Amorphous silicon roof BIPV power station will be installed at Shandong Weihai Culture Center, and the system will cover 7,800 square meters, with capacity of 273KW, and produce about 330,000 KWH power per year. This will become the biggest amorphous silicon roof PV power station in the world.
The system will be installed by Weihai China Glass Solar.
Friday, November 28, 2008
Gansu province to build 10MW on-grid amorphous silicon PV power station
2008 November 26th, Fujian GS-Solar signed agreement to build 10MW on-grid amorphous silicon PV power station in Gem city, Qinhai province, China. The total investment will be about 300 million RMB.
GS-Solar is one professional amorphous silicon solar cell manufacturer with production capacity of 20MW, and GS-Solar plans to expand its amorphous silicon solar cell production capacity to 1,000MW in 2010.
GS-Solar is one professional amorphous silicon solar cell manufacturer with production capacity of 20MW, and GS-Solar plans to expand its amorphous silicon solar cell production capacity to 1,000MW in 2010.
Sichuan build its first amorphous silicon off-grid PV power station
November 19th 2008, amorphous silicon solar panels made by Sinocome was shipped from Beijing to Daying, Sichuan. This indicates that the first amorphous silicon off-grid PV power station in Sichuan will begin to operate soon.
The total investment will be 2 billion RMB, and the power station will generate 365,000,000 KWH electricity annually. And the first phase project will start operation in February 2009.
The total investment will be 2 billion RMB, and the power station will generate 365,000,000 KWH electricity annually. And the first phase project will start operation in February 2009.
China Sunergy Breaks Ground On 400MW Shanghai Base
Nov 28, 2008
Nanjing-based solar cell manufacturer China Sunergy (Nasdaq: CSUN) broke ground on its Shanghai research, development and production base in Songjiang Industrial Park on Friday.
Sunergy said it is targeting production capacity of 400MW for the base that will focus on N-type solar cells. Last December, the company set production targets at 500MW. Sunergy's Shanghai R&D center, a portion of the project, is scheduled for completion in the first half of 2009. Sunergy reported third quarter net income of $0.2 million, compared to a loss of $4.4 million in the third quarter of 2007 and net income of $3.1 million last quarter, on exchange and foreign currency losses earlier this week.
Nanjing-based solar cell manufacturer China Sunergy (Nasdaq: CSUN) broke ground on its Shanghai research, development and production base in Songjiang Industrial Park on Friday.
Sunergy said it is targeting production capacity of 400MW for the base that will focus on N-type solar cells. Last December, the company set production targets at 500MW. Sunergy's Shanghai R&D center, a portion of the project, is scheduled for completion in the first half of 2009. Sunergy reported third quarter net income of $0.2 million, compared to a loss of $4.4 million in the third quarter of 2007 and net income of $3.1 million last quarter, on exchange and foreign currency losses earlier this week.
Thursday, November 27, 2008
Yingli Green Energy signs letter of intent to buy solar polysilicon company
26 November 2008
Yingli Green Energy has signed a binding letter of intent with Grand Avenue Group to buy all the shares of Cyber Power Group and its subsidiary Fine Silicon Co., a development-stage solar-grade polysilicon company based in Baoding, Hebei, China.
The proposed acquisition will enable the company to have a secure and stable supply of poly independent of market conditions, according to Yingli. The move would also allow the company to further vertically integrate its manufacturing processes and improve its margins.
Under the terms of the letter, Yingli will buy Cyber Power (a company controlled by some of Yingli's affiliated entities) for an aggregate consideration of $70 million to $80 million, with $25 million payable in advance.
Definitive agreements with respect to the proposed acquisition are subject to further negotiation and certain conditions, including completion of due diligence, receipt of satisfactory financing, and the approval by the audit committee and the company's board of directors, according to Yingli.
Yingli's CFO Bryan Li said during the company's third-quarter conference call that the Fine Silicon polysilicon manufacturing facility in Baoding (which is already under construction) should commence production in the second half of 2009, with an initial annual capacity in the range of 300-350 metric tons.
The company, which shipped 80 MW of PV modules and posted net revenues of $325.5 million and net income of $22.2 million in the third quarter, also has multiple medium- and long-term polysilicon supply contracts with DC Chemical, Wacker Chemie, and Sailing New Energy.
Yingli Green Energy has signed a binding letter of intent with Grand Avenue Group to buy all the shares of Cyber Power Group and its subsidiary Fine Silicon Co., a development-stage solar-grade polysilicon company based in Baoding, Hebei, China.
The proposed acquisition will enable the company to have a secure and stable supply of poly independent of market conditions, according to Yingli. The move would also allow the company to further vertically integrate its manufacturing processes and improve its margins.
Under the terms of the letter, Yingli will buy Cyber Power (a company controlled by some of Yingli's affiliated entities) for an aggregate consideration of $70 million to $80 million, with $25 million payable in advance.
Definitive agreements with respect to the proposed acquisition are subject to further negotiation and certain conditions, including completion of due diligence, receipt of satisfactory financing, and the approval by the audit committee and the company's board of directors, according to Yingli.
Yingli's CFO Bryan Li said during the company's third-quarter conference call that the Fine Silicon polysilicon manufacturing facility in Baoding (which is already under construction) should commence production in the second half of 2009, with an initial annual capacity in the range of 300-350 metric tons.
The company, which shipped 80 MW of PV modules and posted net revenues of $325.5 million and net income of $22.2 million in the third quarter, also has multiple medium- and long-term polysilicon supply contracts with DC Chemical, Wacker Chemie, and Sailing New Energy.
Yingli Green Energy Reports Third Quarter 2008 Results
Wednesday, November 26, 2008
-- Q3 2008 Net Revenues Increased 73.1% over Q3 2007 and 11.2% over Q2 2008
-- Company Reaffirms Business Outlook for Full Year 2008
-- Company Also Announces Proposed Acquisition of Affiliated Polysilicon Company
BAODING, China, Nov. 26 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) ('Yingli Green Energy' or the 'Company'), one of the world's leading vertically integrated photovoltaic ('PV') product manufacturers, today announced its unaudited consolidated financial results for the third quarter ended September 30, 2008.
Third Quarter 2008 Consolidated Financial and Operating Highlights
-- PV module shipments totaled 80.0 MW.
-- Net revenues were RMB 2,209.8 million (US$325.5 million).
-- Gross profit was RMB 492.6 million (US$72.6 million) and gross margin was 22.3%.
-- Operating income was RMB 377.1 million (US$55.5 million) and operating margin was 17.1%.
-- Net income was RMB 150.8 million (US$22.2 million) and diluted earnings per ordinary share and per American depositary share ('ADS') were RMB 1.17 (US$0.17).
-- On an adjusted non-GAAP(1) basis, net income was RMB 175.3 million (US$25.8 million) and diluted earnings per ordinary share and per ADS were RMB 1.35 (US$0.20).
(1) All non-GAAP measures exclude share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity
interest in Baoding Tianwei Yingli New Energy Resources Co., Ltd. ('Tianwei Yingli'), the Company's principal operating subsidiary. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company's use of non-GAAP information set forth elsewhere in this earnings release.
'The Company's business operations continued to be strong during the third quarter of 2008,' commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. 'Net revenues continued to grow with increased PV module shipments and output, which benefited from our broad customer base and well-recognized brand name. The total shipments for the first three quarters of 2008 were on track, accounting for 75.1% to 72.4% of our shipment guidance of 270 MW to 280 MW for 2008. Looking forward, we believe Germany will remain a major growth driver of the global PV market while the PV market in the United States has gained additional visibility with the extension of the Investment Tax Credit in early October 2008. In addition to these two markets, we plan to further expand our sales in emerging PV markets including South Korea, Italy, France, Belgium and China. We believe our existing position and continued efforts in these markets will help us improve our brand recognition globally and further solidify our well-balanced geographical and customer sales portfolio. To date, the Company has signed sales contracts for delivery of approximately 120 MW of PV modules in 2009. In addition, we are in negotiations with customers for another 350 MW which we expect to finalize by the end of 2008 or early 2009.'
'Recently, we kicked off a series of initiatives to enhance our marketing strategies with a focus on improving product quality and solidifying our customer base. For example, as previously announced, we are collaborating with Deutsche Bank to offer our customers 'one-stop shop' solar project financing solutions. We also formed a strategic partnership with TUV Rheinland (Shanghai) Co., Ltd. to improve quality control and employee training. At the end of October, we successfully hosted the Yingli Green Energy 2008 Global Customer Conference, which more than 260 executives of our global customers, equipment suppliers, certification institutes, banks and government agencies from 15 countries and regions attended. We believe these initiatives will further strengthen our corporate image as a leading global PV manufacturer,' Mr. Miao continued.
'We also expanded our total annual production capacity to 400 MW in each of polysilicon ingots and wafers, PV cells and PV modules in September. We expect to further expand our total manufacturing capacity to 600 MW in the third quarter of 2009 while maintaining adequate working capital to support our operations with current cash, expected cash flow from operations and available lines of credit. In this regard, our long-term credit facilities with DEG, FMO and PROPARCO have not only strengthened our ability to expand our vertically integrated manufacturing capacity but also enhanced our debt structure by enabling us to shift to longer-term debt financing of our capital expenditures.'
'On the polysilicon procurement side, we have secured sufficient polysilicon to meet our estimated production requirements for 2008. Meanwhile, in light of the recent decrease in the price of polysilicon, we have been renegotiating contracted pricing terms with our suppliers for a portion of the polysilicon delivery for the rest of 2008 and for 2009. Furthermore, five mid- to long-term virgin polysilicon supply agreements with leading global polysilicon suppliers will start delivery at the beginning of 2009 and are expected to allow us to produce more than 230 MW of PV modules in 2009. We believe these agreements will significantly reduce our blended polysilicon cost and support our efforts to improve product quality.'
'Moreover, we believe that economies of scale enhanced by the successful ramp-up to 400 MW of production capacity, together with higher yield rates, advanced equipment and technologies and our ongoing research and development initiatives, will further strengthen our position as a leading PV product manufacturer with one of the lowest non-polysilicon manufacturing cost structures in the industry. With our increased operational scale and efficiency and a stable long-term customer base, we believe we are well- positioned for the challenges and opportunities ahead in this difficult macro- economic environment,' Mr. Miao added.
Third Quarter 2008 Financial Results
Net Revenues
Net revenues were RMB 2,209.8 million (US$325.5 million) in the third quarter of 2008, an increase of 11.2% from RMB 1,987.0 million in the second quarter of 2008 and 73.1% from RMB 1,276.5 million in the third quarter of 2007. The increase was primarily due to increased shipment volume as a result of continued strong demand for PV modules supported by increased production output, partially offset by lower average selling price. The average selling price for PV modules(2) in the third quarter of 2008 was US$4.04 per watt, a decrease of 3.8% from US$4.20 per watt in the second quarter of 2008. This decrease was primarily due to the depreciation of the Euro against the Renminbi in the third quarter of 2008 as a majority of the Company's PV module shipments were under contracts denominated in Euros. Total PV module shipments increased 17.3% to 80.0 MW in the third quarter of 2008 from 68.2 MW in the second quarter of 2008. The increase of shipments was supported by the installation and trial production of an additional 200 MW of annual manufacturing capacity of each of PV polysilicon ingots and wafers, PV cells and PV modules in September, as well as improvements in operational efficiency and capacity utilization at each stage of the Company's manufacturing process.
(2) We compute average selling price of PV modules per watt for a given period as the total sales of PV modules divided by the total watts of the PV modules sold during such period, and translated into U.S. dollars at the noon buying rate at the end of such period as certified for customs purpose by the Federal Reserve Bank of New York.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2008 was RMB 492.6 million (US$72.6 million), a decrease of 3.7% from RMB 511.8 million in the second quarter of 2008 and an increase of 62.7% from RMB 302.9 million in the third quarter of 2007. Gross margin was 22.3% in the third quarter of 2008, down from 25.8% in the second quarter of 2008 and 23.7% in the third quarter of 2007. The decrease in gross margin was primarily due to the decrease in the average selling price caused by the depreciation of the Euro against the Renminbi in the third quarter of 2008. The unit cost level remained stable in the third quarter of 2008 despite higher polysilicon costs, as both polysilicon usage per watt and non-polysilicon costs were reduced through research and development efforts at each stage of the Company's vertically integrated manufacturing process.
Operating Expenses
Operating expenses in the third quarter of 2008 were RMB 115.5 million (US$17.0 million), compared to RMB 116.1 million in the second quarter of 2008 and RMB 78.8 million in the third quarter of 2007. Operating expenses as a percentage of net revenues decreased to 5.2% in the third quarter of 2008 from 5.8% in the second quarter of 2008 and 6.2% in the third quarter of 2007. The decrease in operating expenses as a percentage of net revenues was primarily due to economies of scale and better control of sales and marketing related expenses, partially offset by higher research and development expenses.
Operating Income and Margin
Operating income in the third quarter of 2008 was RMB 377.1 million (US$55.5 million), a decrease of 4.7% from RMB 395.7 million in the second quarter of 2008 and an increase of 68.3% from RMB 224.0 million in the third quarter of 2007. Operating margin decreased to 17.1% in the third quarter of 2008 from 19.9% in the second quarter of 2008 and 17.6% in the third quarter of 2007.
Foreign Currency Exchange Loss (Gain)
Foreign currency exchange loss was RMB 133.1 million (US$19.6 million) in the third quarter of 2008, compared to a foreign currency exchange loss of RMB 68.2 million in the second quarter of 2008 and a foreign currency exchange gain of RMB 14.0 million in the third quarter of 2007. The foreign currency exchange loss in the third quarter of 2008 was primarily due to the depreciation of the Euro against the Renminbi in the quarter.
-- Q3 2008 Net Revenues Increased 73.1% over Q3 2007 and 11.2% over Q2 2008
-- Company Reaffirms Business Outlook for Full Year 2008
-- Company Also Announces Proposed Acquisition of Affiliated Polysilicon Company
BAODING, China, Nov. 26 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) ('Yingli Green Energy' or the 'Company'), one of the world's leading vertically integrated photovoltaic ('PV') product manufacturers, today announced its unaudited consolidated financial results for the third quarter ended September 30, 2008.
Third Quarter 2008 Consolidated Financial and Operating Highlights
-- PV module shipments totaled 80.0 MW.
-- Net revenues were RMB 2,209.8 million (US$325.5 million).
-- Gross profit was RMB 492.6 million (US$72.6 million) and gross margin was 22.3%.
-- Operating income was RMB 377.1 million (US$55.5 million) and operating margin was 17.1%.
-- Net income was RMB 150.8 million (US$22.2 million) and diluted earnings per ordinary share and per American depositary share ('ADS') were RMB 1.17 (US$0.17).
-- On an adjusted non-GAAP(1) basis, net income was RMB 175.3 million (US$25.8 million) and diluted earnings per ordinary share and per ADS were RMB 1.35 (US$0.20).
(1) All non-GAAP measures exclude share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity
interest in Baoding Tianwei Yingli New Energy Resources Co., Ltd. ('Tianwei Yingli'), the Company's principal operating subsidiary. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company's use of non-GAAP information set forth elsewhere in this earnings release.
'The Company's business operations continued to be strong during the third quarter of 2008,' commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. 'Net revenues continued to grow with increased PV module shipments and output, which benefited from our broad customer base and well-recognized brand name. The total shipments for the first three quarters of 2008 were on track, accounting for 75.1% to 72.4% of our shipment guidance of 270 MW to 280 MW for 2008. Looking forward, we believe Germany will remain a major growth driver of the global PV market while the PV market in the United States has gained additional visibility with the extension of the Investment Tax Credit in early October 2008. In addition to these two markets, we plan to further expand our sales in emerging PV markets including South Korea, Italy, France, Belgium and China. We believe our existing position and continued efforts in these markets will help us improve our brand recognition globally and further solidify our well-balanced geographical and customer sales portfolio. To date, the Company has signed sales contracts for delivery of approximately 120 MW of PV modules in 2009. In addition, we are in negotiations with customers for another 350 MW which we expect to finalize by the end of 2008 or early 2009.'
'Recently, we kicked off a series of initiatives to enhance our marketing strategies with a focus on improving product quality and solidifying our customer base. For example, as previously announced, we are collaborating with Deutsche Bank to offer our customers 'one-stop shop' solar project financing solutions. We also formed a strategic partnership with TUV Rheinland (Shanghai) Co., Ltd. to improve quality control and employee training. At the end of October, we successfully hosted the Yingli Green Energy 2008 Global Customer Conference, which more than 260 executives of our global customers, equipment suppliers, certification institutes, banks and government agencies from 15 countries and regions attended. We believe these initiatives will further strengthen our corporate image as a leading global PV manufacturer,' Mr. Miao continued.
'We also expanded our total annual production capacity to 400 MW in each of polysilicon ingots and wafers, PV cells and PV modules in September. We expect to further expand our total manufacturing capacity to 600 MW in the third quarter of 2009 while maintaining adequate working capital to support our operations with current cash, expected cash flow from operations and available lines of credit. In this regard, our long-term credit facilities with DEG, FMO and PROPARCO have not only strengthened our ability to expand our vertically integrated manufacturing capacity but also enhanced our debt structure by enabling us to shift to longer-term debt financing of our capital expenditures.'
'On the polysilicon procurement side, we have secured sufficient polysilicon to meet our estimated production requirements for 2008. Meanwhile, in light of the recent decrease in the price of polysilicon, we have been renegotiating contracted pricing terms with our suppliers for a portion of the polysilicon delivery for the rest of 2008 and for 2009. Furthermore, five mid- to long-term virgin polysilicon supply agreements with leading global polysilicon suppliers will start delivery at the beginning of 2009 and are expected to allow us to produce more than 230 MW of PV modules in 2009. We believe these agreements will significantly reduce our blended polysilicon cost and support our efforts to improve product quality.'
'Moreover, we believe that economies of scale enhanced by the successful ramp-up to 400 MW of production capacity, together with higher yield rates, advanced equipment and technologies and our ongoing research and development initiatives, will further strengthen our position as a leading PV product manufacturer with one of the lowest non-polysilicon manufacturing cost structures in the industry. With our increased operational scale and efficiency and a stable long-term customer base, we believe we are well- positioned for the challenges and opportunities ahead in this difficult macro- economic environment,' Mr. Miao added.
Third Quarter 2008 Financial Results
Net Revenues
Net revenues were RMB 2,209.8 million (US$325.5 million) in the third quarter of 2008, an increase of 11.2% from RMB 1,987.0 million in the second quarter of 2008 and 73.1% from RMB 1,276.5 million in the third quarter of 2007. The increase was primarily due to increased shipment volume as a result of continued strong demand for PV modules supported by increased production output, partially offset by lower average selling price. The average selling price for PV modules(2) in the third quarter of 2008 was US$4.04 per watt, a decrease of 3.8% from US$4.20 per watt in the second quarter of 2008. This decrease was primarily due to the depreciation of the Euro against the Renminbi in the third quarter of 2008 as a majority of the Company's PV module shipments were under contracts denominated in Euros. Total PV module shipments increased 17.3% to 80.0 MW in the third quarter of 2008 from 68.2 MW in the second quarter of 2008. The increase of shipments was supported by the installation and trial production of an additional 200 MW of annual manufacturing capacity of each of PV polysilicon ingots and wafers, PV cells and PV modules in September, as well as improvements in operational efficiency and capacity utilization at each stage of the Company's manufacturing process.
