Friday, March 28, 2008
Leshan Electric Power Tianwei Polysilicon Project broke ground on March 28th 2008
March 28th 2008 Leshan Electric Power Tianwei 3,000 ton Polysilicon Project broke ground, the total investment is 2.2 billion RMB. It will take about 24 months to complete this project.
Solarfun Reports 2007 Full-Year and Fourth Quarter Results
SHANGHAI, China, Mar 27, 2008 (BUSINESS WIRE) -- Solarfun Power Holdings Co., Ltd. ("Solarfun" or "the Company") (NASDAQ:SOLF), a vertically integrated manufacturer of silicon ingots and photovoltaic cells and modules in China, today reported its unaudited financial results for the fourth quarter and the year ended December 31, 2007.
2007 ANNUAL RESULTS
* Net revenue was RMB 2.395 billion (US$ 328.3 million), up 280% from 2006
* Total PV module shipments as reported were 78.4 MW, up 310% from 19.1 MW in 2006 (Note: Full year shipments were actually 80.6 MW. However, due to certain conditions which require future deliveries of products in order to secure payment for the shipments made in 4Q 07, we have deferred revenue recognition until the future deliveries have been made and the cash has been collected.)
* The average selling price was $3.74 for 2007
* Gross profit reached RMB 397.8 million (US$54.5 million), rising over 116% from 2006
* Gross margins reached 16.6% for the full year 2007, showing continuing improvement beginning in 2Q07
* Net income was RMB 148.0 million (US$20.3 million), rising 40% from 2006
* Earnings per basic ADS were RMB 3.081 (US$ 0.42), down from RMB 4.76(US$0.60) in 2006. There was a 132% increase in basic shares outstanding as a result of the Company's initial public offering in December 2006
Mr. Yonghua Lu, Chairman of Solarfun commented, "The year 2007 was a period of significant progress for the Company and I believe established a foundation for further growth in the burgeoning PV industry. Our financial results met our expectations and showed progress in key measures such as revenue and profit growth. They are also a reflection of our increased scale, vertical integration, broadened customer base, and successful ability to secure supply of key raw materials to meet our growth objectives."
"Specifically, we expanded manufacturing capacity to a year-end level of 240 MW, acquired and began production of ingots at our 52 %-owned ingot manufacturing facility - Jiangsu Yangguang Solar Technology Co. Ltd., increased our customer base more than six-fold, and signed five significant supply contracts totaling $1.4 billion, four of which were with suppliers outside of China."
"We also achieved a few other significant milestones over the past year. We significantly strengthened our senior management team with a group of executives with relevant industry experience and global expertise and improved our internal management structure and discipline to keep pace with our rapid growth. Additionally, we believe that the increased share ownership of Good Energies provides us with access to significant additional industry expertise and will contribute to the long-term success of our business," concluded Chairman Lu.
FOURTH QUARTER 2007 HIGHLIGHTS
* Net revenue was RMB 987.8 million (US$ 135.4 million), a 304% increase over 4Q06 and a 31% increase from the 3Q07
* PV module shipments as reported totaled 28.1 MW, which was nearly three times higher than 4Q06 and continued successive quarter-over-quarter shipment increases. Module shipments were 27.3 MW in 3Q07 (Note: 4Q07 shipments were actually 30 MW. However, as mentioned above, due to certain conditions which require future deliveries of products in order to secure payment for the shipments made in 4Q07, we have deferred revenue recognition until the future deliveries have been made and the cash has been collected.)
* The average selling price ("ASP") was $3.85, which rose from $3.66 in 3Q07
* Gross profit rose 45.3 % from 3Q07 to RMB 174.5 million (US$ 23.9 million)
* Gross margin reached 17.7%, the third consecutive quarter-over-quarter increase.
* Operating expenses as a percent of sales were 8.3%, which was a decrease from 12.4% in 4Q06, but a rise from 7.0% in 3Q07.
* Exchange losses of RMB 3.3 million (US $ 0.5 million) were up from RMB 2.2 million in 4Q06 and RMB 0.70 million in 3Q07.
* Net income was RMB 66.4 million (US$ 9.1 million), a rise of 101% over 4Q06.
* Earnings per basic ADS were RMB 1.38 (US$ 0.19), an increase of 4.2% from RMB 1.32 (US$ 0.18 in 3Q07.
Harold Hoskens, CEO of Solarfun, noted "The fourth quarter concluded an outstanding year for the Company with sequential momentum in shipments, ASP's and gross margins. We had a non-recurring trend of increased G&A expenses during the quarter, due largely to a ramp-up in our infrastructure costs, including the consolidation of Yangguang, legal expenses associated with becoming a public company, including SOX compliance and audit fees, as well as a larger management infrastructure and non-cash items such as stock-based compensation."
FINANCIAL POSITION
As of December 31, 2007 the Company had cash and cash equivalents of RMB 273 million (US$ 37.4 million) and working capital of RMB 959.8 million (US$ 131.6 million). Total bank borrowings were RMB 980 million (US$ 134.3 million). Note that on January 29, 2008 the Company placed US $172.5 million of Convertible Senior Notes due 2018.
Net accounts receivable decreased to RMB 430.69 million (US$ 59 million) due to continued focus on cash management practices. Days sales outstanding (DSO's) improved to 51 days from 62 days in 3Q07.
MANAGEMENT CHANGES
On January 3, 2008 the Company announced the appointment of Harold Hoskens as CEO beginning on February 25, 2008. Mr. Hoskens joins Solarfun from TPO Displays Corporation, Chunan, Taiwan, where he recently served as Deputy CEO. Harold began his career with Royal Philips in 1988, and moved to the Royal Philips' Mobile Display Systems division in Hong Kong, serving as CEO beginning in 2003.
Mr Lu continues to serve as Chairman and will remain actively involved in areas of strategic importance to Solarfun.
BUSINESS OUTLOOK
FIRST QUARTER 2008
Based on current operating trends and other conditions, Solarfun is providing first quarter 2008 and full year 2008 guidance as follows:
* Although the first quarter is not yet concluded, management believes that shipments for 1Q08 will continue to improve. Volumes are expected to be at least 35 MW. ASP's should remain strong and relatively constant.
* The Company was affected by the winter weather in China in February and continues to be affected by the relatively tight supply and increasing costs of polysilicon. Therefore, management would expect these factors to have some downward pressure on gross margins for the first quarter of 2008.
FULL YEAR 2008
* Based on existing sales and pricing, contracted supply agreements, and other expected business and industry conditions, management provided the following guidance for the full year 2008: The Company has sales contracts totaling over 160 MW (a level that is over double last year's 78.4MW) and expects prices to be flat or slightly higher from the $3.74 recorded for the full year 2007. Solarfun has secured supply of polysilicon on a contracted basis slightly exceeding its contracted sales volume.
* Capacity will increase from 240 MW to 360 MW by mid-year 2008.
* Management has seen a continued tightness of polysilicon supply and escalating prices on the spot market. With these conditions expected to exist throughout most or all of 2008, management believes some continued negative impact on gross margins from the level achieved in 2007.
CEO Harold Hoskens concluded, "2008 is a mix of opportunities and challenges. We believe Solarfun is well-positioned to continue to gain market share, expand scale, improve our manufacturing efficiencies, penetrate new markets, and develop and expand our supply chain in both China and elsewhere. Our management team, Board of Directors, and key shareholders are determined and committed to building shareholder value over the long term "
2007 ANNUAL RESULTS
* Net revenue was RMB 2.395 billion (US$ 328.3 million), up 280% from 2006
* Total PV module shipments as reported were 78.4 MW, up 310% from 19.1 MW in 2006 (Note: Full year shipments were actually 80.6 MW. However, due to certain conditions which require future deliveries of products in order to secure payment for the shipments made in 4Q 07, we have deferred revenue recognition until the future deliveries have been made and the cash has been collected.)
* The average selling price was $3.74 for 2007
* Gross profit reached RMB 397.8 million (US$54.5 million), rising over 116% from 2006
* Gross margins reached 16.6% for the full year 2007, showing continuing improvement beginning in 2Q07
* Net income was RMB 148.0 million (US$20.3 million), rising 40% from 2006
* Earnings per basic ADS were RMB 3.081 (US$ 0.42), down from RMB 4.76(US$0.60) in 2006. There was a 132% increase in basic shares outstanding as a result of the Company's initial public offering in December 2006
Mr. Yonghua Lu, Chairman of Solarfun commented, "The year 2007 was a period of significant progress for the Company and I believe established a foundation for further growth in the burgeoning PV industry. Our financial results met our expectations and showed progress in key measures such as revenue and profit growth. They are also a reflection of our increased scale, vertical integration, broadened customer base, and successful ability to secure supply of key raw materials to meet our growth objectives."
"Specifically, we expanded manufacturing capacity to a year-end level of 240 MW, acquired and began production of ingots at our 52 %-owned ingot manufacturing facility - Jiangsu Yangguang Solar Technology Co. Ltd., increased our customer base more than six-fold, and signed five significant supply contracts totaling $1.4 billion, four of which were with suppliers outside of China."
"We also achieved a few other significant milestones over the past year. We significantly strengthened our senior management team with a group of executives with relevant industry experience and global expertise and improved our internal management structure and discipline to keep pace with our rapid growth. Additionally, we believe that the increased share ownership of Good Energies provides us with access to significant additional industry expertise and will contribute to the long-term success of our business," concluded Chairman Lu.
FOURTH QUARTER 2007 HIGHLIGHTS
* Net revenue was RMB 987.8 million (US$ 135.4 million), a 304% increase over 4Q06 and a 31% increase from the 3Q07
* PV module shipments as reported totaled 28.1 MW, which was nearly three times higher than 4Q06 and continued successive quarter-over-quarter shipment increases. Module shipments were 27.3 MW in 3Q07 (Note: 4Q07 shipments were actually 30 MW. However, as mentioned above, due to certain conditions which require future deliveries of products in order to secure payment for the shipments made in 4Q07, we have deferred revenue recognition until the future deliveries have been made and the cash has been collected.)
* The average selling price ("ASP") was $3.85, which rose from $3.66 in 3Q07
* Gross profit rose 45.3 % from 3Q07 to RMB 174.5 million (US$ 23.9 million)
* Gross margin reached 17.7%, the third consecutive quarter-over-quarter increase.
* Operating expenses as a percent of sales were 8.3%, which was a decrease from 12.4% in 4Q06, but a rise from 7.0% in 3Q07.
* Exchange losses of RMB 3.3 million (US $ 0.5 million) were up from RMB 2.2 million in 4Q06 and RMB 0.70 million in 3Q07.
* Net income was RMB 66.4 million (US$ 9.1 million), a rise of 101% over 4Q06.
* Earnings per basic ADS were RMB 1.38 (US$ 0.19), an increase of 4.2% from RMB 1.32 (US$ 0.18 in 3Q07.
Harold Hoskens, CEO of Solarfun, noted "The fourth quarter concluded an outstanding year for the Company with sequential momentum in shipments, ASP's and gross margins. We had a non-recurring trend of increased G&A expenses during the quarter, due largely to a ramp-up in our infrastructure costs, including the consolidation of Yangguang, legal expenses associated with becoming a public company, including SOX compliance and audit fees, as well as a larger management infrastructure and non-cash items such as stock-based compensation."
FINANCIAL POSITION
As of December 31, 2007 the Company had cash and cash equivalents of RMB 273 million (US$ 37.4 million) and working capital of RMB 959.8 million (US$ 131.6 million). Total bank borrowings were RMB 980 million (US$ 134.3 million). Note that on January 29, 2008 the Company placed US $172.5 million of Convertible Senior Notes due 2018.
Net accounts receivable decreased to RMB 430.69 million (US$ 59 million) due to continued focus on cash management practices. Days sales outstanding (DSO's) improved to 51 days from 62 days in 3Q07.
MANAGEMENT CHANGES
On January 3, 2008 the Company announced the appointment of Harold Hoskens as CEO beginning on February 25, 2008. Mr. Hoskens joins Solarfun from TPO Displays Corporation, Chunan, Taiwan, where he recently served as Deputy CEO. Harold began his career with Royal Philips in 1988, and moved to the Royal Philips' Mobile Display Systems division in Hong Kong, serving as CEO beginning in 2003.
Mr Lu continues to serve as Chairman and will remain actively involved in areas of strategic importance to Solarfun.
BUSINESS OUTLOOK
FIRST QUARTER 2008
Based on current operating trends and other conditions, Solarfun is providing first quarter 2008 and full year 2008 guidance as follows:
* Although the first quarter is not yet concluded, management believes that shipments for 1Q08 will continue to improve. Volumes are expected to be at least 35 MW. ASP's should remain strong and relatively constant.
* The Company was affected by the winter weather in China in February and continues to be affected by the relatively tight supply and increasing costs of polysilicon. Therefore, management would expect these factors to have some downward pressure on gross margins for the first quarter of 2008.
FULL YEAR 2008
* Based on existing sales and pricing, contracted supply agreements, and other expected business and industry conditions, management provided the following guidance for the full year 2008: The Company has sales contracts totaling over 160 MW (a level that is over double last year's 78.4MW) and expects prices to be flat or slightly higher from the $3.74 recorded for the full year 2007. Solarfun has secured supply of polysilicon on a contracted basis slightly exceeding its contracted sales volume.
* Capacity will increase from 240 MW to 360 MW by mid-year 2008.
* Management has seen a continued tightness of polysilicon supply and escalating prices on the spot market. With these conditions expected to exist throughout most or all of 2008, management believes some continued negative impact on gross margins from the level achieved in 2007.
CEO Harold Hoskens concluded, "2008 is a mix of opportunities and challenges. We believe Solarfun is well-positioned to continue to gain market share, expand scale, improve our manufacturing efficiencies, penetrate new markets, and develop and expand our supply chain in both China and elsewhere. Our management team, Board of Directors, and key shareholders are determined and committed to building shareholder value over the long term "
Huaneng to boost renewable energy
03/26/2008 15:28 EST (0148 GMT)
China Huaneng Group, the country's largest power producer, said it will boost the development of new energy such as wind and solar power, in line with the government's thrust for renewable energy.
The company has accelerated its development of wind power in Guangdong, Jilin, Shandong, Inner Mongolia and Hainan, said Huaneng President Li Xiaopeng.
"The company's wind power projects in operation or under construction now have a total capacity of 1,347 mW," said Li. "We are also developing solar power projects in the Northwest and biomass power projects in Jilin province in Northeast China."
Besides wind, solar and biomass power, the company will also increase its capacity of hydropower, thermal and nuclear power, said Li.
Last year, the company's Yuhuan power plant in Zhejiang started commercial operation. With four 1,000 mW ultra supercritical units, it is one of the world's most energy-efficient and environmentally friendly power generating projects in the world.
The company is also developing China's first nuclear plant using high-temperature, gas-cooled technology. The 200 mW Shidaowan plant in Shandong involves a total investment of 3 billion yuan.
Huaneng has launched the GreenGen project, the first near-zero-emission integrated gasification combined cycle power plant in China. Located in Tianjin, the project has a capacity of 250 mW. Last year, US coal company Peabody became an equity partner in the project.
Along with giving a push to new energy, Huaneng will accelerate closures of small-scale power generating units. In the first two months of this year, the company has closed down power units with a total capacity of 100 mW. By the end of 2007, the company closed down a number of small-scale power units with a total capacity of 2,391 mW.
In 2007, the company's sulfur dioxide emissions were reduced by 8.88 percent. By the end of last year, 57 percent of the company's power units had been installed with de-sulfur equipments.
Last year, the company signed an agreement with the Commonwealth Scientific and Industrial Research Organisation, Australia's national science agency, to develop clean-coal power generation and carbon capturing and storage technologies.
The collaboration includes capturing power plants' flue gases, coal gasification, coal gas purification and other generation technologies. It will also include a post-combustion capture pilot project at Huaneng Beijing thermal power plant. Post-combustion capture traps carbon dioxide from flue gases of power plants.
Source: China Daily
China Huaneng Group, the country's largest power producer, said it will boost the development of new energy such as wind and solar power, in line with the government's thrust for renewable energy.
The company has accelerated its development of wind power in Guangdong, Jilin, Shandong, Inner Mongolia and Hainan, said Huaneng President Li Xiaopeng.
"The company's wind power projects in operation or under construction now have a total capacity of 1,347 mW," said Li. "We are also developing solar power projects in the Northwest and biomass power projects in Jilin province in Northeast China."
Besides wind, solar and biomass power, the company will also increase its capacity of hydropower, thermal and nuclear power, said Li.
Last year, the company's Yuhuan power plant in Zhejiang started commercial operation. With four 1,000 mW ultra supercritical units, it is one of the world's most energy-efficient and environmentally friendly power generating projects in the world.
The company is also developing China's first nuclear plant using high-temperature, gas-cooled technology. The 200 mW Shidaowan plant in Shandong involves a total investment of 3 billion yuan.
Huaneng has launched the GreenGen project, the first near-zero-emission integrated gasification combined cycle power plant in China. Located in Tianjin, the project has a capacity of 250 mW. Last year, US coal company Peabody became an equity partner in the project.
Along with giving a push to new energy, Huaneng will accelerate closures of small-scale power generating units. In the first two months of this year, the company has closed down power units with a total capacity of 100 mW. By the end of 2007, the company closed down a number of small-scale power units with a total capacity of 2,391 mW.
In 2007, the company's sulfur dioxide emissions were reduced by 8.88 percent. By the end of last year, 57 percent of the company's power units had been installed with de-sulfur equipments.
