CHANGZHOU, China, May 15 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL; '"Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots,wafers and cells to the assembly of PV modules, founded in 1997, today announced that the Company has signed a long-term polysilicon supply agreement with Jupiter Corporation Ltd., an affiliate of DTK Industries(Qingdao) Co., Ltd. (collectively, "Qingdao DTK").
Under this agreement, Qingdao DTK will supply Trina Solar with virgin polysilicon sufficient to produce approximately 650 MW of solar modules in aggregate over six years. Delivery of polysilicon at predetermined prices is expected to start in the third quarter of 2009.
"This agreement marks another milestone in Trina Solar's siliconprocurement strategy. Through this new agreement with one of the leading emerging polysilicon producers, Trina has taken steps to further secure its long-term procurement needs while reducing the long-term cost of solar energy," said Jifan Gao, Trina Solar's Chairman and Chief Executive Officer. "This agreement will provide a significant portion of our production needs at favorable terms. Qingdao DTK's forward thinking management and advantageous positioning will ensure the success of this agreement."
"We are looking forward to our cooperation with Trina Solar that will help build a cleaner environment for future generations," said Indi Sohal,CEO of Qingdao DTK. "We share Trina's vision to expand the solar industry and make it the premier renewable energy choice. Qingdao DTK is excited to support and be a part of Trina Solar's vision to help build the Solar Industry."
This long-term polysilicon supply agreement will enhance the Company's raw material supplies to strengthen its position as a leading global PV module manufacturer. The addition of Qingdao DTK as a polysilicon supplier shall further diversify Trina Solar's overall polysilicon sourcing as well as increase its flexibility to respond to changing market conditions.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd., is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. TrinaSolar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About Jupiter Corporation Ltd. and DTK Industries (Qingdao) Co., Ltd.
Jupiter Corporation Ltd. and DTK Industries (Qingdao) Co., Ltd. are wholly European owned and operated companies belonging to the Sohal Family. Affiliate companies include Chinese manufacturing plants and European construction companies, uniform supply to the service industries and managed services for multinationals in Europe. For more informationcontact: http://www.dtk-global.com or email indi@dtk-global.com.
Thursday, May 15, 2008
Yingli Green Energy Reports First Quarter 2008 Financial Results
BAODING, China--(BUSINESS WIRE)--Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced its unaudited financial results for the first quarter ended March 31, 2008.
First Quarter 2008 Financial and Operating Highlights
Total net revenues were RMB 1,595.0 million (US$227.5 million), an increase of 9.8% from RMB 1,453.2 million in the fourth quarter of 2007 and an increase of 272.2% from RMB 428.6 million in the first quarter of 2007.
PV module shipments were 54.6 MW, an increase of 7.3% from 50.9 MW in the fourth quarter of 2007 and an increase of 274.4% from 14.6 MW in the first quarter of 2007.
Gross profit was RMB 392.3 million (US$55.9 million), an increase of 9.1% from RMB 359.6 million in the fourth quarter of 2007 and an increase of 337.8% from RMB 89.6 million in the first quarter of 2007.
Gross margin was 24.6% in the first quarter of 2008, in line with 24.7% in the fourth quarter of 2007 and an increase from 20.9% in the first quarter of 2007.
Net income was RMB 223.5 million (US$31.9 million), an increase of 61.5% from RMB 138.4 million in the fourth quarter of 2007 and an increase of 2,580.5% from RMB 8.3 million in the first quarter of 2007. Fully diluted earnings per ordinary share and per American depositary share ("ADS") were RMB 1.73 (US$0.25), compared to RMB 1.07 in the fourth quarter of 2007.
On an adjusted non-GAAP1 basis, net income was RMB 246.2 million (US$35.1 million), an increase of 56.5% from RMB 157.3 million in the fourth quarter of 2007. Fully diluted earnings per ordinary share and per ADS were RMB 1.90 (US$0.27), compared to RMB 1.21 in the fourth quarter of 2007.
"We had a strong start to the year as our first quarter came in ahead of our expectations," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.
"Our results largely demonstrated the successful execution of our vertically integrated strategy at the operating level and growing demand for our products in our end markets, including Spain, Germany, the United States and Italy, as well as new and emerging solar markets such as Korea and France. We believe that maintaining the highest standards in product quality and our growing brand recognition are key factors that have helped solidify our market share and build close relationships with our customers, particularly with utility companies for large on-grid power generation projects."
"Vertical integration and continued success in our R&D efforts have also given us greater flexibility to withstand fluctuations in raw material cost. Our polysilicon usage per watt has been declining quarter over quarter through process and technology advancement, including reduced wafer thickness and breakage rate and improved cell efficiency, equipment automation and product quality control procedure at each stage along the value chain. Our commercialization of 180 micron wafers at the beginning of February 2008 illustrates our strong capabilities in R&D."
"I am also very pleased that our expansion plan remains on track and that we currently expect to be able to achieve production capacity of 600 MW before mid-2009, ahead of schedule. As one of the world's leading vertically integrated PV product manufacturers in a rapidly growing PV market, we plan to continue to execute our business strategy to maximize shareholders’ value."
