March 13, 2008: 08:42 AM EST
LONDON, Mar. 13, 2008 (Thomson Financial delivered by Newstex) -- Suntech Power Holdings Co (NYSE:STP) will pay $100 million to Nitol Solar to acquire a minority stake in the polysilicon producer, the two companies said Thursday. Suntech already works with Nitol, supplying the solar cell maker with polysilicon since August 2007.
Thursday, March 13, 2008
LDK Solar says nearly sold all wafer capacity for 2008, 2009
March 13, 2008: 04:31 AM EST
LONDON, Mar. 13, 2008 (Thomson Financial delivered by Newstex) -- LDK Solar Co Ltd (NYSE:LDK) said that based upon its current backlog of contracts, it has almost sold out its entire solar wafer capacity for 2008 and has sold more than 90 pct of capacity for 2009.
The manufacturer of multicrystalline solar wafers confirmed it had increased the value of its inventory to 380 mln usd at the end of 2007.
Inventory in transit represented the most significant portion of the increase during the quarter as it purchased silicon material from around the globe, LDK said.
LONDON, Mar. 13, 2008 (Thomson Financial delivered by Newstex) -- LDK Solar Co Ltd (NYSE:LDK) said that based upon its current backlog of contracts, it has almost sold out its entire solar wafer capacity for 2008 and has sold more than 90 pct of capacity for 2009.
The manufacturer of multicrystalline solar wafers confirmed it had increased the value of its inventory to 380 mln usd at the end of 2007.
Inventory in transit represented the most significant portion of the increase during the quarter as it purchased silicon material from around the globe, LDK said.
Suntech Power prices $500 million in convertible debt
March 12, 2008: 08:35 AM EST
NEW YORK, Mar. 12, 2008 (Thomson Financial delivered by Newstex) -- Suntech Power Holdings Co. (NYSE:STP) said it priced a private offering of $500 million worth of convertible debt, due 2013.
The initial conversion rate is 24.3153 American Depositary Shares per $1,000 principal amount, representing a price of $41.13 per ADS.
The China-based solar power (OTCBB:SOPW) cells maker said it also granted the initial buyers of the debt options to buy an additional $75 million of the notes to cover over-allotments.
The company plans to use about $300 million of the proceeds for procuring upstream supplies and for capacity expansion.
On March 10, the company said planned to offer $425 million of convertible debt in a private offering, with an additional $75 million to cover over-allotments.
NEW YORK, Mar. 12, 2008 (Thomson Financial delivered by Newstex) -- Suntech Power Holdings Co. (NYSE:STP) said it priced a private offering of $500 million worth of convertible debt, due 2013.
The initial conversion rate is 24.3153 American Depositary Shares per $1,000 principal amount, representing a price of $41.13 per ADS.
The China-based solar power (OTCBB:SOPW) cells maker said it also granted the initial buyers of the debt options to buy an additional $75 million of the notes to cover over-allotments.
The company plans to use about $300 million of the proceeds for procuring upstream supplies and for capacity expansion.
On March 10, the company said planned to offer $425 million of convertible debt in a private offering, with an additional $75 million to cover over-allotments.
JA Solar Reports Fourth Quarter and Full Year 2007 Results
Fourth Quarter 2007 Highlights
* Revenue of RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% over Q4 2006
* Income from operations of RMB 132.9 million (US$ 18.2 million), an increase of 79.3% over Q4 2006
* Total gross profit of RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in Q4 2006
* Gross margin was 21.2% compared to 23.9% in Q4 2006
* Net income of RMB 0.64 (US$ 0.09) per diluted ADS, which included a foreign exchange loss of RMB 57.3 million (US$ 7.9 million) compared to RMB 0.82 (US$ 0.11) per diluted ADS, which included a foreign exchange gain of RMB 1.0 million (US$ 0.1 million) in Q4 2006
* Shipped 50.2 MW, up 266.4%over Q4 2006 Full Year 2007 Highlights
* Full year 2007 revenues of RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% over 2006
* Income from operations of RMB 446.4 million (US$ 61.2 million), an increase of 240.0% over 2006
* Total gross profit of RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million) in 2006
* Gross margin was 22.3% compared to 24.7% in 2006
* Net income of RMB 2.93 (US$ 0.40) per diluted ADS compared to RMB 1.08 (US$ 0.15) per diluted ADS for the full year 2006
* Shipped 132.4 MW in 2007, an increase of 403.4% from 2006
* Increased annual manufacturing capacity from 75MW to 175MW Outlook for 2008
* Expect Full Year 2008 revenues in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion)
* Expect 2008 gross margin to be above 20%
* Expect to break ground on new solar cell manufacturing facility in Yangzhou, China during second half 2008
* Raising annual production capacity to 500 MW from 425 MW by the end of 2008
* Expect 2008 production output of 340 MW
HEBEI, China, March 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the fourth quarter and year ended December 31, 2007.