Last year, the company signed an agreement with the Commonwealth Scientific and Industrial Research Organisation, Australia's national science agency, to develop clean-coal power generation and carbon capturing and storage technologies.
The collaboration includes capturing power plants' flue gases, coal gasification, coal gas purification and other generation technologies. It will also include a post-combustion capture pilot project at Huaneng Beijing thermal power plant. Post-combustion capture traps carbon dioxide from flue gases of power plants.
Source: China Daily
China Sunergy Announces Financial Results for the Fourth Quarter and Full Year 2007
NANJING, China, March 26 --China Sunergy Co., Ltd. (Nasdaq: CSUN), ("China Sunergy" or the "Company") a specialized solar cell manufacturer based in Nanjing, China, announced today its financial results for the fourth quarter and full year 2007.
Fourth Quarter Financial Results
-- Revenues were US$71.5 million, representing a 1.1% increase compared to the same period last year, and a 46.0% increase compared to the previous quarter; core cell revenue increased 46.1% sequentially from US$46.3 million to US$67.7 million.
-- Gross profit and gross margin were US$4.6 million and 6.4%, respectively compared to US$1.0 million and 2.1% during the third quarter of 2007.
-- Quarterly net loss was US$2.3 million, compared to a net loss of US$4.4 million in the third quarter and a US$10.5 million net profit for the fourth quarter of 2006.
-- GAAP basic and diluted net loss attributable to holders of ordinary shares was US$0.06 per ADS in the fourth quarter compared to a net loss per ADS of US$0.11 in the third quarter 2007.
-- Quarterly production of 22.3 megawatts ("MW") of solar cells represented a 12.6% increase on a year-over-year basis and a 25.3% increase sequentially.
-- Shipments amounted to approximately 23.2 MW, representing an 8.9% increase year-over-year and a 39.8% increase sequentially.
Full Year Financial Results
-- Revenues were US$234.9 million, a 57.1% increase from US$149.5 million in 2006.
-- Gross profit of US$18.0 million, a decline from US$26.6 million in 2006, and gross margin of 7.7% compared to 17.8% in 2006.
-- Full year net loss was US$4.9 million, compared to net profit of US$11.8 million in 2006, mainly due to lower gross margins in 2007.
-- GAAP basic and diluted net loss attributable to holders of ordinary shares was $0.21 per ADS.
-- Full year production of 80.3 MW of solar cells represented a 67.6% increase compared to 47.9 MW in 2006.
-- Shipments amounted to approximately 74.0 MW, representing a 59.5% increase from 46.4MW in 2006.
Commenting on the quarter, Allen Wang, CEO of China Sunergy remarked: "During the quarter we began commercial production of our selective emitter cells and increased production levels beyond what we had guided for in November. At the same time we expanded our presence in Europe by signing noteworthy sales agreements and opening an office in Munich. I have been pleased by the response many of our customers have shown towards our high efficiency cells and believe that these products will help drive revenue growth in Europe's new solar markets."
Fourth Quarter and Recent Operational Highlights:
-- Commercial mass production of high-efficiency selective emitter cells ("SE") commenced in mid-November. A total of 2.4 MW was produced with 0.8MW shipped during the fourth quarter.
-- Average SE cell efficiency continued to improve from 16.5% in the third quarter to an average efficiency of 17.3% in the fourth quarter. A maximum conversion efficiency of 18.2% was achieved on pilot runs of selective emitter cells during November 2007.
-- The signing of the following agreements for 2008; a 30MW solar cell agreement with aleo solar, a 25MW sales agreement with Canadian Solar and a 10.2MW agreement with asola.
-- Revenue from overseas grew from 20.3% for the full-year 2006 to 35.7% for the full-year 2007.
-- In the quarter we began developing HP cells, a more efficient version of our current P-type cells. The limited pilot run of 0.3 MW in the fourth quarter achieved an average conversion efficiency rate of over 17%, higher than the 16.1% achieved with P-type cells during the same period. "During 2008 we will focus on improving margins and profitability by deriving a greater proportion of overall revenues from our high efficiency solar cell products," continued Mr. Wang. "We remain confident that as we expand production of our SE and HP products, margins can improve further during the coming year. Our confidence in achieving this objective is based on strong indications of customer preference for our high-efficiencycells."
Key Sales Agreements
During the quarter, the Company recently signed significant salescontracts with:
-- aleo solar AG ("aleo"), a leading German solar module manufacturer, to supply at least 30 MW of high quality silicon solar cells in 2008.
-- Canadian Solar Inc., a leading China-based module manufacturer, for a total volume of 25MW of solar cells for delivery in 2008.
-- asola, a reputable German module manufacturing company to supply a total volume of 10.2MW of solar cells during 2008.
Technological Developments
During the quarter the Company continued to make significant progress with the production of its high efficiency cell technology.
Average selective emitter efficiency continued to improve from 16.5% in the third quarter to 17.3% in the fourth quarter of 2007. A maximum conversion efficiency of 18.2% was achieved on pilot production runs during November 2007.
The Company is now enhancing its current P-type cell production facilities by converting existing lines to high-efficiency P-type (or "HP") lines. HP cells are a more efficient version of our standard P-type cells and achieve a higher conversion efficiency ratio as a result of an enhanced production process. HP cells of mono-crystalline 125 millimeter achieved anaverage conversion efficiency rate of over 17% on a 0.3 MW limited pilot run during the fourth quarter, and maximum conversion efficiency of 17.5%.
The development of the Company's patented N-type cells continues to move along smoothly. During 2008, China Sunergy intends to invest US$8 million in an R&D centre in Shanghai aimed at further developing N-type and other types of high efficiency cells. The center is expected to house 100 research employees. Construction of the center is scheduled to be completed by early 2009.
Fourth Quarter 2007 Financial and Business Review
Revenue, shipment and production
During the fourth quarter of 2007, revenues grew 1.1% on a year-over-year basis, and increased 46.0% compared to the previous quarter to US$71.5 million.
Sales from solar cells, polysilicon, and modules accounted for 94.7%, 1.0% and 4.3%, of total revenue respectively. Shipments, including 0.8MW for module sales, amounted to approximately 23.2 MW, compared to 21.3MW during the fourth quarter of 2006 and 16.6MW during the third quarter of 2007.
Revenue and Shipment Comparison between Q4 and Q3 2007
Q4 Q3
Value Value
Volume* (US$mm) Volume* (US$mm)
Core cell sales 22.4 67.7 16.2 46.3
Polysilicon sales 0.8 0.7 4.5 1.1
Module sales 0.8 3.1 0.4 1.5
* All volumes are expressed in MW except for Polysilicon sales expressed in metric tons.
During the fourth quarter the Company increased its quarter-on-quarter sales of core cell products by 46.1% as compared to the previous quarter. The percentage of overall cell sales in overseas markets declined in percentage terms from 47.7% to 40.6% compared to the previous quarter, particularly in Europe where sales declined from 42.7% to 35.0% sequentially even though in absolute terms cell sales to Europe increased from 6.7 MW to 7.6 MW sequentially.
In terms of MW volumes, mono-crystalline 125-millimeter cells accountedf or a proportion of overall production and cell sales at 57.1% and 57.5%(in terms of volume) respectively as we increased production and sale of multi- crystalline to cater for the increasing demands of European customers.
Gross profit, gross margin and Average Selling Price ("ASP")
Gross profit for the quarter was US$4.6 million, which led to a blended gross margin of 6.4%, up from 2.1% in the third quarter, as a result of the gross margin contribution from high efficiency cell products.
Margin Breakdown
Gross margin
Q4 Q3
Core cell sales 6.3% 1.5%
Polysilicon sales 12.2% 27.0%
Module sales 7.8% 0.8%
Blended 6.4% 2.1%
The sequential gross margin expansion on core cell sales from 1.5% to6.3% was mainly attributed to higher ASP as a result of a greater proportion of sales coming from high-efficiency cells.
Blended ASP for the fourth quarter rose from US$2.85 per watt in the previous quarter to US$3.02 per watt due to strong product demand and the strengthening of the Renminbi.
Wafer costs continued to account for a large portion of overall manufacturing costs. In the fourth quarter, wafer costs rose to US$2.54 per watt compared to US$2.45 per watt in the third quarter. Wafer costs per watt as a percentage of total production costs per watt increased from 89.2% in the third quarter to 90.1% in the fourth quarter. Other productioncosts, which mainly consisted of other raw materials, labor, depreciation and utilities, were US$0.28 per watt and largely the same as the first three quarters of this year.
SG&A and net income
Our SG&A expenses increased from US$4.2 million to US$5.3 million sequentially mainly due to an increase in professional expenses.
Due primarily to higher gross margin, the Company reduced its sequential operating loss to US$1.2 million. This compares to an operating profit of US$11.4 million and an operating loss of US$3.6 million for the fourth quarter 2006 and third quarter of 2007, respectively.
With higher gross margin, the Company reduced its sequential net lossfor the quarter to US$2.3 million.
Balance sheet
As of December 31, 2007, the Company had cash and cash equivalents of US$60.5 million. Net operating cash outflow for the fourth quarter was US$5.3 million. In the fourth quarter of 2007 depreciation was US$1.2 million and capital expenditures were US$7.0 million. The capital expenditures were related to prepayments made for equipment relating to the phase III expansion of our SE lines.
Full Year 2007 Financial and Business Review
Revenue, shipment and production
Revenues in 2007 grew 57.1% to US$234.9 million, compared to US$149.5 million in 2006.
Sales from solar cells, polysilicon, modules and OEM business during the year accounted for 87.0%, 9.9%, 2.5% and 0.6% of total revenue respectively. Shipments, including 1.6MW for module sales, amounted to approximately 74.0 MW, compared to 46.4MW during 2006.
Revenue and Shipment Comparison between 2007 and 2006
Year 2007 Year 2006
Value Value
Volume* (US$mm) Volume* (US$mm)
Core cell sales 70.0 204.3 46.4 147.7 OEM 2.4 1.5 -- --
Polysilicon sales 97.9 23.3 10.9 1.8
Module sales 1.6 5.8 -- --
* All volumes are expressed in MW except for Polysilicon sales expressed in metric tons.
During 2007 the Company increased its sales of core cell products by38.3% to US$204.3 million. The percentage of overall cell sales in overseas markets, particularly Europe, increased from 14.5% in 2006 to 38.3% in2007, primarily driven by an overall strengthening of our European presence during 2007. The overall percentage of sales in the China market for 2007 was 64.3% compared to 79.7% in 2006.
In terms of MW volume, mono-crystalline 125-millimeter cells accountedfor 71% and 78% of overall production and sales respectively.
Gross profit, gross margin and ASP
Gross profit for the year was US$18.0 million, a decline from US$26.6million in 2006, and gross margin of 7.7% compared to 17.8% in 2006.
Margin Breakdown
Gross margin
2007 2006
Core cell sales 7.1% 17.2% OEM 48.6% --
Polysilicon sales 11.1% 74.2%
Module sales 4.7% --
Blended 7.7% 17.8%
Blended ASP was US$2.92 per watt during 2007 compared to US$3.22 per watt during 2006.
Wafer costs continued to account for a large portion of overall manufacturing costs. In 2007, wafer costs rose to US$2.43 per watt compared to US$2.42 per watt in 2006. Wafer costs per watt as a percentage of total production costs per watt declined from 91.8% in 2006 to 89.9% in 2007 due to improvements in operational efficiency. Other production costs, which mainly consisted of; other raw materials, labor, depreciation and utilities, were US$0.28 per watt in 2007.
SG&A and net income
Our SG&A expenses were US$15.3 million for 2007, compared to US$10.9 million in 2006 mainly due to the expansion of the business and additional expenses relating to our operation as a public company after our initial public offering in May 2007.
The Company incurred an operating income of US$0.16 million for 2007. This compares to an operating profit of US$15.2 million in 2006. Full year net loss was US$4.9 million, compared to net profit of US$11.8 million in 2006, mainly due to lower gross margins in 2007. GAAP basic and diluted net loss attributable to holders of ordinary shares was US$0.21 per ADS in 2007 compared to a GAAP basic and diluted net loss of US$2.16 per ADS in 2006.
Balance sheet
As of December 31, 2007, the Company had cash and cash equivalents ofUS$60.5 million. Net operating cash outflow for 2007 was US$62.8 million. In 2007 depreciation was US$4.3 million and capital expenditures were US$16.8 million.
Commenting of the financial results, Kenneth Luk, CFO of China Sunergy,said: "We intend to ensure that margin improvements translate into profitability during the coming year. Based on the margins we are achieving on our SE and HP type cells I believe that we will be able to achieve a blended gross margin of at least 7.5% during the first quarter of 2008. In addition, a core focus is on implementing strict cost control measures and better cash management to ensure that we are able to maximize internal cashflow and liquidity during 2008 and that at an operational level we should be cashflow positive during the first quarter of 2008."
Outlook
Given the success of our pilot HP cell production run, the company has decided to convert all of its four existing P-type lines to HP. This conversion will be completed by the end of the first half of 2008. In addition, all four of our new SE lines are expected to be in mass production during the fourth quarter of 2008. In the current pricing environment, we expect to achieve an additional margin improvement over traditional P-type cells of 8- 10% on HP cells, and 12% on SE cells.
As a result of the conversion of P-type production lines and a delay in the delivery of equipment required for SE production lines, as well as some impact from the bad weather we experienced during the first quarter, the Company is revising its 2008 production target to 125-145 MW with approximately 65 to 85 MW expected to come from high efficiency cell products (which we define as cells that yield a higher than 17% conversion efficiency rate). This is projected to comprise of approximately 25-35 MW of SE cells and 40-50 MW of HP cells.
The Company anticipates its gross margin for first quarter of 2008 tobe between 7.5% and 8.5%.
Management Updates
During the quarter, China Sunergy announced that it appointed Mr.Kenneth Luk as its new Chief Financial Officer ("CFO") as of December 17th. Mr. Luk brings over 25 years experience in finance and accounting to China Sunergy, having previously worked at Motorola Semiconductors for 14 yearsand most recently for 3 years for Freescale Semiconductor. Mr. Luk began his career with HSBC, where he worked for 7 years as Resident Officer.
Additionally, as of March 24th, 2008 Mr. Guangyou Yin, a Director and Vice President of Operations has resigned to pursue other opportunities.There are no plans to fill the COO role at this time and a search for a new Board member is ongoing.
Fourth Quarter Financial Results
-- Revenues were US$71.5 million, representing a 1.1% increase compared to the same period last year, and a 46.0% increase compared to the previous quarter; core cell revenue increased 46.1% sequentially from US$46.3 million to US$67.7 million.
-- Gross profit and gross margin were US$4.6 million and 6.4%, respectively compared to US$1.0 million and 2.1% during the third quarter of 2007.
-- Quarterly net loss was US$2.3 million, compared to a net loss of US$4.4 million in the third quarter and a US$10.5 million net profit for the fourth quarter of 2006.
-- GAAP basic and diluted net loss attributable to holders of ordinary shares was US$0.06 per ADS in the fourth quarter compared to a net loss per ADS of US$0.11 in the third quarter 2007.
-- Quarterly production of 22.3 megawatts ("MW") of solar cells represented a 12.6% increase on a year-over-year basis and a 25.3% increase sequentially.
-- Shipments amounted to approximately 23.2 MW, representing an 8.9% increase year-over-year and a 39.8% increase sequentially.
Full Year Financial Results
-- Revenues were US$234.9 million, a 57.1% increase from US$149.5 million in 2006.
-- Gross profit of US$18.0 million, a decline from US$26.6 million in 2006, and gross margin of 7.7% compared to 17.8% in 2006.
-- Full year net loss was US$4.9 million, compared to net profit of US$11.8 million in 2006, mainly due to lower gross margins in 2007.
-- GAAP basic and diluted net loss attributable to holders of ordinary shares was $0.21 per ADS.
-- Full year production of 80.3 MW of solar cells represented a 67.6% increase compared to 47.9 MW in 2006.
-- Shipments amounted to approximately 74.0 MW, representing a 59.5% increase from 46.4MW in 2006.
Commenting on the quarter, Allen Wang, CEO of China Sunergy remarked: "During the quarter we began commercial production of our selective emitter cells and increased production levels beyond what we had guided for in November. At the same time we expanded our presence in Europe by signing noteworthy sales agreements and opening an office in Munich. I have been pleased by the response many of our customers have shown towards our high efficiency cells and believe that these products will help drive revenue growth in Europe's new solar markets."
Fourth Quarter and Recent Operational Highlights:
-- Commercial mass production of high-efficiency selective emitter cells ("SE") commenced in mid-November. A total of 2.4 MW was produced with 0.8MW shipped during the fourth quarter.
-- Average SE cell efficiency continued to improve from 16.5% in the third quarter to an average efficiency of 17.3% in the fourth quarter. A maximum conversion efficiency of 18.2% was achieved on pilot runs of selective emitter cells during November 2007.
-- The signing of the following agreements for 2008; a 30MW solar cell agreement with aleo solar, a 25MW sales agreement with Canadian Solar and a 10.2MW agreement with asola.
-- Revenue from overseas grew from 20.3% for the full-year 2006 to 35.7% for the full-year 2007.
-- In the quarter we began developing HP cells, a more efficient version of our current P-type cells. The limited pilot run of 0.3 MW in the fourth quarter achieved an average conversion efficiency rate of over 17%, higher than the 16.1% achieved with P-type cells during the same period. "During 2008 we will focus on improving margins and profitability by deriving a greater proportion of overall revenues from our high efficiency solar cell products," continued Mr. Wang. "We remain confident that as we expand production of our SE and HP products, margins can improve further during the coming year. Our confidence in achieving this objective is based on strong indications of customer preference for our high-efficiencycells."