(2) We compute average selling price of PV modules per watt for a given period as the total sales of PV modules divided by the total watts of the PV modules sold during such period, and translated into U.S. dollars at the noon buying rate at the end of such period as certified for customs purpose by the Federal Reserve Bank of New York.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2008 was RMB 492.6 million (US$72.6 million), a decrease of 3.7% from RMB 511.8 million in the second quarter of 2008 and an increase of 62.7% from RMB 302.9 million in the third quarter of 2007. Gross margin was 22.3% in the third quarter of 2008, down from 25.8% in the second quarter of 2008 and 23.7% in the third quarter of 2007. The decrease in gross margin was primarily due to the decrease in the average selling price caused by the depreciation of the Euro against the Renminbi in the third quarter of 2008. The unit cost level remained stable in the third quarter of 2008 despite higher polysilicon costs, as both polysilicon usage per watt and non-polysilicon costs were reduced through research and development efforts at each stage of the Company's vertically integrated manufacturing process.
Operating Expenses
Operating expenses in the third quarter of 2008 were RMB 115.5 million (US$17.0 million), compared to RMB 116.1 million in the second quarter of 2008 and RMB 78.8 million in the third quarter of 2007. Operating expenses as a percentage of net revenues decreased to 5.2% in the third quarter of 2008 from 5.8% in the second quarter of 2008 and 6.2% in the third quarter of 2007. The decrease in operating expenses as a percentage of net revenues was primarily due to economies of scale and better control of sales and marketing related expenses, partially offset by higher research and development expenses.
Operating Income and Margin
Operating income in the third quarter of 2008 was RMB 377.1 million (US$55.5 million), a decrease of 4.7% from RMB 395.7 million in the second quarter of 2008 and an increase of 68.3% from RMB 224.0 million in the third quarter of 2007. Operating margin decreased to 17.1% in the third quarter of 2008 from 19.9% in the second quarter of 2008 and 17.6% in the third quarter of 2007.
Foreign Currency Exchange Loss (Gain)
Foreign currency exchange loss was RMB 133.1 million (US$19.6 million) in the third quarter of 2008, compared to a foreign currency exchange loss of RMB 68.2 million in the second quarter of 2008 and a foreign currency exchange gain of RMB 14.0 million in the third quarter of 2007. The foreign currency exchange loss in the third quarter of 2008 was primarily due to the depreciation of the Euro against the Renminbi in the quarter.
Linde Signs 3 Thin Film Contracts, Captures over 50% of Market in China
Nov 26, 2008
The Linde Group's local subsidiary, Linde LienHwa, has signed contracts with Tianwei Baoding, Hangzhou Amplesun Solar and ENN Solar in China. These three new multi-million US dollar contracts are believed by the company to enable it to capture more than 50% of the thin film photovoltaic (PV) market in China.
As part of these long-term contracts, The Linde Group will be providing ongoing delivery of bulk and specialty gases essential to making thin film solar cells-- including large volumes of silane and hydrogen gas, used to deposit silicon light absorbing layers on large-area sheets of glass used in solar panels.The first phase of the ENN Solar plant in Langfang will start commercial production by Q2 of 2009, with a capacity of 60MW, and possible future expansion up to 0.5GW.
Baoding Tianwei Solarfilms is working with Linde to future-proof its gas installation and supply chain. Tianwei's new thin film solar production facility in Baoding, worth over Rmb1.2 billion (about US$180 million), will go online in the first quarter of 2009.
Hangzhou Amplesun Solar Technology Co Ltd is a privately invested high-tech company devoted to next-generation "green" power with a current investment of Rmb2.2 billion (about US$320 million). Jin Qing Guo, CEO of Amplesun Solar said: "Linde has been facilitating our needs on specialty gases as well as on-site services, which will greatly speed up our capacity scale-up in the production of thin film solar modules."
The Linde Group's local subsidiary, Linde LienHwa, has signed contracts with Tianwei Baoding, Hangzhou Amplesun Solar and ENN Solar in China. These three new multi-million US dollar contracts are believed by the company to enable it to capture more than 50% of the thin film photovoltaic (PV) market in China.
As part of these long-term contracts, The Linde Group will be providing ongoing delivery of bulk and specialty gases essential to making thin film solar cells-- including large volumes of silane and hydrogen gas, used to deposit silicon light absorbing layers on large-area sheets of glass used in solar panels.The first phase of the ENN Solar plant in Langfang will start commercial production by Q2 of 2009, with a capacity of 60MW, and possible future expansion up to 0.5GW.
Baoding Tianwei Solarfilms is working with Linde to future-proof its gas installation and supply chain. Tianwei's new thin film solar production facility in Baoding, worth over Rmb1.2 billion (about US$180 million), will go online in the first quarter of 2009.
Hangzhou Amplesun Solar Technology Co Ltd is a privately invested high-tech company devoted to next-generation "green" power with a current investment of Rmb2.2 billion (about US$320 million). Jin Qing Guo, CEO of Amplesun Solar said: "Linde has been facilitating our needs on specialty gases as well as on-site services, which will greatly speed up our capacity scale-up in the production of thin film solar modules."
Wednesday, November 26, 2008
China offers 800 million RMB subsidy to nuclear power and wind power equipment manufacturers
2008 November 24th Huang Li, a deputy-director in energy saving at the National Energy Administration disclosed that the central government has decided to offer 800 million yuan ($11.76 million) by the end of this year to subsidize China's nuclear power and wind power equipment manufacturers.
The improvement is part of the government's 100 billion yuan additional fiscal package, which should be spent by the end of this quarter, to prevent an excessive economic slowdown.
"The subsidy is mainly targeted at key technology for national nuclear power and wind turbine producers, and about 10% manufacturers will get the subsidy", said Huang expected the move could promote localization of the technology for nuclear and wind power generation.
The improvement is part of the government's 100 billion yuan additional fiscal package, which should be spent by the end of this quarter, to prevent an excessive economic slowdown.
"The subsidy is mainly targeted at key technology for national nuclear power and wind turbine producers, and about 10% manufacturers will get the subsidy", said Huang expected the move could promote localization of the technology for nuclear and wind power generation.
China Sunergy Announces Financial Results for the Third Quarter 2008
Reports Third Quarter Revenues of US$119.0 million, an Increase of 142.9% Year-Over-Year; Solar Cell Production and Gross Margin are both within Guidance at 35.7.MW and 9.3% respectively
NANJING, China, Nov 25, 2008 /PRNewswire-Asia via COMTEX/ -- China Sunergy Co., Ltd. , ("China Sunergy" or the "Company") a specialized solar cell manufacturer based in Nanjing, China, announced today its financial results for the third quarter of 2008.
Third Quarter Financial Results
-- Revenues were US$119.0 million, representing a 142.9% and 6.6% increase compared to the third quarter of 2007 and the second quarter of 2008, respectively; revenues generated from solar cell sales were US$113.4 million, representing a 144.9% and 8.6% increase compared to the third quarter of 2007 and the second quarter of 2008, respectively.
-- Gross profit was US$11.1 million compared to US$1.0 million and US$11.6 million during the third quarter of 2007 and the second quarter of 2008, respectively. Gross margin was 9.3%, which was within the Company's guidance range, compared to 2.1% and 10.4% during the third quarter of 2007 and the second quarter of 2008, respectively. Blended gross margin was impacted mainly by the reduced OEM volume, compared to previous quarter.
-- GAAP net income was US$0.2 million, compared to net loss of US$4.4 million and net income of US$3.1 million in the third quarter of 2007 and the second quarter of 2008, respectively. Lower GAAP net income was largely due to non-operational accounting measures.
-- Non-GAAP net income, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$2.0 million, compared to non-GAAP net loss of US$4.3 million and non-GAAP net income of US$4.0 million in the third quarter of 2007 and the second quarter of 2008, respectively. The non-GAAP measures are described below and reconciled to the corresponding GAAP measure in the section below titled "Use of Non-GAAP Financial Measures."
-- GAAP net income per ADS was US$0.01 both on basic and diluted basis, compared to a net loss of US$0.11 and a net income of US$0.08 per ADS in the third quarter of 2007 and the second quarter of 2008, respectively.
-- Non-GAAP net income per ADS, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$0.05 both on basic and diluted basis, compared to a non-GAAP net loss of US$0.10 and a non-GAAP net income of US$0.10 per ADS in the third quarter of 2007 and the second quarter of 2008, respectively.
-- Operating cash flow in this quarter was positive US$1.8 million.
Commenting on the financial results, Dr. Allen Wang, CEO of China Sunergy, said: "Despite experiencing a deteriorating market environment towards the end of the quarter, which resulted in some canceled orders, I am pleased that we were able to achieve our guidance for the quarter regarding margins and production volume. We have maintained our focus on execution through the signing of an important sales agreement and procuring high-quality silicon supplies at flexible and favorable prices, which will benefit the long term health of our Company despite the short-term impact of operating within an extremely challenging and uncertain solar sector."
Third Quarter and Recent Operational Highlights
-- Quarterly production of 35.7 megawatts ("MW") of solar cells represented a 100.6% increase on a year-over-year basis and an 8.8% increase sequentially.
-- Shipments of solar power products amounted to approximately 34.1 MW, representing a 105.4% increase on a year-over-year basis and a 2.6% decrease sequentially. Shipments were impacted by several orders which were canceled in late September due to market conditions, which would have amounted to 4.3 MW.
-- Shipments of high efficiency cells (defined as any cells with a conversion efficiency rate of over 17%) during the third quarter of 2008 amounted to 11.1MW, or 34.0% of total solar cell shipments, slightly less than the 11.4 MW, or 36.8% of total solar cell shipments, during the second quarter of 2008.
-- Average selective emitter (SE) cell conversion efficiency was 17.2% in the third quarter of 2008. Cells produced on the HP lines achieved an average conversion efficiency rate of approximately 16.7%.
-- The Company entered into a seven year sales agreement with Wuxi Guofei Green Energy Source Co., Ltd. ("Wuxi Guofei"), a leading Chinese solar energy company. Under the greement, China Sunergy will supply Wuxi Guofei with 10 MW of monocrystalline cells each year, beginning in 2009 and concluding in 2015.
"Although we were only moderately affected by the market situation towards the end of the third quarter, we have experienced much more severe pressure on our operations in recent months particularly in October as ASP erosion has been rapid," continued Dr. Wang. "While this will significantly impact our results in the coming quarter and hence the full year, we have already implemented critical adjustments to minimize the long-term effect of the current environment and ensure that as the solar sector regains equilibrium we will be poised to regain the momentum that we demonstrated over the past quarters."
Technological Developments
During the quarter China Sunergy continued to make progress with the production and development of its high-efficiency cells. China Sunergy currently has one SE line and four HP lines available for operation, and has maintained one multi-crystalline P type line to cater to current client requirements.
The installation of the four new selective emitter ("SE") cell production lines is scheduled to be completed by the end of November, which will bring the total number of SE lines in production to five from the beginning of 2009. It should be noted that given any specific quality of wafer the SE cells not only generally achieve higher conversion efficiencies than our P and HP-type cells, but they also display greater wafer quality tolerance and are therefore able to achieve this even when poorer quality wafers are used during production.
China Sunergy's investment in more advanced cells has again resulted in impressive returns with regards to the development of new forms of high efficiency cells. In particular, significant breakthrough has been achieved in the advancement of the N-type cells. At the laboratory level, an average efficiency of over 19% was consistently achieved, and the Company has put up a plan to start commercial shipments late in the fourth quarter of 2009. Additionally, the planned R&D center in Shanghai remains scheduled to be completed during the first half of 2009.
Third Quarter 2008 Financial and Business Review
Revenues, Shipment and Production
During the third quarter of 2008, revenues increased 142.9% on a year- over-year basis, and 6.6% sequentially to US$119.0 million.
Sales from solar cells, modules and processed cells under OEM arrangements and other sales accounted for 95.3%, 4.2%, 0.2% and 0.3% of total revenues, respectively. Shipments, including 1.2MW for module sales and 0.3MW of solar cells processed under OEM arrangements, amounted to approximately 34.1 MW, compared to 16.6 MW during the third quarter of 2007 and 35.0 MW during the second quarter of 2008.
Revenues and Shipment Comparison between Q3 2008 and Q2 2008
Q3 2008 Q2 2008
Volume* Value (US$mm) Volume* Value (US$mm)
Solar cell sales 32.6 113.4 31.0 104.4
Module sales 1.2 5.0 1.0 4.2
OEM 0.3 0.2 3.0 2.2
Other sales 0.4 0.8
* All volumes are expressed in MW.
During the third quarter of 2008, the Company increased its quarter-on- quarter sales of solar cell products by 8.6% as compared to the previous quarter. The percentage of solar cell sales in overseas markets of total solar cell sales was 45.1% in the third quarter of 2008 compared to 48.3% and 39.5% in the third quarter of 2007 and the second quarter of 2008, respectively.
Of the 32.6 MW of solar cells shipped during the third quarter, 11.1 MW were in the form of high efficiency cells (defined as any cells with a conversion efficiency rate of 17% and above.)
Gross Profit, Gross Margins and Average Selling Price ("ASP")
Gross profit for the quarter was US$11.1 million, which led to a blended gross margin of 9.3%, down from 10.4% in the previous quarter, mainly as a result of less OEM volume. The gross margin of solar cells was largely the same as the previous quarter.
Margin Breakdown
Gross margin
Q3 2008 Q2 2008
Solar cell sales 9.1% 9.2%
Module sales 6.8% 12.4%
OEM 68.8% 63.2%
Other sales 68.1% 19.9%
Blended 9.3% 10.4%
Blended ASP for the third quarter of 2008 rose from US$3.37 per watt in the previous quarter to US$3.48 per watt due in part to the strengthening of the Renminbi against U.S. dollar. The blended ASP for the third quarter of 2007 was US$2.85.
Wafer Costs
Wafer costs continued to account for a large proportion of overall manufacturing costs. In the third quarter of 2008, wafer costs rose to US$2.87 per watt compared to US$2.45 and US$2.79 per watt in the third quarter of 2007 and the second quarter of 2008, mainly due to the strengthening of the Renminbi against U.S. dollar and the price increase of wafer.
Wafer costs per watt as a percentage of total production costs per watt declined slightly from 91.2% in the second quarter of 2008 to 91.1% in the third quarter of 2008, mainly due to the increased production volume. Other production costs, which mainly consisted of other raw materials, labor, depreciation and utilities, were US$0.28 per watt compared to US$0.27 in the second quarter of 2008.
SG&A, Operating Profit and Net Income
Our SG&A expenses in the third quarter of 2008 were US$4.9 million, compared to US$4.2 million in the third quarter of 2007 and US$5.1 million sequentially, which included share based compensation charge US$0.9 million, US$0.1 million, and US$0.9 million, respectively.
Profit from operations was US$5.7 million, compared to an operating loss of US$3.6 million and an operating profit of US$6.0 million for the third quarter of 2007 and the second quarter of 2008, respectively.
Interest expense for the third quarter 2008 was US$2.1 million, compared to US$2.0 million for the third quarter of 2007 and US$1.7 million for the second quarter of 2008, respectively. The increase was attributable to amortization of expenses and interest charges related to the senior convertible bonds closed on July 1, 2008.
In the third quarter we had other expenses amounting to US$3.7 million, mainly from unrealized foreign currency exchange loss due to devaluation of the Euro against Renminbi.
The Company reported a decline in net income to US$0.2 million this quarter, largely due to exchange and foreign currency derivative loss. This compares to a net income of US$3.1 million in the previous quarter and a net loss of US$4.4 million in the third quarter of 2007.
Non-GAAP net income, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$2.0 million in the third quarter of 2008, compared to net loss of US$4.3 million and net income of US$4.0 million in the third quarter of 2007 and the second quarter of 2008, respectively (please refer to note 1 of reconciliation).
The non-GAAP measures are described below and reconciled to the corresponding GAAP measures in the section below titled "Use of Non-GAAP Financial Measures."
Balance Sheet and Cash Flow
As of September 30, 2008, the Company had cash and cash equivalents of US$122.1 million. Net operating cash inflow for the third quarter was US$1.8 million. The Company also has access to an untapped bank credit facility of US$70M as at the end of September, and at this point sees no issues in its ability to renew existing bank loans or to obtain new lines of credit, should they be necessary.
Inventory was at a similar level compared to the second quarter, and the Company's working capital ratio improved from 178% in the second quarter to 212% in the third quarter. Depreciation and amortization were US$1.4 million and capital expenditures were US$8.7 million.
Capital expenditures in Q3 were payments made for equipment relating to the expansion of the Company's selective emitter cell lines. The outstanding payment for the 4 SE lines is US$12M and the budget for the R&D Center in Shanghai is US$8M. These two items have been accounted for. The only new capex requirement is approximately US$8M for the conversion of one SE line to N-type. The Company sees no issues in generating this funding internally out of its 2009 profits.
On July 1, 2008, the Company issued US$54.5 million 4.75% senior convertible notes (including US$4,500,000 pursuant to the exercise of the over-allotment option in full) due June 15, 2013 ("the Notes"). The terms of the Notes include certain conversion, repurchase and conversion rate adjustment features. The Notes are convertible into shares of the Company's stock. Total issuance costs of the senior convertible notes were approximately US$3.9 million.
Concurrent with this offering, 4,431,000 ADSs were borrowed by an affiliate of the initial purchaser of the notes pursuant to an ADS lending agreement, and offered in a transaction registered under the Securities Act. A nominal lending fee of US$0.0006 per ADS was received from the ADS borrower for the use of the borrowed ADSs.
Commenting on the financial results, Kenneth Luk, CFO of China Sunergy, said: "Despite the financial pressure caused by the depreciation of the Euro, we achieved the lower end of our margin guidance and generated cash during the third quarter. We have sufficient capital to fund our operations during this uncertain time and throughout 2009. While the outlook for the fourth quarter is certainly not ideal and we will face challenging results, China Sunergy will take the necessary steps to limit the financial impact and ensure we have the resources necessary to benefit from the anticipated long-term demand for our advanced solar products."
Outlook
The recent global economic environment will have a much more significant impact on the Company's fourth quarter and full year results than was experienced during the third quarter. The rapid decline in the ASP for solar cells during October was not immediately matched with a reduction in the upstream costs, largely polysilicon, resulting in negative gross margins and a conscious reduction in production of solar cells. Despite the recent cost corrections, the short term lack of demand for solar products has led to reduced shipments and revenues and therefore a reduced opportunity to compensate for the weak beginning to the quarter.