First Quarter 2008 Financial Results
Net Revenues
Net revenues were RMB 1,595.0 million (US$227.5 million) in the first quarter of 2008, which increased by 9.8% from RMB 1,453.2 million in the fourth quarter of 2007 and by 272.2% from RMB 428.6 million in the first quarter of 2007. The increase was primarily due to continued strong growth in market demand for PV modules, resulting in a higher average selling price and increased shipment volume. The average selling price for PV modules increased to US$4.11 per watt in the first quarter of 2008 from US$3.86 per watt in the fourth quarter of 2007. Total PV module shipments increased to 54.6 MW in the first quarter of 2008 from 50.9 MW in the fourth quarter of 2007, which was primarily due to improved throughput by process and technology advancement at the Company's existing manufacturing facilities as a result of continued success in our research and development efforts. Spain and Germany continued to be the Company's most important markets in the first quarter of 2008.
Gross Profit and Gross Margin
Gross profit in the first quarter of 2008 was RMB 392.3 million (US$55.9 million), which increased by 9.1% from RMB 359.6 million in the fourth quarter of 2007 and by 337.8% from RMB 89.6 million in the first quarter of 2007. Gross margin was 24.6% in the first quarter of 2008, in line with 24.7% in the fourth quarter of 2007 and increased from 20.9% in the first quarter of 2007. As a result of a higher average selling price compared to the fourth quarter of 2007, the lower polysilicon usage per watt resulted from successful research and development efforts and the lower processing cost attributable to continuous improvement in operational efficiency of the Company's vertically integrated business model, the Company was able to maintain its gross margin despite an increase in the average cost of polysilicon in the first quarter of 2008.
Operating Expenses
Operating expenses in the first quarter of 2008 were RMB 109.6 million (US$15.6 million), compared to RMB 92.6 million in the fourth quarter of 2007 and RMB 48.6 million in the first quarter of 2007. Operating expenses as a percentage of net revenues increased slightly to 6.9% in the first quarter of 2008 from 6.4% in the fourth quarter of 2007. The increase in operating expenses was primarily due to increased research and development expenses, marketing and promotional expenses and higher employment compensation and share-based compensation charges related to the share-based awards granted to senior executives and employees. The increase in research and development expenses was mainly related to the efforts to reduce wafer thickness from 200 microns to 180 microns. The increase in marketing and promotional expenses was primarily related to promotional efforts in new and emerging markets, including France and Korea.
Operating Income and Margin
Operating income in the first quarter of 2008 was RMB 282.7 million (US$40.3 million), which increased by 5.9% from RMB 267.0 million in the fourth quarter of 2007 and by 590.0% from RMB 41.0 million in the first quarter of 2007. The operating margin decreased to 17.7% in the first quarter of 2008 from 18.4% in the fourth quarter of 2007 and increased from 9.6% in the first quarter of 2007. The decrease in the first quarter of 2008 was primarily due to increased operating expenses.
Interest Expense
Interest expense was RMB 34.4 million (US$4.9 million) in the first quarter of 2008, which increased from RMB 19.6 million in the fourth quarter of 2007 and RMB 19.2 million in the first quarter of 2007. The increase from the fourth quarter of 2007 was due to an increase in the accrued yield on convertible notes upon maturity and amortization of issuance costs in connection with the convertible notes offering that was completed in December 2007. Short-term borrowings were RMB 804.6 million (US$114.7 million) at the end of the first quarter of 2008, which decreased from RMB 1,261.3 million at the end of the fourth quarter of 2007.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 66.3 million (US$9.5 million) in the first quarter of 2008, compared to a foreign currency exchange loss of RMB 29.2 million in the fourth quarter of 2007 and a foreign currency exchange loss of RMB 0.1 million in the first quarter of 2007. The foreign currency exchange gain in the first quarter of 2008 was primarily due to the appreciation of the Euro against the Renminbi coupled with an increase in Euro-denominated sales, which was partially offset by the depreciation of the U.S. dollar against the Renminbi.
Net Income Before Minority Interest
Net income before minority interest was RMB 322.5 million (US$46.0 million) in the first quarter of 2008, which increased by 57.1% from RMB 205.2 million in the fourth quarter of 2007 and increased by 1,340.6% from RMB 22.4 million in the first quarter of 2007. The equity interest in Tianwei Yingli held by Baoding Tianwei Baobian Electric Co., Ltd. decreased from 29.89% to 25.99% effective on March 14, 2008, as a result of the acquisition of an additional 3.90% equity interest in Tianwei Yingli by Yingli Green Energy.
Income Tax Benefit (Expense)
Tianwei Yingli, the Company's principal operating subsidiary in the People's Republic of China (the "PRC"), is entitled to an exemption from the PRC enterprise income tax in 2007 and 2008. In the first quarter of 2008, the Company recorded income tax benefit of RMB 0.7 million (US$0.1 million), compared to an income tax expense of RMB 15.3 million in the fourth quarter of 2007 and income tax benefit of RMB 0.4 million in the first quarter of 2007. The income tax expenses incurred in the fourth quarter of 2007 was primarily due to an increase in the PRC enterprise income tax expenses of RMB 17.6 million, which resulted from a change in the estimated future income tax rates following the release of implementation guidance issued in December 2007 pertaining to the adoption of the new PRC Enterprise Income Tax Law.
Net Income
As a result of the aforementioned factors, net income was RMB 223.5 million (US$31.9 million) in the first quarter of 2008, which increased by 61.5% from RMB 138.4 million in the fourth quarter of 2007 and increased by 2,580.5% from RMB 8.3 million in the first quarter of 2007. Fully diluted earnings per ordinary share and per ADS were RMB 1.73 (US$0.25) in the first quarter of 2008, compared to RMB 1.07 in the fourth quarter of 2007.