Key Sales Agreements
During the quarter, the Company recently signed significant salescontracts with:
-- aleo solar AG ("aleo"), a leading German solar module manufacturer, to supply at least 30 MW of high quality silicon solar cells in 2008.
-- Canadian Solar Inc., a leading China-based module manufacturer, for a total volume of 25MW of solar cells for delivery in 2008.
-- asola, a reputable German module manufacturing company to supply a total volume of 10.2MW of solar cells during 2008.
Technological Developments
During the quarter the Company continued to make significant progress with the production of its high efficiency cell technology.
Average selective emitter efficiency continued to improve from 16.5% in the third quarter to 17.3% in the fourth quarter of 2007. A maximum conversion efficiency of 18.2% was achieved on pilot production runs during November 2007.
The Company is now enhancing its current P-type cell production facilities by converting existing lines to high-efficiency P-type (or "HP") lines. HP cells are a more efficient version of our standard P-type cells and achieve a higher conversion efficiency ratio as a result of an enhanced production process. HP cells of mono-crystalline 125 millimeter achieved anaverage conversion efficiency rate of over 17% on a 0.3 MW limited pilot run during the fourth quarter, and maximum conversion efficiency of 17.5%.
The development of the Company's patented N-type cells continues to move along smoothly. During 2008, China Sunergy intends to invest US$8 million in an R&D centre in Shanghai aimed at further developing N-type and other types of high efficiency cells. The center is expected to house 100 research employees. Construction of the center is scheduled to be completed by early 2009.
Fourth Quarter 2007 Financial and Business Review
Revenue, shipment and production
During the fourth quarter of 2007, revenues grew 1.1% on a year-over-year basis, and increased 46.0% compared to the previous quarter to US$71.5 million.
Sales from solar cells, polysilicon, and modules accounted for 94.7%, 1.0% and 4.3%, of total revenue respectively. Shipments, including 0.8MW for module sales, amounted to approximately 23.2 MW, compared to 21.3MW during the fourth quarter of 2006 and 16.6MW during the third quarter of 2007.
Revenue and Shipment Comparison between Q4 and Q3 2007
Q4 Q3
Value Value
Volume* (US$mm) Volume* (US$mm)
Core cell sales 22.4 67.7 16.2 46.3
Polysilicon sales 0.8 0.7 4.5 1.1
Module sales 0.8 3.1 0.4 1.5
* All volumes are expressed in MW except for Polysilicon sales expressed in metric tons.
During the fourth quarter the Company increased its quarter-on-quarter sales of core cell products by 46.1% as compared to the previous quarter. The percentage of overall cell sales in overseas markets declined in percentage terms from 47.7% to 40.6% compared to the previous quarter, particularly in Europe where sales declined from 42.7% to 35.0% sequentially even though in absolute terms cell sales to Europe increased from 6.7 MW to 7.6 MW sequentially.
In terms of MW volumes, mono-crystalline 125-millimeter cells accountedf or a proportion of overall production and cell sales at 57.1% and 57.5%(in terms of volume) respectively as we increased production and sale of multi- crystalline to cater for the increasing demands of European customers.
Gross profit, gross margin and Average Selling Price ("ASP")
Gross profit for the quarter was US$4.6 million, which led to a blended gross margin of 6.4%, up from 2.1% in the third quarter, as a result of the gross margin contribution from high efficiency cell products.
Margin Breakdown
Gross margin
Q4 Q3
Core cell sales 6.3% 1.5%
Polysilicon sales 12.2% 27.0%
Module sales 7.8% 0.8%
Blended 6.4% 2.1%
The sequential gross margin expansion on core cell sales from 1.5% to6.3% was mainly attributed to higher ASP as a result of a greater proportion of sales coming from high-efficiency cells.
Blended ASP for the fourth quarter rose from US$2.85 per watt in the previous quarter to US$3.02 per watt due to strong product demand and the strengthening of the Renminbi.
Wafer costs continued to account for a large portion of overall manufacturing costs. In the fourth quarter, wafer costs rose to US$2.54 per watt compared to US$2.45 per watt in the third quarter. Wafer costs per watt as a percentage of total production costs per watt increased from 89.2% in the third quarter to 90.1% in the fourth quarter. Other productioncosts, which mainly consisted of other raw materials, labor, depreciation and utilities, were US$0.28 per watt and largely the same as the first three quarters of this year.
SG&A and net income
Our SG&A expenses increased from US$4.2 million to US$5.3 million sequentially mainly due to an increase in professional expenses.
Due primarily to higher gross margin, the Company reduced its sequential operating loss to US$1.2 million. This compares to an operating profit of US$11.4 million and an operating loss of US$3.6 million for the fourth quarter 2006 and third quarter of 2007, respectively.
With higher gross margin, the Company reduced its sequential net lossfor the quarter to US$2.3 million.
Balance sheet
As of December 31, 2007, the Company had cash and cash equivalents of US$60.5 million. Net operating cash outflow for the fourth quarter was US$5.3 million. In the fourth quarter of 2007 depreciation was US$1.2 million and capital expenditures were US$7.0 million. The capital expenditures were related to prepayments made for equipment relating to the phase III expansion of our SE lines.
Full Year 2007 Financial and Business Review
Revenue, shipment and production
Revenues in 2007 grew 57.1% to US$234.9 million, compared to US$149.5 million in 2006.
Sales from solar cells, polysilicon, modules and OEM business during the year accounted for 87.0%, 9.9%, 2.5% and 0.6% of total revenue respectively. Shipments, including 1.6MW for module sales, amounted to approximately 74.0 MW, compared to 46.4MW during 2006.
Revenue and Shipment Comparison between 2007 and 2006
Year 2007 Year 2006
Value Value
Volume* (US$mm) Volume* (US$mm)
Core cell sales 70.0 204.3 46.4 147.7 OEM 2.4 1.5 -- --
Polysilicon sales 97.9 23.3 10.9 1.8
Module sales 1.6 5.8 -- --
* All volumes are expressed in MW except for Polysilicon sales expressed in metric tons.
During 2007 the Company increased its sales of core cell products by38.3% to US$204.3 million. The percentage of overall cell sales in overseas markets, particularly Europe, increased from 14.5% in 2006 to 38.3% in2007, primarily driven by an overall strengthening of our European presence during 2007. The overall percentage of sales in the China market for 2007 was 64.3% compared to 79.7% in 2006.
In terms of MW volume, mono-crystalline 125-millimeter cells accountedfor 71% and 78% of overall production and sales respectively.
Gross profit, gross margin and ASP
Gross profit for the year was US$18.0 million, a decline from US$26.6million in 2006, and gross margin of 7.7% compared to 17.8% in 2006.
Margin Breakdown
Gross margin
2007 2006
Core cell sales 7.1% 17.2% OEM 48.6% --
Polysilicon sales 11.1% 74.2%
Module sales 4.7% --
Blended 7.7% 17.8%
Blended ASP was US$2.92 per watt during 2007 compared to US$3.22 per watt during 2006.
Wafer costs continued to account for a large portion of overall manufacturing costs. In 2007, wafer costs rose to US$2.43 per watt compared to US$2.42 per watt in 2006. Wafer costs per watt as a percentage of total production costs per watt declined from 91.8% in 2006 to 89.9% in 2007 due to improvements in operational efficiency. Other production costs, which mainly consisted of; other raw materials, labor, depreciation and utilities, were US$0.28 per watt in 2007.
SG&A and net income
Our SG&A expenses were US$15.3 million for 2007, compared to US$10.9 million in 2006 mainly due to the expansion of the business and additional expenses relating to our operation as a public company after our initial public offering in May 2007.
The Company incurred an operating income of US$0.16 million for 2007. This compares to an operating profit of US$15.2 million in 2006. Full year net loss was US$4.9 million, compared to net profit of US$11.8 million in 2006, mainly due to lower gross margins in 2007. GAAP basic and diluted net loss attributable to holders of ordinary shares was US$0.21 per ADS in 2007 compared to a GAAP basic and diluted net loss of US$2.16 per ADS in 2006.
Balance sheet
As of December 31, 2007, the Company had cash and cash equivalents ofUS$60.5 million. Net operating cash outflow for 2007 was US$62.8 million. In 2007 depreciation was US$4.3 million and capital expenditures were US$16.8 million.
Commenting of the financial results, Kenneth Luk, CFO of China Sunergy,said: "We intend to ensure that margin improvements translate into profitability during the coming year. Based on the margins we are achieving on our SE and HP type cells I believe that we will be able to achieve a blended gross margin of at least 7.5% during the first quarter of 2008. In addition, a core focus is on implementing strict cost control measures and better cash management to ensure that we are able to maximize internal cashflow and liquidity during 2008 and that at an operational level we should be cashflow positive during the first quarter of 2008."
Outlook
Given the success of our pilot HP cell production run, the company has decided to convert all of its four existing P-type lines to HP. This conversion will be completed by the end of the first half of 2008. In addition, all four of our new SE lines are expected to be in mass production during the fourth quarter of 2008. In the current pricing environment, we expect to achieve an additional margin improvement over traditional P-type cells of 8- 10% on HP cells, and 12% on SE cells.
As a result of the conversion of P-type production lines and a delay in the delivery of equipment required for SE production lines, as well as some impact from the bad weather we experienced during the first quarter, the Company is revising its 2008 production target to 125-145 MW with approximately 65 to 85 MW expected to come from high efficiency cell products (which we define as cells that yield a higher than 17% conversion efficiency rate). This is projected to comprise of approximately 25-35 MW of SE cells and 40-50 MW of HP cells.
The Company anticipates its gross margin for first quarter of 2008 tobe between 7.5% and 8.5%.
Management Updates
During the quarter, China Sunergy announced that it appointed Mr.Kenneth Luk as its new Chief Financial Officer ("CFO") as of December 17th. Mr. Luk brings over 25 years experience in finance and accounting to China Sunergy, having previously worked at Motorola Semiconductors for 14 yearsand most recently for 3 years for Freescale Semiconductor. Mr. Luk began his career with HSBC, where he worked for 7 years as Resident Officer.
Additionally, as of March 24th, 2008 Mr. Guangyou Yin, a Director and Vice President of Operations has resigned to pursue other opportunities.There are no plans to fill the COO role at this time and a search for a new Board member is ongoing.
Tuesday, March 25, 2008
Suntech Signs Eight-Year Polysilicon Supply Agreement with DC Chemical
Suntech Becomes One of DC Chemical's Key Customers for Polysilicon
March 24, 2008: 08:00 AM EST
SAN FRANCISCO, March 24 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that it has signed a definitive eight-year polysilicon supply agreement with DC Chemical Co. Ltd., a leading multinational chemicals producer headquartered in Seoul, South Korea. Under the terms of the agreement, DC Chemical will supply Suntech specified annual volumes of polysilicon with a total value of approximately $631 million from 2009 to 2016.
Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "We highly respect DC Chemical's ability to rapidly develop commercial scale production of polysilicon and contribute to the growth of the solar industry. Partnering with DC Chemical for high quality polysilicon will help to expand Suntech's relationship with companies in the South Korean solar industry as well as building our long-term supply pipeline and accelerating our path to grid parity solar."
Dr. Shi added, "The funds from our recent convertible senior notes offering have put us in a strong position to enter into large, long-term contracts such as this one with DC Chemical, which we believe will enable us to establish a strong foundation for a grid parity cost structure in the future. Suntech will continue to build relationships with respected upstream polysilicon producers with a similar view to achieving solar grid parity as early as possible."
March 24, 2008: 08:00 AM EST
SAN FRANCISCO, March 24 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that it has signed a definitive eight-year polysilicon supply agreement with DC Chemical Co. Ltd., a leading multinational chemicals producer headquartered in Seoul, South Korea. Under the terms of the agreement, DC Chemical will supply Suntech specified annual volumes of polysilicon with a total value of approximately $631 million from 2009 to 2016.
Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "We highly respect DC Chemical's ability to rapidly develop commercial scale production of polysilicon and contribute to the growth of the solar industry. Partnering with DC Chemical for high quality polysilicon will help to expand Suntech's relationship with companies in the South Korean solar industry as well as building our long-term supply pipeline and accelerating our path to grid parity solar."
Dr. Shi added, "The funds from our recent convertible senior notes offering have put us in a strong position to enter into large, long-term contracts such as this one with DC Chemical, which we believe will enable us to establish a strong foundation for a grid parity cost structure in the future. Suntech will continue to build relationships with respected upstream polysilicon producers with a similar view to achieving solar grid parity as early as possible."
Monday, March 24, 2008
Wuhan Rixin Solar Signed Purchase Agreement with Ersol
March 13th 2008 Wuhan Rixin Solar signed 3 year thin film solar cell purchase agreement with Ersol, then Wuhan Rixin Solar will get 20% production output of Ersol's thin film solar cell to produce thin film solar panel or component installed in BIPV project.
No financial details of the agreement is disclosed.
No financial details of the agreement is disclosed.
Wednesday, March 19, 2008
ReneSola Ltd Announces Fourth Quarter and Full Year 2007 Results
JIASHAN, China, March 19 /Xinhua-PRNewswire-FirstCall/ -- ReneSola Ltd ("ReneSola" or the "Company"), a leading Chinese manufacturer of solar wafers, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2007.
Financial Highlights
-- Fourth quarter 2007 net revenues were US$96.0 million, an increase of 197.6% from US$32.3 million in the fourth quarter of 2006, and an increase of 32.4% from US$72.5 million in the third quarter of 2007. Full year 2007 net revenues were US$249.0 million, an increase of 195.1% from US$84.4 million in the full year 2006.
-- Fourth quarter 2007 net income was US$17.5 million, an increase of 87.8% from US$9.3 million in the fourth quarter of 2006, and an increase of 36.8% from US$12.8 million in the third quarter of 2007. Full year 2007 net income was US$42.9 million, an increase of 69.7% from US$25.3 million in the full year 2006.
-- Fourth quarter 2007 basic and diluted earnings per share were US$0.17 and US$0.17, respectively, and basic and diluted earnings per ADS were US$0.34 and US$0.34, respectively. Full year 2007 basic and diluted earnings per share were US$0.43 and US$0.43, respectively, and basic and diluted earnings per ADS were US$0.86 and US$0.86, respectively. Each ADS represents two shares.
Business Highlights
-- Fourth quarter production output was 51.3 MW, an increase of 42.5% from 36.0 MW in the third quarter. Full year production output was 125.6 MW, an increase of 223% from 38.9 MW in the full year 2006, exceeding the top end of guidance.
-- Successfully executed 2007 capacity expansion target with additional 40 monocrystalline furnaces and 17 multicrystalline furnaces installed during the fourth quarter of 2007, bringing total ingot manufacturing capacity to 378 MW and wafer manufacturing capacity to 305 MW, compared with 80 MW of ingot manufacturing capacity as of the end of 2006.
-- Over 90% of raw materials required for 2008 planned production output of 300 MW have been secured through a combination of long-term and short-term procurement contracts, toll arrangements, and expected output from our polysilicon joint venture in Henan Province, China. -- Joint venture in Henan Province, China successfully commenced trial production of polysilicon, and development of wholly-owned green field polysilicon plant in Sichuan Province, China is on track with trial production of this facility expected to begin during the first half of 2009.
Six Three Twelve Six Three Three Twelve
months months months months months months months
ended ended ended ended ended ended ended
6/30 12/31 12/31 6/30 9/30 12/31 12/31
2006 2006 2006 2007 2007 2007 2007
Net revenue
(US$000) 24,042 32,272 84,371 80,387 72,540 96,046 248,973 Gross profit
(US$000) 7,171 8,878 24,725 18,102 15,775 19,619 53,496 Gross margin (%) 29.8% 27.5% 29.3% 22.5% 21.7% 20.4% 21.5%
Operating profit
(US$000) 6,394 8,029 22,235 15,001 13,432 15,000 43,433
Foreign exchange
gain (loss) (US$000) (9) 141 364 (2,304) (569) (1,174) (4,047)
Profit for the
period (US$000) 7,039 9,303 25,301 12,690 12,775 17,471 42,936
Production output (MW) 10.0 15.7 38.9 38.3 36.0 51.3 125.6
"During 2007 ReneSola grew into a leading producer of solar wafers and our business expanded through upstream integration within the solar value chain into polysilicon manufacturing," said Mr. Xianshou Li, ReneSola's Chief Executive Officer. "As one of the fastest growing solar companies in the world, ReneSola achieved substantial top line growth without sacrificing profitability in spite of a significant increase in raw material costs, as demand for wafers, as well as average wafer selling prices, continued to increase. We also successfully executed our growth plan by expanding our raw material procurement and customer network and increasing our total production capacity from 80 MW as of the end of 2006, to 378 MW as of the end of 2007."
"During the year we also took strategic steps to integrate upstream into polysilicon manufacturing. Our joint venture in Henan Province, China commenced polysilicon trial production in mid-January 2008, and the development of our state-of-the-art green field polysilicon project in Sichuan Province, China is on track. In line with ReneSola's strong commitment to maintaining environmentally responsible business practices, the joint venture in Henan Province has met the environmental protection standards set by the government and is equipped to recycle silicon tetrachloride. The polysilicon project in Sichuan Province will utilize proven, high-end equipment with fully closed loop systems to recycle and convert waste into products that can be reused in the production process."