Fourth Quarter 2007 Results
Total revenues for the fourth quarter 2007 were RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% from fourth quarter 2006 quarter revenues of RMB 349.4 million (US$ 47.9 million), and an increase of 23.7% from third quarter 2007 revenues of RMB 850.0 million (US$ 116.5 million).
Total gross profit for the fourth quarter 2007 was RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in the fourth quarter 2006, and RMB 199.3 million (US$ 27.3 million) in the third quarter 2007. Gross margin was 21.2% in the fourth quarter of 2007 compared to 23.9% in the fourth quarter of 2006, and 23.5% in the third quarter of 2007.
Net income available to ordinary shareholders for the fourth quarter 2007 was RMB 98.3 million (US$ 13.5 million) compared to a net income available to ordinary shareholders of RMB 66.9 million (US$ 9.2 million) for the fourth quarter 2006, and net income available to ordinary shareholders of RMB 165.9 million (US$ 22.7 million) for the third quarter 2007.
For the fourth quarter 2007 basic and diluted earnings per ADS were RMB 0.65 (US$ 0.09) and RMB 0.64 (US$ 0.09), respectively. The fourth quarter 2007 included share-based compensation expense of RMB 61.2 million (US$ 8.4 million) and foreign exchange loss of RMB 57.3 million (US$ 7.9 million).
Capital expenditures were RMB 128.9 million (US$ 17.7 million) in the fourth quarter 2007, as compared to RMB 23.6 million (US$ 3.2 million) in the fourth quarter 2006, and RMB 144.3 million (US$ 19.8 million) in the third quarter 2007. Depreciation and amortization expenses in the fourth quarter 2007 were RMB 11.9 million (US$ 1.6 million), as compared to RMB 4.9 million (US$ 0.7 million) in the fourth quarter 2006, and RMB 10.7 million (US$ 1.5 million) in the third quarter 2007.
As of December 31, 2007, JA Solar had cash and cash equivalents of RMB 1.15 billion (US$ 157.0 million) compared with RMB 95.8 million (US$ 13.1 million) at the end of the fourth quarter 2006, and RMB 0.79 billion (US$ 108.9 million) at the end of the third quarter 2007. Short term debt increased to RMB 200.0 million (US$ 27.4 million) at the end of the fourth quarter 2007 from RMB 150.0 million (US$ 20.6 million) at the end of the fourth quarter 2006, and RMB 150.0 million (US$ 20.6 million) at the end of third quarter 2007.
Summary of megawatts produced and shipped (includes cell processing service)
---------------------------------------------------------------
Three months ended
---------------------------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
Megawatts 2006 2007 2007
---------------------------------------------------------------
Produced 17.1MW 44.6MW 48.7MW
---------------------------------------------------------------
Shipped 13.7MW 43.8MW 50.2MW
---------------------------------------------------------------
Cost per
watt
excluding
wafer cost US$0.228/Wp US$ 0.192/Wp US$ 0.190/Wp
---------------------------------------------------------------
2007 Full Year Results
Revenues for the full year 2007 were RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% from the full year 2006 revenues of RMB 696.5 million (US$ 95.5 million). The increase was principally due to continued strong growth in market demand for PV industry and our ability to expand the Company's production capacity to support the business growth.
Total gross profit for 2007 was RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million). Total gross margin was 22.3% for 2007 compared to 24.7% for 2006.
Net income available to ordinary shareholders for the full year 2007 was RMB 398.2 million (US$ 54.6 million) compared to a net income available to ordinary shareholders of RMB 86.4 million (US$ 11.8 million) for the full year 2006.
For the full year 2007 basic and diluted earnings per ADS were RMB 2.96 (US$ 0.41) and RMB 2.93 (US$ 0.40), respectively.
The full year 2007 included share-based compensation expense of RMB 88.8 million (US$ 12.2 million) and foreign exchange loss of RMB 112.8 million (US$ 15.5 million).Diluted earnings per ADS calculations for the full year 2007 were based on 136.72 million weighted average numbers of ADSs outstanding, compared to 80.17 million ADSs in 2006.