On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, the Company's principal operating subsidiary, net income was RMB 246.2 million (US$35.1 million) in the first quarter of 2008, which increased by 56.5% from RMB 157.3 million in the fourth quarter of 2007. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS were RMB 1.90 (US$0.27) in the first quarter of 2008, compared to RMB 1.21 in the fourth quarter of 2007.
Balance Sheet Analysis
As of March 31, 2008, Yingli Green Energy had RMB 564.3 million (US$80.5 million) in cash and RMB 3,511.9 million (US$500.8 million) in working capital, compared to RMB 961.1 million in cash and RMB 3,513.2 million in working capital as of December 31, 2007. The decrease in cash from the fourth quarter of 2007 was primarily due to the repayment of certain matured short-term borrowings at the end of the first quarter of 2008. Days sales outstanding has been reduced to 66 days in the first quarter of 2008 from 77 days in the fourth quarter of 2007.
First Quarter 2008 Business Highlights
Reduced wafer thickness from 200 microns in 2007 to 180 microns at the beginning of February 2008, which the Company expects to benefit Yingli Green Energy by reducing its polysilicon usage per watt, increasing wafer output per ingot and contributing to a reduction in cost of goods sold.
Won a sales contract from Iberdrola Ingeniería y Construcción S.A.U., under which Yingli Green Energy supplied 11.56 MW of PV modules in the first quarter of 2008.
Announced a sales contract with EDF Energies Nouvelles ("EDF"), under which Yingli Green Energy will supply 7 MW of PV modules that are expected to be delivered in 2008. Under the sales contract, EDF has an option to purchase another 6 MW of PV modules in 2008.
Announced a sales contract with Recurrent Energy, Inc., a solar services provider based in San Francisco, U.S.A., for PV modules expected to be delivered in 2008.
Obtained approval from the relevant PRC governmental authorities and completed the planned additional capital contribution of RMB 1,750.8 million in Tianwei Yingli, the Company's principal operating subsidiary in China, which increased the Company's equity interest in Tianwei Yingli from 70.11% to 74.01%, effective March 14, 2008.
Signed two polysilicon supply agreements with DC Chemical Co., Ltd. ("DC Chemical"), a leading Korean chemicals producer. Under the first agreement, DC Chemical will supply polysilicon with a value of approximately US$27 million to Yingli Green Energy in 2008. Under the second agreement, DC Chemical will supply polysilicon with a total value of approximately US$188 million to Yingli Green Energy from 2009 to 2013.
Recent Business Highlights
Signed sales contracts with two Korean companies to supply 1.3 MW of PV modules to Korea Electric Power Industrial Development Corporation, a renewable energy company, and 2.0 MW of PV modules to Kaycom Corporation, a distributor of electronic components and PV devices.
Won a sales contract from IBC Solar AG ("IBC"), one of the leading specialists in PV systems worldwide. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 35 MW of PV modules to IBC from May 2008 to December 2008. In addition, IBC has an option to purchase a maximum of another 45 MW of PV modules from Yingli Green Energy in 2009.
Signed a third polysilicon supply agreement with DC Chemical. Under the terms of the agreement, DC Chemical will supply polysilicon with a value of approximately US$39 million to Yingli Green Energy. The delivery period started in April 2008 and will end in December 2008.
Business Outlook for Full Year 2008
Based on the current market and operating conditions, estimated production capacity expansion and forecasted customer demand, the Company reaffirms its expected PV module shipment and net revenue targets for the full year 2008 as follows:
PV module shipments in the estimated range of approximately 255 MW to 265 MW, which represents a 78.9% to 86.0% increase compared to 2007.
Net revenues in the estimated range of approximately US$969 million and US$1,020 million, which represents a 74.1% to 83.3% increase compared to 2007.
Non-GAAP Financial Measures
To supplement the financial measures presented in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes certain non-GAAP financial measures of adjusted net income and adjusted earnings per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, the Company's principal operating subsidiary. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such items are not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars for the first quarter of 2008 in this earnings release, made solely for the purpose of reader's convenience, is based on the noon buying rate in the New York City for cable transfers of Renminbi as certified for customs purpose by the Federal Reserve Bank of New York as of March 31, 2008, which was RMB 7.0120 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 such rate, or at any other rate. The percentages stated in this earnings release are calculated based on Renminbi.
First Quarter 2008 Financial and Operating Highlights
Total net revenues were RMB 1,595.0 million (US$227.5 million), an increase of 9.8% from RMB 1,453.2 million in the fourth quarter of 2007 and an increase of 272.2% from RMB 428.6 million in the first quarter of 2007.
PV module shipments were 54.6 MW, an increase of 7.3% from 50.9 MW in the fourth quarter of 2007 and an increase of 274.4% from 14.6 MW in the first quarter of 2007.
Gross profit was RMB 392.3 million (US$55.9 million), an increase of 9.1% from RMB 359.6 million in the fourth quarter of 2007 and an increase of 337.8% from RMB 89.6 million in the first quarter of 2007.
Gross margin was 24.6% in the first quarter of 2008, in line with 24.7% in the fourth quarter of 2007 and an increase from 20.9% in the first quarter of 2007.