"In 2008, we will maintain our focus on efficient cost production and innovation as we look to build on ReneSola's strong brand name. New equipment using our proprietary technologies and state-of-the-art facilities will include some of the most advanced furnaces and wire saws in the market. We are confident that our expansion efforts and upstream transition into polysilicon manufacturing, paired with a strong feedstock supply pipeline and a customer base of leading industry players, put ReneSola in a unique position to capitalize on the opportunities presented by a rapidly growing solar industry in 2008 and beyond."
Financial Results for the Fourth Quarter and Full Year 2007
Net revenues
Net revenues for the fourth quarter of 2007 were US$96.0 million, an increase of 32.4% sequentially and 197.6% year-over-year. For the full year 2007, ReneSola reported net revenues of US$249.0 million representing a 195.1% increase year-over-year from US$84.4 million in 2006. The rise in fourth quarter and full year 2007 revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
Fourth quarter gross profit was US$19.6 million, a 24.4% increase sequentially and 121.0% year-over-year. The gross margin for the fourth quarter was 20.4% compared to 21.7% in the third quarter of 2007. Full year 2007 gross profit was US$53.5 million, a 116.4% increase year-over-year from US$24.7 million in 2006. The gross margin for full year 2007 was 21.5% compared to 29.3% for the full year 2006. The change in gross margin was primarily attributable to increases in average feedstock costs of 13.7% sequentially and 42.1% year-over-year. Increasing feedstock costs were mitigated by a reduction in silicon consumption through a combination of in- house closed-loop scrap recycling, productivity gains from improvements in wafer slicing, a reduction in non-raw material related production costs and increases in wafer ASPs.
Operating profit
Operating profit in the fourth quarter of 2007 was US$15.0 million, an increase of 11.7% sequentially and 86.8% year-over-year. Operating margin was 15.6% in the fourth quarter compared to 18.5% in the third quarter of 2007. Total operating expenses in the fourth quarter of 2007 were US$4.6 million, up from US$2.3 million in the third quarter of 2007. Of the total operating expenses in the fourth quarter US$0.7 million was attributable to share-based compensation expenses.
Operating profit for the full year 2007 was US$43.4 million, a 95.3% increase year-over-year from US$22.2 million in 2006. Operating margin was 17.4% for the full year 2007 compared to 26.4% in the previous year due to the lower gross margin attributable to the significant increase in raw material costs. Total operating expenses increased to US$10.l million for the full year 2007 from US$2.5 million for the full year 2006. This was primarily due to increased general and administrative expenses and R&D costs reflecting higher salary and benefit payments as a result of the need for a greater number of employees to meet our fast growing business, as well as an increase in professional fees and compliance expenses.
Profit before tax
Profit before tax in the fourth quarter was US$12.4 million, a 3.6% increase sequentially and 49.3% increase year-over-year. Finance costs increased by 13.9% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 2.0% in the third quarter of 2007 to 1.8% in the fourth quarter of 2007. The fourth quarter foreign exchange loss increased to US$1.2 million from US$0.6 million in the third quarter as a result of appreciation of RMB against the US dollar during the quarter.
Profit before tax for the full year 2007 was US$36.8 million, an increase of 63.0% year-over-year from US$22.6 million in 2006. Finance costs in 2007 increased to US$4.5 million from US$0.3 million in 2006, reflecting increased bank borrowings and the convertible bonds issued in March 2007. The full year 2007 foreign exchange loss was US$4.0 million from a gain of US$0.4 million in the previous year due to appreciation of RMB against the US dollar.
Taxation
ReneSola's subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd, ("Zhejiang Yuhui") recognized a tax benefit of US$5.2 million in the fourth quarter of 2007, significantly up from US$0.8 million in the third quarter of 2007. For the full year 2007, Zhejiang Yuhui recognized a tax benefit of US$6.2 million, up from US$2.7 million in 2006, due to an increase in domestic equipment purchases. In accordance with PRC tax regulations, Zhejiang Yuhui received 40% of the amount arising from the purchase of domestic made equipment as an investment tax credit. The tax credit can be carried forward for 7 years to offset future corporate income taxes.
Net profit
Fourth quarter 2007 net profit increased 36.8% sequentially and 87.8% year-over-year to US$17.5 million. Full year 2007 net profit increased 69.7% year-over-year to US$42.9 million due to an increase in production output and improved productivity.
2008 Guidance
In the first quarter of 2008 we expect our gross margin to remain stable and expected production output to be 62 MW, as compared to 51.3 MW in the fourth quarter of 2007 and 15.3 MW in the first quarter of 2007. We maintain our annualized ingot production capacity target of 645 MW by the end of 2008. We anticipate production output of a minimum of 300 MW in 2008 with minimum annual net revenues of US$480 million. This represents year-over-year revenue growth of at least 93%.
Financial Highlights
-- Fourth quarter 2007 net revenues were US$96.0 million, an increase of 197.6% from US$32.3 million in the fourth quarter of 2006, and an increase of 32.4% from US$72.5 million in the third quarter of 2007. Full year 2007 net revenues were US$249.0 million, an increase of 195.1% from US$84.4 million in the full year 2006.
-- Fourth quarter 2007 net income was US$17.5 million, an increase of 87.8% from US$9.3 million in the fourth quarter of 2006, and an increase of 36.8% from US$12.8 million in the third quarter of 2007. Full year 2007 net income was US$42.9 million, an increase of 69.7% from US$25.3 million in the full year 2006.
-- Fourth quarter 2007 basic and diluted earnings per share were US$0.17 and US$0.17, respectively, and basic and diluted earnings per ADS were US$0.34 and US$0.34, respectively. Full year 2007 basic and diluted earnings per share were US$0.43 and US$0.43, respectively, and basic and diluted earnings per ADS were US$0.86 and US$0.86, respectively. Each ADS represents two shares.
Business Highlights
-- Fourth quarter production output was 51.3 MW, an increase of 42.5% from 36.0 MW in the third quarter. Full year production output was 125.6 MW, an increase of 223% from 38.9 MW in the full year 2006, exceeding the top end of guidance.
-- Successfully executed 2007 capacity expansion target with additional 40 monocrystalline furnaces and 17 multicrystalline furnaces installed during the fourth quarter of 2007, bringing total ingot manufacturing capacity to 378 MW and wafer manufacturing capacity to 305 MW, compared with 80 MW of ingot manufacturing capacity as of the end of 2006.
-- Over 90% of raw materials required for 2008 planned production output of 300 MW have been secured through a combination of long-term and short-term procurement contracts, toll arrangements, and expected output from our polysilicon joint venture in Henan Province, China. -- Joint venture in Henan Province, China successfully commenced trial production of polysilicon, and development of wholly-owned green field polysilicon plant in Sichuan Province, China is on track with trial production of this facility expected to begin during the first half of 2009.
Six Three Twelve Six Three Three Twelve
months months months months months months months
ended ended ended ended ended ended ended
6/30 12/31 12/31 6/30 9/30 12/31 12/31
2006 2006 2006 2007 2007 2007 2007
Net revenue
(US$000) 24,042 32,272 84,371 80,387 72,540 96,046 248,973 Gross profit
(US$000) 7,171 8,878 24,725 18,102 15,775 19,619 53,496 Gross margin (%) 29.8% 27.5% 29.3% 22.5% 21.7% 20.4% 21.5%
Operating profit
(US$000) 6,394 8,029 22,235 15,001 13,432 15,000 43,433
Foreign exchange
gain (loss) (US$000) (9) 141 364 (2,304) (569) (1,174) (4,047)
Profit for the
period (US$000) 7,039 9,303 25,301 12,690 12,775 17,471 42,936
Production output (MW) 10.0 15.7 38.9 38.3 36.0 51.3 125.6
"During 2007 ReneSola grew into a leading producer of solar wafers and our business expanded through upstream integration within the solar value chain into polysilicon manufacturing," said Mr. Xianshou Li, ReneSola's Chief Executive Officer. "As one of the fastest growing solar companies in the world, ReneSola achieved substantial top line growth without sacrificing profitability in spite of a significant increase in raw material costs, as demand for wafers, as well as average wafer selling prices, continued to increase. We also successfully executed our growth plan by expanding our raw material procurement and customer network and increasing our total production capacity from 80 MW as of the end of 2006, to 378 MW as of the end of 2007."
"During the year we also took strategic steps to integrate upstream into polysilicon manufacturing. Our joint venture in Henan Province, China commenced polysilicon trial production in mid-January 2008, and the development of our state-of-the-art green field polysilicon project in Sichuan Province, China is on track. In line with ReneSola's strong commitment to maintaining environmentally responsible business practices, the joint venture in Henan Province has met the environmental protection standards set by the government and is equipped to recycle silicon tetrachloride. The polysilicon project in Sichuan Province will utilize proven, high-end equipment with fully closed loop systems to recycle and convert waste into products that can be reused in the production process."
"In 2008, we will maintain our focus on efficient cost production and innovation as we look to build on ReneSola's strong brand name. New equipment using our proprietary technologies and state-of-the-art facilities will include some of the most advanced furnaces and wire saws in the market. We are confident that our expansion efforts and upstream transition into polysilicon manufacturing, paired with a strong feedstock supply pipeline and a customer base of leading industry players, put ReneSola in a unique position to capitalize on the opportunities presented by a rapidly growing solar industry in 2008 and beyond."
Financial Results for the Fourth Quarter and Full Year 2007
Net revenues
Net revenues for the fourth quarter of 2007 were US$96.0 million, an increase of 32.4% sequentially and 197.6% year-over-year. For the full year 2007, ReneSola reported net revenues of US$249.0 million representing a 195.1% increase year-over-year from US$84.4 million in 2006. The rise in fourth quarter and full year 2007 revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
Fourth quarter gross profit was US$19.6 million, a 24.4% increase sequentially and 121.0% year-over-year. The gross margin for the fourth quarter was 20.4% compared to 21.7% in the third quarter of 2007. Full year 2007 gross profit was US$53.5 million, a 116.4% increase year-over-year from US$24.7 million in 2006. The gross margin for full year 2007 was 21.5% compared to 29.3% for the full year 2006. The change in gross margin was primarily attributable to increases in average feedstock costs of 13.7% sequentially and 42.1% year-over-year. Increasing feedstock costs were mitigated by a reduction in silicon consumption through a combination of in- house closed-loop scrap recycling, productivity gains from improvements in wafer slicing, a reduction in non-raw material related production costs and increases in wafer ASPs.
Operating profit
Operating profit in the fourth quarter of 2007 was US$15.0 million, an increase of 11.7% sequentially and 86.8% year-over-year. Operating margin was 15.6% in the fourth quarter compared to 18.5% in the third quarter of 2007. Total operating expenses in the fourth quarter of 2007 were US$4.6 million, up from US$2.3 million in the third quarter of 2007. Of the total operating expenses in the fourth quarter US$0.7 million was attributable to share-based compensation expenses.
Operating profit for the full year 2007 was US$43.4 million, a 95.3% increase year-over-year from US$22.2 million in 2006. Operating margin was 17.4% for the full year 2007 compared to 26.4% in the previous year due to the lower gross margin attributable to the significant increase in raw material costs. Total operating expenses increased to US$10.l million for the full year 2007 from US$2.5 million for the full year 2006. This was primarily due to increased general and administrative expenses and R&D costs reflecting higher salary and benefit payments as a result of the need for a greater number of employees to meet our fast growing business, as well as an increase in professional fees and compliance expenses.
Profit before tax
Profit before tax in the fourth quarter was US$12.4 million, a 3.6% increase sequentially and 49.3% increase year-over-year. Finance costs increased by 13.9% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 2.0% in the third quarter of 2007 to 1.8% in the fourth quarter of 2007. The fourth quarter foreign exchange loss increased to US$1.2 million from US$0.6 million in the third quarter as a result of appreciation of RMB against the US dollar during the quarter.
Profit before tax for the full year 2007 was US$36.8 million, an increase of 63.0% year-over-year from US$22.6 million in 2006. Finance costs in 2007 increased to US$4.5 million from US$0.3 million in 2006, reflecting increased bank borrowings and the convertible bonds issued in March 2007. The full year 2007 foreign exchange loss was US$4.0 million from a gain of US$0.4 million in the previous year due to appreciation of RMB against the US dollar.
Taxation
ReneSola's subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd, ("Zhejiang Yuhui") recognized a tax benefit of US$5.2 million in the fourth quarter of 2007, significantly up from US$0.8 million in the third quarter of 2007. For the full year 2007, Zhejiang Yuhui recognized a tax benefit of US$6.2 million, up from US$2.7 million in 2006, due to an increase in domestic equipment purchases. In accordance with PRC tax regulations, Zhejiang Yuhui received 40% of the amount arising from the purchase of domestic made equipment as an investment tax credit. The tax credit can be carried forward for 7 years to offset future corporate income taxes.
Net profit
Fourth quarter 2007 net profit increased 36.8% sequentially and 87.8% year-over-year to US$17.5 million. Full year 2007 net profit increased 69.7% year-over-year to US$42.9 million due to an increase in production output and improved productivity.
2008 Guidance
In the first quarter of 2008 we expect our gross margin to remain stable and expected production output to be 62 MW, as compared to 51.3 MW in the fourth quarter of 2007 and 15.3 MW in the first quarter of 2007. We maintain our annualized ingot production capacity target of 645 MW by the end of 2008. We anticipate production output of a minimum of 300 MW in 2008 with minimum annual net revenues of US$480 million. This represents year-over-year revenue growth of at least 93%.
ET Solar Group Announces a 3MW Dual-Axis Tracker and Module Sales
NANJING, China, March 19 /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-axis tracking systems with manufacturing facilities located in Taizhou, China, announced today a 3MW dual-axis tracking system and module sales contract for a new solar farm project in Oregon, the United States.
Under the contract, ET Solar will ship a total of 273 dual-axis trackers in the first half of 2008 with the first shipment expected to be effected in April. Each tracker has a peak output of 11 kilowatts and can produce, depending on geography, a range of 20,000 to 28,000 kilowatt hours a year. Annual power output of ET Solar dual-axis trackers is up to 40% higher than a fixed array. All dual-axis trackers are jointly developed between Meca Solar and ET Solar and will be operating on the high efficiency solar modules manufactured by ET Solar. ET Solar trackers are able to be fully integrated with the modules manufactured by other solar companies as well.
Commenting on the news, Xinghua Wang, chairman of ET Solar said, "The 3MW tracker transaction is the first sizeable tracking system sales that a China based integrated solar company ever made into world's major solar markets. This is truly a milestone event for the entire Chinese solar industry and demonstrates ET Solar's determination and leadership in downstream system integration product development and commercialization."
Dennis She, Chief Sales Officer of ET Solar, further commented,"The fact that our customer is purchasing both state-of-the-art tracking systems and modules from ET Solar is a show case of total customer satisfaction which we are now achieving and reflects our broad product portfolio that we are able to offer to our downstream system integration customers. Being a supplier of both tracker and module products, ET Solar is well positioned to be a substantial contributor to the exponential growth of the large solar farm market segment of the PV industry."
Linhui Sui, Chief Technology Officer of ET Solar, said, "With our optimal structure design, high quality product component, stringent quality control and the battle tested technologies, we are now able to meet the U.S. compliance, qualification and certification requirement and standards."
Under the contract, ET Solar will ship a total of 273 dual-axis trackers in the first half of 2008 with the first shipment expected to be effected in April. Each tracker has a peak output of 11 kilowatts and can produce, depending on geography, a range of 20,000 to 28,000 kilowatt hours a year. Annual power output of ET Solar dual-axis trackers is up to 40% higher than a fixed array. All dual-axis trackers are jointly developed between Meca Solar and ET Solar and will be operating on the high efficiency solar modules manufactured by ET Solar. ET Solar trackers are able to be fully integrated with the modules manufactured by other solar companies as well.
Commenting on the news, Xinghua Wang, chairman of ET Solar said, "The 3MW tracker transaction is the first sizeable tracking system sales that a China based integrated solar company ever made into world's major solar markets. This is truly a milestone event for the entire Chinese solar industry and demonstrates ET Solar's determination and leadership in downstream system integration product development and commercialization."
Dennis She, Chief Sales Officer of ET Solar, further commented,"The fact that our customer is purchasing both state-of-the-art tracking systems and modules from ET Solar is a show case of total customer satisfaction which we are now achieving and reflects our broad product portfolio that we are able to offer to our downstream system integration customers. Being a supplier of both tracker and module products, ET Solar is well positioned to be a substantial contributor to the exponential growth of the large solar farm market segment of the PV industry."
Linhui Sui, Chief Technology Officer of ET Solar, said, "With our optimal structure design, high quality product component, stringent quality control and the battle tested technologies, we are now able to meet the U.S. compliance, qualification and certification requirement and standards."
Perfectenergy plans 45MW solar capacity in 2H08FY and 200MW ramp in 2009
19 March 2008
Perfectenergy International has said that its successful move into a new 67,000 square foot plant in Shanghai, China during 2007 will allow the photovoltaic manufacturer to reach a capacity of 45MW in the second half of its 2008 fiscal year. The company announced the news with its financial results for its first fiscal quarter ended January 31, 2008.
Jack Li, Perfectenergy's President and Chief Executive Officer, said that the company was already in the planning phase for a new solar cell production facility in the Shanghai Zizhu Science-Based Industrial District that would have a capacity of 200MW per annum. Construction is expected to begin in 2008 and be completed in 2009.