Capital expenditures were RMB 421.8 million (US$ 57.8 million) for the full year 2007, as compared to RMB 107.6 million (US$ 14.8 million) for the full year 2006. The increase was primarily due to expanding of new production capacity. Depreciation and amortization expenses for the full year 2007 were RMB 34.1 million (US$ 4.7 million), as compared to RMB 11.2 million (US$ 1.5 million) for the full year 2006.
Effective from February 7, 2008, the Company changed its ADS to ordinary share ratio from the one ADS for every three ordinary shares to one ADS for every one ordinary share. Both the basic and diluted earnings per ADS and both the basic and diluted weighted average number of ADSs outstanding for all periods presented have been restated to conform to the current ADS ratio accordingly.
The conversion of Renminbi into U.S. dollars for the full year of 2007 and the fourth quarter of 2007 in this release, made solely for the convenience of the reader, is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of December 31, 2007, which was RMB 7.2946 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on December 31, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
"We once again achieved record revenues in the fourth quarter of 2007 and extraordinary business growth for the full year," said Samuel Yang, JA Solar's Chief Executive Officer. "During the year, we increased our annual production capacity from 75MW to 175MW, and achieved impressive throughput and yield from our cell lines without compromising profitability. The several key additions in talent to our teams in sales and marketing, technology, and at the executive level helped ensure the smooth execution of our expansion. Our strategic decision to expand our supply sources and our practice of holding JA Solar's products to one of the highest performance standards in the industry were also contributing factors to our success. On the supply side, we were able to expand our base of major suppliers from two to four and contractually secured sufficient wafer supply to cover our anticipated 2008 production capacity."
"In 2008 we plan to build on JA Solar's strong brand and technology platform through increased sales and marketing efforts, greater investment in R&D, and continued expansion of our production capacity. We have already broken ground for ten new cell lines in Hebei, and plan to break ground for another ten cell lines at a new facility in Yangzhou during the second half of 2008. On the technology front, we plan to open a research laboratory in Silicon Valley, California.
We believe the true driving force for broader application of solar technology and the achievement of grid parity is low cost. By 2010, JA Solar strives to be a cost leader in the industry and establish the industry cost benchmark through technical innovation and operational efficiency. We have enormous confidence that our production scale and execution capability would position JA Solar to achieve aggressive cost reductions as we address a rapidly evolving market."
JA Solar's CFO, Herman Zhao, said, "In 2007 JA Solar demonstrated our financial discipline through the ability to more than double our annual production capacity while achieving impressive top line growth and profitability. While our performance was strong in Q4, we experienced foreign exchange losses in the quarter, which impacted our bottom line. Due to the depreciation of the U.S. dollar against the RMB in Q4, we recorded foreign exchange losses of RMB 57.3 million (US$ 7.9 million) for the quarter. Going forward we plan to manage the foreign exchange impact to our bottom line through focused initiatives which involve converting foreign currencies into RMB, currency hedging, diversification of our international supplier base, and the addition of pricing clauses in our international sales contracts. While the economic environment is expected to remain volatile, we expect another record year for our Company in terms of growth and profitability in 2008. We are fully committed to bringing further value to our shareholders in 2008 and future years."
2008 Outlook
Based on current customer demand and market forecasts, we expect revenues for the full year 2008 in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion). Gross margins for 2008 are expected to be above 20%.
We expect total production output of approximately 340MW for 2008, with a total annual production capacity of 500MW, which is above our previous annual production capacity guidance of 425MW.
The capital expenditures are expected to be RMB 966.8 million (US$ 132.5 million), primarily for capacity expansion. R&D expense is expected to be RMB 36.6 million (US$ 5.0 million).