Net income was RMB 223.5 million (US$31.9 million), an increase of 61.5% from RMB 138.4 million in the fourth quarter of 2007 and an increase of 2,580.5% from RMB 8.3 million in the first quarter of 2007. Fully diluted earnings per ordinary share and per American depositary share ("ADS") were RMB 1.73 (US$0.25), compared to RMB 1.07 in the fourth quarter of 2007.
On an adjusted non-GAAP1 basis, net income was RMB 246.2 million (US$35.1 million), an increase of 56.5% from RMB 157.3 million in the fourth quarter of 2007. Fully diluted earnings per ordinary share and per ADS were RMB 1.90 (US$0.27), compared to RMB 1.21 in the fourth quarter of 2007.
"We had a strong start to the year as our first quarter came in ahead of our expectations," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.
"Our results largely demonstrated the successful execution of our vertically integrated strategy at the operating level and growing demand for our products in our end markets, including Spain, Germany, the United States and Italy, as well as new and emerging solar markets such as Korea and France. We believe that maintaining the highest standards in product quality and our growing brand recognition are key factors that have helped solidify our market share and build close relationships with our customers, particularly with utility companies for large on-grid power generation projects."
"Vertical integration and continued success in our R&D efforts have also given us greater flexibility to withstand fluctuations in raw material cost. Our polysilicon usage per watt has been declining quarter over quarter through process and technology advancement, including reduced wafer thickness and breakage rate and improved cell efficiency, equipment automation and product quality control procedure at each stage along the value chain. Our commercialization of 180 micron wafers at the beginning of February 2008 illustrates our strong capabilities in R&D."
"I am also very pleased that our expansion plan remains on track and that we currently expect to be able to achieve production capacity of 600 MW before mid-2009, ahead of schedule. As one of the world's leading vertically integrated PV product manufacturers in a rapidly growing PV market, we plan to continue to execute our business strategy to maximize shareholders’ value."
First Quarter 2008 Financial Results
Net Revenues
Net revenues were RMB 1,595.0 million (US$227.5 million) in the first quarter of 2008, which increased by 9.8% from RMB 1,453.2 million in the fourth quarter of 2007 and by 272.2% from RMB 428.6 million in the first quarter of 2007. The increase was primarily due to continued strong growth in market demand for PV modules, resulting in a higher average selling price and increased shipment volume. The average selling price for PV modules increased to US$4.11 per watt in the first quarter of 2008 from US$3.86 per watt in the fourth quarter of 2007. Total PV module shipments increased to 54.6 MW in the first quarter of 2008 from 50.9 MW in the fourth quarter of 2007, which was primarily due to improved throughput by process and technology advancement at the Company's existing manufacturing facilities as a result of continued success in our research and development efforts. Spain and Germany continued to be the Company's most important markets in the first quarter of 2008.
Gross Profit and Gross Margin
Gross profit in the first quarter of 2008 was RMB 392.3 million (US$55.9 million), which increased by 9.1% from RMB 359.6 million in the fourth quarter of 2007 and by 337.8% from RMB 89.6 million in the first quarter of 2007. Gross margin was 24.6% in the first quarter of 2008, in line with 24.7% in the fourth quarter of 2007 and increased from 20.9% in the first quarter of 2007. As a result of a higher average selling price compared to the fourth quarter of 2007, the lower polysilicon usage per watt resulted from successful research and development efforts and the lower processing cost attributable to continuous improvement in operational efficiency of the Company's vertically integrated business model, the Company was able to maintain its gross margin despite an increase in the average cost of polysilicon in the first quarter of 2008.
Operating Expenses
Operating expenses in the first quarter of 2008 were RMB 109.6 million (US$15.6 million), compared to RMB 92.6 million in the fourth quarter of 2007 and RMB 48.6 million in the first quarter of 2007. Operating expenses as a percentage of net revenues increased slightly to 6.9% in the first quarter of 2008 from 6.4% in the fourth quarter of 2007. The increase in operating expenses was primarily due to increased research and development expenses, marketing and promotional expenses and higher employment compensation and share-based compensation charges related to the share-based awards granted to senior executives and employees. The increase in research and development expenses was mainly related to the efforts to reduce wafer thickness from 200 microns to 180 microns. The increase in marketing and promotional expenses was primarily related to promotional efforts in new and emerging markets, including France and Korea.
Operating Income and Margin
Operating income in the first quarter of 2008 was RMB 282.7 million (US$40.3 million), which increased by 5.9% from RMB 267.0 million in the fourth quarter of 2007 and by 590.0% from RMB 41.0 million in the first quarter of 2007. The operating margin decreased to 17.7% in the first quarter of 2008 from 18.4% in the fourth quarter of 2007 and increased from 9.6% in the first quarter of 2007. The decrease in the first quarter of 2008 was primarily due to increased operating expenses.
Interest Expense
Interest expense was RMB 34.4 million (US$4.9 million) in the first quarter of 2008, which increased from RMB 19.6 million in the fourth quarter of 2007 and RMB 19.2 million in the first quarter of 2007. The increase from the fourth quarter of 2007 was due to an increase in the accrued yield on convertible notes upon maturity and amortization of issuance costs in connection with the convertible notes offering that was completed in December 2007. Short-term borrowings were RMB 804.6 million (US$114.7 million) at the end of the first quarter of 2008, which decreased from RMB 1,261.3 million at the end of the fourth quarter of 2007.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 66.3 million (US$9.5 million) in the first quarter of 2008, compared to a foreign currency exchange loss of RMB 29.2 million in the fourth quarter of 2007 and a foreign currency exchange loss of RMB 0.1 million in the first quarter of 2007. The foreign currency exchange gain in the first quarter of 2008 was primarily due to the appreciation of the Euro against the Renminbi coupled with an increase in Euro-denominated sales, which was partially offset by the depreciation of the U.S. dollar against the Renminbi.