Perfectenergy International has said that its successful move into a new 67,000 square foot plant in Shanghai, China during 2007 will allow the photovoltaic manufacturer to reach a capacity of 45MW in the second half of its 2008 fiscal year. The company announced the news with its financial results for its first fiscal quarter ended January 31, 2008.
Jack Li, Perfectenergy's President and Chief Executive Officer, said that the company was already in the planning phase for a new solar cell production facility in the Shanghai Zizhu Science-Based Industrial District that would have a capacity of 200MW per annum. Construction is expected to begin in 2008 and be completed in 2009.
Canadian Solar sees record-making growth in 2007
BEIJING, Mar 19, 2008 (Xinhua via COMTEX) --Canadian Solar Inc. (CSI, CSIQ. Nasdaq) posted more than 300 million U.S. dollars of sales revenue in 2007, surging 344 percent from 2006, according to its latest financial report.
This makes CSI the company with the fastest growth in 2007 among its peers in the world. Notably, the company's capacity of sold solar energy components reached 83.5 MW in 2007, 4.42 times of 2006.
CSI realized buoyant growth in the development of terminal market and establishment of marketing channels.
The company realized 127.5 million U.S. dollars of sales revenue in the fourth quarter of 2007, increasing 31 percent from the previous quarter.
It's predicted that CSI would realize 150 million-155 million U.S. dollars of sales revenue in the first quarter of 2008 with shipment at 40 MW.
CSI is expected to attain 650 million-750 million U.S. dollars of sales revenue in 2008 with annual shipment totaling 200-220 MW.
The first phase of CSI Solartronics (Changshu) Co., Ltd. was put into production in February 2008 with 200 MW of designed production capacity and annual output value at 700 million U.S. dollars.
CSI's polysilicon project in central China's Luoyang is winding up with 60 MW production capacity by the end of 2008, which is expected to ease raw materials supply of CSI.
This makes CSI the company with the fastest growth in 2007 among its peers in the world. Notably, the company's capacity of sold solar energy components reached 83.5 MW in 2007, 4.42 times of 2006.
CSI realized buoyant growth in the development of terminal market and establishment of marketing channels.
The company realized 127.5 million U.S. dollars of sales revenue in the fourth quarter of 2007, increasing 31 percent from the previous quarter.
It's predicted that CSI would realize 150 million-155 million U.S. dollars of sales revenue in the first quarter of 2008 with shipment at 40 MW.
CSI is expected to attain 650 million-750 million U.S. dollars of sales revenue in 2008 with annual shipment totaling 200-220 MW.
The first phase of CSI Solartronics (Changshu) Co., Ltd. was put into production in February 2008 with 200 MW of designed production capacity and annual output value at 700 million U.S. dollars.
CSI's polysilicon project in central China's Luoyang is winding up with 60 MW production capacity by the end of 2008, which is expected to ease raw materials supply of CSI.
China unveils renewable energy development plan for 2006-2010
http://www.chinaview.cn/ 2008-03-18 18:36:14
BEIJING, March 18 (Xinhua) -- China's annual consumption of renewable energy will reach the equivalent of 300 million tons of standard coal by 2010, which would be 10 percent of its total annual energy consumption, under the renewable energy development plan for 2006-2010.
The plan was released on Tuesday by the National Development and Reform Commission (NDRC), the country's top economic planning agency.
The plan says 2010 renewable energy consumption will nearly double the 2005 level, which was equivalent to 166 million tons of standard coal. That led to a reduction of 3 million tons of sulfur dioxide emissions and more than 400 million tons of carbon dioxide emissions.
Given the dearth of petroleum and natural gas resources and the large share of coal in China's energy production, it is difficult for the nation to sustain its development and protect the environment by relying simply on fossil fuels, the NDRC said.
China boasts abundant renewable resources that could be exploited, the plan says. It says that by 2010:
-- the nation will have hydropower projects with a combined installed capacity of 190 million kilowatts and wind power projects with installed capacity of 10 million kw.
-- the installed capacity of bio-energy projects will reach 5.5million kw and that of solar energy projects will be 300,000 kw.
-- domestically produced hydropower equipment and solar water heaters should become competitive on global markets.
-- wind power equipment manufacturers should put generating units with installed capacities of at least 1.5 million watts into mass production.
BEIJING, March 18 (Xinhua) -- China's annual consumption of renewable energy will reach the equivalent of 300 million tons of standard coal by 2010, which would be 10 percent of its total annual energy consumption, under the renewable energy development plan for 2006-2010.
The plan was released on Tuesday by the National Development and Reform Commission (NDRC), the country's top economic planning agency.
The plan says 2010 renewable energy consumption will nearly double the 2005 level, which was equivalent to 166 million tons of standard coal. That led to a reduction of 3 million tons of sulfur dioxide emissions and more than 400 million tons of carbon dioxide emissions.
Given the dearth of petroleum and natural gas resources and the large share of coal in China's energy production, it is difficult for the nation to sustain its development and protect the environment by relying simply on fossil fuels, the NDRC said.
China boasts abundant renewable resources that could be exploited, the plan says. It says that by 2010:
-- the nation will have hydropower projects with a combined installed capacity of 190 million kilowatts and wind power projects with installed capacity of 10 million kw.
-- the installed capacity of bio-energy projects will reach 5.5million kw and that of solar energy projects will be 300,000 kw.
-- domestically produced hydropower equipment and solar water heaters should become competitive on global markets.
-- wind power equipment manufacturers should put generating units with installed capacities of at least 1.5 million watts into mass production.
Monday, March 17, 2008
Daqo signed polysilicon supply agreement with Suntech Power and Glory Silicon
March 11th, Daqo Group signed the polysilicon supply agreement with Suntech Power and Glory Silicon (Zhenjiang), no supply amount information is disclosed.
Sichuan Rena Silicon Material starts to build the polysilicon project
March 8th 2008, Sichuan Rena Silicon Material launched its polysilicon production project. The first phase project is 3,000 ton and the total project is 6,000 ton polysilicon.
Sichuan Rena Silicon Material is the subsidiary company of Renesola.
Sichuan Rena Silicon Material is the subsidiary company of Renesola.
Ningxia Yangguang Silicon will begin to produce polysilicon in October 2008
The first phase 1,500 ton polysilicon project of Ningxia Yangguang Silicon will be completed as scheduled, the total project is 4,500 ton, and the total investment will be about 4 billion RMB.
The construction of the first phase project will be finished by the end of June, and the production equipments have been deliverd starting from February. Ningxia Yangguang Silicon plans to install and adjust the equipments in August and begin the test production in October.
Ningxia Yangguang Silicon will start the second phase project of 3,000 ton in 2009 after the first phase project begins the commercial production.
The construction of the first phase project will be finished by the end of June, and the production equipments have been deliverd starting from February. Ningxia Yangguang Silicon plans to install and adjust the equipments in August and begin the test production in October.
Ningxia Yangguang Silicon will start the second phase project of 3,000 ton in 2009 after the first phase project begins the commercial production.
Thursday, March 13, 2008
Suntech Power to buy minority interest in Nitol Solar for $100 million
March 13, 2008: 08:42 AM EST
LONDON, Mar. 13, 2008 (Thomson Financial delivered by Newstex) -- Suntech Power Holdings Co (NYSE:STP) will pay $100 million to Nitol Solar to acquire a minority stake in the polysilicon producer, the two companies said Thursday. Suntech already works with Nitol, supplying the solar cell maker with polysilicon since August 2007.
LONDON, Mar. 13, 2008 (Thomson Financial delivered by Newstex) -- Suntech Power Holdings Co (NYSE:STP) will pay $100 million to Nitol Solar to acquire a minority stake in the polysilicon producer, the two companies said Thursday. Suntech already works with Nitol, supplying the solar cell maker with polysilicon since August 2007.
LDK Solar says nearly sold all wafer capacity for 2008, 2009
March 13, 2008: 04:31 AM EST
LONDON, Mar. 13, 2008 (Thomson Financial delivered by Newstex) -- LDK Solar Co Ltd (NYSE:LDK) said that based upon its current backlog of contracts, it has almost sold out its entire solar wafer capacity for 2008 and has sold more than 90 pct of capacity for 2009.
The manufacturer of multicrystalline solar wafers confirmed it had increased the value of its inventory to 380 mln usd at the end of 2007.
Inventory in transit represented the most significant portion of the increase during the quarter as it purchased silicon material from around the globe, LDK said.
LONDON, Mar. 13, 2008 (Thomson Financial delivered by Newstex) -- LDK Solar Co Ltd (NYSE:LDK) said that based upon its current backlog of contracts, it has almost sold out its entire solar wafer capacity for 2008 and has sold more than 90 pct of capacity for 2009.
The manufacturer of multicrystalline solar wafers confirmed it had increased the value of its inventory to 380 mln usd at the end of 2007.
Inventory in transit represented the most significant portion of the increase during the quarter as it purchased silicon material from around the globe, LDK said.
Suntech Power prices $500 million in convertible debt
March 12, 2008: 08:35 AM EST
NEW YORK, Mar. 12, 2008 (Thomson Financial delivered by Newstex) -- Suntech Power Holdings Co. (NYSE:STP) said it priced a private offering of $500 million worth of convertible debt, due 2013.
The initial conversion rate is 24.3153 American Depositary Shares per $1,000 principal amount, representing a price of $41.13 per ADS.
The China-based solar power (OTCBB:SOPW) cells maker said it also granted the initial buyers of the debt options to buy an additional $75 million of the notes to cover over-allotments.
The company plans to use about $300 million of the proceeds for procuring upstream supplies and for capacity expansion.
On March 10, the company said planned to offer $425 million of convertible debt in a private offering, with an additional $75 million to cover over-allotments.
NEW YORK, Mar. 12, 2008 (Thomson Financial delivered by Newstex) -- Suntech Power Holdings Co. (NYSE:STP) said it priced a private offering of $500 million worth of convertible debt, due 2013.
The initial conversion rate is 24.3153 American Depositary Shares per $1,000 principal amount, representing a price of $41.13 per ADS.
The China-based solar power (OTCBB:SOPW) cells maker said it also granted the initial buyers of the debt options to buy an additional $75 million of the notes to cover over-allotments.
The company plans to use about $300 million of the proceeds for procuring upstream supplies and for capacity expansion.
On March 10, the company said planned to offer $425 million of convertible debt in a private offering, with an additional $75 million to cover over-allotments.
JA Solar Reports Fourth Quarter and Full Year 2007 Results
Fourth Quarter 2007 Highlights
* Revenue of RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% over Q4 2006
* Income from operations of RMB 132.9 million (US$ 18.2 million), an increase of 79.3% over Q4 2006
* Total gross profit of RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in Q4 2006
* Gross margin was 21.2% compared to 23.9% in Q4 2006
* Net income of RMB 0.64 (US$ 0.09) per diluted ADS, which included a foreign exchange loss of RMB 57.3 million (US$ 7.9 million) compared to RMB 0.82 (US$ 0.11) per diluted ADS, which included a foreign exchange gain of RMB 1.0 million (US$ 0.1 million) in Q4 2006
* Shipped 50.2 MW, up 266.4%over Q4 2006 Full Year 2007 Highlights
* Full year 2007 revenues of RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% over 2006
* Income from operations of RMB 446.4 million (US$ 61.2 million), an increase of 240.0% over 2006
* Total gross profit of RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million) in 2006
* Gross margin was 22.3% compared to 24.7% in 2006
* Net income of RMB 2.93 (US$ 0.40) per diluted ADS compared to RMB 1.08 (US$ 0.15) per diluted ADS for the full year 2006
* Shipped 132.4 MW in 2007, an increase of 403.4% from 2006
* Increased annual manufacturing capacity from 75MW to 175MW Outlook for 2008
* Expect Full Year 2008 revenues in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion)
* Expect 2008 gross margin to be above 20%
* Expect to break ground on new solar cell manufacturing facility in Yangzhou, China during second half 2008
* Raising annual production capacity to 500 MW from 425 MW by the end of 2008
* Expect 2008 production output of 340 MW
HEBEI, China, March 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the fourth quarter and year ended December 31, 2007.
Fourth Quarter 2007 Results
Total revenues for the fourth quarter 2007 were RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% from fourth quarter 2006 quarter revenues of RMB 349.4 million (US$ 47.9 million), and an increase of 23.7% from third quarter 2007 revenues of RMB 850.0 million (US$ 116.5 million).
Total gross profit for the fourth quarter 2007 was RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in the fourth quarter 2006, and RMB 199.3 million (US$ 27.3 million) in the third quarter 2007. Gross margin was 21.2% in the fourth quarter of 2007 compared to 23.9% in the fourth quarter of 2006, and 23.5% in the third quarter of 2007.
Net income available to ordinary shareholders for the fourth quarter 2007 was RMB 98.3 million (US$ 13.5 million) compared to a net income available to ordinary shareholders of RMB 66.9 million (US$ 9.2 million) for the fourth quarter 2006, and net income available to ordinary shareholders of RMB 165.9 million (US$ 22.7 million) for the third quarter 2007.
For the fourth quarter 2007 basic and diluted earnings per ADS were RMB 0.65 (US$ 0.09) and RMB 0.64 (US$ 0.09), respectively. The fourth quarter 2007 included share-based compensation expense of RMB 61.2 million (US$ 8.4 million) and foreign exchange loss of RMB 57.3 million (US$ 7.9 million).
Capital expenditures were RMB 128.9 million (US$ 17.7 million) in the fourth quarter 2007, as compared to RMB 23.6 million (US$ 3.2 million) in the fourth quarter 2006, and RMB 144.3 million (US$ 19.8 million) in the third quarter 2007. Depreciation and amortization expenses in the fourth quarter 2007 were RMB 11.9 million (US$ 1.6 million), as compared to RMB 4.9 million (US$ 0.7 million) in the fourth quarter 2006, and RMB 10.7 million (US$ 1.5 million) in the third quarter 2007.
As of December 31, 2007, JA Solar had cash and cash equivalents of RMB 1.15 billion (US$ 157.0 million) compared with RMB 95.8 million (US$ 13.1 million) at the end of the fourth quarter 2006, and RMB 0.79 billion (US$ 108.9 million) at the end of the third quarter 2007. Short term debt increased to RMB 200.0 million (US$ 27.4 million) at the end of the fourth quarter 2007 from RMB 150.0 million (US$ 20.6 million) at the end of the fourth quarter 2006, and RMB 150.0 million (US$ 20.6 million) at the end of third quarter 2007.
Summary of megawatts produced and shipped (includes cell processing service)
---------------------------------------------------------------
Three months ended
---------------------------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
Megawatts 2006 2007 2007
---------------------------------------------------------------
Produced 17.1MW 44.6MW 48.7MW
---------------------------------------------------------------
Shipped 13.7MW 43.8MW 50.2MW
---------------------------------------------------------------
Cost per
watt
excluding
wafer cost US$0.228/Wp US$ 0.192/Wp US$ 0.190/Wp
---------------------------------------------------------------
2007 Full Year Results
Revenues for the full year 2007 were RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% from the full year 2006 revenues of RMB 696.5 million (US$ 95.5 million). The increase was principally due to continued strong growth in market demand for PV industry and our ability to expand the Company's production capacity to support the business growth.
Total gross profit for 2007 was RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million). Total gross margin was 22.3% for 2007 compared to 24.7% for 2006.
Net income available to ordinary shareholders for the full year 2007 was RMB 398.2 million (US$ 54.6 million) compared to a net income available to ordinary shareholders of RMB 86.4 million (US$ 11.8 million) for the full year 2006.
For the full year 2007 basic and diluted earnings per ADS were RMB 2.96 (US$ 0.41) and RMB 2.93 (US$ 0.40), respectively.
The full year 2007 included share-based compensation expense of RMB 88.8 million (US$ 12.2 million) and foreign exchange loss of RMB 112.8 million (US$ 15.5 million).Diluted earnings per ADS calculations for the full year 2007 were based on 136.72 million weighted average numbers of ADSs outstanding, compared to 80.17 million ADSs in 2006.
Capital expenditures were RMB 421.8 million (US$ 57.8 million) for the full year 2007, as compared to RMB 107.6 million (US$ 14.8 million) for the full year 2006. The increase was primarily due to expanding of new production capacity. Depreciation and amortization expenses for the full year 2007 were RMB 34.1 million (US$ 4.7 million), as compared to RMB 11.2 million (US$ 1.5 million) for the full year 2006.
Effective from February 7, 2008, the Company changed its ADS to ordinary share ratio from the one ADS for every three ordinary shares to one ADS for every one ordinary share. Both the basic and diluted earnings per ADS and both the basic and diluted weighted average number of ADSs outstanding for all periods presented have been restated to conform to the current ADS ratio accordingly.
The conversion of Renminbi into U.S. dollars for the full year of 2007 and the fourth quarter of 2007 in this release, made solely for the convenience of the reader, is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of December 31, 2007, which was RMB 7.2946 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on December 31, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
"We once again achieved record revenues in the fourth quarter of 2007 and extraordinary business growth for the full year," said Samuel Yang, JA Solar's Chief Executive Officer. "During the year, we increased our annual production capacity from 75MW to 175MW, and achieved impressive throughput and yield from our cell lines without compromising profitability. The several key additions in talent to our teams in sales and marketing, technology, and at the executive level helped ensure the smooth execution of our expansion. Our strategic decision to expand our supply sources and our practice of holding JA Solar's products to one of the highest performance standards in the industry were also contributing factors to our success. On the supply side, we were able to expand our base of major suppliers from two to four and contractually secured sufficient wafer supply to cover our anticipated 2008 production capacity."