Taking into account the reduced ASP and relatively higher cost of polysilicon, the Company believes it will report a negative gross margin for the fourth quarter. The Company actively reduced production during the beginning of the quarter, leading to production volume in the range of 15-20MW. This results in the Company reducing its full year 2008 production target to 107-112MW, out of which around 44MW are expected to be high efficiency products.
China Sunergy observed that starting in early November the price of polysilicon began to erode, and at this time has now fallen by an even greater extent than the recent ASP decline. Given the current opportunity for flexible procurement of polysilicon and recently observed pricing trends, the Company has seen gross margins return to a level similar to the second quarter of 2008. In addition, going forward there will be incidental margin improvement due to a more favorable production mix and higher wafer quality from overseas suppliers.
By the first quarter of 2009, all 4 new selective emitter production lines will be operating, bringing the total number of selective emitter lines to 5. While production may not run at the full capacity in Q1, the Company will focus production on those lines until their production capacity is fulfilled, thus targeting to generate a higher average gross margin.
For 2009, the Company, although prudently optimistic, would like to be conservative at this point of time and revise down the production target to 180-210MW including 20% from OEM business. It is important to note that this target is based on the Company's existing commitments and ongoing negotiations with customers while the market is more volatile than usual. Our gross margin should be positively, instead of negatively, impacted based on the recent trend of declining ASP and wafer costs. Taking into consideration the effect of a better production mix of 50% SE cells as well as better wafer quality, China Sunergy expects a gross margin of 15-19% for 2009.
Additional Company Updates
During the annual general meeting of shareholders held in Nanjing on August 15, 2008, the Company adopted several shareholder resolutions, including the re-elections of Mr. Tingxiu Lu, Mr. Ruennsheng Allen Wang and Ms. Jian Li as directors of the Company, the ratification of the appointment of the Independent Auditor Deloitte Touche Tohmatsu for the fiscal year 2007 and appointment of the Independent Auditor Deloitte Touche Tohmatsu for the fiscal year 2008.
NANJING, China, Nov 25, 2008 /PRNewswire-Asia via COMTEX/ -- China Sunergy Co., Ltd. , ("China Sunergy" or the "Company") a specialized solar cell manufacturer based in Nanjing, China, announced today its financial results for the third quarter of 2008.
Third Quarter Financial Results
-- Revenues were US$119.0 million, representing a 142.9% and 6.6% increase compared to the third quarter of 2007 and the second quarter of 2008, respectively; revenues generated from solar cell sales were US$113.4 million, representing a 144.9% and 8.6% increase compared to the third quarter of 2007 and the second quarter of 2008, respectively.
-- Gross profit was US$11.1 million compared to US$1.0 million and US$11.6 million during the third quarter of 2007 and the second quarter of 2008, respectively. Gross margin was 9.3%, which was within the Company's guidance range, compared to 2.1% and 10.4% during the third quarter of 2007 and the second quarter of 2008, respectively. Blended gross margin was impacted mainly by the reduced OEM volume, compared to previous quarter.
-- GAAP net income was US$0.2 million, compared to net loss of US$4.4 million and net income of US$3.1 million in the third quarter of 2007 and the second quarter of 2008, respectively. Lower GAAP net income was largely due to non-operational accounting measures.
-- Non-GAAP net income, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$2.0 million, compared to non-GAAP net loss of US$4.3 million and non-GAAP net income of US$4.0 million in the third quarter of 2007 and the second quarter of 2008, respectively. The non-GAAP measures are described below and reconciled to the corresponding GAAP measure in the section below titled "Use of Non-GAAP Financial Measures."
-- GAAP net income per ADS was US$0.01 both on basic and diluted basis, compared to a net loss of US$0.11 and a net income of US$0.08 per ADS in the third quarter of 2007 and the second quarter of 2008, respectively.
-- Non-GAAP net income per ADS, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$0.05 both on basic and diluted basis, compared to a non-GAAP net loss of US$0.10 and a non-GAAP net income of US$0.10 per ADS in the third quarter of 2007 and the second quarter of 2008, respectively.
-- Operating cash flow in this quarter was positive US$1.8 million.
Commenting on the financial results, Dr. Allen Wang, CEO of China Sunergy, said: "Despite experiencing a deteriorating market environment towards the end of the quarter, which resulted in some canceled orders, I am pleased that we were able to achieve our guidance for the quarter regarding margins and production volume. We have maintained our focus on execution through the signing of an important sales agreement and procuring high-quality silicon supplies at flexible and favorable prices, which will benefit the long term health of our Company despite the short-term impact of operating within an extremely challenging and uncertain solar sector."
Third Quarter and Recent Operational Highlights
-- Quarterly production of 35.7 megawatts ("MW") of solar cells represented a 100.6% increase on a year-over-year basis and an 8.8% increase sequentially.
-- Shipments of solar power products amounted to approximately 34.1 MW, representing a 105.4% increase on a year-over-year basis and a 2.6% decrease sequentially. Shipments were impacted by several orders which were canceled in late September due to market conditions, which would have amounted to 4.3 MW.
-- Shipments of high efficiency cells (defined as any cells with a conversion efficiency rate of over 17%) during the third quarter of 2008 amounted to 11.1MW, or 34.0% of total solar cell shipments, slightly less than the 11.4 MW, or 36.8% of total solar cell shipments, during the second quarter of 2008.
-- Average selective emitter (SE) cell conversion efficiency was 17.2% in the third quarter of 2008. Cells produced on the HP lines achieved an average conversion efficiency rate of approximately 16.7%.
-- The Company entered into a seven year sales agreement with Wuxi Guofei Green Energy Source Co., Ltd. ("Wuxi Guofei"), a leading Chinese solar energy company. Under the greement, China Sunergy will supply Wuxi Guofei with 10 MW of monocrystalline cells each year, beginning in 2009 and concluding in 2015.
"Although we were only moderately affected by the market situation towards the end of the third quarter, we have experienced much more severe pressure on our operations in recent months particularly in October as ASP erosion has been rapid," continued Dr. Wang. "While this will significantly impact our results in the coming quarter and hence the full year, we have already implemented critical adjustments to minimize the long-term effect of the current environment and ensure that as the solar sector regains equilibrium we will be poised to regain the momentum that we demonstrated over the past quarters."
Technological Developments
During the quarter China Sunergy continued to make progress with the production and development of its high-efficiency cells. China Sunergy currently has one SE line and four HP lines available for operation, and has maintained one multi-crystalline P type line to cater to current client requirements.
The installation of the four new selective emitter ("SE") cell production lines is scheduled to be completed by the end of November, which will bring the total number of SE lines in production to five from the beginning of 2009. It should be noted that given any specific quality of wafer the SE cells not only generally achieve higher conversion efficiencies than our P and HP-type cells, but they also display greater wafer quality tolerance and are therefore able to achieve this even when poorer quality wafers are used during production.
China Sunergy's investment in more advanced cells has again resulted in impressive returns with regards to the development of new forms of high efficiency cells. In particular, significant breakthrough has been achieved in the advancement of the N-type cells. At the laboratory level, an average efficiency of over 19% was consistently achieved, and the Company has put up a plan to start commercial shipments late in the fourth quarter of 2009. Additionally, the planned R&D center in Shanghai remains scheduled to be completed during the first half of 2009.
Third Quarter 2008 Financial and Business Review
Revenues, Shipment and Production
During the third quarter of 2008, revenues increased 142.9% on a year- over-year basis, and 6.6% sequentially to US$119.0 million.
Sales from solar cells, modules and processed cells under OEM arrangements and other sales accounted for 95.3%, 4.2%, 0.2% and 0.3% of total revenues, respectively. Shipments, including 1.2MW for module sales and 0.3MW of solar cells processed under OEM arrangements, amounted to approximately 34.1 MW, compared to 16.6 MW during the third quarter of 2007 and 35.0 MW during the second quarter of 2008.
Revenues and Shipment Comparison between Q3 2008 and Q2 2008
Q3 2008 Q2 2008
Volume* Value (US$mm) Volume* Value (US$mm)
Solar cell sales 32.6 113.4 31.0 104.4
Module sales 1.2 5.0 1.0 4.2
OEM 0.3 0.2 3.0 2.2
Other sales 0.4 0.8
* All volumes are expressed in MW.
During the third quarter of 2008, the Company increased its quarter-on- quarter sales of solar cell products by 8.6% as compared to the previous quarter. The percentage of solar cell sales in overseas markets of total solar cell sales was 45.1% in the third quarter of 2008 compared to 48.3% and 39.5% in the third quarter of 2007 and the second quarter of 2008, respectively.
Of the 32.6 MW of solar cells shipped during the third quarter, 11.1 MW were in the form of high efficiency cells (defined as any cells with a conversion efficiency rate of 17% and above.)
Gross Profit, Gross Margins and Average Selling Price ("ASP")
Gross profit for the quarter was US$11.1 million, which led to a blended gross margin of 9.3%, down from 10.4% in the previous quarter, mainly as a result of less OEM volume. The gross margin of solar cells was largely the same as the previous quarter.
Margin Breakdown
Gross margin
Q3 2008 Q2 2008
Solar cell sales 9.1% 9.2%
Module sales 6.8% 12.4%
OEM 68.8% 63.2%
Other sales 68.1% 19.9%
Blended 9.3% 10.4%
Blended ASP for the third quarter of 2008 rose from US$3.37 per watt in the previous quarter to US$3.48 per watt due in part to the strengthening of the Renminbi against U.S. dollar. The blended ASP for the third quarter of 2007 was US$2.85.
Wafer Costs
Wafer costs continued to account for a large proportion of overall manufacturing costs. In the third quarter of 2008, wafer costs rose to US$2.87 per watt compared to US$2.45 and US$2.79 per watt in the third quarter of 2007 and the second quarter of 2008, mainly due to the strengthening of the Renminbi against U.S. dollar and the price increase of wafer.
Wafer costs per watt as a percentage of total production costs per watt declined slightly from 91.2% in the second quarter of 2008 to 91.1% in the third quarter of 2008, mainly due to the increased production volume. Other production costs, which mainly consisted of other raw materials, labor, depreciation and utilities, were US$0.28 per watt compared to US$0.27 in the second quarter of 2008.
SG&A, Operating Profit and Net Income
Our SG&A expenses in the third quarter of 2008 were US$4.9 million, compared to US$4.2 million in the third quarter of 2007 and US$5.1 million sequentially, which included share based compensation charge US$0.9 million, US$0.1 million, and US$0.9 million, respectively.
Profit from operations was US$5.7 million, compared to an operating loss of US$3.6 million and an operating profit of US$6.0 million for the third quarter of 2007 and the second quarter of 2008, respectively.
Interest expense for the third quarter 2008 was US$2.1 million, compared to US$2.0 million for the third quarter of 2007 and US$1.7 million for the second quarter of 2008, respectively. The increase was attributable to amortization of expenses and interest charges related to the senior convertible bonds closed on July 1, 2008.
In the third quarter we had other expenses amounting to US$3.7 million, mainly from unrealized foreign currency exchange loss due to devaluation of the Euro against Renminbi.
The Company reported a decline in net income to US$0.2 million this quarter, largely due to exchange and foreign currency derivative loss. This compares to a net income of US$3.1 million in the previous quarter and a net loss of US$4.4 million in the third quarter of 2007.
Non-GAAP net income, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$2.0 million in the third quarter of 2008, compared to net loss of US$4.3 million and net income of US$4.0 million in the third quarter of 2007 and the second quarter of 2008, respectively (please refer to note 1 of reconciliation).
The non-GAAP measures are described below and reconciled to the corresponding GAAP measures in the section below titled "Use of Non-GAAP Financial Measures."
Balance Sheet and Cash Flow
As of September 30, 2008, the Company had cash and cash equivalents of US$122.1 million. Net operating cash inflow for the third quarter was US$1.8 million. The Company also has access to an untapped bank credit facility of US$70M as at the end of September, and at this point sees no issues in its ability to renew existing bank loans or to obtain new lines of credit, should they be necessary.
Inventory was at a similar level compared to the second quarter, and the Company's working capital ratio improved from 178% in the second quarter to 212% in the third quarter. Depreciation and amortization were US$1.4 million and capital expenditures were US$8.7 million.
Capital expenditures in Q3 were payments made for equipment relating to the expansion of the Company's selective emitter cell lines. The outstanding payment for the 4 SE lines is US$12M and the budget for the R&D Center in Shanghai is US$8M. These two items have been accounted for. The only new capex requirement is approximately US$8M for the conversion of one SE line to N-type. The Company sees no issues in generating this funding internally out of its 2009 profits.
On July 1, 2008, the Company issued US$54.5 million 4.75% senior convertible notes (including US$4,500,000 pursuant to the exercise of the over-allotment option in full) due June 15, 2013 ("the Notes"). The terms of the Notes include certain conversion, repurchase and conversion rate adjustment features. The Notes are convertible into shares of the Company's stock. Total issuance costs of the senior convertible notes were approximately US$3.9 million.
Concurrent with this offering, 4,431,000 ADSs were borrowed by an affiliate of the initial purchaser of the notes pursuant to an ADS lending agreement, and offered in a transaction registered under the Securities Act. A nominal lending fee of US$0.0006 per ADS was received from the ADS borrower for the use of the borrowed ADSs.
Commenting on the financial results, Kenneth Luk, CFO of China Sunergy, said: "Despite the financial pressure caused by the depreciation of the Euro, we achieved the lower end of our margin guidance and generated cash during the third quarter. We have sufficient capital to fund our operations during this uncertain time and throughout 2009. While the outlook for the fourth quarter is certainly not ideal and we will face challenging results, China Sunergy will take the necessary steps to limit the financial impact and ensure we have the resources necessary to benefit from the anticipated long-term demand for our advanced solar products."
Outlook
The recent global economic environment will have a much more significant impact on the Company's fourth quarter and full year results than was experienced during the third quarter. The rapid decline in the ASP for solar cells during October was not immediately matched with a reduction in the upstream costs, largely polysilicon, resulting in negative gross margins and a conscious reduction in production of solar cells. Despite the recent cost corrections, the short term lack of demand for solar products has led to reduced shipments and revenues and therefore a reduced opportunity to compensate for the weak beginning to the quarter.
Taking into account the reduced ASP and relatively higher cost of polysilicon, the Company believes it will report a negative gross margin for the fourth quarter. The Company actively reduced production during the beginning of the quarter, leading to production volume in the range of 15-20MW. This results in the Company reducing its full year 2008 production target to 107-112MW, out of which around 44MW are expected to be high efficiency products.
China Sunergy observed that starting in early November the price of polysilicon began to erode, and at this time has now fallen by an even greater extent than the recent ASP decline. Given the current opportunity for flexible procurement of polysilicon and recently observed pricing trends, the Company has seen gross margins return to a level similar to the second quarter of 2008. In addition, going forward there will be incidental margin improvement due to a more favorable production mix and higher wafer quality from overseas suppliers.
By the first quarter of 2009, all 4 new selective emitter production lines will be operating, bringing the total number of selective emitter lines to 5. While production may not run at the full capacity in Q1, the Company will focus production on those lines until their production capacity is fulfilled, thus targeting to generate a higher average gross margin.
For 2009, the Company, although prudently optimistic, would like to be conservative at this point of time and revise down the production target to 180-210MW including 20% from OEM business. It is important to note that this target is based on the Company's existing commitments and ongoing negotiations with customers while the market is more volatile than usual. Our gross margin should be positively, instead of negatively, impacted based on the recent trend of declining ASP and wafer costs. Taking into consideration the effect of a better production mix of 50% SE cells as well as better wafer quality, China Sunergy expects a gross margin of 15-19% for 2009.
Additional Company Updates
During the annual general meeting of shareholders held in Nanjing on August 15, 2008, the Company adopted several shareholder resolutions, including the re-elections of Mr. Tingxiu Lu, Mr. Ruennsheng Allen Wang and Ms. Jian Li as directors of the Company, the ratification of the appointment of the Independent Auditor Deloitte Touche Tohmatsu for the fiscal year 2007 and appointment of the Independent Auditor Deloitte Touche Tohmatsu for the fiscal year 2008.
Tuesday, November 25, 2008
BP Solar placed many orders to Chinese manufacturers
The solar PV industry is experiencing a harsh winter in China, and many Chinese solar wafer, solar cell and solar panel manufacturers have reduced their production, and even some small manufacturers have shut down their factories. The PV industry crisis is caused by the weak international demand and product price shrinking.
But some source disclosed that many Chinese PV manufacturers, including Renesola and Ningbo Solar, are producing products for BP Solar now, and BP Solar has placed some big orders to them, this will keep them quite busy for some time.
But some source disclosed that many Chinese PV manufacturers, including Renesola and Ningbo Solar, are producing products for BP Solar now, and BP Solar has placed some big orders to them, this will keep them quite busy for some time.
Tianjin Huanou Semiconductor Material signed polysilicon purchase agreement with Jiangsu Shunda
November 25th 2008, Tianjin Huanou Semiconductor Material disclosed that they have signed polysilicon purchase agreement with Jiangsu Shunda, the contract value is 1.32 billion RMB. No detailed information is available.
Two thin film projects landed in Zhenjiang
November 23rd 2008, Taiwan Asia Solar Company and Hongkong Cambridge Thin Film Solar Company signed investment agreement with Zhenjiang government to build thin film projects in Zhenjiang.
Taiwan Asia Solar Company will invest 45 million USD to produce thin film solar cell production equipments, and the first production line will be installed in the first half year 2009, and the production capacity will reach 48 thin film solar cell production lines in 5 years.
Hongkong Cambridge Thin Film Solar Company will invest 90 million USD to produce thin film solar cells, and the production lines will be purchased from Taiwan Asia Solar Company. 4 thin film solar cell production lines will be installed in 3 years, 2 pcs of 50MW production lines and 2 pcs of 100MW production lines, then the total production capacity will reach 300MW.
Taiwan Asia Solar Company will invest 45 million USD to produce thin film solar cell production equipments, and the first production line will be installed in the first half year 2009, and the production capacity will reach 48 thin film solar cell production lines in 5 years.
Hongkong Cambridge Thin Film Solar Company will invest 90 million USD to produce thin film solar cells, and the production lines will be purchased from Taiwan Asia Solar Company. 4 thin film solar cell production lines will be installed in 3 years, 2 pcs of 50MW production lines and 2 pcs of 100MW production lines, then the total production capacity will reach 300MW.
China subsidizes renewable energy power generation
Xinhua Economic News (2008/11/24)
BEIJING, Nov 24, 2008 (Xinhua via COMTEX) -- China will provide 2.023 billion yuan of subsidies to 148 renewable energy power generation projects from October 2007 to June 2008, according to a notice issued by the National Development and Reform Commission and the State Electricity Regulatory Commission.
Included are 102 wind power programs, 43 biomass power programs, three solar energy power projects with overall installed capacity and on-grid electricity of 5.6972 million kilowatt and 7.721 billion kilowatt hours.