Net Income Before Minority Interest
Net income before minority interest was RMB 322.5 million (US$46.0 million) in the first quarter of 2008, which increased by 57.1% from RMB 205.2 million in the fourth quarter of 2007 and increased by 1,340.6% from RMB 22.4 million in the first quarter of 2007. The equity interest in Tianwei Yingli held by Baoding Tianwei Baobian Electric Co., Ltd. decreased from 29.89% to 25.99% effective on March 14, 2008, as a result of the acquisition of an additional 3.90% equity interest in Tianwei Yingli by Yingli Green Energy.
Income Tax Benefit (Expense)
Tianwei Yingli, the Company's principal operating subsidiary in the People's Republic of China (the "PRC"), is entitled to an exemption from the PRC enterprise income tax in 2007 and 2008. In the first quarter of 2008, the Company recorded income tax benefit of RMB 0.7 million (US$0.1 million), compared to an income tax expense of RMB 15.3 million in the fourth quarter of 2007 and income tax benefit of RMB 0.4 million in the first quarter of 2007. The income tax expenses incurred in the fourth quarter of 2007 was primarily due to an increase in the PRC enterprise income tax expenses of RMB 17.6 million, which resulted from a change in the estimated future income tax rates following the release of implementation guidance issued in December 2007 pertaining to the adoption of the new PRC Enterprise Income Tax Law.
Net Income
As a result of the aforementioned factors, net income was RMB 223.5 million (US$31.9 million) in the first quarter of 2008, which increased by 61.5% from RMB 138.4 million in the fourth quarter of 2007 and increased by 2,580.5% from RMB 8.3 million in the first quarter of 2007. Fully diluted earnings per ordinary share and per ADS were RMB 1.73 (US$0.25) in the first quarter of 2008, compared to RMB 1.07 in the fourth quarter of 2007.
On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, the Company's principal operating subsidiary, net income was RMB 246.2 million (US$35.1 million) in the first quarter of 2008, which increased by 56.5% from RMB 157.3 million in the fourth quarter of 2007. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS were RMB 1.90 (US$0.27) in the first quarter of 2008, compared to RMB 1.21 in the fourth quarter of 2007.
Balance Sheet Analysis
As of March 31, 2008, Yingli Green Energy had RMB 564.3 million (US$80.5 million) in cash and RMB 3,511.9 million (US$500.8 million) in working capital, compared to RMB 961.1 million in cash and RMB 3,513.2 million in working capital as of December 31, 2007. The decrease in cash from the fourth quarter of 2007 was primarily due to the repayment of certain matured short-term borrowings at the end of the first quarter of 2008. Days sales outstanding has been reduced to 66 days in the first quarter of 2008 from 77 days in the fourth quarter of 2007.
First Quarter 2008 Business Highlights
Reduced wafer thickness from 200 microns in 2007 to 180 microns at the beginning of February 2008, which the Company expects to benefit Yingli Green Energy by reducing its polysilicon usage per watt, increasing wafer output per ingot and contributing to a reduction in cost of goods sold.
Won a sales contract from Iberdrola Ingeniería y Construcción S.A.U., under which Yingli Green Energy supplied 11.56 MW of PV modules in the first quarter of 2008.
Announced a sales contract with EDF Energies Nouvelles ("EDF"), under which Yingli Green Energy will supply 7 MW of PV modules that are expected to be delivered in 2008. Under the sales contract, EDF has an option to purchase another 6 MW of PV modules in 2008.
Announced a sales contract with Recurrent Energy, Inc., a solar services provider based in San Francisco, U.S.A., for PV modules expected to be delivered in 2008.
Obtained approval from the relevant PRC governmental authorities and completed the planned additional capital contribution of RMB 1,750.8 million in Tianwei Yingli, the Company's principal operating subsidiary in China, which increased the Company's equity interest in Tianwei Yingli from 70.11% to 74.01%, effective March 14, 2008.
Signed two polysilicon supply agreements with DC Chemical Co., Ltd. ("DC Chemical"), a leading Korean chemicals producer. Under the first agreement, DC Chemical will supply polysilicon with a value of approximately US$27 million to Yingli Green Energy in 2008. Under the second agreement, DC Chemical will supply polysilicon with a total value of approximately US$188 million to Yingli Green Energy from 2009 to 2013.
Recent Business Highlights
Signed sales contracts with two Korean companies to supply 1.3 MW of PV modules to Korea Electric Power Industrial Development Corporation, a renewable energy company, and 2.0 MW of PV modules to Kaycom Corporation, a distributor of electronic components and PV devices.
Won a sales contract from IBC Solar AG ("IBC"), one of the leading specialists in PV systems worldwide. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 35 MW of PV modules to IBC from May 2008 to December 2008. In addition, IBC has an option to purchase a maximum of another 45 MW of PV modules from Yingli Green Energy in 2009.
Signed a third polysilicon supply agreement with DC Chemical. Under the terms of the agreement, DC Chemical will supply polysilicon with a value of approximately US$39 million to Yingli Green Energy. The delivery period started in April 2008 and will end in December 2008.