"In 2008 we plan to build on JA Solar's strong brand and technology platform through increased sales and marketing efforts, greater investment in R&D, and continued expansion of our production capacity. We have already broken ground for ten new cell lines in Hebei, and plan to break ground for another ten cell lines at a new facility in Yangzhou during the second half of 2008. On the technology front, we plan to open a research laboratory in Silicon Valley, California.
We believe the true driving force for broader application of solar technology and the achievement of grid parity is low cost. By 2010, JA Solar strives to be a cost leader in the industry and establish the industry cost benchmark through technical innovation and operational efficiency. We have enormous confidence that our production scale and execution capability would position JA Solar to achieve aggressive cost reductions as we address a rapidly evolving market."
JA Solar's CFO, Herman Zhao, said, "In 2007 JA Solar demonstrated our financial discipline through the ability to more than double our annual production capacity while achieving impressive top line growth and profitability. While our performance was strong in Q4, we experienced foreign exchange losses in the quarter, which impacted our bottom line. Due to the depreciation of the U.S. dollar against the RMB in Q4, we recorded foreign exchange losses of RMB 57.3 million (US$ 7.9 million) for the quarter. Going forward we plan to manage the foreign exchange impact to our bottom line through focused initiatives which involve converting foreign currencies into RMB, currency hedging, diversification of our international supplier base, and the addition of pricing clauses in our international sales contracts. While the economic environment is expected to remain volatile, we expect another record year for our Company in terms of growth and profitability in 2008. We are fully committed to bringing further value to our shareholders in 2008 and future years."
2008 Outlook
Based on current customer demand and market forecasts, we expect revenues for the full year 2008 in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion). Gross margins for 2008 are expected to be above 20%.
We expect total production output of approximately 340MW for 2008, with a total annual production capacity of 500MW, which is above our previous annual production capacity guidance of 425MW.
The capital expenditures are expected to be RMB 966.8 million (US$ 132.5 million), primarily for capacity expansion. R&D expense is expected to be RMB 36.6 million (US$ 5.0 million).
* Revenue of RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% over Q4 2006
* Income from operations of RMB 132.9 million (US$ 18.2 million), an increase of 79.3% over Q4 2006
* Total gross profit of RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in Q4 2006
* Gross margin was 21.2% compared to 23.9% in Q4 2006
* Net income of RMB 0.64 (US$ 0.09) per diluted ADS, which included a foreign exchange loss of RMB 57.3 million (US$ 7.9 million) compared to RMB 0.82 (US$ 0.11) per diluted ADS, which included a foreign exchange gain of RMB 1.0 million (US$ 0.1 million) in Q4 2006
* Shipped 50.2 MW, up 266.4%over Q4 2006 Full Year 2007 Highlights
* Full year 2007 revenues of RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% over 2006
* Income from operations of RMB 446.4 million (US$ 61.2 million), an increase of 240.0% over 2006
* Total gross profit of RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million) in 2006
* Gross margin was 22.3% compared to 24.7% in 2006
* Net income of RMB 2.93 (US$ 0.40) per diluted ADS compared to RMB 1.08 (US$ 0.15) per diluted ADS for the full year 2006
* Shipped 132.4 MW in 2007, an increase of 403.4% from 2006
* Increased annual manufacturing capacity from 75MW to 175MW Outlook for 2008
* Expect Full Year 2008 revenues in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion)
* Expect 2008 gross margin to be above 20%
* Expect to break ground on new solar cell manufacturing facility in Yangzhou, China during second half 2008
* Raising annual production capacity to 500 MW from 425 MW by the end of 2008
* Expect 2008 production output of 340 MW
HEBEI, China, March 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the fourth quarter and year ended December 31, 2007.
Fourth Quarter 2007 Results
Total revenues for the fourth quarter 2007 were RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% from fourth quarter 2006 quarter revenues of RMB 349.4 million (US$ 47.9 million), and an increase of 23.7% from third quarter 2007 revenues of RMB 850.0 million (US$ 116.5 million).
Total gross profit for the fourth quarter 2007 was RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in the fourth quarter 2006, and RMB 199.3 million (US$ 27.3 million) in the third quarter 2007. Gross margin was 21.2% in the fourth quarter of 2007 compared to 23.9% in the fourth quarter of 2006, and 23.5% in the third quarter of 2007.
Net income available to ordinary shareholders for the fourth quarter 2007 was RMB 98.3 million (US$ 13.5 million) compared to a net income available to ordinary shareholders of RMB 66.9 million (US$ 9.2 million) for the fourth quarter 2006, and net income available to ordinary shareholders of RMB 165.9 million (US$ 22.7 million) for the third quarter 2007.
For the fourth quarter 2007 basic and diluted earnings per ADS were RMB 0.65 (US$ 0.09) and RMB 0.64 (US$ 0.09), respectively. The fourth quarter 2007 included share-based compensation expense of RMB 61.2 million (US$ 8.4 million) and foreign exchange loss of RMB 57.3 million (US$ 7.9 million).
Capital expenditures were RMB 128.9 million (US$ 17.7 million) in the fourth quarter 2007, as compared to RMB 23.6 million (US$ 3.2 million) in the fourth quarter 2006, and RMB 144.3 million (US$ 19.8 million) in the third quarter 2007. Depreciation and amortization expenses in the fourth quarter 2007 were RMB 11.9 million (US$ 1.6 million), as compared to RMB 4.9 million (US$ 0.7 million) in the fourth quarter 2006, and RMB 10.7 million (US$ 1.5 million) in the third quarter 2007.
As of December 31, 2007, JA Solar had cash and cash equivalents of RMB 1.15 billion (US$ 157.0 million) compared with RMB 95.8 million (US$ 13.1 million) at the end of the fourth quarter 2006, and RMB 0.79 billion (US$ 108.9 million) at the end of the third quarter 2007. Short term debt increased to RMB 200.0 million (US$ 27.4 million) at the end of the fourth quarter 2007 from RMB 150.0 million (US$ 20.6 million) at the end of the fourth quarter 2006, and RMB 150.0 million (US$ 20.6 million) at the end of third quarter 2007.
Summary of megawatts produced and shipped (includes cell processing service)
---------------------------------------------------------------
Three months ended
---------------------------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
Megawatts 2006 2007 2007
---------------------------------------------------------------
Produced 17.1MW 44.6MW 48.7MW
---------------------------------------------------------------
Shipped 13.7MW 43.8MW 50.2MW
---------------------------------------------------------------
Cost per
watt
excluding
wafer cost US$0.228/Wp US$ 0.192/Wp US$ 0.190/Wp
---------------------------------------------------------------
2007 Full Year Results
Revenues for the full year 2007 were RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% from the full year 2006 revenues of RMB 696.5 million (US$ 95.5 million). The increase was principally due to continued strong growth in market demand for PV industry and our ability to expand the Company's production capacity to support the business growth.
Total gross profit for 2007 was RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million). Total gross margin was 22.3% for 2007 compared to 24.7% for 2006.
Net income available to ordinary shareholders for the full year 2007 was RMB 398.2 million (US$ 54.6 million) compared to a net income available to ordinary shareholders of RMB 86.4 million (US$ 11.8 million) for the full year 2006.
For the full year 2007 basic and diluted earnings per ADS were RMB 2.96 (US$ 0.41) and RMB 2.93 (US$ 0.40), respectively.
The full year 2007 included share-based compensation expense of RMB 88.8 million (US$ 12.2 million) and foreign exchange loss of RMB 112.8 million (US$ 15.5 million).Diluted earnings per ADS calculations for the full year 2007 were based on 136.72 million weighted average numbers of ADSs outstanding, compared to 80.17 million ADSs in 2006.
Capital expenditures were RMB 421.8 million (US$ 57.8 million) for the full year 2007, as compared to RMB 107.6 million (US$ 14.8 million) for the full year 2006. The increase was primarily due to expanding of new production capacity. Depreciation and amortization expenses for the full year 2007 were RMB 34.1 million (US$ 4.7 million), as compared to RMB 11.2 million (US$ 1.5 million) for the full year 2006.
Effective from February 7, 2008, the Company changed its ADS to ordinary share ratio from the one ADS for every three ordinary shares to one ADS for every one ordinary share. Both the basic and diluted earnings per ADS and both the basic and diluted weighted average number of ADSs outstanding for all periods presented have been restated to conform to the current ADS ratio accordingly.
The conversion of Renminbi into U.S. dollars for the full year of 2007 and the fourth quarter of 2007 in this release, made solely for the convenience of the reader, is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of December 31, 2007, which was RMB 7.2946 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on December 31, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
"We once again achieved record revenues in the fourth quarter of 2007 and extraordinary business growth for the full year," said Samuel Yang, JA Solar's Chief Executive Officer. "During the year, we increased our annual production capacity from 75MW to 175MW, and achieved impressive throughput and yield from our cell lines without compromising profitability. The several key additions in talent to our teams in sales and marketing, technology, and at the executive level helped ensure the smooth execution of our expansion. Our strategic decision to expand our supply sources and our practice of holding JA Solar's products to one of the highest performance standards in the industry were also contributing factors to our success. On the supply side, we were able to expand our base of major suppliers from two to four and contractually secured sufficient wafer supply to cover our anticipated 2008 production capacity."
"In 2008 we plan to build on JA Solar's strong brand and technology platform through increased sales and marketing efforts, greater investment in R&D, and continued expansion of our production capacity. We have already broken ground for ten new cell lines in Hebei, and plan to break ground for another ten cell lines at a new facility in Yangzhou during the second half of 2008. On the technology front, we plan to open a research laboratory in Silicon Valley, California.
We believe the true driving force for broader application of solar technology and the achievement of grid parity is low cost. By 2010, JA Solar strives to be a cost leader in the industry and establish the industry cost benchmark through technical innovation and operational efficiency. We have enormous confidence that our production scale and execution capability would position JA Solar to achieve aggressive cost reductions as we address a rapidly evolving market."
JA Solar's CFO, Herman Zhao, said, "In 2007 JA Solar demonstrated our financial discipline through the ability to more than double our annual production capacity while achieving impressive top line growth and profitability. While our performance was strong in Q4, we experienced foreign exchange losses in the quarter, which impacted our bottom line. Due to the depreciation of the U.S. dollar against the RMB in Q4, we recorded foreign exchange losses of RMB 57.3 million (US$ 7.9 million) for the quarter. Going forward we plan to manage the foreign exchange impact to our bottom line through focused initiatives which involve converting foreign currencies into RMB, currency hedging, diversification of our international supplier base, and the addition of pricing clauses in our international sales contracts. While the economic environment is expected to remain volatile, we expect another record year for our Company in terms of growth and profitability in 2008. We are fully committed to bringing further value to our shareholders in 2008 and future years."
2008 Outlook
Based on current customer demand and market forecasts, we expect revenues for the full year 2008 in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion). Gross margins for 2008 are expected to be above 20%.
We expect total production output of approximately 340MW for 2008, with a total annual production capacity of 500MW, which is above our previous annual production capacity guidance of 425MW.
The capital expenditures are expected to be RMB 966.8 million (US$ 132.5 million), primarily for capacity expansion. R&D expense is expected to be RMB 36.6 million (US$ 5.0 million).
Solar cell maker adds 3 new production lines
By Chen Qide (China Daily)Updated: 2008-03-12 13:31
Solar cell manufacturer chairman of Nantong Qiangsheng Photovoltaic Technology Co Ltd (QS Solar), plans to add three new production lines in Nantong, Jiangsu Province, this year.
Sha Xiaolin, chairman of QS Solar, said yesterday the firm will invest a total $70 million in its four production lines, which will have a combined annual capacity of 130 mW of solar cells.
"Capital is not a problem," Sha said, adding that 10 foreign financial institutions - including Morgan Stanley, Lehman Brothers and Standard Chartered Bank - will back the project.
The manufacturer's first production line came onstream in August last year, with an annual capacity of 12 mW of solar panels.
"Sales are good," Sha Yan, general manager of QS Solar, said. The company has signed a contract with a US firm to sell five mW of solar panels, as well as deals for two mW to South Korea and two mW to Spain.
The manufacturer has also signed a deal with Nantong's Rudong Economy and Technology Development Zone to launch a one-mW photovoltaic solar power plant.
Construction of the plant, China's largest, is expected to start after four months' preparation, the company's chairman said.
The plant will cost 28 million yuan ($3.94 million) and will use 16,000 pieces of thin-film amorphous silicon solar cells to generate one mW of solar electricity. The same plant built overseas would cost 65 million yuan, he said.
Solar electricity produced at the plant will be more expensive than thermal power at three yuan per kWh.
But he said the price will drop to one yuan per kWh when more photovoltaic power plants are built.
China produced 3,000 mW of solar cells last year, but its photovoltaic materials relied heavily on imports and 90 percent of photovoltaic cells were exported to Europe, the United States and Japan.
China's two million sq km of deserts could generate the same amount of electricity as produced by hydro, thermal and nuclear power plants combined if just one percent of it was used to build photovoltaic power plants, QS Solar said.
The manufacturer plans to have six production lines by 2009 to boost annual capacity to 340 mW, its chairman said.
By 2010, it plans to add another six production lines to reach 550 mW, he said.
"We're talking to the Shanghai municipal government about establishing a headquarters and R&D center in the city to push forward the industry," he said.
"If things go smoothly, we'll have about 20 experts from the United States, Europe and Australia working for us," he said.
Solar cell manufacturer chairman of Nantong Qiangsheng Photovoltaic Technology Co Ltd (QS Solar), plans to add three new production lines in Nantong, Jiangsu Province, this year.
Sha Xiaolin, chairman of QS Solar, said yesterday the firm will invest a total $70 million in its four production lines, which will have a combined annual capacity of 130 mW of solar cells.
"Capital is not a problem," Sha said, adding that 10 foreign financial institutions - including Morgan Stanley, Lehman Brothers and Standard Chartered Bank - will back the project.
The manufacturer's first production line came onstream in August last year, with an annual capacity of 12 mW of solar panels.
"Sales are good," Sha Yan, general manager of QS Solar, said. The company has signed a contract with a US firm to sell five mW of solar panels, as well as deals for two mW to South Korea and two mW to Spain.
The manufacturer has also signed a deal with Nantong's Rudong Economy and Technology Development Zone to launch a one-mW photovoltaic solar power plant.
Construction of the plant, China's largest, is expected to start after four months' preparation, the company's chairman said.
The plant will cost 28 million yuan ($3.94 million) and will use 16,000 pieces of thin-film amorphous silicon solar cells to generate one mW of solar electricity. The same plant built overseas would cost 65 million yuan, he said.
Solar electricity produced at the plant will be more expensive than thermal power at three yuan per kWh.
But he said the price will drop to one yuan per kWh when more photovoltaic power plants are built.
China produced 3,000 mW of solar cells last year, but its photovoltaic materials relied heavily on imports and 90 percent of photovoltaic cells were exported to Europe, the United States and Japan.
China's two million sq km of deserts could generate the same amount of electricity as produced by hydro, thermal and nuclear power plants combined if just one percent of it was used to build photovoltaic power plants, QS Solar said.
The manufacturer plans to have six production lines by 2009 to boost annual capacity to 340 mW, its chairman said.
By 2010, it plans to add another six production lines to reach 550 mW, he said.
"We're talking to the Shanghai municipal government about establishing a headquarters and R&D center in the city to push forward the industry," he said.
"If things go smoothly, we'll have about 20 experts from the United States, Europe and Australia working for us," he said.
Tuesday, March 11, 2008
Trina Solar to purchase solar capital equipment from GT Solar
10th March 2008
Chinese photovoltaic equipment maker Trina Solar has signed an agreement to purchase primary converter and reactor systems for its planned polysilicon production project from GT Solar for a total consideration of approximately $49 million, with the purchase price to be paid in installments over an approximate period of 12 to 18 months.
The agreement was signed by Trina Solar Lianyungang, a subsidiary of Trina Solar, at the Washington International Renewable Energy Conference.
Senior government officials from both the US State Department and China's National Development Reform Commission attended this conference and expressed strong support for greater co-operation between companies of both countries. This agreement is a part of the US and China governments' co-operation framework in renewable energy.
Jifan Gao, Trina Solar's chairman and CEO, said: "We are very excited to further our partnership with GT Solar, who will provide us a world-class platform which is expected to extend our technology, brand and cost advantages to include silicon feedstock under our vertically integrated manufacturing model."
Chinese photovoltaic equipment maker Trina Solar has signed an agreement to purchase primary converter and reactor systems for its planned polysilicon production project from GT Solar for a total consideration of approximately $49 million, with the purchase price to be paid in installments over an approximate period of 12 to 18 months.
The agreement was signed by Trina Solar Lianyungang, a subsidiary of Trina Solar, at the Washington International Renewable Energy Conference.
Senior government officials from both the US State Department and China's National Development Reform Commission attended this conference and expressed strong support for greater co-operation between companies of both countries. This agreement is a part of the US and China governments' co-operation framework in renewable energy.
Jifan Gao, Trina Solar's chairman and CEO, said: "We are very excited to further our partnership with GT Solar, who will provide us a world-class platform which is expected to extend our technology, brand and cost advantages to include silicon feedstock under our vertically integrated manufacturing model."
Solargiga aims to raise $127 mln in scaled-back IPO
HONG KONG, March 11 (Reuters) - Chinese solar wafer maker Solargiga Energy Holdings Ltd, which scrapped a planned Hong Kong IPO in January, has relaunched a smaller, cheaper share sale to raise $127 million, according to a term sheet.