The subsidy policy is designed to compensate the partial on-grid renewable energy electricity price, operating and maintenance fees of independent public renewable energy power system, power grid connection fee as well as losses of straw-fired power generating programs.
In addition, 12 provincial power grid enterprises are allowed to introduce the additional electricity fee from other their counterparts of other provinces through quota trading to make up their fund shortage. The transaction volume will amount to 873 million yuan.
Electricity grid enterprises are required to honor the subsidies and quota transactions within ten working days.
China has subsidized 38 renewable energy power generation projects with total installed capacity of 1.414 million kilowatt hours in 2006 with 260 million yuan.
China introduced Renewable Energy Law starting from January 1, 2006 and issued pricing mechanism and amortization measures on renewable energy power generation later to prompt the development of renewable energy sector.
BEIJING, Nov 24, 2008 (Xinhua via COMTEX) -- China will provide 2.023 billion yuan of subsidies to 148 renewable energy power generation projects from October 2007 to June 2008, according to a notice issued by the National Development and Reform Commission and the State Electricity Regulatory Commission.
Included are 102 wind power programs, 43 biomass power programs, three solar energy power projects with overall installed capacity and on-grid electricity of 5.6972 million kilowatt and 7.721 billion kilowatt hours.
The subsidy policy is designed to compensate the partial on-grid renewable energy electricity price, operating and maintenance fees of independent public renewable energy power system, power grid connection fee as well as losses of straw-fired power generating programs.
In addition, 12 provincial power grid enterprises are allowed to introduce the additional electricity fee from other their counterparts of other provinces through quota trading to make up their fund shortage. The transaction volume will amount to 873 million yuan.
Electricity grid enterprises are required to honor the subsidies and quota transactions within ten working days.
China has subsidized 38 renewable energy power generation projects with total installed capacity of 1.414 million kilowatt hours in 2006 with 260 million yuan.
China introduced Renewable Energy Law starting from January 1, 2006 and issued pricing mechanism and amortization measures on renewable energy power generation later to prompt the development of renewable energy sector.
Sunday, November 23, 2008
Shenyang Tewind New Energy Equipment released 1.5MW wind turbine
November 19th 2008, Shenyang Tewind New Energy Equipment Company released their 1.5MW wind turbine system.
DFSTW became the largest wind turbine supplier in China
DFSTW released the wind turbine prototype in 2006, and by the end of 2007 DFSTW had produced 208 sets of wind turbines. In 2008 DFSTW obtained more orders, and the wind turbine production capacity reached 800 sets and will reach 1200 sets in 2009.
At present DFSTW has three wind turbine production bases, they are Sichuan Deyang, Tianjin and Zhejiang Xiaoshan.
DFSTW is able to produce most of the components for the wind turbine systems by itself, and its gross margin in 2008 is 14.69%, while it was 4.8% in 2007.
At present DFSTW has 20 billion RMB order in hands, and 10 billion RMB more order to sign. DFSTW has great relationship with the major wind power project investors, this ensure a great potential for DFSTW.
At present DFSTW has three wind turbine production bases, they are Sichuan Deyang, Tianjin and Zhejiang Xiaoshan.
DFSTW is able to produce most of the components for the wind turbine systems by itself, and its gross margin in 2008 is 14.69%, while it was 4.8% in 2007.
At present DFSTW has 20 billion RMB order in hands, and 10 billion RMB more order to sign. DFSTW has great relationship with the major wind power project investors, this ensure a great potential for DFSTW.
Saturday, November 22, 2008
Emcore's deploys first CPV system in China via XinAo Group
21 November 2008
Emcore Corp of Albuquerque, NM, USA, which manufactures components and subsystems for the broadband, fiber optic, and solar power markets, has announced its first deployment of a concentrator photovolataics (CPV) systemin China with the XinAo Group, one of China's largest energy companies.
As part of an agreement reached in April, the 50kW test and evaluation system is fully installed and operational, and is producing power in accordance with specifications. Emcore said in April that, once the expected reliability and performance metrics have been demonstrated, XinAo plans to install CPV systems to provide electric power for its coal gasification project, which is estimated to have a requirement of 60MW of power. Also, Emcore and XinAo continue to have discussions regarding the possibleconstruction of a joint-owned plant in China, to manufacture CPV systems designed and certified by Emcore for the coal gasification project as well as the Chinese market.
"We are pleased to introduce the first CPV terrestrial power system in China in partnership with the XinAo Group and look forward to pursuing other solar power opportunities in China's emerging renewable energy market," says DrJohn Iannelli, corporate chief technology officer & general manager of Emcore's Solar Power Division.
In early October, Emcore was also granted access permits for its 850kW commercial solar park installation in the Extremedora region of Spain. In addition to these two deployments, Emcore expects several other pilot sitesto be deployed by the end of the year.
Emcore's deployed CPV systems are powered by its multi-junction solar cells, operating with 500x concentration. The firm says that it is developing a new 'Generation III' system design - scheduled to be in volume production bysecond-half 2009 - with enhanced performance (including a module efficiency of about 30%) and much improved cost structure. Emcore says that it has recently responded to several RFPs from public utility companies usingGen-III products as its baseline and expects to receive positive feedback on these proposals by the end of 2008.
Emcore Corp of Albuquerque, NM, USA, which manufactures components and subsystems for the broadband, fiber optic, and solar power markets, has announced its first deployment of a concentrator photovolataics (CPV) systemin China with the XinAo Group, one of China's largest energy companies.
As part of an agreement reached in April, the 50kW test and evaluation system is fully installed and operational, and is producing power in accordance with specifications. Emcore said in April that, once the expected reliability and performance metrics have been demonstrated, XinAo plans to install CPV systems to provide electric power for its coal gasification project, which is estimated to have a requirement of 60MW of power. Also, Emcore and XinAo continue to have discussions regarding the possibleconstruction of a joint-owned plant in China, to manufacture CPV systems designed and certified by Emcore for the coal gasification project as well as the Chinese market.
"We are pleased to introduce the first CPV terrestrial power system in China in partnership with the XinAo Group and look forward to pursuing other solar power opportunities in China's emerging renewable energy market," says DrJohn Iannelli, corporate chief technology officer & general manager of Emcore's Solar Power Division.
In early October, Emcore was also granted access permits for its 850kW commercial solar park installation in the Extremedora region of Spain. In addition to these two deployments, Emcore expects several other pilot sitesto be deployed by the end of the year.
Emcore's deployed CPV systems are powered by its multi-junction solar cells, operating with 500x concentration. The firm says that it is developing a new 'Generation III' system design - scheduled to be in volume production bysecond-half 2009 - with enhanced performance (including a module efficiency of about 30%) and much improved cost structure. Emcore says that it has recently responded to several RFPs from public utility companies usingGen-III products as its baseline and expects to receive positive feedback on these proposals by the end of 2008.
Chinese producer expects solar energy market to rebound in early 2009
BEIJING, Nov 21, 2008 (Xinhua via COMTEX) -- Solar energy industry will receive moderate and no long-lasting impacts from global financial market, said Wang Runsheng, chief executive officer of China's major solar cell producer China Sunergy Co., Ltd. (CSUN.Nasdaq).
As the main driving force of solar photovoltaic (PV) industry, governmental subsidy policies haven't been removed or delayed due to the financial turmoil, said Wang, citing recent solar-favoring legislative adjustment in France.
Wang forecast that solar PV market would witness up-turn in the first or second quarter of 2009 since many solar module developers holds on to money anticipating price declines in year end 2008.
Plus, the price drop of solar module and systems will trigger additional demands because solar PV products carry high price elasticity.
The industry chain of solar PV business is capable to bear and absorb price decreases in downstream solar system products.
In 2008, the sales price of polycrystalline silicon reached as high as 450-500 U.S. dollars per kg with production cost ranging from 20-30 U.S. dollars.
As the main driving force of solar photovoltaic (PV) industry, governmental subsidy policies haven't been removed or delayed due to the financial turmoil, said Wang, citing recent solar-favoring legislative adjustment in France.
Wang forecast that solar PV market would witness up-turn in the first or second quarter of 2009 since many solar module developers holds on to money anticipating price declines in year end 2008.
Plus, the price drop of solar module and systems will trigger additional demands because solar PV products carry high price elasticity.
The industry chain of solar PV business is capable to bear and absorb price decreases in downstream solar system products.
In 2008, the sales price of polycrystalline silicon reached as high as 450-500 U.S. dollars per kg with production cost ranging from 20-30 U.S. dollars.
Canadian Solar Q3 income surges; cuts FY08 revenue outlook, expects net loss in Q4
11/21/2008
(RTTNews) - Friday, solar cell manufacturer Canadian Solar, Inc. reported an increase in third-quarter net income, driven by a surge in revenues, with growth across all geographies. However, cautious of the uncertain economic environment, the company lowered its full-year revenue outlook.
The Markham, Canada-based company posted net income of $11.07 million or $0.31 per share, compared to net income of $522 thousands or $0.02 per share in the same period of last year.
Excluding stock based compensation, adjusted net income declined to $14.60 million or $0.41 per share from $23.05 million or $0.78 per share in the year-ago period.
On average, eight analysts polled by First Call/Thomson Financial expected the company to earn $0.54 per share. Analysts' estimates typically exclude special items.
Net revenues for the quarter rose 160% to $252.4 million from $97.4 million in the previous year, and came above the analysts' consensus of $248.00 million.
In the sequentially preceding quarter, the company reported net income of $10.5 million, or $0.36 per share, on revenues of $212.6 million.
Geographically, revenues in Europe rose to $222.4 million from $95.5 million last year. Asian revenues grew to $16.5 million from $4.1 million in the previous year, while the company generated $13.5 million as revenues in America, compared to nil revenue in the preceding year.
Total operating expenses increased to $13.35 million from $7.03 million in the same quarter a year ago. Shawn Qu, the company's chairman and chief executive officer, said the results reflected the company's conservative approach to the business and its balanced financial management. He added that the successful production ramp up of the low-cost e-Modules products, helped in maintaining the gross margin in the quarter.
Further, in July the company took measures to hedge against currency risk, which are believed to offset the impact of Euro against US Dollar foreign exchange fluctuations in the fourth quarter and the first quarter of 2009.
For the first nine months, the company reported net income of $40.6 million or $1.30 per share, compared to net loss of $6.2 million or $0.23 per share in the comparable period of last year.
Year-to-date revenues rose to $636.18 million from $175.34 million in the year-ago period.
Looking ahead, for full year 2008, the company lowered its revenue guidance to $650 million - $750 million, based on the uncertainty of project and customers' financing, and softening solar demand in Europe and USA at the year-end. Earlier, the company had issued full-year revenue guidance of $850 million - $970 million. Analysts have a consensus revenue estimate of $901.87 million for the full year.
The company expects fourth-quarter shipments in a range of 20 megawatts to 25 megawatts, which would result in revenues of approximately $70 million to $85 million. Further, the company expects to report a loss in the fourth quarter, reflecting the present market environment, which might necessitate adjustments to the balance sheet.
Analysts are expecting earnings of $0.39 per share on revenues of $270.06 million for the fourth quarter.
Shares of CSIQ closed Thursday's regular trading session at $3.78. In the past 52 weeks, the stock has been trading in the range of $3.53 to $51.80.
(RTTNews) - Friday, solar cell manufacturer Canadian Solar, Inc. reported an increase in third-quarter net income, driven by a surge in revenues, with growth across all geographies. However, cautious of the uncertain economic environment, the company lowered its full-year revenue outlook.
The Markham, Canada-based company posted net income of $11.07 million or $0.31 per share, compared to net income of $522 thousands or $0.02 per share in the same period of last year.
Excluding stock based compensation, adjusted net income declined to $14.60 million or $0.41 per share from $23.05 million or $0.78 per share in the year-ago period.
On average, eight analysts polled by First Call/Thomson Financial expected the company to earn $0.54 per share. Analysts' estimates typically exclude special items.
Net revenues for the quarter rose 160% to $252.4 million from $97.4 million in the previous year, and came above the analysts' consensus of $248.00 million.
In the sequentially preceding quarter, the company reported net income of $10.5 million, or $0.36 per share, on revenues of $212.6 million.
Geographically, revenues in Europe rose to $222.4 million from $95.5 million last year. Asian revenues grew to $16.5 million from $4.1 million in the previous year, while the company generated $13.5 million as revenues in America, compared to nil revenue in the preceding year.
Total operating expenses increased to $13.35 million from $7.03 million in the same quarter a year ago. Shawn Qu, the company's chairman and chief executive officer, said the results reflected the company's conservative approach to the business and its balanced financial management. He added that the successful production ramp up of the low-cost e-Modules products, helped in maintaining the gross margin in the quarter.
Further, in July the company took measures to hedge against currency risk, which are believed to offset the impact of Euro against US Dollar foreign exchange fluctuations in the fourth quarter and the first quarter of 2009.
For the first nine months, the company reported net income of $40.6 million or $1.30 per share, compared to net loss of $6.2 million or $0.23 per share in the comparable period of last year.
Year-to-date revenues rose to $636.18 million from $175.34 million in the year-ago period.
Looking ahead, for full year 2008, the company lowered its revenue guidance to $650 million - $750 million, based on the uncertainty of project and customers' financing, and softening solar demand in Europe and USA at the year-end. Earlier, the company had issued full-year revenue guidance of $850 million - $970 million. Analysts have a consensus revenue estimate of $901.87 million for the full year.
The company expects fourth-quarter shipments in a range of 20 megawatts to 25 megawatts, which would result in revenues of approximately $70 million to $85 million. Further, the company expects to report a loss in the fourth quarter, reflecting the present market environment, which might necessitate adjustments to the balance sheet.
Analysts are expecting earnings of $0.39 per share on revenues of $270.06 million for the fourth quarter.
Shares of CSIQ closed Thursday's regular trading session at $3.78. In the past 52 weeks, the stock has been trading in the range of $3.53 to $51.80.
Friday, November 21, 2008
Suntech Reports Third Quarter 2008 Financial Results
SAN FRANCISCO and WUXI, China, NOV 20, 2008 /PRNewswire via COMTEX/ -- Suntech Power Holdings Co., Ltd. the world's largest photovoltaic (PV) module manufacturer, today announced financial results for the third quarter ended September 30, 2008.
Third Quarter Highlights(1)
-- Third quarter 2008 total net revenues grew 53.7% year-over-year to $594.4 million.
-- On a consolidated basis, GAAP gross margin increased to 21.6% for the third quarter 2008 compared to 20.7% for the third quarter 2007. Non-GAAP(2) gross margin reached 21.8% for the third quarter 2008, compared to 21.4% for the third quarter 2007.
-- GAAP net income for the third quarter was $55.9 million or $0.33 per diluted American Depository Share (ADS). On a non-GAAP basis, Suntech's net income for the third quarter was $60.3 million or $0.35 per diluted ADS. Each ADS represents one ordinary share.
-- Suntech's PV cell production capacity was 750MW at the end of the third quarter 2008.
-- Due to the depreciation of the Euro versus the U.S. dollar combined with the impact of tighter credit markets, Suntech has revised its full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a new expected range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW.
"Our third quarter performance was driven by healthy demand for our solar products, resulting in strong top-line growth that exceeded the high end of our guidance," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "However, the rapid weakening of the Euro relative to the USD over the past two months combined with the unstable credit markets has created a challenging environment in the fourth quarter of 2008. This has resulted in a faster than expected sequential decline in sales prices and the deferment of some customer orders, which will significantly impact our profitability in the fourth quarter of 2008."
"Due to these near-term challenges, we have been implementing a range of measures to prudently manage this temporary downturn. These include the minimization of cash outlays, renegotiation of high priced, short-term silicon contracts, optimization of our supply chain and production, and the enhancement of currency risk management. We believe that these steps will enable us to weather the short term market disturbances and we expect our profitability will steadily improve in 2009 as multiple long term, low cost silicon contracts initiate delivery."
''In addition, we believe that the industry recalibration will benefit Suntech as we expect a flight to quality solar companies that are positioned to be long-term leaders in the solar industry," continued Dr. Shi. ''Suntech's exceptional project history, dedication to innovation and focus on producing premium quality solar products differentiate Suntech's products and brand. Moreover, our localized customer service, broad product range and manufacturing scale provide a stable base to serve our customers' long-term needs. We are confident that our customers recognize the value in partnering with Suntech, and we expect to improve our market position in 2009.''
"Suntech's goal is to drive down the cost of solar to grid parity, and these macroeconomic changes should accelerate the reduction in silicon costs and sales prices and stimulate demand. In addition, the outlook for 2009 demand is encouraging. Although customers have deferred some orders in the fourth quarter, many are committing to increased volumes for 2009 indicative of customers' confidence that the financing environment will improve. We have already received orders for over 600MW of PV products for 2009 from our European customers and are pursuing a growing pipeline of additional orders."
Recent Business Highlights
Acquisitions and Joint Venture Agreements
-- Suntech acquired EI Solutions, a leading California-based commercial solar system integration company, to provide complete solar solutions to commercial, utility and government customers in the U.S.. Renamed Suntech Energy Solutions, it has designed and implemented solar
projects for many leading US companies, including Google, Disney, Sony Pictures, The North Face, and Puget Sound Energy.
-- Suntech established a joint venture with MMA Renewable Resources to create Gemini Solar Development Company (Gemini Solar), to develop and finance photovoltaic projects 10MW and larger. Gemini Solar will provide an end-to-end solution to address the growing demand for large-scale solar projects.
Suntech Energy Solutions Projects
-- Suntech Energy Solutions recently substantially completed numerous installations including:
-- A distribution center for The North Face in Visalia, CA which included a 1MW installation of Suntech modules on tracking systems in a 5 acre retention pond abutting the facility.
-- A 250kW rooftop installation for a carport at Caltech in Pasadena CA.
-- A 250kW ground mounted tracking system for the luxury eco-resort Post Ranch Inn, in Big Sur, CA.
-- A 100kW carport installation for The Venetian Hotel in Las Vegas, NV.
Capital and Credit Facilities
-- Suntech had cash and cash equivalents of $394.6 million, restricted cash of $124.1 million and short term investments of $145.6 million as of September 30, 2008. In addition, Suntech had value-added tax recoverable of $201.8 million at the end of September 30, 2008 of which approximately $126 million has been approved for refund by the P.R.C. government.
-- Suntech had approximately $1.7 billion of approved credit lines to be used for fixed asset purchase, working capital or trade financing as of September 30, 2008. Of these credit facilities approximately $1.1 billion had been drawn down as of September 30, 2008. During the fourth
quarter, Suntech has secured a further $600 million of credit facilities, which can be utilized for fixed asset purchase, working capital or trade financing. Suntech expects that its capital will be
sufficient to cover its capital expenditures in 2008 and 2009, while maintaining adequate working capital to support its operations.
Technology
-- Suntech is on track to expand Pluto PV cell production capacity from 10MW to 30MW by the end of 2008. During the temporary period of downturn, Suntech intends to accelerate retrofitting of existing lines to Pluto technology and achieve 100MW of Pluto PV cell
capacity by the end of the first quarter 2009.