Business Outlook for Full Year 2008
Based on the current market and operating conditions, estimated production capacity expansion and forecasted customer demand, the Company reaffirms its expected PV module shipment and net revenue targets for the full year 2008 as follows:
PV module shipments in the estimated range of approximately 255 MW to 265 MW, which represents a 78.9% to 86.0% increase compared to 2007.
Net revenues in the estimated range of approximately US$969 million and US$1,020 million, which represents a 74.1% to 83.3% increase compared to 2007.
Non-GAAP Financial Measures
To supplement the financial measures presented in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes certain non-GAAP financial measures of adjusted net income and adjusted earnings per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, the Company's principal operating subsidiary. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such items are not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars for the first quarter of 2008 in this earnings release, made solely for the purpose of reader's convenience, is based on the noon buying rate in the New York City for cable transfers of Renminbi as certified for customs purpose by the Federal Reserve Bank of New York as of March 31, 2008, which was RMB 7.0120 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 such rate, or at any other rate. The percentages stated in this earnings release are calculated based on Renminbi.
Green Energy to progress with solar wafer plant investment in China
Nuying Huang, Taipei; Esther Lam, DIGITIMES [Thursday 15 May 2008]
Green Energy Technology will soon host a shareholders meeting to discuss its investment plans in China. If shareholders approve, the solar wafer maker is likely to establish a plant at Shangdong, China, according to industry sources.
Green Energy will hold a shareholders meeting on May 16 to discuss its future deployment in China. Company president Hurlon Lin indicated that the company will likely be more aggressive in making investments across the strait after the meeting, but declined to reveal more details.
Green Energy has spent about a year assessing potential investment opportunities in various cities in China, including Shangdong, Shanghai and Jinzhou, with Shangdong as the most likely location, according to industry sources. It is believed that Green Energy to start with solar ingot slicing before investing in ingot production, since the company is short of ingot slicing capacity. Currently about 30-40% of its solar wafer slicing work is outsourced to third parties, the sources explained. They added in saying that Green Energy is experienced in ingot slicing, with gross margin from the segment stable at 30-35%.
Industry players generally feel Green Energy has chosen a good time to extend into China as the China government is offering favorable incentives to investors in order to aggressively grow the country's solar industry.
Green Energy Technology will soon host a shareholders meeting to discuss its investment plans in China. If shareholders approve, the solar wafer maker is likely to establish a plant at Shangdong, China, according to industry sources.
Green Energy will hold a shareholders meeting on May 16 to discuss its future deployment in China. Company president Hurlon Lin indicated that the company will likely be more aggressive in making investments across the strait after the meeting, but declined to reveal more details.
Green Energy has spent about a year assessing potential investment opportunities in various cities in China, including Shangdong, Shanghai and Jinzhou, with Shangdong as the most likely location, according to industry sources. It is believed that Green Energy to start with solar ingot slicing before investing in ingot production, since the company is short of ingot slicing capacity. Currently about 30-40% of its solar wafer slicing work is outsourced to third parties, the sources explained. They added in saying that Green Energy is experienced in ingot slicing, with gross margin from the segment stable at 30-35%.
Industry players generally feel Green Energy has chosen a good time to extend into China as the China government is offering favorable incentives to investors in order to aggressively grow the country's solar industry.
ReneSola Ltd Announces First Quarter 2008 Results
May 14, 2008
JIASHAN, China, May 14 /Xinhua-PRNewswire/ -- ReneSola Ltd ("ReneSola" or the "Company"), a leading Chinese manufacturer of solar wafers, today announced its unaudited financial results for the first quarter ended March 31, 2008.
Financial and Business Highlights
-- First quarter 2008 net revenues were US$123.0 million, an increase of 242.4% from US$35.9 million in the first quarter of 2007, and an increase of 28.0% from US$96.0 million in the fourth quarter of 2007.
-- First quarter 2008 gross margin was 22.1% compared to 20.4% in the fourth quarter of 2007.
-- First quarter 2008 net income was US$17.7 million, an increase of 160.6% from US$6.8million in the first quarter of 2007, and an increase of 1.2% from US$17.5 million in the fourth quarter of 2007.
-- First quarter 2008 basic and diluted earnings per share were US$0.15 and US$0.14, respectively, and basic and diluted earnings per ADS were US$0.30 and US$0.28, respectively. Each ADS represents two shares.
-- First quarter production output was 66.5 MW, an increase of 29.6% from 51.3 MW in the fourth quarter of 2007, exceeding previously issued guidance of 62 MW.
-- Silicon consumption rate decreased to 6.3 grams per watt in the first quarter of 2008 from 6.5 grams per watt in the fourth quarter of 2007.
-- Wafer production capacity is planned to increase to 1,000 MW by the end of 2009.
Three months ended,
March 31, December 31, March 31,
2007 2007 2008
Net revenue (US$000) 35,916 96,046 122,982
Gross profit (US$000) 8,152 19,619 27,234
Gross margin (%) 22.7% 20.4% 22.1%
Operating profit (US$000) 6,939 15,000 23,187
Foreign exchange gain (loss) (US$000) (63) (1,174) (56)
Income tax benefit (expense) (US$000) 23 5,171 (3,560)
Net income for the period (US$000) 6,783 17,471 17,675
Production output (MW) 15.3 51.3 66.5
"We exceeded our targeted output and once again achieved record revenues for the quarter," said Mr. Xianshou Li, ReneSola's chief executive officer. "During the first quarter, we increased production output to 66.5 MW through the successful ramp-up of production capacity that was installed in the fourth quarter of 2007. This resulted in substantial growth in revenue and operating profits. Our dedication to efficient production processes and innovation continued to yield impressive performance."