The move comes a day after Shanghai-listed China Pacific Insurance delayed plans to raise about $4 billion in a Hong Kong share sale due to poor investor sentiment, joining roughly 65 companies globally this year to withdraw or postpone IPOs worth nearly $23 billion, according to Thomson Financial.
Solargiga on Tuesday began selling about 338.13 million shares, or 20 percent of its enlarged share capital, at an indicative price of HK$2.92 each in a deal handled by BNP Paribas with a listing date set for March 31.
The company had earlier sought to raise as much as $292 million by selling 422.7 million shares at a range of HK$4.57-HK$5.38 each, and subsequently cut its target price range to HK$4.08-HK$4.88 before putting the deal on hold amid the global markets meltdown in January.
The move comes a day after Shanghai-listed China Pacific Insurance delayed plans to raise about $4 billion in a Hong Kong share sale due to poor investor sentiment, joining roughly 65 companies globally this year to withdraw or postpone IPOs worth nearly $23 billion, according to Thomson Financial.
Solargiga on Tuesday began selling about 338.13 million shares, or 20 percent of its enlarged share capital, at an indicative price of HK$2.92 each in a deal handled by BNP Paribas with a listing date set for March 31.
The company had earlier sought to raise as much as $292 million by selling 422.7 million shares at a range of HK$4.57-HK$5.38 each, and subsequently cut its target price range to HK$4.08-HK$4.88 before putting the deal on hold amid the global markets meltdown in January.
Suntech to Offer $425 Million in Notes
March 10, 2008: 05:44 PM EST
NEW YORK (Associated Press) - Suntech Power Holdings Co., a Chinese maker of solar-power products, said Monday it plans to offer $425 million in convertible senior notes due 2013 in a private offering.
In some instances, the notes will be convertible into cash, American depositary shares, or a combination of both, Suntech said.
The interest rate, conversion price and other terms will be determined when the offering is priced, the company said.
Suntech said it plans to grant to the initial buyers a 30-day option to purchase up to an additional $75 million of the notes to cover possible over-allotments.
Suntech said it expects to use about $300 million of the offering's net proceeds for procuring upstream supplies and the rest for production capacity expansion and new technology commercialization.
Any additional net proceeds received from the exercise of options to buy additional notes will be used for general corporate purposes and potential acquisitions, Suntech said.
NEW YORK (Associated Press) - Suntech Power Holdings Co., a Chinese maker of solar-power products, said Monday it plans to offer $425 million in convertible senior notes due 2013 in a private offering.
In some instances, the notes will be convertible into cash, American depositary shares, or a combination of both, Suntech said.
The interest rate, conversion price and other terms will be determined when the offering is priced, the company said.
Suntech said it plans to grant to the initial buyers a 30-day option to purchase up to an additional $75 million of the notes to cover possible over-allotments.
Suntech said it expects to use about $300 million of the offering's net proceeds for procuring upstream supplies and the rest for production capacity expansion and new technology commercialization.
Any additional net proceeds received from the exercise of options to buy additional notes will be used for general corporate purposes and potential acquisitions, Suntech said.
Pan Jit preps for solar wafer production in China
Nuying Huang, Taipei; Esther Lam, DIGITIMES [Monday 10 March 2008]
Already having acquired a controlling stake in China-based solar module maker Jiangsu Aide Solar Energy Technology, Pan Jit International is extending its presence into the solar sector by preparing for solar-grade silicon wafer production in China in the third quarter of 2008.
Pan Jit plans to locate 20 furnaces for silicon wafer production at its existing production site in Xuzhou, China, with an initial annual capacity of 40 peak megawatt (MWp), according to company executives. The company will also purchase about three to four sets of equipment for ingot slicing.
Company executives attributed the vertical integration to satisfactory material sufficiency. Pan Jit anticipates that its vertical integration will help enhance its competitiveness in solar deployment. Regarding plans to expand, the executives said that will depend on ongoing material sufficiency.
Pan Jit posted an earnings per share (EPS) of about NT$2 in 2007. Under the anticipation of strong demand for diodes, as well as contribution from Aide, investors estimate that Pan Jit should see its EPS hit NT$3.50 in 2008. The profitability is set to enhance further if production of silicon wafer is smooth as gross margin from silicon wafer is as high as above 30%, they highlighted. The gross margin of Pan Jit averaged 15% in 2007.
Aide housed a solar cell capacity of 35MWp in 2007. The company plans for aggressive expansion in 2008 as its solar module bookings have been extended through September, the investors said. Gross margins from solar cell and module production are 15% and 8%, respectively.
Besides Pan Jit's extended deployment in the solar industry, fellow rectifier diode makers in Taiwan are also gearing up their deployment in the sector. Taiwan Semiconductor Company (TSC) is having pilot production of polysilicon at its Yilan, Taiwan production site. Mospec Semiconductor, in the meantime, is equipping furnaces for silicon wafer production at its site with a capacity set at 20-25MWp in 2008 with customer validations having already been secured.
Already having acquired a controlling stake in China-based solar module maker Jiangsu Aide Solar Energy Technology, Pan Jit International is extending its presence into the solar sector by preparing for solar-grade silicon wafer production in China in the third quarter of 2008.
Pan Jit plans to locate 20 furnaces for silicon wafer production at its existing production site in Xuzhou, China, with an initial annual capacity of 40 peak megawatt (MWp), according to company executives. The company will also purchase about three to four sets of equipment for ingot slicing.
Company executives attributed the vertical integration to satisfactory material sufficiency. Pan Jit anticipates that its vertical integration will help enhance its competitiveness in solar deployment. Regarding plans to expand, the executives said that will depend on ongoing material sufficiency.
Pan Jit posted an earnings per share (EPS) of about NT$2 in 2007. Under the anticipation of strong demand for diodes, as well as contribution from Aide, investors estimate that Pan Jit should see its EPS hit NT$3.50 in 2008. The profitability is set to enhance further if production of silicon wafer is smooth as gross margin from silicon wafer is as high as above 30%, they highlighted. The gross margin of Pan Jit averaged 15% in 2007.
Aide housed a solar cell capacity of 35MWp in 2007. The company plans for aggressive expansion in 2008 as its solar module bookings have been extended through September, the investors said. Gross margins from solar cell and module production are 15% and 8%, respectively.
Besides Pan Jit's extended deployment in the solar industry, fellow rectifier diode makers in Taiwan are also gearing up their deployment in the sector. Taiwan Semiconductor Company (TSC) is having pilot production of polysilicon at its Yilan, Taiwan production site. Mospec Semiconductor, in the meantime, is equipping furnaces for silicon wafer production at its site with a capacity set at 20-25MWp in 2008 with customer validations having already been secured.
Trina Solar Signs Equipment Supply Contract with GT Solar
CHANGZHOU, China, March 9 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("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, today announced that it has signed an agreement with GT Solar Incorporated ("GT Solar") to purchase primary converter and reactor systems for its planned polysilicon production project for a total consideration of approximately US$49 million, with purchase price to be paid in installments over an approximate period of 12 to 18 months. The execution of this agreement is subject to final approval by the Boards of both companies.
"We are very excited to further our partnership with GT Solar, who will provide us a world class platform which is expected to extend our technology, brand and cost advantages to include silicon feedstock under our vertically integrated manufacturing model," said Jifan Gao, Trina Solar's Chairman and CEO. "We believe GT Solar's advanced technology will help Trina Solar to reduce cost in the long run in connection with our polysilicon production."
Tom Zarrella, GT Solar's CEO, stated "Trina Solar's order for our advanced polysilicon manufacturing equipment and technologies to support their upstream expansion plan is a strong indication of GT Solar's continued expansion in the Asia market. We value our relationship with Trina Solar and appreciate its continued confidence in our products."
The agreement was signed through Trina Solar (Lianyungang) Co. Ltd., a subsidiary of Trina Solar, at the Washington International Renewable Energy Conference (WIREC). Senior governmental officials from both the United States State Department and China's National Development Reform Commission attended this conference and expressed strong support for greater cooperation between companies of both countries. This agreement is a part of the governments' cooperation framework in renewable energy. The signing ceremony was co-hosted by ACORE (American Council on Renewable Energy) and CREIA (China Renewable Energy Industries Association).
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL), 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. For further information, please visit Trina Solar's website at http://www.trinasolar.com.
About GT Solar
GT Solar Incorporated, a wholly-owned subsidiary of GT Solar International, is a key global provider of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com.
"We are very excited to further our partnership with GT Solar, who will provide us a world class platform which is expected to extend our technology, brand and cost advantages to include silicon feedstock under our vertically integrated manufacturing model," said Jifan Gao, Trina Solar's Chairman and CEO. "We believe GT Solar's advanced technology will help Trina Solar to reduce cost in the long run in connection with our polysilicon production."
Tom Zarrella, GT Solar's CEO, stated "Trina Solar's order for our advanced polysilicon manufacturing equipment and technologies to support their upstream expansion plan is a strong indication of GT Solar's continued expansion in the Asia market. We value our relationship with Trina Solar and appreciate its continued confidence in our products."
The agreement was signed through Trina Solar (Lianyungang) Co. Ltd., a subsidiary of Trina Solar, at the Washington International Renewable Energy Conference (WIREC). Senior governmental officials from both the United States State Department and China's National Development Reform Commission attended this conference and expressed strong support for greater cooperation between companies of both countries. This agreement is a part of the governments' cooperation framework in renewable energy. The signing ceremony was co-hosted by ACORE (American Council on Renewable Energy) and CREIA (China Renewable Energy Industries Association).
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL), 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. For further information, please visit Trina Solar's website at http://www.trinasolar.com.
About GT Solar
GT Solar Incorporated, a wholly-owned subsidiary of GT Solar International, is a key global provider of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com.
Saturday, March 8, 2008
One 30MW thin film PV project will start in July 2008
One 30MW thin film PV project will be started by Sichuan Guangliang Investment and their partners in July 2008 in Chongzhou Sichuan. The total investment is 600 million RMB.
Sunvim Photovoltaic held the ground breaking ceremony for the 60MW CIGSSe thin film project
On February 22nd 2008 Sunvim Photovoltaic held the ground breaking ceremony for the 60MW CIGSSe thin film project, Sunvim Photovoltaic plans to begin the commercial production in the third quarter 2009.
Sunvim Photovoltaic purchased the production equipment from Johanna Solar Solutions GmbH, the total equipment purchase contract value is Euro 111.75 millioin. And the equipments will arrive in the second quarter 2009.
Sunvim Photovoltaic purchased the production equipment from Johanna Solar Solutions GmbH, the total equipment purchase contract value is Euro 111.75 millioin. And the equipments will arrive in the second quarter 2009.
Xin'ao Photovoltaic will begin to commercially produce thin film solar panel by the end of 2008
The total thin film PV project is 500MW, and Xin'ao Photovoltaic will complete the construction of the first phase project by the middle of May, and the production equipments will arrive before the end of June and Xin'ao Photovoltaic will begin test production before the end of September and begin commercial production by the end of 2008.
Tebian Electric Apparatus invests in 1500 ton polysilicon project
January 18th 2008 Tebian Electric Apparatus signed investment agreement with E'mei Semiconductor Factory and other partners to build 1500 ton polysilicon project. The total investment is 400 million RMB, and the investment from Tebian Electric Apparatus is 300 million RMB.
It will take about 2 years to complete the project.
And Tebian Electric Apparatus will invest in 120MW PV production project also.
It will take about 2 years to complete the project.
And Tebian Electric Apparatus will invest in 120MW PV production project also.
Some thoughts about the polysilicon production expansion in China
PV industry is one of the most promising industry in the 21 century, and too many Chinese companies are trying to catch this golden development opportunity. While the production of polysilicon is the most lucrative sector in the PV industry chain, so there are too many polysilicon production projects in China already, and many more are planned.
It is said that the total production capacity of all the polysilicon project (existing, under construction and planned) is over 90,000 tons already, and by the end of 2010 the total production capacity of all the completed project will be much over 60,000 tons.
Most of these polysilicon companies do not have any polysilicon production experience before, and some of them obtained the improved Siemens chemical process technologies from Russia and some are developing their own production technologies, while at present the advanced polysilicon production technologies are owned by US, German and Japanese companies, and these companies are not willing to transfer their technologies to Chinese companies. The technology from Russia consumes more electricity power, and the production cost is higher. It is very hard to develop Chinese own polysilicon production technology, polysilicon production requires a complex system, and in 2007 the total polysilicon production output in China is just about 1000 tons. Some Chinese polysilicon companies claimed that they had made progress in developing polysilicon production technology, even low cost polysilicon production technology, but none of these new entries are able to produce polysilicon in volume at present, and we always hear news that some polysilicon project is delayed also.
It is hard to predict the polysilicon production output in China since we do not know when the companies are able to produce in volume and how much they can produce. I sincerely hope these Chinese companies may make breakthrough in the production technology, then the solar electricity cost will be cut down greatly, and it is the golden time for the PV industry to grow and we can adopt much cheaper solar electricity.
It is said that the total production capacity of all the polysilicon project (existing, under construction and planned) is over 90,000 tons already, and by the end of 2010 the total production capacity of all the completed project will be much over 60,000 tons.
Most of these polysilicon companies do not have any polysilicon production experience before, and some of them obtained the improved Siemens chemical process technologies from Russia and some are developing their own production technologies, while at present the advanced polysilicon production technologies are owned by US, German and Japanese companies, and these companies are not willing to transfer their technologies to Chinese companies. The technology from Russia consumes more electricity power, and the production cost is higher. It is very hard to develop Chinese own polysilicon production technology, polysilicon production requires a complex system, and in 2007 the total polysilicon production output in China is just about 1000 tons. Some Chinese polysilicon companies claimed that they had made progress in developing polysilicon production technology, even low cost polysilicon production technology, but none of these new entries are able to produce polysilicon in volume at present, and we always hear news that some polysilicon project is delayed also.
It is hard to predict the polysilicon production output in China since we do not know when the companies are able to produce in volume and how much they can produce. I sincerely hope these Chinese companies may make breakthrough in the production technology, then the solar electricity cost will be cut down greatly, and it is the golden time for the PV industry to grow and we can adopt much cheaper solar electricity.
Leshan Electric Power Tianwei Polysilicon purchased 40m Euro polysilicon production equipments
The joint venture between Leshan Electric Power and Tianwei Baobian, Leshan Electric Power Tianwei Polysilicon, signed polysilicon production equipment purchase agreement with US polysilicon equipment company on February 17th 2008 for their 3,000 ton polysilicon project, and the total contract value is about Euro 40 million.
Leshan Electric Power Tianwei Polysilicon will get the equipments at the end of 2008.
Leshan Electric Power Tianwei Polysilicon will get the equipments at the end of 2008.
Wednesday, March 5, 2008
Trina Solar Announces Fourth Quarter and Fiscal Year 2007 Results
04 Mar 2008
CHANGZHOU, China, March 4 /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, today announced its financial results for the fourth quarter and fiscal year 2007.
Fourth Quarter 2007 Highlights
-- Total net revenues increased 22.8% sequentially and 161.6% year-over- year to $101.4 million
-- Gross profit increased 66.3% sequentially and 205.7% year-over-year to $27.6 million
-- Net income increased 116.8% sequentially and 242.2% year-over-year to $15.7 million
-- Solar module shipments increased 13.0% to 23.91 MW from 21.15 MW in the third quarter of 2007 and 166.3% from 8.98 MW in the fourth quarter of 2006
"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao. "During the quarter we have tripled our in-house cell production to meet our integrated capacity expansion targets and reached historical highs in our in-house cell and module efficiencies, which combined drove significant margin expansion. In 2008, we continue to focus efforts to lower our module manufacturing costs through constant improvements in cell efficiencies, wafer thickness reduction, and manufacturing process innovation as we increase our production capacity and execute on our technology roadmap. These developments are central to our three core long-term strategies: developing a strong brand in the marketplace, investing continuously in our technology platform and ensuring our low cost position through our vertically integrated model."
During the quarter, the Company achieved the following milestones:
-- Expanded capacity to 150MW for each of ingot, wafer, cell and module production
-- Successfully ramped four new cell production lines (No. 3, 4, 5, and 6)
-- Increased in-house cell processing proportion from 25% to over 75%
-- Launched commercial production of multicrystalline ingots of up to 420 kg in size
-- Commenced commercial production of 220-watt multicrystalline modules, based on self-produced 156mm-sized cells
-- Realized in-house cell efficiency rates of up to 17.0% for monocrystalline-based cells and up to 15.6% for multicrystalline-based cells
-- Furthered the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the Netherlands, Belgium, France, Greece, and Korea.
The geographic breakdown of the Company's sales for the fourth quarter was approximately 56% Spain, 7% Germany, and 16% Italy, thus bringing our full year 2007 geographic breakdown to approximately 34% Germany, 41% Spain, and 19% Italy.
Fourth quarter 2007 Results
Trina Solar's net revenues in the fourth quarter of 2007 were $101.4 million, an increase of 22.8% sequentially and 161.6% year-over-year. Total shipments increased to 23.91 MW, up from 21.15 MW in the third quarter of 2007 and 8.98 MW in the fourth quarter of 2006.
Cost of revenues in the fourth quarter of 2007 was $73.8 million, an increase of 11.8% sequentially and 148.1% year-over-year due to growth of Trina Solar's solar module business.
Gross profit in the fourth quarter of 2007 was $27.6 million, an increase of 66.3% sequentially and 205.7% year-over-year. Gross margin was 27.2% in the fourth quarter of 2007, an increase from 20.1% in the third quarter of 2007 and 23.3% in the fourth quarter of 2006. The sequential and year-over- year increases in gross margin were primarily due to higher module ASP and manufacturing benefits from increased vertical integration.