Collaboration on Climate Change
-- Suntech joined The Climate Group, a global independent organization dedicated to accelerating action on climate change. Suntech is the first and only energy company to join The Climate Group. The Climate Group is an independent, nonprofit organization that works
with government and business leaders to accelerate the transition to a low-carbon economy.
Third Quarter 2008 Results
Non-GAAP Non-GAAP
Net Revenues Gross Profit Gross Margin
(in $ millions) % of Net Revenues (in $millions) (%)
Standard PV Modules $523.1 88.0% $122.2 23.4%
Others $71.3 12.0% $7.5 10.5%
Total Net Revenues $594.4 100% $129.7 21.8%
Total net revenues for the third quarter of 2008 were $594.4 million, representing an increase of 53.7% from the corresponding period in 2007.
Non-GAAP gross profit for the third quarter of 2008 was $129.7 million, an increase of 56.6% year-over-year. Non-GAAP gross margin for the Company's standard PV module business was 23.4% and non-GAAP consolidated gross margin was 21.8%. Gross margin decreased from the second quarter of 2008 primarily due to a decrease in the average selling price resulting from the depreciation of the Euro versus the U.S. dollar and a slight increase in silicon wafer costs.
Non-GAAP operating expenses in the third quarter of 2008 totaled $37.1 million or 6.2% of total net revenues. The sequential increase in operating expenses was primarily due to increased spending on research and development of the Pluto technology.
Non-GAAP income from operations for the third quarter of 2008 was $92.6 million, an increase of 43.1% year-over-year. Non-GAAP operating margin was 15.6%.
Net interest expense was $7.9 million in the third quarter of 2008 compared to net interest expense of $5.2 million in the second quarter of 2008. The sequential increase in net interest expenses was primarily due to increased bank borrowing balances.
Foreign currency exchange loss was $16.6 million in the third quarter of 2008 compared to a foreign currency exchange gain of $2.5 million in the second quarter of 2008. The foreign currency exchange loss in the third quarter of 2008 was primarily due to the revaluation of some assets, which were impacted by the depreciation of the Euro against the U.S. dollar, and the revaluation of some liabilities, which were impacted by the appreciation of the CNY against the U.S. dollar.
Net other expenses decreased from $6.3 million in the second quarter of 2008 to $3.2 million in the third quarter of 2008. The decrease was mainly due to the reduced mark-to-market valuation losses associated with foreign currency derivative instruments.
Non-GAAP net income for the third quarter of 2008 was $60.3 million, or $0.35 per non-GAAP diluted ADS, compared to non-GAAP net income of $61.2 million, or $0.36 per non-GAAP diluted ADS in the third quarter of 2007.
On a GAAP basis, for the third quarter of 2008 gross profit was $128.3 million, an increase of 60.4% year-over-year. Gross margin for the standard PV module business was 23.1% and consolidated gross margin was 21.6% for the third quarter of 2008.
On a GAAP basis, operating expenses for the third quarter of 2008 were $41.3 million or 6.9% of total net revenues. Income from operations was $87.1 million for the third quarter of 2008, an increase of 52.0% year-over-year. Operating margin was 14.6%. Net income increased 5.0% year-over-year to $55.9 million, or $0.33 per diluted ADS.
In the third quarter of 2008, capital expenditures, which were primarily related to production capacity expansion and the construction of Suntech's new production facilities, totaled $102.4 million and depreciation and amortization expenses totaled $10.2 million.
As of September 30, 2008, Suntech had cash and cash equivalents of $394.6 million, compared to $605.2 million as of June 30, 2008. The decrease in cash and cash equivalents was mainly due to capital expenditures related to capacity expansions and prepayments to suppliers. This was partially offset by an increase of bank borrowings.
Value-added tax recoverable totaled $201.8 million as of September 30, 2008, compared to $143.0 million as of June 30, 2008. The increase was mainly due to the long clearance process required by local regulation. Approximately $126 million value-added tax recoverable has been approved for refund by the P.R.C. government of which approximately $15 million is expected to be refunded in the fourth quarter of 2008.
Inventory totaled $247.9 million as of September 30, 2008 compared to $182.6 million as of June 30, 2008. The increase in inventory was partially due to the late receipt of raw materials from some silicon suppliers due to storm weather in the U.S. at the end of the third quarter.
Accounts receivable increased from $218.9 million as of June 30, 2008 to $232.8 million as of September 30, 2008. Days sales outstanding were 36 days in the third quarter of 2008 compared to 41 days in the second quarter of 2008.
Business Outlook
During the quarter ended September 30, 2008 the average value of the U.S. dollar was $1.50 to the Euro. Assuming an exchange rate of $1.28 U.S. dollars to the Euro in the fourth quarter of 2008, the Euro will have depreciated approximately 15% against the U.S. dollar sequentially resulting in an approximate $45 million impact on fourth quarter 2008 gross profit and approximately 12 percentage point impact on gross margin.
Based on current operating conditions and assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, Suntech expects revenues for the fourth quarter of 2008 to be in the range of $345 million to $360 million. The sequential decline in revenues primarily reflects the depreciation of the Euro versus the U.S. dollar, the deferment of some customer orders due to delays in project financing and the seasonality impact due to winter in Northern Europe.
Assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, GAAP consolidated gross margin for the fourth quarter 2008 is expected to be marginally positive or breakeven. The sequential decline in gross margin primarily reflects the decline in product sales prices due to the rapid depreciation of the Euro versus the U.S. dollar, the negative impact of high cost inventories from the third quarter of 2008, and the high cost of raw materials purchased in October 2008.
Due to the abnormal depreciation of the Euro versus the U.S. dollar and the tighter credit markets, Suntech has reduced full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW. Suntech remains on target to reach 1GW of installed PV cell production capacity by year-end 2008.
Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility has improved. Suntech expects to reduce capital expenditures to approximately $80 million in 2009 from approximately $300 million in 2008. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency, Pluto technology.
New Senior Management Hires and Promotions
Mr. Steven Chan, Suntech's Chief Strategy Officer, has assumed the additional role of President, Global Sales/Marketing. Mr. Chan, who is also responsible for the Company's business development and investor relations functions, joined Suntech in 2006. Originally based in the Company's Wuxi, China headquarters, Mr. Chan moved to San Francisco last year to open its U.S. headquarters and to focus on expanding its global sales and marketing initiatives.
Mr. Roger Ye, Suntech's Sales Director, has been promoted to Vice President of Global Sales. Mr. Ye joined Suntech in 2006 and has since led Suntech's global sales efforts. Prior to joining Suntech, Mr. Ye spent eight years with Siemens Limited China where he progressed through a number of sales management roles, ultimately being promoted to Sales Director. He earned a Masters degree from Shanghai Jiaotong University majoring in Photovoltaics.
Mr. Mauro Sgherri joined Suntech to assume the role of Managing Director, Italy, based in Milan, with responsibility for all sales and business development activities in Italy. Prior to joining Suntech, Mr. Sgherri was a consultant to the Board of Directors of Sharp Italy for the establishment of their solar division, and in establishing relationships with leading systems integrators and customers. He brings more than 30 years of business experience in sales management, product management and marketing strategy. Mr. Sgherri holds a degree in Business Management.
Mr. Thilo Kinkel has joined Suntech to assume the role of Director of Sales, Central Europe. Mr. Kinkel will be based in Frankfurt, Germany. Prior to joining Suntech, Mr. Kinkel was Sales Coordinator and Key Account Manager for Schott Solar GmbH, a photovoltaic manufacturer in Germany. He brings over 9 years of experience in the sales and development of markets for photovoltaics and glass. Mr. Kinkel attended the University of Applied Science in Giessen-Friedberg where he studied Industrial Engineering.
Mr. Bert van Kampen has joined Suntech in the role of Financial Controller, Suntech Europe, based in Suntech's recently opened office in Switzerland. Mr. Van Kampen was most recently Financial Director of Makhteshim-Agan Industries in Switzerland, where he had responsibility for accounting, reporting, budgeting, cash management, treasury and tax, as well as human resources, legal and IT. He brings more than 20 years of experience in financial management to Suntech, as well as implementation of internal control procedures. Mr. van Kampen attended the Economic College (HEAO-BE).
Corporate Governance
In November 2007, the Company revised its Corporate Governance Guidelines to reduce the minimum size of the Audit Committee from three members to two members. Currently, Mr. Julian Worley and Mr. Jason Maynard, both independent directors, serve on the Audit Committee.
Third Quarter Highlights(1)
-- Third quarter 2008 total net revenues grew 53.7% year-over-year to $594.4 million.
-- On a consolidated basis, GAAP gross margin increased to 21.6% for the third quarter 2008 compared to 20.7% for the third quarter 2007. Non-GAAP(2) gross margin reached 21.8% for the third quarter 2008, compared to 21.4% for the third quarter 2007.
-- GAAP net income for the third quarter was $55.9 million or $0.33 per diluted American Depository Share (ADS). On a non-GAAP basis, Suntech's net income for the third quarter was $60.3 million or $0.35 per diluted ADS. Each ADS represents one ordinary share.
-- Suntech's PV cell production capacity was 750MW at the end of the third quarter 2008.
-- Due to the depreciation of the Euro versus the U.S. dollar combined with the impact of tighter credit markets, Suntech has revised its full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a new expected range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW.
"Our third quarter performance was driven by healthy demand for our solar products, resulting in strong top-line growth that exceeded the high end of our guidance," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "However, the rapid weakening of the Euro relative to the USD over the past two months combined with the unstable credit markets has created a challenging environment in the fourth quarter of 2008. This has resulted in a faster than expected sequential decline in sales prices and the deferment of some customer orders, which will significantly impact our profitability in the fourth quarter of 2008."
"Due to these near-term challenges, we have been implementing a range of measures to prudently manage this temporary downturn. These include the minimization of cash outlays, renegotiation of high priced, short-term silicon contracts, optimization of our supply chain and production, and the enhancement of currency risk management. We believe that these steps will enable us to weather the short term market disturbances and we expect our profitability will steadily improve in 2009 as multiple long term, low cost silicon contracts initiate delivery."
''In addition, we believe that the industry recalibration will benefit Suntech as we expect a flight to quality solar companies that are positioned to be long-term leaders in the solar industry," continued Dr. Shi. ''Suntech's exceptional project history, dedication to innovation and focus on producing premium quality solar products differentiate Suntech's products and brand. Moreover, our localized customer service, broad product range and manufacturing scale provide a stable base to serve our customers' long-term needs. We are confident that our customers recognize the value in partnering with Suntech, and we expect to improve our market position in 2009.''
"Suntech's goal is to drive down the cost of solar to grid parity, and these macroeconomic changes should accelerate the reduction in silicon costs and sales prices and stimulate demand. In addition, the outlook for 2009 demand is encouraging. Although customers have deferred some orders in the fourth quarter, many are committing to increased volumes for 2009 indicative of customers' confidence that the financing environment will improve. We have already received orders for over 600MW of PV products for 2009 from our European customers and are pursuing a growing pipeline of additional orders."
Recent Business Highlights
Acquisitions and Joint Venture Agreements
-- Suntech acquired EI Solutions, a leading California-based commercial solar system integration company, to provide complete solar solutions to commercial, utility and government customers in the U.S.. Renamed Suntech Energy Solutions, it has designed and implemented solar
projects for many leading US companies, including Google, Disney, Sony Pictures, The North Face, and Puget Sound Energy.
-- Suntech established a joint venture with MMA Renewable Resources to create Gemini Solar Development Company (Gemini Solar), to develop and finance photovoltaic projects 10MW and larger. Gemini Solar will provide an end-to-end solution to address the growing demand for large-scale solar projects.
Suntech Energy Solutions Projects
-- Suntech Energy Solutions recently substantially completed numerous installations including:
-- A distribution center for The North Face in Visalia, CA which included a 1MW installation of Suntech modules on tracking systems in a 5 acre retention pond abutting the facility.
-- A 250kW rooftop installation for a carport at Caltech in Pasadena CA.
-- A 250kW ground mounted tracking system for the luxury eco-resort Post Ranch Inn, in Big Sur, CA.
-- A 100kW carport installation for The Venetian Hotel in Las Vegas, NV.
Capital and Credit Facilities
-- Suntech had cash and cash equivalents of $394.6 million, restricted cash of $124.1 million and short term investments of $145.6 million as of September 30, 2008. In addition, Suntech had value-added tax recoverable of $201.8 million at the end of September 30, 2008 of which approximately $126 million has been approved for refund by the P.R.C. government.
-- Suntech had approximately $1.7 billion of approved credit lines to be used for fixed asset purchase, working capital or trade financing as of September 30, 2008. Of these credit facilities approximately $1.1 billion had been drawn down as of September 30, 2008. During the fourth
quarter, Suntech has secured a further $600 million of credit facilities, which can be utilized for fixed asset purchase, working capital or trade financing. Suntech expects that its capital will be
sufficient to cover its capital expenditures in 2008 and 2009, while maintaining adequate working capital to support its operations.
Technology
-- Suntech is on track to expand Pluto PV cell production capacity from 10MW to 30MW by the end of 2008. During the temporary period of downturn, Suntech intends to accelerate retrofitting of existing lines to Pluto technology and achieve 100MW of Pluto PV cell
capacity by the end of the first quarter 2009.
Collaboration on Climate Change
-- Suntech joined The Climate Group, a global independent organization dedicated to accelerating action on climate change. Suntech is the first and only energy company to join The Climate Group. The Climate Group is an independent, nonprofit organization that works
with government and business leaders to accelerate the transition to a low-carbon economy.
Third Quarter 2008 Results
Non-GAAP Non-GAAP
Net Revenues Gross Profit Gross Margin
(in $ millions) % of Net Revenues (in $millions) (%)
Standard PV Modules $523.1 88.0% $122.2 23.4%
Others $71.3 12.0% $7.5 10.5%
Total Net Revenues $594.4 100% $129.7 21.8%
Total net revenues for the third quarter of 2008 were $594.4 million, representing an increase of 53.7% from the corresponding period in 2007.
Non-GAAP gross profit for the third quarter of 2008 was $129.7 million, an increase of 56.6% year-over-year. Non-GAAP gross margin for the Company's standard PV module business was 23.4% and non-GAAP consolidated gross margin was 21.8%. Gross margin decreased from the second quarter of 2008 primarily due to a decrease in the average selling price resulting from the depreciation of the Euro versus the U.S. dollar and a slight increase in silicon wafer costs.
Non-GAAP operating expenses in the third quarter of 2008 totaled $37.1 million or 6.2% of total net revenues. The sequential increase in operating expenses was primarily due to increased spending on research and development of the Pluto technology.
Non-GAAP income from operations for the third quarter of 2008 was $92.6 million, an increase of 43.1% year-over-year. Non-GAAP operating margin was 15.6%.
Net interest expense was $7.9 million in the third quarter of 2008 compared to net interest expense of $5.2 million in the second quarter of 2008. The sequential increase in net interest expenses was primarily due to increased bank borrowing balances.
Foreign currency exchange loss was $16.6 million in the third quarter of 2008 compared to a foreign currency exchange gain of $2.5 million in the second quarter of 2008. The foreign currency exchange loss in the third quarter of 2008 was primarily due to the revaluation of some assets, which were impacted by the depreciation of the Euro against the U.S. dollar, and the revaluation of some liabilities, which were impacted by the appreciation of the CNY against the U.S. dollar.
Net other expenses decreased from $6.3 million in the second quarter of 2008 to $3.2 million in the third quarter of 2008. The decrease was mainly due to the reduced mark-to-market valuation losses associated with foreign currency derivative instruments.
Non-GAAP net income for the third quarter of 2008 was $60.3 million, or $0.35 per non-GAAP diluted ADS, compared to non-GAAP net income of $61.2 million, or $0.36 per non-GAAP diluted ADS in the third quarter of 2007.
On a GAAP basis, for the third quarter of 2008 gross profit was $128.3 million, an increase of 60.4% year-over-year. Gross margin for the standard PV module business was 23.1% and consolidated gross margin was 21.6% for the third quarter of 2008.
On a GAAP basis, operating expenses for the third quarter of 2008 were $41.3 million or 6.9% of total net revenues. Income from operations was $87.1 million for the third quarter of 2008, an increase of 52.0% year-over-year. Operating margin was 14.6%. Net income increased 5.0% year-over-year to $55.9 million, or $0.33 per diluted ADS.
In the third quarter of 2008, capital expenditures, which were primarily related to production capacity expansion and the construction of Suntech's new production facilities, totaled $102.4 million and depreciation and amortization expenses totaled $10.2 million.
As of September 30, 2008, Suntech had cash and cash equivalents of $394.6 million, compared to $605.2 million as of June 30, 2008. The decrease in cash and cash equivalents was mainly due to capital expenditures related to capacity expansions and prepayments to suppliers. This was partially offset by an increase of bank borrowings.
Value-added tax recoverable totaled $201.8 million as of September 30, 2008, compared to $143.0 million as of June 30, 2008. The increase was mainly due to the long clearance process required by local regulation. Approximately $126 million value-added tax recoverable has been approved for refund by the P.R.C. government of which approximately $15 million is expected to be refunded in the fourth quarter of 2008.
Inventory totaled $247.9 million as of September 30, 2008 compared to $182.6 million as of June 30, 2008. The increase in inventory was partially due to the late receipt of raw materials from some silicon suppliers due to storm weather in the U.S. at the end of the third quarter.
Accounts receivable increased from $218.9 million as of June 30, 2008 to $232.8 million as of September 30, 2008. Days sales outstanding were 36 days in the third quarter of 2008 compared to 41 days in the second quarter of 2008.
Business Outlook
During the quarter ended September 30, 2008 the average value of the U.S. dollar was $1.50 to the Euro. Assuming an exchange rate of $1.28 U.S. dollars to the Euro in the fourth quarter of 2008, the Euro will have depreciated approximately 15% against the U.S. dollar sequentially resulting in an approximate $45 million impact on fourth quarter 2008 gross profit and approximately 12 percentage point impact on gross margin.
Based on current operating conditions and assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, Suntech expects revenues for the fourth quarter of 2008 to be in the range of $345 million to $360 million. The sequential decline in revenues primarily reflects the depreciation of the Euro versus the U.S. dollar, the deferment of some customer orders due to delays in project financing and the seasonality impact due to winter in Northern Europe.
Assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, GAAP consolidated gross margin for the fourth quarter 2008 is expected to be marginally positive or breakeven. The sequential decline in gross margin primarily reflects the decline in product sales prices due to the rapid depreciation of the Euro versus the U.S. dollar, the negative impact of high cost inventories from the third quarter of 2008, and the high cost of raw materials purchased in October 2008.
Due to the abnormal depreciation of the Euro versus the U.S. dollar and the tighter credit markets, Suntech has reduced full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW. Suntech remains on target to reach 1GW of installed PV cell production capacity by year-end 2008.
Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility has improved. Suntech expects to reduce capital expenditures to approximately $80 million in 2009 from approximately $300 million in 2008. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency, Pluto technology.