* Revenue of RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% over Q4 2006
* Income from operations of RMB 132.9 million (US$ 18.2 million), an increase of 79.3% over Q4 2006
* Total gross profit of RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in Q4 2006
* Gross margin was 21.2% compared to 23.9% in Q4 2006
* Net income of RMB 0.64 (US$ 0.09) per diluted ADS, which included a foreign exchange loss of RMB 57.3 million (US$ 7.9 million) compared to RMB 0.82 (US$ 0.11) per diluted ADS, which included a foreign exchange gain of RMB 1.0 million (US$ 0.1 million) in Q4 2006
* Shipped 50.2 MW, up 266.4%over Q4 2006 Full Year 2007 Highlights
* Full year 2007 revenues of RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% over 2006
* Income from operations of RMB 446.4 million (US$ 61.2 million), an increase of 240.0% over 2006
* Total gross profit of RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million) in 2006
* Gross margin was 22.3% compared to 24.7% in 2006
* Net income of RMB 2.93 (US$ 0.40) per diluted ADS compared to RMB 1.08 (US$ 0.15) per diluted ADS for the full year 2006
* Shipped 132.4 MW in 2007, an increase of 403.4% from 2006
* Increased annual manufacturing capacity from 75MW to 175MW Outlook for 2008
* Expect Full Year 2008 revenues in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion)
* Expect 2008 gross margin to be above 20%
* Expect to break ground on new solar cell manufacturing facility in Yangzhou, China during second half 2008
* Raising annual production capacity to 500 MW from 425 MW by the end of 2008
* Expect 2008 production output of 340 MW
HEBEI, China, March 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the fourth quarter and year ended December 31, 2007.
Fourth Quarter 2007 Results
Total revenues for the fourth quarter 2007 were RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% from fourth quarter 2006 quarter revenues of RMB 349.4 million (US$ 47.9 million), and an increase of 23.7% from third quarter 2007 revenues of RMB 850.0 million (US$ 116.5 million).
Total gross profit for the fourth quarter 2007 was RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in the fourth quarter 2006, and RMB 199.3 million (US$ 27.3 million) in the third quarter 2007. Gross margin was 21.2% in the fourth quarter of 2007 compared to 23.9% in the fourth quarter of 2006, and 23.5% in the third quarter of 2007.
Net income available to ordinary shareholders for the fourth quarter 2007 was RMB 98.3 million (US$ 13.5 million) compared to a net income available to ordinary shareholders of RMB 66.9 million (US$ 9.2 million) for the fourth quarter 2006, and net income available to ordinary shareholders of RMB 165.9 million (US$ 22.7 million) for the third quarter 2007.
For the fourth quarter 2007 basic and diluted earnings per ADS were RMB 0.65 (US$ 0.09) and RMB 0.64 (US$ 0.09), respectively. The fourth quarter 2007 included share-based compensation expense of RMB 61.2 million (US$ 8.4 million) and foreign exchange loss of RMB 57.3 million (US$ 7.9 million).
Capital expenditures were RMB 128.9 million (US$ 17.7 million) in the fourth quarter 2007, as compared to RMB 23.6 million (US$ 3.2 million) in the fourth quarter 2006, and RMB 144.3 million (US$ 19.8 million) in the third quarter 2007. Depreciation and amortization expenses in the fourth quarter 2007 were RMB 11.9 million (US$ 1.6 million), as compared to RMB 4.9 million (US$ 0.7 million) in the fourth quarter 2006, and RMB 10.7 million (US$ 1.5 million) in the third quarter 2007.
As of December 31, 2007, JA Solar had cash and cash equivalents of RMB 1.15 billion (US$ 157.0 million) compared with RMB 95.8 million (US$ 13.1 million) at the end of the fourth quarter 2006, and RMB 0.79 billion (US$ 108.9 million) at the end of the third quarter 2007. Short term debt increased to RMB 200.0 million (US$ 27.4 million) at the end of the fourth quarter 2007 from RMB 150.0 million (US$ 20.6 million) at the end of the fourth quarter 2006, and RMB 150.0 million (US$ 20.6 million) at the end of third quarter 2007.
Summary of megawatts produced and shipped (includes cell processing service)
---------------------------------------------------------------
Three months ended
---------------------------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
Megawatts 2006 2007 2007
---------------------------------------------------------------
Produced 17.1MW 44.6MW 48.7MW
---------------------------------------------------------------
Shipped 13.7MW 43.8MW 50.2MW
---------------------------------------------------------------
Cost per
watt
excluding
wafer cost US$0.228/Wp US$ 0.192/Wp US$ 0.190/Wp
---------------------------------------------------------------
2007 Full Year Results
Revenues for the full year 2007 were RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% from the full year 2006 revenues of RMB 696.5 million (US$ 95.5 million). The increase was principally due to continued strong growth in market demand for PV industry and our ability to expand the Company's production capacity to support the business growth.
Total gross profit for 2007 was RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million). Total gross margin was 22.3% for 2007 compared to 24.7% for 2006.