Operating expenses in the fourth quarter of 2007 were $11.4 million, an increase of 15.8% sequentially and 259.0% year-over-year. The Company's operating expenses were 11.2% of its fourth quarter net revenues, a decrease from 11.9% in the third quarter of 2007 and an increase from 8.2% in the fourth quarter of 2006. The year-over-year increase was primarily due to higher general and administrative ("G&A") expenses and sales and marketing expenses to support the rapid growth of the Company's business. The G&A expense was 6.4% of its fourth quarter revenues, a sequential decrease from 7.2% and an increase from 5.3% in the fourth quarter of 2006. The sequential decrease was due to measures taken by the Company for expense-control while the year-over-year increase was to support the rapid growth of the Company's business. Operating expenses in the fourth quarter of 2007 included approximately $736,000 of share-based compensation expenses.
Operating income in the fourth quarter of 2007 was $16.2 million, an increase of 139.5% sequentially and 177.0% year-over-year. Operating margin was 16.0% in the fourth quarter of 2007, compared to 8.2% in the third quarter of 2007 and 15.1% in the fourth quarter of 2006. The sequential and year- over-year increases in operating margin were due to higher module ASP and manufacturing benefits from increased vertical integration.
Interest expense in the fourth quarter of 2007 was $2.6 million, compared to $2.1 million in the third quarter of 2007 and $1.1 million in the fourth quarter of 2006. The sequential and year-over-year increase were due to additional bank borrowings compared to the third quarter of 2007 and the fourth quarter of 2006 to secure additional silicon materials. Interest Income was $2.4 million in the fourth quarter, compared to $1.5 million in the third quarter and $0.1 million in the fourth quarter of 2006.
The Company recorded an income tax benefit mainly due to tax refund received in the fourth quarter of 2007 relating to the purchase of domestically manufactured equipment.
Net income from continuing operations was $15.5 million in the fourth quarter of 2007, an increase of 119.7% sequentially and 253.8% year-over-year.
Net income was $15.7 million in the fourth quarter of 2007, an increase of 116.8% sequentially and 242.2% year-over-year. Net margin was 15.5% in the fourth quarter of 2007, compared to 8.8% in the third quarter of 2007 and 11.8% in the fourth quarter of 2006. Earnings per ADS in the quarter were $0.62 per fully diluted ADS, up 116.2% sequentially and 124.3% over the fourth quarter of 2006.
Full Year 2007 Results
For the full year 2007, net revenues were $301.8 million, up 163.6% from $114.5 million in 2006. Gross profit for the full year 2007 was $67.9 million, an increase of 126.0% from $30.0 million in 2006. Gross margin was 22.5% in 2007, compared to 26.2% in 2006. Operating income for the full year 2007 was $36.3 million, up 114.4% from $16.9 million in 2006. Operating margin was 12.0% in 2007, compared to 14.8% in 2006. The decline in operating margin in 2007 was primarily due to the lower gross margin in 2007 as a result of lower ASP and higher polysilicon prices. Net income from continuing operations for the full year 2007 was $34.5 million, an increase of 161.9% from 2006, and was due primarily to the growth in sales of the Company's solar module products. Net income for the full year 2007 was $34.9 million, an increase of 180.8% from 2006. Net margin was 11.6% in 2007, compared to 10.8% in 2006. Earnings per ADS for the full year 2007 were $1.47 per fully diluted ADS.
The Company's 4Q and 2007 financial statements are subject to change based on the Company completing its computation of the fair value of foreign exchange derivatives embedded in two of its material long-term silicon supply contracts. Such contracts provide that the purchase price of the silicon to be acquired is denominated in U.S. Dollars, which is not the functional currency of either of the contracting parties. Given the continued strengthening of the RMB against the USD, the Company believes that the ultimate impact would increase the earnings for both 4Q and fiscal 2007. The impact, if material, will be recorded as "Exchange Gain", a non-operating item, in the consolidated income statement.
Financial Condition
As of December 31, 2007, the Company had $59.7 million in cash and cash equivalents, which excludes the Company's restricted cash balance of $103.4 million. The Company's working capital balance was $121.9 million. Total bank borrowings stood at $171.8 million, of which $8.2 million were long term borrowings. Shareholders' equity was $366.6 million, up from $345.5 million at the end of the third quarter 2007.
Operations Outlook for 2008 Presales and Production
As of this date, the Company has contracted 100% and 85% of its first and second half 2008 targeted module production, respectively, representing approximately 90% of its targeted module production from 200MW to 210MW for 2008. The Company also plans to initiate sales in the United States this year, and is in the final process stage to receive its UL certifications. The Company anticipates its geographic breakdown of 2008 sales in its main markets to be approximately 34% Germany, 26% Spain, 18% Italy, 10% Benelux and 5% in the United States.
Silicon Feedstock
The Company has now secured over 80% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 170MW based on a module production target of 200-210MW of module output.
Capacity Expansion and Technology Roadmap
Trina Solar continues to be on target to meet its fully integrated capacity goal of 350 MW at end of 2008, and will add approximately 50MW of capacity in each quarter in ingot, wafer, cell, and module production value areas.
In the first quarter of 2008 the Company initiated commercial production of 180 micron monocrystalline wafers and cells from a current thickness of 200 microns and multicrystalline-based wafers of 200 microns from a current thickness of 220 microns. The Company expects to produce monocrystalline wafers of 160 microns and multicrystalline wafers of 180 microns by year end.
In 2008 the Company is developing second generation cell technologies to raise its monocrystalline and multicrystalline conversion efficiencies up to 17.5% and 16.0%, respectively. These improvements will result in our module products reaching output power up to 245 watts for monocrystalline and 230 watts for multicrystalline during 2008.
Module Cost Reduction
In the fourth quarter of 2007 the Company's manufacturing cost per watt excluding polysilicon was approximately $1.28 for combined ingot, wafer, cell, and module production. By fourth quarter 2008, we are targeting cost reduction of approximately 18% to reduce these costs to approximately $1.05 per watt. Driven by our technology development, transfer, and manufacturing process improvements, anticipated cost reductions will result from cell conversion improvements, wafer and cell breakage reduction, and production scale advantages.
Polysilicon Project Update
With goals to secure visibility on supply, price, and quality of up to 50% of its long-term polysilicon requirements, the Company is advancing project planning and financing to build and operate a multi-phased polysilicon production facility announced in the fourth quarter of 2007. We are highly confident that the construction of a polysilicon facility is the appropriate strategic direction to enable our vertically integrated platform to drive the necessary cost reductions to secure a sustainable competitive advantage in the global PV module market space.
We have made good progress in several areas in regard to our silicon production project announced in the fourth quarter. In December we announced our strategic development agreement with the Lianyungang Municipality in China's Jiangsu Province, which includes attractive government support in respect of land and electric power. We have also advanced negotiations for long lead time equipment and engineering procurement contractor (EPC) services. Additionally, we have well-progressed our technical and commercial due diligence work for a long term syndicate debt facility associated with the project.
First Quarter and Fiscal Year 2008 Guidance
For the first quarter of 2008, the Company expects to ship between 29 MW to 31 MW of PV modules and has expectations of total net revenues in the range of $112 million to $120 million. The Company believes gross margin for the first quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues.
For the full year of 2008 the Company expects total net revenues in the range of $770 million to $808 million, with PV module shipments between 200 MW to 210 MW. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.
CHANGZHOU, China, March 4 /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, today announced its financial results for the fourth quarter and fiscal year 2007.
Fourth Quarter 2007 Highlights
-- Total net revenues increased 22.8% sequentially and 161.6% year-over- year to $101.4 million
-- Gross profit increased 66.3% sequentially and 205.7% year-over-year to $27.6 million
-- Net income increased 116.8% sequentially and 242.2% year-over-year to $15.7 million
-- Solar module shipments increased 13.0% to 23.91 MW from 21.15 MW in the third quarter of 2007 and 166.3% from 8.98 MW in the fourth quarter of 2006
"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao. "During the quarter we have tripled our in-house cell production to meet our integrated capacity expansion targets and reached historical highs in our in-house cell and module efficiencies, which combined drove significant margin expansion. In 2008, we continue to focus efforts to lower our module manufacturing costs through constant improvements in cell efficiencies, wafer thickness reduction, and manufacturing process innovation as we increase our production capacity and execute on our technology roadmap. These developments are central to our three core long-term strategies: developing a strong brand in the marketplace, investing continuously in our technology platform and ensuring our low cost position through our vertically integrated model."
During the quarter, the Company achieved the following milestones:
-- Expanded capacity to 150MW for each of ingot, wafer, cell and module production
-- Successfully ramped four new cell production lines (No. 3, 4, 5, and 6)
-- Increased in-house cell processing proportion from 25% to over 75%
-- Launched commercial production of multicrystalline ingots of up to 420 kg in size
-- Commenced commercial production of 220-watt multicrystalline modules, based on self-produced 156mm-sized cells
-- Realized in-house cell efficiency rates of up to 17.0% for monocrystalline-based cells and up to 15.6% for multicrystalline-based cells
-- Furthered the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the Netherlands, Belgium, France, Greece, and Korea.
The geographic breakdown of the Company's sales for the fourth quarter was approximately 56% Spain, 7% Germany, and 16% Italy, thus bringing our full year 2007 geographic breakdown to approximately 34% Germany, 41% Spain, and 19% Italy.
Fourth quarter 2007 Results
Trina Solar's net revenues in the fourth quarter of 2007 were $101.4 million, an increase of 22.8% sequentially and 161.6% year-over-year. Total shipments increased to 23.91 MW, up from 21.15 MW in the third quarter of 2007 and 8.98 MW in the fourth quarter of 2006.
Cost of revenues in the fourth quarter of 2007 was $73.8 million, an increase of 11.8% sequentially and 148.1% year-over-year due to growth of Trina Solar's solar module business.
Gross profit in the fourth quarter of 2007 was $27.6 million, an increase of 66.3% sequentially and 205.7% year-over-year. Gross margin was 27.2% in the fourth quarter of 2007, an increase from 20.1% in the third quarter of 2007 and 23.3% in the fourth quarter of 2006. The sequential and year-over- year increases in gross margin were primarily due to higher module ASP and manufacturing benefits from increased vertical integration.
Operating expenses in the fourth quarter of 2007 were $11.4 million, an increase of 15.8% sequentially and 259.0% year-over-year. The Company's operating expenses were 11.2% of its fourth quarter net revenues, a decrease from 11.9% in the third quarter of 2007 and an increase from 8.2% in the fourth quarter of 2006. The year-over-year increase was primarily due to higher general and administrative ("G&A") expenses and sales and marketing expenses to support the rapid growth of the Company's business. The G&A expense was 6.4% of its fourth quarter revenues, a sequential decrease from 7.2% and an increase from 5.3% in the fourth quarter of 2006. The sequential decrease was due to measures taken by the Company for expense-control while the year-over-year increase was to support the rapid growth of the Company's business. Operating expenses in the fourth quarter of 2007 included approximately $736,000 of share-based compensation expenses.
Operating income in the fourth quarter of 2007 was $16.2 million, an increase of 139.5% sequentially and 177.0% year-over-year. Operating margin was 16.0% in the fourth quarter of 2007, compared to 8.2% in the third quarter of 2007 and 15.1% in the fourth quarter of 2006. The sequential and year- over-year increases in operating margin were due to higher module ASP and manufacturing benefits from increased vertical integration.
Interest expense in the fourth quarter of 2007 was $2.6 million, compared to $2.1 million in the third quarter of 2007 and $1.1 million in the fourth quarter of 2006. The sequential and year-over-year increase were due to additional bank borrowings compared to the third quarter of 2007 and the fourth quarter of 2006 to secure additional silicon materials. Interest Income was $2.4 million in the fourth quarter, compared to $1.5 million in the third quarter and $0.1 million in the fourth quarter of 2006.
The Company recorded an income tax benefit mainly due to tax refund received in the fourth quarter of 2007 relating to the purchase of domestically manufactured equipment.
Net income from continuing operations was $15.5 million in the fourth quarter of 2007, an increase of 119.7% sequentially and 253.8% year-over-year.
Net income was $15.7 million in the fourth quarter of 2007, an increase of 116.8% sequentially and 242.2% year-over-year. Net margin was 15.5% in the fourth quarter of 2007, compared to 8.8% in the third quarter of 2007 and 11.8% in the fourth quarter of 2006. Earnings per ADS in the quarter were $0.62 per fully diluted ADS, up 116.2% sequentially and 124.3% over the fourth quarter of 2006.
Full Year 2007 Results
For the full year 2007, net revenues were $301.8 million, up 163.6% from $114.5 million in 2006. Gross profit for the full year 2007 was $67.9 million, an increase of 126.0% from $30.0 million in 2006. Gross margin was 22.5% in 2007, compared to 26.2% in 2006. Operating income for the full year 2007 was $36.3 million, up 114.4% from $16.9 million in 2006. Operating margin was 12.0% in 2007, compared to 14.8% in 2006. The decline in operating margin in 2007 was primarily due to the lower gross margin in 2007 as a result of lower ASP and higher polysilicon prices. Net income from continuing operations for the full year 2007 was $34.5 million, an increase of 161.9% from 2006, and was due primarily to the growth in sales of the Company's solar module products. Net income for the full year 2007 was $34.9 million, an increase of 180.8% from 2006. Net margin was 11.6% in 2007, compared to 10.8% in 2006. Earnings per ADS for the full year 2007 were $1.47 per fully diluted ADS.
The Company's 4Q and 2007 financial statements are subject to change based on the Company completing its computation of the fair value of foreign exchange derivatives embedded in two of its material long-term silicon supply contracts. Such contracts provide that the purchase price of the silicon to be acquired is denominated in U.S. Dollars, which is not the functional currency of either of the contracting parties. Given the continued strengthening of the RMB against the USD, the Company believes that the ultimate impact would increase the earnings for both 4Q and fiscal 2007. The impact, if material, will be recorded as "Exchange Gain", a non-operating item, in the consolidated income statement.
Financial Condition
As of December 31, 2007, the Company had $59.7 million in cash and cash equivalents, which excludes the Company's restricted cash balance of $103.4 million. The Company's working capital balance was $121.9 million. Total bank borrowings stood at $171.8 million, of which $8.2 million were long term borrowings. Shareholders' equity was $366.6 million, up from $345.5 million at the end of the third quarter 2007.
Operations Outlook for 2008 Presales and Production
As of this date, the Company has contracted 100% and 85% of its first and second half 2008 targeted module production, respectively, representing approximately 90% of its targeted module production from 200MW to 210MW for 2008. The Company also plans to initiate sales in the United States this year, and is in the final process stage to receive its UL certifications. The Company anticipates its geographic breakdown of 2008 sales in its main markets to be approximately 34% Germany, 26% Spain, 18% Italy, 10% Benelux and 5% in the United States.
Silicon Feedstock
The Company has now secured over 80% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 170MW based on a module production target of 200-210MW of module output.
Capacity Expansion and Technology Roadmap
Trina Solar continues to be on target to meet its fully integrated capacity goal of 350 MW at end of 2008, and will add approximately 50MW of capacity in each quarter in ingot, wafer, cell, and module production value areas.
In the first quarter of 2008 the Company initiated commercial production of 180 micron monocrystalline wafers and cells from a current thickness of 200 microns and multicrystalline-based wafers of 200 microns from a current thickness of 220 microns. The Company expects to produce monocrystalline wafers of 160 microns and multicrystalline wafers of 180 microns by year end.
In 2008 the Company is developing second generation cell technologies to raise its monocrystalline and multicrystalline conversion efficiencies up to 17.5% and 16.0%, respectively. These improvements will result in our module products reaching output power up to 245 watts for monocrystalline and 230 watts for multicrystalline during 2008.
Module Cost Reduction
In the fourth quarter of 2007 the Company's manufacturing cost per watt excluding polysilicon was approximately $1.28 for combined ingot, wafer, cell, and module production. By fourth quarter 2008, we are targeting cost reduction of approximately 18% to reduce these costs to approximately $1.05 per watt. Driven by our technology development, transfer, and manufacturing process improvements, anticipated cost reductions will result from cell conversion improvements, wafer and cell breakage reduction, and production scale advantages.
Polysilicon Project Update
With goals to secure visibility on supply, price, and quality of up to 50% of its long-term polysilicon requirements, the Company is advancing project planning and financing to build and operate a multi-phased polysilicon production facility announced in the fourth quarter of 2007. We are highly confident that the construction of a polysilicon facility is the appropriate strategic direction to enable our vertically integrated platform to drive the necessary cost reductions to secure a sustainable competitive advantage in the global PV module market space.
We have made good progress in several areas in regard to our silicon production project announced in the fourth quarter. In December we announced our strategic development agreement with the Lianyungang Municipality in China's Jiangsu Province, which includes attractive government support in respect of land and electric power. We have also advanced negotiations for long lead time equipment and engineering procurement contractor (EPC) services. Additionally, we have well-progressed our technical and commercial due diligence work for a long term syndicate debt facility associated with the project.
First Quarter and Fiscal Year 2008 Guidance
For the first quarter of 2008, the Company expects to ship between 29 MW to 31 MW of PV modules and has expectations of total net revenues in the range of $112 million to $120 million. The Company believes gross margin for the first quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues.
For the full year of 2008 the Company expects total net revenues in the range of $770 million to $808 million, with PV module shipments between 200 MW to 210 MW. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.
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