New Senior Management Hires and Promotions
Mr. Steven Chan, Suntech's Chief Strategy Officer, has assumed the additional role of President, Global Sales/Marketing. Mr. Chan, who is also responsible for the Company's business development and investor relations functions, joined Suntech in 2006. Originally based in the Company's Wuxi, China headquarters, Mr. Chan moved to San Francisco last year to open its U.S. headquarters and to focus on expanding its global sales and marketing initiatives.
Mr. Roger Ye, Suntech's Sales Director, has been promoted to Vice President of Global Sales. Mr. Ye joined Suntech in 2006 and has since led Suntech's global sales efforts. Prior to joining Suntech, Mr. Ye spent eight years with Siemens Limited China where he progressed through a number of sales management roles, ultimately being promoted to Sales Director. He earned a Masters degree from Shanghai Jiaotong University majoring in Photovoltaics.
Mr. Mauro Sgherri joined Suntech to assume the role of Managing Director, Italy, based in Milan, with responsibility for all sales and business development activities in Italy. Prior to joining Suntech, Mr. Sgherri was a consultant to the Board of Directors of Sharp Italy for the establishment of their solar division, and in establishing relationships with leading systems integrators and customers. He brings more than 30 years of business experience in sales management, product management and marketing strategy. Mr. Sgherri holds a degree in Business Management.
Mr. Thilo Kinkel has joined Suntech to assume the role of Director of Sales, Central Europe. Mr. Kinkel will be based in Frankfurt, Germany. Prior to joining Suntech, Mr. Kinkel was Sales Coordinator and Key Account Manager for Schott Solar GmbH, a photovoltaic manufacturer in Germany. He brings over 9 years of experience in the sales and development of markets for photovoltaics and glass. Mr. Kinkel attended the University of Applied Science in Giessen-Friedberg where he studied Industrial Engineering.
Mr. Bert van Kampen has joined Suntech in the role of Financial Controller, Suntech Europe, based in Suntech's recently opened office in Switzerland. Mr. Van Kampen was most recently Financial Director of Makhteshim-Agan Industries in Switzerland, where he had responsibility for accounting, reporting, budgeting, cash management, treasury and tax, as well as human resources, legal and IT. He brings more than 20 years of experience in financial management to Suntech, as well as implementation of internal control procedures. Mr. van Kampen attended the Economic College (HEAO-BE).
Corporate Governance
In November 2007, the Company revised its Corporate Governance Guidelines to reduce the minimum size of the Audit Committee from three members to two members. Currently, Mr. Julian Worley and Mr. Jason Maynard, both independent directors, serve on the Audit Committee.
JA Solar says it plans to work with BP
JA Solar Holdings and BP subsidiary say they plan long-term development and marketing deal
November 20, 2008: 11:17 AM EST
NEW YORK (Associated Press) - JA Solar Holdings Co. and an alternative-energy subsidiary of oil giant BP PLC said Thursday they plan to jointly develop and sell solar-power unit components over the next five years.
A final agreement is expected before year-end.
JA Solar said it expected to contribute manufacturing and access to third-party silicon or wafers used in photovoltaic units, while BP expected to add access to its own supplies and customer list.
JA Solar, based in Hebei, China, makes monocrystalline solar cells for sale to manufacturers that assemble them into systems to convert sunlight into electricity.
BP Alternative Energy Holdings Ltd. has 2,300 employees and makes solar-energy products for residential, commercial and industrial customers.
November 20, 2008: 11:17 AM EST
NEW YORK (Associated Press) - JA Solar Holdings Co. and an alternative-energy subsidiary of oil giant BP PLC said Thursday they plan to jointly develop and sell solar-power unit components over the next five years.
A final agreement is expected before year-end.
JA Solar said it expected to contribute manufacturing and access to third-party silicon or wafers used in photovoltaic units, while BP expected to add access to its own supplies and customer list.
JA Solar, based in Hebei, China, makes monocrystalline solar cells for sale to manufacturers that assemble them into systems to convert sunlight into electricity.
BP Alternative Energy Holdings Ltd. has 2,300 employees and makes solar-energy products for residential, commercial and industrial customers.
Chinese first desert solar power station to be in place
BEIJING, Nov 20, 2008 (Xinhua via COMTEX) -- China's first desert solar power generation station will come into operation and get connected to grid in this December at Tengger Desert of Northwest China's Gansu Province, said Li Shimin, vice president of Gansu Natural Energy Research Institute.
This solar power generation program covers more than 20,000 square meters with an annual capacity of 0.5 MW.
Gansu has rich solar energy resources with annual solar radiation of 4,800-6,400 MJ/m2 and 1,700-3,300 of sunshine hours each year.
In addition, Gansu will invite biding for the construction of a 10-MW solar photovoltaic program in the desert area of Dunhuang.
This solar power generation program covers more than 20,000 square meters with an annual capacity of 0.5 MW.
Gansu has rich solar energy resources with annual solar radiation of 4,800-6,400 MJ/m2 and 1,700-3,300 of sunshine hours each year.
In addition, Gansu will invite biding for the construction of a 10-MW solar photovoltaic program in the desert area of Dunhuang.
Wednesday, November 19, 2008
CSR invests 2.1 billion CNY to expand Zhuzhou wind power production base
November 19th 2008, CSR Zhuzou Electric Locomotive Research Institute Co., Ltd released their plan to build CSR Time Industrial Park in Zhuzhou, the total investment will be 3.35 billion CNY including 2.1 billion CNY for the wind power production base expansion.
Shandong Shouguang Huaneng Wind Power Project to begin operation by the end of 2008
Shandong Shouguang Wind Power Project is invested by Huaneng Group and their American partner, and the total investment is 559 million RBM.
33 sets of 1.5MW wind turbines will be installed, and about 96.5 million KWH power could be transfered to the power grid each year after the operation starts at the end of December 2008.
33 sets of 1.5MW wind turbines will be installed, and about 96.5 million KWH power could be transfered to the power grid each year after the operation starts at the end of December 2008.
AMSC Windtec to design wind turbine for China's Shenyang Blower Works
November 18th 2008, AMSC Windtec signed cooperation agreement with Shenyang Blower Works.
American Superconductor Corporation's Windtec subsidiary will provide the Shenyang Blower Works with designs for its 2MW doubly fed induction wind turbine, in a move that will position the company as a leading supplier of wind turbines to the Chinese marketplace.
American Superconductor will also help the Chinese company source all the core components for the wind turbines from local suppliers, as well as help it establish a wind turbine manufacturing line and build and test its first prototype wind turbines.
It will also provide the full electrical systems for all the turbines.
After receiving certification, Shenyang Blower Works will then manufacture and sell the turbines, primarily in the Chinese market.
Founded in 1934 and based in Shenyang, China, Shenyang Blower Works is a state-owned company that makes an array of industrial equipment including large-scale compressors, blowers, fans, heat exchangers as well as large-scale nuclear power pumps, boiler feed pumps and petrochemical pumps.
The company plans to have its first prototype turbines commissioned in 2009 and expects to begin series production in 2010.
According to the Chinese Wind Energy Association, China will grow its base of wind power from 5.9GW at the end of 2007 to more than 10GW in 2008.
In its Global Wind Energy Outlook 2008 report, the Global Wind Energy Council estimates that China's installed base could grow to between 101GW and 201GW by 2020.
American Superconductor Corporation's Windtec subsidiary will provide the Shenyang Blower Works with designs for its 2MW doubly fed induction wind turbine, in a move that will position the company as a leading supplier of wind turbines to the Chinese marketplace.
American Superconductor will also help the Chinese company source all the core components for the wind turbines from local suppliers, as well as help it establish a wind turbine manufacturing line and build and test its first prototype wind turbines.
It will also provide the full electrical systems for all the turbines.
After receiving certification, Shenyang Blower Works will then manufacture and sell the turbines, primarily in the Chinese market.
Founded in 1934 and based in Shenyang, China, Shenyang Blower Works is a state-owned company that makes an array of industrial equipment including large-scale compressors, blowers, fans, heat exchangers as well as large-scale nuclear power pumps, boiler feed pumps and petrochemical pumps.
The company plans to have its first prototype turbines commissioned in 2009 and expects to begin series production in 2010.
According to the Chinese Wind Energy Association, China will grow its base of wind power from 5.9GW at the end of 2007 to more than 10GW in 2008.
In its Global Wind Energy Outlook 2008 report, the Global Wind Energy Council estimates that China's installed base could grow to between 101GW and 201GW by 2020.
LDK Solar Reports Financial Results for Third Quarter 2008
XINYU CITY, China and SUNNYVALE, Calif., Nov 19, 2008 /PRNewswire-FirstCall via COMTEX/ -- LDK Solar Co., Ltd., a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the third quarter ended September 30, 2008. All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Third Quarter 2008 Financial Highlights:
-- Revenue of $541.8 million, up 22.7% quarter-over-quarter;
-- Annualized wafer production capacity reached 1.2 GW by end the quarter;
-- Signed 14 long-term wafer supply agreements year-to-date;
-- Total wafer shipments increased 31.8% to 252.7 MW during the quarter;
-- Gross profit margin for the quarter was 22.7%; and
-- Completed a follow-on offering of 4.8 million American depositary shares ("ADSs"), further enhancing LDK Solar's resources for accelerated expansion plans.
Net sales for the third quarter of fiscal 2008 were $541.8 million, up 22.7% from $441.7 million for the second quarter of fiscal 2008, and up 241.4% from $158.7 million for the third quarter of fiscal 2007.
Gross profit for the third quarter of fiscal 2008 was $122.9 million, up 9.5% from $112.3 million for the second quarter of fiscal 2008, and up 151.3% from $48.9 million for the third quarter of fiscal 2007. Gross profit margin for the third quarter of fiscal 2008 was 22.7% compared to 25.4% in the second quarter of fiscal 2008 and 30.8% in the third quarter of fiscal 2007.
Operating profit for the third quarter of fiscal 2008 was $107.8 million, up 7.5% from $100.3 million for the second quarter of fiscal 2008, and up 149.6% from $43.2 million for the third quarter of fiscal 2007. Operating profit margin for the third quarter of fiscal 2008 was 19.9% compared to 22.7% in the second quarter of fiscal 2008 and 27.2% in the third quarter of fiscal 2007.
Income tax expense for the third quarter of fiscal 2008 was $13.8 million, compared to income tax expense of $13.3 million in the second quarter of fiscal 2008.
Net income for the third quarter of fiscal 2008 was $88.4 million, or $0.77 per diluted ADS, compared to net income of $149.5 million, or $1.29 per diluted ADS for the second quarter of fiscal 2008.
LDK Solar ended the third quarter of fiscal 2008 with $347.8 million in cash and cash equivalents and $115.0 million in short-term pledged bank deposits.
On September 24, 2008, LDK Solar closed a follow-on offering of 4,800,000 ADSs, resulting in net proceeds of $192.4 million from the offering. As disclosed in the prospectus, LDK Solar expects to use approximately 60% of the net proceeds to fund the construction of its polysilicon manufacturing plant, approximately 30% to fund the capacity expansion of its wafer production facilities and the remaining 10% to fund other general corporate activities.
"We are pleased to deliver strong third quarter financial results as we continue to experience robust demand and significant growth of our business," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Total revenue this quarter was at the high end of our previously released guidance. During the quarter, we also successfully completed a secondary share offering which resulted in net proceeds of approximately $192.4 million. As a result, we believe that we are well positioned with sufficient resources to fund our current growth plans through 2009. Our market leadership position is strengthened by our accelerated execution of our wafer capacity expansion, strong wafer supply contract backlog, and our geographically diverse customer base."
"The plant commissioning process for the 1,000 MT polysilicon plant has progressed and all stations are now fully operational. Based upon the current status of the commissioning and testing phase, we expect polysilicon output in early December 2008 and estimate 2008 production to be between 15 MT and 25 MT. We anticipate a smaller than previously expected polysilicon output in 2008 as we have committed more time to industry safety and environmental protection measures. We have made considerable progress on our construction schedule for both plants and remain confident in the timeline for the construction of our 15,000 MT polysilicon plant, where we currently expect the first 5,000 MT train to be operational at the end of first quarter or the beginning of the second quarter 2009. We remain confident that we will produce between 5,000 and 7,000 MT of polysilicon in 2009," continued Mr. Peng.
"As we look ahead, our business will not be immune to the current global economic downturn. However, given the strength of our business model, conservative financial management, and our strong cash position, we remain confident in our long-term growth opportunities, and in our ability to succeed and to continue our role in driving the solar industry forward," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.
For the fourth quarter of fiscal 2008, LDK Solar estimates its revenue to be in the range of $555 million to $565 million with wafer shipments between 260 MW to 270 MW and gross margin between 18% and 21%. By the end of fiscal 2008, LDK Solar currently expects to:
-- Reach an annualized wafer production capacity of 1.4 GW; and
-- Produce 15 to 25 MT of polysilicon.
For the full year of fiscal 2009, LDK Solar currently estimates:
-- Revenue to be in the range of $2.9 billion to $3.1 billion;
-- Wafer shipments in the range of 1.80 GW to 1.85 GW;
-- Annualized wafer production capacity to be 2.3 GW by the end of 2009;
-- Gross margin between 26% and 31%; and
-- Production of between 5,000 and 7,000 MT of polysilicon in 2009.
Third Quarter 2008 Financial Highlights:
-- Revenue of $541.8 million, up 22.7% quarter-over-quarter;
-- Annualized wafer production capacity reached 1.2 GW by end the quarter;
-- Signed 14 long-term wafer supply agreements year-to-date;
-- Total wafer shipments increased 31.8% to 252.7 MW during the quarter;
-- Gross profit margin for the quarter was 22.7%; and
-- Completed a follow-on offering of 4.8 million American depositary shares ("ADSs"), further enhancing LDK Solar's resources for accelerated expansion plans.
Net sales for the third quarter of fiscal 2008 were $541.8 million, up 22.7% from $441.7 million for the second quarter of fiscal 2008, and up 241.4% from $158.7 million for the third quarter of fiscal 2007.
Gross profit for the third quarter of fiscal 2008 was $122.9 million, up 9.5% from $112.3 million for the second quarter of fiscal 2008, and up 151.3% from $48.9 million for the third quarter of fiscal 2007. Gross profit margin for the third quarter of fiscal 2008 was 22.7% compared to 25.4% in the second quarter of fiscal 2008 and 30.8% in the third quarter of fiscal 2007.
Operating profit for the third quarter of fiscal 2008 was $107.8 million, up 7.5% from $100.3 million for the second quarter of fiscal 2008, and up 149.6% from $43.2 million for the third quarter of fiscal 2007. Operating profit margin for the third quarter of fiscal 2008 was 19.9% compared to 22.7% in the second quarter of fiscal 2008 and 27.2% in the third quarter of fiscal 2007.
Income tax expense for the third quarter of fiscal 2008 was $13.8 million, compared to income tax expense of $13.3 million in the second quarter of fiscal 2008.
Net income for the third quarter of fiscal 2008 was $88.4 million, or $0.77 per diluted ADS, compared to net income of $149.5 million, or $1.29 per diluted ADS for the second quarter of fiscal 2008.
LDK Solar ended the third quarter of fiscal 2008 with $347.8 million in cash and cash equivalents and $115.0 million in short-term pledged bank deposits.
On September 24, 2008, LDK Solar closed a follow-on offering of 4,800,000 ADSs, resulting in net proceeds of $192.4 million from the offering. As disclosed in the prospectus, LDK Solar expects to use approximately 60% of the net proceeds to fund the construction of its polysilicon manufacturing plant, approximately 30% to fund the capacity expansion of its wafer production facilities and the remaining 10% to fund other general corporate activities.
"We are pleased to deliver strong third quarter financial results as we continue to experience robust demand and significant growth of our business," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Total revenue this quarter was at the high end of our previously released guidance. During the quarter, we also successfully completed a secondary share offering which resulted in net proceeds of approximately $192.4 million. As a result, we believe that we are well positioned with sufficient resources to fund our current growth plans through 2009. Our market leadership position is strengthened by our accelerated execution of our wafer capacity expansion, strong wafer supply contract backlog, and our geographically diverse customer base."
"The plant commissioning process for the 1,000 MT polysilicon plant has progressed and all stations are now fully operational. Based upon the current status of the commissioning and testing phase, we expect polysilicon output in early December 2008 and estimate 2008 production to be between 15 MT and 25 MT. We anticipate a smaller than previously expected polysilicon output in 2008 as we have committed more time to industry safety and environmental protection measures. We have made considerable progress on our construction schedule for both plants and remain confident in the timeline for the construction of our 15,000 MT polysilicon plant, where we currently expect the first 5,000 MT train to be operational at the end of first quarter or the beginning of the second quarter 2009. We remain confident that we will produce between 5,000 and 7,000 MT of polysilicon in 2009," continued Mr. Peng.
"As we look ahead, our business will not be immune to the current global economic downturn. However, given the strength of our business model, conservative financial management, and our strong cash position, we remain confident in our long-term growth opportunities, and in our ability to succeed and to continue our role in driving the solar industry forward," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.
For the fourth quarter of fiscal 2008, LDK Solar estimates its revenue to be in the range of $555 million to $565 million with wafer shipments between 260 MW to 270 MW and gross margin between 18% and 21%. By the end of fiscal 2008, LDK Solar currently expects to:
-- Reach an annualized wafer production capacity of 1.4 GW; and
-- Produce 15 to 25 MT of polysilicon.
For the full year of fiscal 2009, LDK Solar currently estimates:
-- Revenue to be in the range of $2.9 billion to $3.1 billion;
-- Wafer shipments in the range of 1.80 GW to 1.85 GW;
-- Annualized wafer production capacity to be 2.3 GW by the end of 2009;
-- Gross margin between 26% and 31%; and
-- Production of between 5,000 and 7,000 MT of polysilicon in 2009.
Trina Solar Announces Third Quarter 2008 Results
By: PR Newswire
CHANGZHOU, China, Nov. 19 /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, today announced its financial results for the third quarter 2008.
Third Quarter 2008 Financial Highlights
-- Solar module shipments were 66.36 MW, up 213.7% from 21.15 MW in the third quarter of 2007 and 39.5% from 47.57 MW in the second quarter of 2008
-- Total net revenues increased to $290.7 million, up 252.1% year-over-year and 42.4% sequentially
-- Gross margin was 22.4%, compared to 20.1% in the third quarter of 2007 and 23.2% in the second quarter of 2008
-- Operating margin was 16.1%, compared to 8.4% in the third quarter of 2007 and 14.3% in the second quarter of 2008
-- Net income was $32.1 million, compared to $7.8 million in the third quarter of 2007 and $17.1 million in the second quarter of 2008
-- Net income includes a foreign currency exchange loss of $4.9 million
-- Earnings per fully diluted ADS were $1.17. The effect of the third quarter foreign currency exchange losses was approximately $0.17 per fully diluted ADS
"We are very pleased with our strong performance during the third quarter," said Jifan Gao, Trina Solar's Chairman and CEO. "Despite further rising silicon costs, over the last four reporting quarters we have either met or exceeded our aggressive goals for output, revenues and operating margin. In the third quarter we again demonstrated the ability to leverage on our integrated manufacturing capabilities, enhanced further by significant improvements in operating efficiencies and cost controls as measured by our operating expenses. We are also pleased by the recently announced expansion of our product portfolio via our in-house developed UMG-based module product. This timely offering is expected to address increasing customer demand for lower cost modules, with initial sales expected in fourth quarter of 2008."