Net income available to ordinary shareholders for the full year 2007 was RMB 398.2 million (US$ 54.6 million) compared to a net income available to ordinary shareholders of RMB 86.4 million (US$ 11.8 million) for the full year 2006.
For the full year 2007 basic and diluted earnings per ADS were RMB 2.96 (US$ 0.41) and RMB 2.93 (US$ 0.40), respectively.
The full year 2007 included share-based compensation expense of RMB 88.8 million (US$ 12.2 million) and foreign exchange loss of RMB 112.8 million (US$ 15.5 million).Diluted earnings per ADS calculations for the full year 2007 were based on 136.72 million weighted average numbers of ADSs outstanding, compared to 80.17 million ADSs in 2006.
Capital expenditures were RMB 421.8 million (US$ 57.8 million) for the full year 2007, as compared to RMB 107.6 million (US$ 14.8 million) for the full year 2006. The increase was primarily due to expanding of new production capacity. Depreciation and amortization expenses for the full year 2007 were RMB 34.1 million (US$ 4.7 million), as compared to RMB 11.2 million (US$ 1.5 million) for the full year 2006.
Effective from February 7, 2008, the Company changed its ADS to ordinary share ratio from the one ADS for every three ordinary shares to one ADS for every one ordinary share. Both the basic and diluted earnings per ADS and both the basic and diluted weighted average number of ADSs outstanding for all periods presented have been restated to conform to the current ADS ratio accordingly.
The conversion of Renminbi into U.S. dollars for the full year of 2007 and the fourth quarter of 2007 in this release, made solely for the convenience of the reader, is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of December 31, 2007, which was RMB 7.2946 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on December 31, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
"We once again achieved record revenues in the fourth quarter of 2007 and extraordinary business growth for the full year," said Samuel Yang, JA Solar's Chief Executive Officer. "During the year, we increased our annual production capacity from 75MW to 175MW, and achieved impressive throughput and yield from our cell lines without compromising profitability. The several key additions in talent to our teams in sales and marketing, technology, and at the executive level helped ensure the smooth execution of our expansion. Our strategic decision to expand our supply sources and our practice of holding JA Solar's products to one of the highest performance standards in the industry were also contributing factors to our success. On the supply side, we were able to expand our base of major suppliers from two to four and contractually secured sufficient wafer supply to cover our anticipated 2008 production capacity."
"In 2008 we plan to build on JA Solar's strong brand and technology platform through increased sales and marketing efforts, greater investment in R&D, and continued expansion of our production capacity. We have already broken ground for ten new cell lines in Hebei, and plan to break ground for another ten cell lines at a new facility in Yangzhou during the second half of 2008. On the technology front, we plan to open a research laboratory in Silicon Valley, California.
We believe the true driving force for broader application of solar technology and the achievement of grid parity is low cost. By 2010, JA Solar strives to be a cost leader in the industry and establish the industry cost benchmark through technical innovation and operational efficiency. We have enormous confidence that our production scale and execution capability would position JA Solar to achieve aggressive cost reductions as we address a rapidly evolving market."
JA Solar's CFO, Herman Zhao, said, "In 2007 JA Solar demonstrated our financial discipline through the ability to more than double our annual production capacity while achieving impressive top line growth and profitability. While our performance was strong in Q4, we experienced foreign exchange losses in the quarter, which impacted our bottom line. Due to the depreciation of the U.S. dollar against the RMB in Q4, we recorded foreign exchange losses of RMB 57.3 million (US$ 7.9 million) for the quarter. Going forward we plan to manage the foreign exchange impact to our bottom line through focused initiatives which involve converting foreign currencies into RMB, currency hedging, diversification of our international supplier base, and the addition of pricing clauses in our international sales contracts. While the economic environment is expected to remain volatile, we expect another record year for our Company in terms of growth and profitability in 2008. We are fully committed to bringing further value to our shareholders in 2008 and future years."
2008 Outlook
Based on current customer demand and market forecasts, we expect revenues for the full year 2008 in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion). Gross margins for 2008 are expected to be above 20%.
We expect total production output of approximately 340MW for 2008, with a total annual production capacity of 500MW, which is above our previous annual production capacity guidance of 425MW.
The capital expenditures are expected to be RMB 966.8 million (US$ 132.5 million), primarily for capacity expansion. R&D expense is expected to be RMB 36.6 million (US$ 5.0 million).