In January 2008, we completed our initial public offering on the New York Stock Exchange, generating net proceeds of approximately US$109.0 million, continued Mr. Li. The listing strengthened our balance sheet and increased our brand recognition. We remain optimistic about the remainder of 2008, and are committed to growing in order to meet increasing demand for our high quality wafer products.
Financial Results for the First Quarter
Net revenues
Net revenues for the first quarter of 2008 were US$123.0 million, an increase of 28.0% sequentially and 242.4% year-over-year. The increase in first quarter revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
First quarter 2008 gross profit was US$27.2 million, a 38.8% increase sequentially and 234.1% year-over-year. The gross margin for the first quarter 2008 was 22.1% compared to 20.4% in the fourth quarter of 2007. The increase in gross margin was achieved despite an increase in average feedstock costs of 21.0% sequentially and was primarily attributable to a further reduction in silicon consumption rate to 6.3 grams per watt from 6.5 grams per watt in fourth quarter of 2007, a continuing reduction in non-raw material related production costs and an increase in wafer ASPs due to the high demand for our wafer products.
Operating profit
Operating profit in the first quarter of 2008 was US$23.2 million, an increase of 54.6% sequentially and 234.2% year-over-year. Operating margin was 18.9% in the first quarter compared to 15.6% in the fourth quarter of 2007. Total operating expenses in the first quarter of 2008 were US$4.0 million, down from US$4.6 million in the fourth quarter of 2007.
Profit before tax
Profit before tax in the first quarter was US$21.3 million, a 72.2% increase sequentially and 215.0% increase year-over-year. Finance costs increased by 26.9% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 1.8% in the fourth quarter of 2007 to 1.7% in the first quarter of 2008. The first quarter foreign exchange loss was US$0.06 million compared to foreign exchange loss of US$1.2 million in the fourth quarter of 2007.
Taxation
We recognized a tax charge of US$3.6 million in the first quarter of 2008, compared to a tax credit of US$5.2 million in the fourth quarter of 2007. ReneSola's subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd, ("Zhejiang Yuhui"), after the first two years of exemptions, is now subject to a tax rate of 12.5% under the new PRC Enterprise Income Tax Law, or the EIT Law. The current applicable tax rate is half the statutory rate of 25%, which is expected to apply to Zhejiang Yuhui, effective from the beginning of 2010. Furthermore, in 2007 Zhejiang Yuhui received an income tax credit equivalent to 40% of the cost of capital equipment manufactured in the PRC. This tax policy has now been withdrawn from 2008 with the enactment of the New Enterprise Income Tax Law.
Net profit
First quarter 2008 net profit increased 1.2% sequentially and 160.6% year- over-year to US$17.7 million.
Other Recent Business Developments
ReneSola announced on November 19, 2007 that it planned to develop a polysilicon manufacturing facility with an annualized capacity of 1,500 tons in Meishan, Sichuan province, China. With a substantial pipeline of wafer sales secured under various long term contracts and strong customer interest in signing further long-term contracts, ReneSola has decided to increase the previously announced 1,500 tons of annual polysilicon manufacturing to 3,000 tons on the same site in Meishan to secure more in-house polysilicon supplies. Land leveling has been completed and construction has commenced with completion expected in early 2009. The facility is expected to be operational in the first half of 2009. As part of the project, ReneSola has signed purchasing contracts and made down-payments for major capital equipment from world-class international equipment suppliers.
On May 12, 2008 an earthquake with a magnitude of 7.8 struck China's Sichuan province. There was no damage to ReneSola's facilities and construction remains on schedule. ReneSola does not expect the earthquake to have a material effect on its operations in Sichuan province.
Production Capacity
With our current facilities reaching full capacity and strong customer demand for additional wafer sales contracts, ReneSola is pleased to announce a further expansion in its wafer manufacturing capacity to 1,000 MW by the end of 2009. The Company believes the new wafer manufacturing capacity will provide important ramp-up capabilities to meet increasing market demand. Negotiations on equipment purchases are currently under way and are expected to be completed within the next couple of months.
Second Quarter Outlook
We anticipate production output to be in the range of 75 MW to 80 MW in the second quarter of 2008 compared to 66.5 MW in the first quarter of 2008 and 23 MW in the second quarter of 2007. Gross margin for the second quarter of 2008 is expected to remain stable. On April 17, 2008, we increased previously issued full year 2008 production output to 310 MW to 320 MW and revenue guidance to US$530 million to US$550 million for 2008. We are once again increasing our outlook for full year 2008 and expect production output to be in the range of 330 MW to 340 MW with annual net revenues of approximately US$570 million to US$590 million.
JIASHAN, China, May 14 /Xinhua-PRNewswire/ -- ReneSola Ltd ("ReneSola" or the "Company"), a leading Chinese manufacturer of solar wafers, today announced its unaudited financial results for the first quarter ended March 31, 2008.
Financial and Business Highlights
-- First quarter 2008 net revenues were US$123.0 million, an increase of 242.4% from US$35.9 million in the first quarter of 2007, and an increase of 28.0% from US$96.0 million in the fourth quarter of 2007.