Third Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 300 MW for each of ingot, wafer, cell and module production as of September 30, 2008
-- Launched cell Lines 11 through 14, of which lines 11 and 12 were put into commercial production
-- Announced sales agreements with Invictus NV (Belgium), American Capital Energy (US), GreenergyCapital and Enel (Italy), and a sales and marketing collaboration agreement with Spanish Premier League Football Club Espanyol
-- Announced the product launch of an in-house developed UMG-based module product, with sales expected in the current fourth quarter
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the US, Belgium, France, South Korea, and Australia
-- Announced the Company's intentions to base its North American operations in the City of San Francisco
-- Announced the Company's intentions to establish warehouse operations in Rotterdam, a key port city in the Netherlands
Third Quarter 2008 Results
Net Revenues
Trina Solar's net revenues in the third quarter of 2008 were $290.7 million, an increase of 42.4% sequentially and 252.1% year-over-year. Total shipments in the third quarter of 2008 increased to 66.36 MW, up from 47.57 MW in the second quarter of 2008 and 21.15 MW in the third quarter of 2007. Average sales price ("ASP") was $4.09 in the third quarter of 2008, compared to $4.03 in the second quarter of 2008 and $3.75 in the third quarter of 2007.
Gross Profit and Margin
Gross profit in the third quarter of 2008 was $65.2 million, an increase of 37.6% sequentially and 292.9% year-over-year. Gross margin was 22.4% in the third quarter of 2008, a decrease from 23.2% in the second quarter of 2008 and an increase from 20.1% in the third quarter of 2007. The sequential decrease in gross margin was predominantly due to higher cost of silicon raw materials while the year-over-year increase was primarily due to higher module ASP and cost efficiencies from an increased degree of vertical integration, including in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the third quarter of 2008 were $18.4 million, or 6.3% of net revenues. This compares to 8.9% in the second quarter, reflecting the fourth straight quarterly improvement as a net revenue percentage. Operating expenses in the third quarter of 2008 included approximately $0.6 million of share-based compensation expenses.
Operating income in the third quarter of 2008 was $46.8 million, an increase of 60.6% sequentially and 575.0% year-over-year.
Operating margin was 16.1% in the third quarter of 2008, compared to 14.3% in the second quarter of 2008 and 8.4% in the third quarter of 2007. The sequential increase was primarily due to lower general and administrative expenses as a percentage of net revenues while the year-over-year increase was primarily due to both lower general and administrative expenses and selling expenses as a percentage of net revenues.
Net Interest Expense
Net Interest expense in the third quarter of 2008 was $7.2 million, compared to $5.1 million in the second quarter of 2008 and $0.6 million in the third quarter of 2007.
Foreign Currency Exchange Loss
Foreign currency exchange loss was $4.9 million in the third quarter of 2008, compared to $6.1 million sequentially. This was primarily due to the devaluation of the Euro against the U.S. Dollar, which resulted in a loss upon the remeasurement of the Company's receivables.
Net Income and EPS
Net income was $32.1 million in the third quarter of 2008, compared to $17.1 million in the second quarter of 2008 and $7.8 million in the third quarter of 2007. Net Income includes a foreign currency exchange loss of $4.9 million.
Net margin was 11.0% in the third quarter of 2008, compared to 8.4% in the second quarter of 2008 and 9.4% in the third quarter of 2007. The effect of the third quarter foreign currency exchange losses, net of tax effect, were approximately $0.17 per fully diluted ADS. Earnings per fully diluted ADS were $1.17.
Senior Convertible Notes Offering
On July 24, 2008, Trina Solar completed a public offering of $138 million of Senior Convertible Notes due 2013. The net proceeds of the offering is being used for the expansion of manufacturing lines for the production of silicon ingots, wafers, solar cells and solar modules, the purchase of raw materials, research and development and other general corporate purposes.
Financial Condition
As of September 30, 2008, the Company had $136.3 million in cash and cash equivalents, excluding the Company's restricted cash balance of $48.5 million. The restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities.
As of October 31, 2008, the Company's total approved credit facilities totaled approximately $450 million, of which includes approximately $150 million in available credit.
Fourth Quarter and Fiscal Year 2008 Guidance
For the fourth quarter of 2008, the Company expects to ship between 55 MW and 60 MW of PV modules and currently expects total net revenues to be in the range of $190 million to $210 million. The Company expects gross margin for the fourth quarter will likely be between 13% and 15% and estimates operating margin to range between 5% and 7% of total net revenues.
For the full year of 2008, the Company updates its projections as follows:
Total net revenues to be in the range of $800 million to $850 million, compared to previous guidance of $850 million to $900 million.
Total PV module shipments between 200 MW to 206 MW, compared to previous guidance of 210 MW to 220 MW.
The Company believes gross margin to be in the range of 20% and 22% for the year, compared to previous guidance of 23% and 25%, and estimates operating margin will likely be in the range of 12% to 14% of total net revenues, compared to previous guidance of 15% and 17%.
Business Outlook
Given industry concerns related to changes in the global economic and credit environments, the Company reiterates its confidence in regards to its financial strength and operational strategies for fiscal year 2009.
"We are confident in our ability to successfully navigate our operations and related capital requirements despite recent and significant market environment changes," stated Terry Wang, Chief Financial Officer. "We are fully aware of the risks and volatility of market conditions. After careful examination of various scenarios reflecting market demand, average selling price, and cost reductions of key material inputs, we reiterate expectations to preserve sufficient cash holdings and to maintain positive cashflows from operations initiated in the third quarter, which were over $20 million. These cashflows will drive the funding for future operations and capacity expansions, to be deployed prudently and effectively based on evolving market conditions."
Management Changes
The Company announces recent management changes:
Dr. Suping Chen has joined the Company as Vice President of Manufacturing, East Campus. Mr. Chen previously worked at Samsung Electronics (Suzhou) Semiconductor Co., Ltd. and at Seagate Technology International (Wuxi) Co., Ltd., where he served for over seven years in roles including Senior Product Manager and Operations Director. Dr. Chen, who formed his own management consulting company in 2006, has more than 12 years of IT manufacturing experience in China.
Dr. Qiang Huang has been appointed as Vice President of Technology. He replaces Mr. Ting Cheong Ang, the former Vice President of Technology Development. Dr. Huang served earlier as a Director of Manufacturing Engineering. Before joining our Company, he earlier served as Engineering Manager with Taiwan Semiconductor Manufacturing Co. (TSMC) and as a Senior Manager of Device Integration at ST Microelectronics in Singapore. Dr. Huang has more than eight years of commercial operations experience in semiconductor engineering development and engineering problem solving.
The Company also announces the appointment of Mr. Steven (Yu) Zhu as Vice President of International Procurement and Business Development. The position fills the vacancy created by the departure of Mr. Andrew Klump, the former Vice President of Business Development. Mr. Zhu, who joined the Company in 2005, earlier worked for IBM in the United States for four years as a global training leader and software engineer. Prior to joining the Company, Mr. Zhu also was founder and president of a wireless internet company from 2002 to 2005.
CHANGZHOU, China, Nov. 19 /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, today announced its financial results for the third quarter 2008.
Third Quarter 2008 Financial Highlights
-- Solar module shipments were 66.36 MW, up 213.7% from 21.15 MW in the third quarter of 2007 and 39.5% from 47.57 MW in the second quarter of 2008
-- Total net revenues increased to $290.7 million, up 252.1% year-over-year and 42.4% sequentially
-- Gross margin was 22.4%, compared to 20.1% in the third quarter of 2007 and 23.2% in the second quarter of 2008
-- Operating margin was 16.1%, compared to 8.4% in the third quarter of 2007 and 14.3% in the second quarter of 2008
-- Net income was $32.1 million, compared to $7.8 million in the third quarter of 2007 and $17.1 million in the second quarter of 2008
-- Net income includes a foreign currency exchange loss of $4.9 million
-- Earnings per fully diluted ADS were $1.17. The effect of the third quarter foreign currency exchange losses was approximately $0.17 per fully diluted ADS
"We are very pleased with our strong performance during the third quarter," said Jifan Gao, Trina Solar's Chairman and CEO. "Despite further rising silicon costs, over the last four reporting quarters we have either met or exceeded our aggressive goals for output, revenues and operating margin. In the third quarter we again demonstrated the ability to leverage on our integrated manufacturing capabilities, enhanced further by significant improvements in operating efficiencies and cost controls as measured by our operating expenses. We are also pleased by the recently announced expansion of our product portfolio via our in-house developed UMG-based module product. This timely offering is expected to address increasing customer demand for lower cost modules, with initial sales expected in fourth quarter of 2008."
Third Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 300 MW for each of ingot, wafer, cell and module production as of September 30, 2008
-- Launched cell Lines 11 through 14, of which lines 11 and 12 were put into commercial production
-- Announced sales agreements with Invictus NV (Belgium), American Capital Energy (US), GreenergyCapital and Enel (Italy), and a sales and marketing collaboration agreement with Spanish Premier League Football Club Espanyol
-- Announced the product launch of an in-house developed UMG-based module product, with sales expected in the current fourth quarter
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the US, Belgium, France, South Korea, and Australia
-- Announced the Company's intentions to base its North American operations in the City of San Francisco
-- Announced the Company's intentions to establish warehouse operations in Rotterdam, a key port city in the Netherlands
Third Quarter 2008 Results
Net Revenues
Trina Solar's net revenues in the third quarter of 2008 were $290.7 million, an increase of 42.4% sequentially and 252.1% year-over-year. Total shipments in the third quarter of 2008 increased to 66.36 MW, up from 47.57 MW in the second quarter of 2008 and 21.15 MW in the third quarter of 2007. Average sales price ("ASP") was $4.09 in the third quarter of 2008, compared to $4.03 in the second quarter of 2008 and $3.75 in the third quarter of 2007.
Gross Profit and Margin
Gross profit in the third quarter of 2008 was $65.2 million, an increase of 37.6% sequentially and 292.9% year-over-year. Gross margin was 22.4% in the third quarter of 2008, a decrease from 23.2% in the second quarter of 2008 and an increase from 20.1% in the third quarter of 2007. The sequential decrease in gross margin was predominantly due to higher cost of silicon raw materials while the year-over-year increase was primarily due to higher module ASP and cost efficiencies from an increased degree of vertical integration, including in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the third quarter of 2008 were $18.4 million, or 6.3% of net revenues. This compares to 8.9% in the second quarter, reflecting the fourth straight quarterly improvement as a net revenue percentage. Operating expenses in the third quarter of 2008 included approximately $0.6 million of share-based compensation expenses.
Operating income in the third quarter of 2008 was $46.8 million, an increase of 60.6% sequentially and 575.0% year-over-year.
Operating margin was 16.1% in the third quarter of 2008, compared to 14.3% in the second quarter of 2008 and 8.4% in the third quarter of 2007. The sequential increase was primarily due to lower general and administrative expenses as a percentage of net revenues while the year-over-year increase was primarily due to both lower general and administrative expenses and selling expenses as a percentage of net revenues.
Net Interest Expense
Net Interest expense in the third quarter of 2008 was $7.2 million, compared to $5.1 million in the second quarter of 2008 and $0.6 million in the third quarter of 2007.
Foreign Currency Exchange Loss
Foreign currency exchange loss was $4.9 million in the third quarter of 2008, compared to $6.1 million sequentially. This was primarily due to the devaluation of the Euro against the U.S. Dollar, which resulted in a loss upon the remeasurement of the Company's receivables.
Net Income and EPS
Net income was $32.1 million in the third quarter of 2008, compared to $17.1 million in the second quarter of 2008 and $7.8 million in the third quarter of 2007. Net Income includes a foreign currency exchange loss of $4.9 million.
Net margin was 11.0% in the third quarter of 2008, compared to 8.4% in the second quarter of 2008 and 9.4% in the third quarter of 2007. The effect of the third quarter foreign currency exchange losses, net of tax effect, were approximately $0.17 per fully diluted ADS. Earnings per fully diluted ADS were $1.17.
Senior Convertible Notes Offering
On July 24, 2008, Trina Solar completed a public offering of $138 million of Senior Convertible Notes due 2013. The net proceeds of the offering is being used for the expansion of manufacturing lines for the production of silicon ingots, wafers, solar cells and solar modules, the purchase of raw materials, research and development and other general corporate purposes.
Financial Condition
As of September 30, 2008, the Company had $136.3 million in cash and cash equivalents, excluding the Company's restricted cash balance of $48.5 million. The restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities.
As of October 31, 2008, the Company's total approved credit facilities totaled approximately $450 million, of which includes approximately $150 million in available credit.
Fourth Quarter and Fiscal Year 2008 Guidance
For the fourth quarter of 2008, the Company expects to ship between 55 MW and 60 MW of PV modules and currently expects total net revenues to be in the range of $190 million to $210 million. The Company expects gross margin for the fourth quarter will likely be between 13% and 15% and estimates operating margin to range between 5% and 7% of total net revenues.
For the full year of 2008, the Company updates its projections as follows:
Total net revenues to be in the range of $800 million to $850 million, compared to previous guidance of $850 million to $900 million.
Total PV module shipments between 200 MW to 206 MW, compared to previous guidance of 210 MW to 220 MW.
The Company believes gross margin to be in the range of 20% and 22% for the year, compared to previous guidance of 23% and 25%, and estimates operating margin will likely be in the range of 12% to 14% of total net revenues, compared to previous guidance of 15% and 17%.
Business Outlook
Given industry concerns related to changes in the global economic and credit environments, the Company reiterates its confidence in regards to its financial strength and operational strategies for fiscal year 2009.
"We are confident in our ability to successfully navigate our operations and related capital requirements despite recent and significant market environment changes," stated Terry Wang, Chief Financial Officer. "We are fully aware of the risks and volatility of market conditions. After careful examination of various scenarios reflecting market demand, average selling price, and cost reductions of key material inputs, we reiterate expectations to preserve sufficient cash holdings and to maintain positive cashflows from operations initiated in the third quarter, which were over $20 million. These cashflows will drive the funding for future operations and capacity expansions, to be deployed prudently and effectively based on evolving market conditions."
Management Changes
The Company announces recent management changes:
Dr. Suping Chen has joined the Company as Vice President of Manufacturing, East Campus. Mr. Chen previously worked at Samsung Electronics (Suzhou) Semiconductor Co., Ltd. and at Seagate Technology International (Wuxi) Co., Ltd., where he served for over seven years in roles including Senior Product Manager and Operations Director. Dr. Chen, who formed his own management consulting company in 2006, has more than 12 years of IT manufacturing experience in China.
Dr. Qiang Huang has been appointed as Vice President of Technology. He replaces Mr. Ting Cheong Ang, the former Vice President of Technology Development. Dr. Huang served earlier as a Director of Manufacturing Engineering. Before joining our Company, he earlier served as Engineering Manager with Taiwan Semiconductor Manufacturing Co. (TSMC) and as a Senior Manager of Device Integration at ST Microelectronics in Singapore. Dr. Huang has more than eight years of commercial operations experience in semiconductor engineering development and engineering problem solving.
The Company also announces the appointment of Mr. Steven (Yu) Zhu as Vice President of International Procurement and Business Development. The position fills the vacancy created by the departure of Mr. Andrew Klump, the former Vice President of Business Development. Mr. Zhu, who joined the Company in 2005, earlier worked for IBM in the United States for four years as a global training leader and software engineer. Prior to joining the Company, Mr. Zhu also was founder and president of a wireless internet company from 2002 to 2005.
Dow Corning, Wacker Chemie start production at $1.2B silicon plant
November 18, 2008
Chinese plant expects to produce pyrogenic silica and siloxane, upstream products for silicon used in solar, construction, automotive, electronics and other industries.
Munich, Germany-based Wacker Chemie (Frankfurt:WCH.F) and Michigan's Dow Corning have started production in the first stage of their pyrogenic silica and siloxane plants in Zhangjiagang, China.
The 1 million square-meter site in the Jiangsu Yangtze River Chemical Industrial Park represents an investment of about $1.2 billion. The complex is producing upstream materials for silicon, which is then used in construction, automotive, electronics, beauty products, healthcare, utilities, solar, textile, and paper.
Wacker and Dow Corning plan to jointly operate the facilities. Separate plants at the complex will manufacture finished silicon products, the companies said.
The complex has the combined capacity to produce 200,000 metric tons of siloxane and pyrogenic silica a year, with full capacity expected to be reached at the end of 2010. The companies said the facility is the largest of its kind in China.
The companies said the integrated facilities operate in a loop to reduce emissions and improve efficiency. The siloxane plant produces chlorosilane, which is used to make pyrogenic silica, while the pyrogenic silica plant has a byproduct of hydrogen chloride, which is used in the production of siloxane.
Dow Corning is a joint venture equally owned by The Dow Chemical Company (NYSE:DOW) and Corning (NYSE:GLW).
Chinese plant expects to produce pyrogenic silica and siloxane, upstream products for silicon used in solar, construction, automotive, electronics and other industries.
Munich, Germany-based Wacker Chemie (Frankfurt:WCH.F) and Michigan's Dow Corning have started production in the first stage of their pyrogenic silica and siloxane plants in Zhangjiagang, China.
The 1 million square-meter site in the Jiangsu Yangtze River Chemical Industrial Park represents an investment of about $1.2 billion. The complex is producing upstream materials for silicon, which is then used in construction, automotive, electronics, beauty products, healthcare, utilities, solar, textile, and paper.
Wacker and Dow Corning plan to jointly operate the facilities. Separate plants at the complex will manufacture finished silicon products, the companies said.
The complex has the combined capacity to produce 200,000 metric tons of siloxane and pyrogenic silica a year, with full capacity expected to be reached at the end of 2010. The companies said the facility is the largest of its kind in China.
The companies said the integrated facilities operate in a loop to reduce emissions and improve efficiency. The siloxane plant produces chlorosilane, which is used to make pyrogenic silica, while the pyrogenic silica plant has a byproduct of hydrogen chloride, which is used in the production of siloxane.
Dow Corning is a joint venture equally owned by The Dow Chemical Company (NYSE:DOW) and Corning (NYSE:GLW).
CSG Holding tests polysilicon production
CSG Holding disclosed that their polysilicon project executed by Yichang Nanbo Silicon is testing polysilicon production now.
The first phase project capacity is 1,500 metric ton polysilicon, and the construction began in June 2007, and the construction, equipment installation and adjustment and personnel training have be finished as scheduled, and they are testing the polysilicon production now.