Solar cell maker adds 3 new production lines
By Chen Qide (China Daily)Updated: 2008-03-12 13:31
Solar cell manufacturer chairman of Nantong Qiangsheng Photovoltaic Technology Co Ltd (QS Solar), plans to add three new production lines in Nantong, Jiangsu Province, this year.
Sha Xiaolin, chairman of QS Solar, said yesterday the firm will invest a total $70 million in its four production lines, which will have a combined annual capacity of 130 mW of solar cells.
"Capital is not a problem," Sha said, adding that 10 foreign financial institutions - including Morgan Stanley, Lehman Brothers and Standard Chartered Bank - will back the project.
The manufacturer's first production line came onstream in August last year, with an annual capacity of 12 mW of solar panels.
"Sales are good," Sha Yan, general manager of QS Solar, said. The company has signed a contract with a US firm to sell five mW of solar panels, as well as deals for two mW to South Korea and two mW to Spain.
The manufacturer has also signed a deal with Nantong's Rudong Economy and Technology Development Zone to launch a one-mW photovoltaic solar power plant.
Construction of the plant, China's largest, is expected to start after four months' preparation, the company's chairman said.
The plant will cost 28 million yuan ($3.94 million) and will use 16,000 pieces of thin-film amorphous silicon solar cells to generate one mW of solar electricity. The same plant built overseas would cost 65 million yuan, he said.
Solar electricity produced at the plant will be more expensive than thermal power at three yuan per kWh.
But he said the price will drop to one yuan per kWh when more photovoltaic power plants are built.
China produced 3,000 mW of solar cells last year, but its photovoltaic materials relied heavily on imports and 90 percent of photovoltaic cells were exported to Europe, the United States and Japan.
China's two million sq km of deserts could generate the same amount of electricity as produced by hydro, thermal and nuclear power plants combined if just one percent of it was used to build photovoltaic power plants, QS Solar said.
The manufacturer plans to have six production lines by 2009 to boost annual capacity to 340 mW, its chairman said.
By 2010, it plans to add another six production lines to reach 550 mW, he said.
"We're talking to the Shanghai municipal government about establishing a headquarters and R&D center in the city to push forward the industry," he said.
"If things go smoothly, we'll have about 20 experts from the United States, Europe and Australia working for us," he said.
Solar cell manufacturer chairman of Nantong Qiangsheng Photovoltaic Technology Co Ltd (QS Solar), plans to add three new production lines in Nantong, Jiangsu Province, this year.
Sha Xiaolin, chairman of QS Solar, said yesterday the firm will invest a total $70 million in its four production lines, which will have a combined annual capacity of 130 mW of solar cells.
"Capital is not a problem," Sha said, adding that 10 foreign financial institutions - including Morgan Stanley, Lehman Brothers and Standard Chartered Bank - will back the project.
The manufacturer's first production line came onstream in August last year, with an annual capacity of 12 mW of solar panels.
"Sales are good," Sha Yan, general manager of QS Solar, said. The company has signed a contract with a US firm to sell five mW of solar panels, as well as deals for two mW to South Korea and two mW to Spain.
The manufacturer has also signed a deal with Nantong's Rudong Economy and Technology Development Zone to launch a one-mW photovoltaic solar power plant.
Construction of the plant, China's largest, is expected to start after four months' preparation, the company's chairman said.
The plant will cost 28 million yuan ($3.94 million) and will use 16,000 pieces of thin-film amorphous silicon solar cells to generate one mW of solar electricity. The same plant built overseas would cost 65 million yuan, he said.
Solar electricity produced at the plant will be more expensive than thermal power at three yuan per kWh.
But he said the price will drop to one yuan per kWh when more photovoltaic power plants are built.
China produced 3,000 mW of solar cells last year, but its photovoltaic materials relied heavily on imports and 90 percent of photovoltaic cells were exported to Europe, the United States and Japan.
China's two million sq km of deserts could generate the same amount of electricity as produced by hydro, thermal and nuclear power plants combined if just one percent of it was used to build photovoltaic power plants, QS Solar said.
The manufacturer plans to have six production lines by 2009 to boost annual capacity to 340 mW, its chairman said.
By 2010, it plans to add another six production lines to reach 550 mW, he said.
"We're talking to the Shanghai municipal government about establishing a headquarters and R&D center in the city to push forward the industry," he said.
"If things go smoothly, we'll have about 20 experts from the United States, Europe and Australia working for us," he said.
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