will be used in part to expand ReneSola's manufacturing facilities and to buy equipment. (Reporting by Tony Munroe; editing by Anne Marie Roantree)
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