The first phase project capacity is 1,500 metric ton polysilicon, and the construction began in June 2007, and the construction, equipment installation and adjustment and personnel training have be finished as scheduled, and they are testing the polysilicon production now.
Daqo started 6,000 metric ton polysilicon project in Zhenjiang
November 16th 2008, Daqo group signed 6,000 metric ton polysilicon project investment agreement with Zhenjiang government.
Daqo group already has one polysilicon project in Wanzhou, Sichuan province and the Wanzhou polysilicon project started production in this July.
Daqo group already has one polysilicon project in Wanzhou, Sichuan province and the Wanzhou polysilicon project started production in this July.
ReneSola Ltd Announces Third Quarter 2008 Results
Third Quarter Revenues Increased 197.4% Year-Over-Year; Third Quarter Net Income Increased 153.5% Year-Over-Year
JIASHAN, China, Nov. 18 /PRNewswire-FirstCall/ -- ReneSola Ltd ('ReneSola' or the 'Company'), a leading global manufacturer of solar wafers, today announced its unaudited financial results for the third quarter of 2008.
Financial and Business Highlights
-- Third quarter 2008 net revenues were US$215.8 million, an increase of 197.4% from US$72.5 million in the third quarter of 2007, and an increase of 25.5% from US$171.9 million in the second quarter of 2008.
-- Third quarter 2008 gross margin was 21.2% compared to 22.4% in the second quarter of 2008.
-- Third quarter 2008 net income was US$32.4 million, an increase of 153.5% from US$12.8 million in the third quarter of 2007, and an increase of 38.9% from US$23.3 million in the second quarter of 2008.
-- Third quarter 2008 basic and diluted earnings per share were US$0.24 and US$0.23, respectively, and basic and diluted earnings per ADS were US$0.48 and US$0.46, respectively. Each ADS represents two shares.
-- Third quarter production output was 102.1 MW, an increase of 23.8% from 82.5 MW in the second quarter of 2008, exceeding previously issued guidance released in the second quarter of 2008 and at the high-end of our revised guidance issued on November 3, 2008.
-- Silicon consumption rate decreased to 6.1 grams per watt in the third quarter of 2008 from 6.24 grams per watt in the second quarter of 2008.
-- Commissioned 90 MW of multicrystalline ingot and wafer capacity and 35 MW of monocrystalline ingot and wafer capacity on schedule.
-- Secured additional credit lines with two of China's leading banks providing the Company with an aggregate of RMB2.8 billion in new and existing credit facilities. The Company had US$125.2 million in cash, cash equivalents and restricted cash on its balance sheet as of September 30, 2008.
-- Development of wholly-owned Sichuan polysilicon project progressing on-schedule.
Note: For ease of comparison, pro forma results are shown throughout this statement for the second quarter of 2008, reflecting the contribution of the Company's polysilicon production joint venture in Henan province, China under the equity accounting method, which was adopted with effect from June 28, 2008.
Three months Three months Three months
ended 9/30/07 ended 6/30/08 ended 9/30/08
(Pro forma)
Net revenue (US$000) 72,540 171,889 215,754
Gross profit (US$000) 15,775 38,426 45,809
Gross margin (%) 21.7 22.4 21.2
Operating profit (US$000) 13,432 30,535 36,888
Foreign exchange loss (US$000) (569) (797) (1,192)
Profit for the period (US$000) 12,775 23,309 32,385
Production output (MW) 36.0 82.5 102.1
'We enjoyed an outstanding third quarter with continued significant growth driven by strong market demand for our quality wafer products, further reductions in our silicon consumption rate and the successful implementation of our expansion strategy,' said Mr. Xianshou Li, ReneSola's chief executive officer. 'Our third quarter expansion and ramp-up in wafer production capacity was smooth and keeps us on track to reach our 2008 full year capacity expansion target of 645 megawatts in annualized ingot production capacity.'
Mr. Li continued, 'The third quarter momentum continued through the first month of the fourth quarter and we saw strong results for October. However, since the beginning of November, we have seen downstream industry demand from Chinese customers being negatively impacted by various factors as a result of the global financial crisis.'
'Whilst we may benefit from a lack of direct exposure to many of the negative factors, we recognize the challenges that the industry faces in the near term. Spot polysilicon prices have declined significantly in recent weeks. Although this will translate to a lower cost base for our wafer production, we are experiencing pressure on wafer ASPs. The combination of these factors is likely to have a negative impact on our operating and financial results for the fourth quarter of 2008 into the first quarter of 2009.'
'Looking ahead, we are confident the current challenges in the industry are temporary and that the mid- to long-term prospects remain strong, particularly as lower raw material costs and ASPs should increase demand and lessen the industry's reliance on government subsidies. While the Company's cash position remains healthy and funding availability is further strengthened by the additional credit facilities from two of China's largest banks, we will continue to focus on streamlining our operations through strict cost controls while working to achieve further technological improvements as we position our company for continuing long-term success. The incremental supply from our upstream polysilicon manufacturing, combined with an expected increase in tolling production, and our continuing efforts in achieving productivity gains and diversifying our customer base, will help to alleviate the pressure on our business.'
Financial Results for the Third Quarter
Net Revenues
Net revenues for the third quarter of 2008 were US$215.8 million, an increase of 25.5% sequentially and 197.4% year-over-year. The increase in third quarter revenues was primarily attributable to an increase in output from the expanded production capacity and an increase in wafer ASPs.
Gross Profit
Gross profit for the third quarter of 2008 was US$45.8 million, a 19.2% increase sequentially and 190.4% year-over-year. The gross margin for the third quarter of 2008 was 21.2% compared to 22.4% in the second quarter of 2008. The decrease in gross margin was primarily attributable to an increase in feedstock costs, higher non-material related production costs due to higher inflation and a write-down of approximately $5.3 million on the value of certain raw materials. This was partially offset by a further reduction in the silicon consumption rate to 6.1 grams per watt from 6.24 grams per watt in the second quarter of 2008 and increases in wafer ASPs.
Operating Profit
Operating profit for the third quarter of 2008 was US$36.9 million, an increase of 20.8% sequentially and 174.6% year-over-year. The operating margin was 17.1% in the third quarter of 2008 compared to 17.8% in the second quarter of 2008. Total operating expenses in the third quarter of 2008 increased to US$8.9 million from US$7.9 million in the second quarter of 2008.
Earnings before Income Tax, Minority Interest and Equity in Earnings of Investee
Earnings before income tax, minority interest and equity in earnings of investee for the third quarter of 2008 were US$32.7 million, a 20.3% increase sequentially and 174.4% year-over-year. Finance costs increased by 19.0% sequentially, reflecting higher interest rates. Finance costs as a percentage of net revenue decreased from 1.6% in the second quarter of 2008 to 1.5% in the third quarter of 2008.
JIASHAN, China, Nov. 18 /PRNewswire-FirstCall/ -- ReneSola Ltd ('ReneSola' or the 'Company'), a leading global manufacturer of solar wafers, today announced its unaudited financial results for the third quarter of 2008.
Financial and Business Highlights
-- Third quarter 2008 net revenues were US$215.8 million, an increase of 197.4% from US$72.5 million in the third quarter of 2007, and an increase of 25.5% from US$171.9 million in the second quarter of 2008.
-- Third quarter 2008 gross margin was 21.2% compared to 22.4% in the second quarter of 2008.
-- Third quarter 2008 net income was US$32.4 million, an increase of 153.5% from US$12.8 million in the third quarter of 2007, and an increase of 38.9% from US$23.3 million in the second quarter of 2008.
-- Third quarter 2008 basic and diluted earnings per share were US$0.24 and US$0.23, respectively, and basic and diluted earnings per ADS were US$0.48 and US$0.46, respectively. Each ADS represents two shares.
-- Third quarter production output was 102.1 MW, an increase of 23.8% from 82.5 MW in the second quarter of 2008, exceeding previously issued guidance released in the second quarter of 2008 and at the high-end of our revised guidance issued on November 3, 2008.
-- Silicon consumption rate decreased to 6.1 grams per watt in the third quarter of 2008 from 6.24 grams per watt in the second quarter of 2008.
-- Commissioned 90 MW of multicrystalline ingot and wafer capacity and 35 MW of monocrystalline ingot and wafer capacity on schedule.
-- Secured additional credit lines with two of China's leading banks providing the Company with an aggregate of RMB2.8 billion in new and existing credit facilities. The Company had US$125.2 million in cash, cash equivalents and restricted cash on its balance sheet as of September 30, 2008.
-- Development of wholly-owned Sichuan polysilicon project progressing on-schedule.
Note: For ease of comparison, pro forma results are shown throughout this statement for the second quarter of 2008, reflecting the contribution of the Company's polysilicon production joint venture in Henan province, China under the equity accounting method, which was adopted with effect from June 28, 2008.
Three months Three months Three months
ended 9/30/07 ended 6/30/08 ended 9/30/08
(Pro forma)
Net revenue (US$000) 72,540 171,889 215,754
Gross profit (US$000) 15,775 38,426 45,809
Gross margin (%) 21.7 22.4 21.2
Operating profit (US$000) 13,432 30,535 36,888
Foreign exchange loss (US$000) (569) (797) (1,192)
Profit for the period (US$000) 12,775 23,309 32,385
Production output (MW) 36.0 82.5 102.1
'We enjoyed an outstanding third quarter with continued significant growth driven by strong market demand for our quality wafer products, further reductions in our silicon consumption rate and the successful implementation of our expansion strategy,' said Mr. Xianshou Li, ReneSola's chief executive officer. 'Our third quarter expansion and ramp-up in wafer production capacity was smooth and keeps us on track to reach our 2008 full year capacity expansion target of 645 megawatts in annualized ingot production capacity.'
Mr. Li continued, 'The third quarter momentum continued through the first month of the fourth quarter and we saw strong results for October. However, since the beginning of November, we have seen downstream industry demand from Chinese customers being negatively impacted by various factors as a result of the global financial crisis.'
'Whilst we may benefit from a lack of direct exposure to many of the negative factors, we recognize the challenges that the industry faces in the near term. Spot polysilicon prices have declined significantly in recent weeks. Although this will translate to a lower cost base for our wafer production, we are experiencing pressure on wafer ASPs. The combination of these factors is likely to have a negative impact on our operating and financial results for the fourth quarter of 2008 into the first quarter of 2009.'
'Looking ahead, we are confident the current challenges in the industry are temporary and that the mid- to long-term prospects remain strong, particularly as lower raw material costs and ASPs should increase demand and lessen the industry's reliance on government subsidies. While the Company's cash position remains healthy and funding availability is further strengthened by the additional credit facilities from two of China's largest banks, we will continue to focus on streamlining our operations through strict cost controls while working to achieve further technological improvements as we position our company for continuing long-term success. The incremental supply from our upstream polysilicon manufacturing, combined with an expected increase in tolling production, and our continuing efforts in achieving productivity gains and diversifying our customer base, will help to alleviate the pressure on our business.'
Financial Results for the Third Quarter
Net Revenues
Net revenues for the third quarter of 2008 were US$215.8 million, an increase of 25.5% sequentially and 197.4% year-over-year. The increase in third quarter revenues was primarily attributable to an increase in output from the expanded production capacity and an increase in wafer ASPs.
Gross Profit
Gross profit for the third quarter of 2008 was US$45.8 million, a 19.2% increase sequentially and 190.4% year-over-year. The gross margin for the third quarter of 2008 was 21.2% compared to 22.4% in the second quarter of 2008. The decrease in gross margin was primarily attributable to an increase in feedstock costs, higher non-material related production costs due to higher inflation and a write-down of approximately $5.3 million on the value of certain raw materials. This was partially offset by a further reduction in the silicon consumption rate to 6.1 grams per watt from 6.24 grams per watt in the second quarter of 2008 and increases in wafer ASPs.
Operating Profit
Operating profit for the third quarter of 2008 was US$36.9 million, an increase of 20.8% sequentially and 174.6% year-over-year. The operating margin was 17.1% in the third quarter of 2008 compared to 17.8% in the second quarter of 2008. Total operating expenses in the third quarter of 2008 increased to US$8.9 million from US$7.9 million in the second quarter of 2008.
Earnings before Income Tax, Minority Interest and Equity in Earnings of Investee
Earnings before income tax, minority interest and equity in earnings of investee for the third quarter of 2008 were US$32.7 million, a 20.3% increase sequentially and 174.4% year-over-year. Finance costs increased by 19.0% sequentially, reflecting higher interest rates. Finance costs as a percentage of net revenue decreased from 1.6% in the second quarter of 2008 to 1.5% in the third quarter of 2008.
Taiwan silicon wafer firm sees '09 capacity up 40-50 pct
HSINCHU, Taiwan, Nov 18 (Reuters) - Sino-American Silicon Products Inc, Taiwan's top maker of silicon wafers for solar cells, said on Tuesday it will boost its capacity 40-50 percent next year, amid booming demand for alternative energy.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
Tuesday, November 18, 2008
Inner Mongolia reached 2GW wind power generation capacity
By the end of October 2008, the cumulative installed wind power generation capacity in Inner Mongolia reached 2.0568GW. And Inner Mongolia is the first province that reached 2GW wind power generation capacity.
By the end of October 2008, the cumulative generated wind power in Inner Mongolia reached 2.496KWH.
Inner Mongolia plans to reach 5GW wind power generation capacity by the end of 2010 with six GW grade wind power generation bases.
By the end of October 2008, the cumulative generated wind power in Inner Mongolia reached 2.496KWH.
Inner Mongolia plans to reach 5GW wind power generation capacity by the end of 2010 with six GW grade wind power generation bases.
Taiwan pushes wind power
TAIPEI, Taiwan, Nov. 17 (UPI) -- Taiwan's wind power capacity is set to increase to 3,000 megawatts by 2020.
The government of Taiwan is moving to increase its renewable energy focus, and wind is one of the country's most important renewable resources, according to Asia in Focus.
The Industrial Technology Research Institute made the 3,000-megawatt prediction and said that $6.12 billion is expected to be spent on wind turbines by 2020.
ITR researchers also predicted that by 2009 China will replace the United States as the world's largest country in terms of wind power installation capacity. The Chinese government is working to increase investment to boost the capacity of wind power.
© 2008 United Press International, Inc. All Rights Reserved.
The government of Taiwan is moving to increase its renewable energy focus, and wind is one of the country's most important renewable resources, according to Asia in Focus.
The Industrial Technology Research Institute made the 3,000-megawatt prediction and said that $6.12 billion is expected to be spent on wind turbines by 2020.
ITR researchers also predicted that by 2009 China will replace the United States as the world's largest country in terms of wind power installation capacity. The Chinese government is working to increase investment to boost the capacity of wind power.
© 2008 United Press International, Inc. All Rights Reserved.
China's wind market expansion unfazed by global slowdown
Tuesday, 18 November 2008
China's plans to reach 100GW of installed wind power generation capacity by 2020 are unlikely to be derailed-or even side-tracked-by the current global financial crisis, according to a recent study of China's towering wind power market.
In a new assessment, China Wind Power Markets and Strategies, 2008-2020, Emerging Energy Research (EER) reports that despite inevitable slowdowns in markets elsewhere, China's wind initiatives are so large in scale and so well supported by the government, that the country's new renewable energy goals are likely be met well before the 2020 target. China is on track to become the single largest market for wind power by 2011. In just two years, China will account for more than 17% of the world's installed wind generation capacity, financed by an investment of more than US$ 20 billion. EER's new study was completed following three months of in-market, primary research and interviews by EER's Asia research team with dozens of Chinese independent power producers (IPPs), utilities, component and turbine manufacturers, and government and provincial ministries. As part of the study, three forecasts (conservative, baseline, and aggressive) for China's wind market were developed, detailing wind energy capacity additions through 2020.
China's plans to reach 100GW of installed wind power generation capacity by 2020 are unlikely to be derailed-or even side-tracked-by the current global financial crisis, according to a recent study of China's towering wind power market.
In a new assessment, China Wind Power Markets and Strategies, 2008-2020, Emerging Energy Research (EER) reports that despite inevitable slowdowns in markets elsewhere, China's wind initiatives are so large in scale and so well supported by the government, that the country's new renewable energy goals are likely be met well before the 2020 target. China is on track to become the single largest market for wind power by 2011. In just two years, China will account for more than 17% of the world's installed wind generation capacity, financed by an investment of more than US$ 20 billion. EER's new study was completed following three months of in-market, primary research and interviews by EER's Asia research team with dozens of Chinese independent power producers (IPPs), utilities, component and turbine manufacturers, and government and provincial ministries. As part of the study, three forecasts (conservative, baseline, and aggressive) for China's wind market were developed, detailing wind energy capacity additions through 2020.
Shanghai will pay for the solar power transfered to the power grid
Shanghai government released solar PV power project management policies, and the policies will come into effect on December 1st 2008.
The solar power projects in Shanghai will be able to be connected to the power grid after they get approval from Shanghai government, and the generated solar power will be purchased by the power grid company.
No further details are available at present.
The solar power projects in Shanghai will be able to be connected to the power grid after they get approval from Shanghai government, and the generated solar power will be purchased by the power grid company.
No further details are available at present.
China, U.S. to collaborate on solar energy technology
www.chinaview.cn 2008-11-17
BEIJING, Nov. 17 (Xinhua) -- China and the United States have agreed to work together on research into advanced solar energy technologies.
The Institute of Electrical Engineering (IEE) under the Chinese Academy of Sciences (CAS) and the U.S. National Renewable Energy Laboratory (NREL), which is affiliated with the Department of Energy, signed a memorandum of understanding over the weekend.
Under the pact, they'll share research on photovoltaic (PV) power generation technologies.
One facet of collaboration, IEE director Xiao Liye said, will be a sophisticated PV cell and module test center, probably in Beijing. The program also includes research data sharing, personnel exchanges and battery-related efforts, Xiao said.
Dan Arvizu, head of the NREL, said he hoped to extend cooperation in line with the common interests of both countries.
IEE is a national facility that carries out high-technology research and development.
NREL focuses on solar, wind, biomass, geothermal, hydrogen energy and fuel cell research.
Editor: Sally Zhang
BEIJING, Nov. 17 (Xinhua) -- China and the United States have agreed to work together on research into advanced solar energy technologies.
The Institute of Electrical Engineering (IEE) under the Chinese Academy of Sciences (CAS) and the U.S. National Renewable Energy Laboratory (NREL), which is affiliated with the Department of Energy, signed a memorandum of understanding over the weekend.
Under the pact, they'll share research on photovoltaic (PV) power generation technologies.
One facet of collaboration, IEE director Xiao Liye said, will be a sophisticated PV cell and module test center, probably in Beijing. The program also includes research data sharing, personnel exchanges and battery-related efforts, Xiao said.
Dan Arvizu, head of the NREL, said he hoped to extend cooperation in line with the common interests of both countries.
IEE is a national facility that carries out high-technology research and development.
NREL focuses on solar, wind, biomass, geothermal, hydrogen energy and fuel cell research.
Editor: Sally Zhang
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