-- First quarter 2008 gross margin was 22.1% compared to 20.4% in the fourth quarter of 2007.
-- First quarter 2008 net income was US$17.7 million, an increase of 160.6% from US$6.8million in the first quarter of 2007, and an increase of 1.2% from US$17.5 million in the fourth quarter of 2007.
-- First quarter 2008 basic and diluted earnings per share were US$0.15 and US$0.14, respectively, and basic and diluted earnings per ADS were US$0.30 and US$0.28, respectively. Each ADS represents two shares.
-- First quarter production output was 66.5 MW, an increase of 29.6% from 51.3 MW in the fourth quarter of 2007, exceeding previously issued guidance of 62 MW.
-- Silicon consumption rate decreased to 6.3 grams per watt in the first quarter of 2008 from 6.5 grams per watt in the fourth quarter of 2007.
-- Wafer production capacity is planned to increase to 1,000 MW by the end of 2009.
Three months ended,
March 31, December 31, March 31,
2007 2007 2008
Net revenue (US$000) 35,916 96,046 122,982
Gross profit (US$000) 8,152 19,619 27,234
Gross margin (%) 22.7% 20.4% 22.1%
Operating profit (US$000) 6,939 15,000 23,187
Foreign exchange gain (loss) (US$000) (63) (1,174) (56)
Income tax benefit (expense) (US$000) 23 5,171 (3,560)
Net income for the period (US$000) 6,783 17,471 17,675
Production output (MW) 15.3 51.3 66.5
"We exceeded our targeted output and once again achieved record revenues for the quarter," said Mr. Xianshou Li, ReneSola's chief executive officer. "During the first quarter, we increased production output to 66.5 MW through the successful ramp-up of production capacity that was installed in the fourth quarter of 2007. This resulted in substantial growth in revenue and operating profits. Our dedication to efficient production processes and innovation continued to yield impressive performance."
In January 2008, we completed our initial public offering on the New York Stock Exchange, generating net proceeds of approximately US$109.0 million, continued Mr. Li. The listing strengthened our balance sheet and increased our brand recognition. We remain optimistic about the remainder of 2008, and are committed to growing in order to meet increasing demand for our high quality wafer products.
Financial Results for the First Quarter
Net revenues
Net revenues for the first quarter of 2008 were US$123.0 million, an increase of 28.0% sequentially and 242.4% year-over-year. The increase in first quarter revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
First quarter 2008 gross profit was US$27.2 million, a 38.8% increase sequentially and 234.1% year-over-year. The gross margin for the first quarter 2008 was 22.1% compared to 20.4% in the fourth quarter of 2007. The increase in gross margin was achieved despite an increase in average feedstock costs of 21.0% sequentially and was primarily attributable to a further reduction in silicon consumption rate to 6.3 grams per watt from 6.5 grams per watt in fourth quarter of 2007, a continuing reduction in non-raw material related production costs and an increase in wafer ASPs due to the high demand for our wafer products.
Operating profit
Operating profit in the first quarter of 2008 was US$23.2 million, an increase of 54.6% sequentially and 234.2% year-over-year. Operating margin was 18.9% in the first quarter compared to 15.6% in the fourth quarter of 2007. Total operating expenses in the first quarter of 2008 were US$4.0 million, down from US$4.6 million in the fourth quarter of 2007.
Profit before tax
Profit before tax in the first quarter was US$21.3 million, a 72.2% increase sequentially and 215.0% increase year-over-year. Finance costs increased by 26.9% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 1.8% in the fourth quarter of 2007 to 1.7% in the first quarter of 2008. The first quarter foreign exchange loss was US$0.06 million compared to foreign exchange loss of US$1.2 million in the fourth quarter of 2007.
Taxation
We recognized a tax charge of US$3.6 million in the first quarter of 2008, compared to a tax credit of US$5.2 million in the fourth quarter of 2007. ReneSola's subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd, ("Zhejiang Yuhui"), after the first two years of exemptions, is now subject to a tax rate of 12.5% under the new PRC Enterprise Income Tax Law, or the EIT Law. The current applicable tax rate is half the statutory rate of 25%, which is expected to apply to Zhejiang Yuhui, effective from the beginning of 2010. Furthermore, in 2007 Zhejiang Yuhui received an income tax credit equivalent to 40% of the cost of capital equipment manufactured in the PRC. This tax policy has now been withdrawn from 2008 with the enactment of the New Enterprise Income Tax Law.
Net profit
First quarter 2008 net profit increased 1.2% sequentially and 160.6% year- over-year to US$17.7 million.
Other Recent Business Developments
ReneSola announced on November 19, 2007 that it planned to develop a polysilicon manufacturing facility with an annualized capacity of 1,500 tons in Meishan, Sichuan province, China. With a substantial pipeline of wafer sales secured under various long term contracts and strong customer interest in signing further long-term contracts, ReneSola has decided to increase the previously announced 1,500 tons of annual polysilicon manufacturing to 3,000 tons on the same site in Meishan to secure more in-house polysilicon supplies. Land leveling has been completed and construction has commenced with completion expected in early 2009. The facility is expected to be operational in the first half of 2009. As part of the project, ReneSola has signed purchasing contracts and made down-payments for major capital equipment from world-class international equipment suppliers.
On May 12, 2008 an earthquake with a magnitude of 7.8 struck China's Sichuan province. There was no damage to ReneSola's facilities and construction remains on schedule. ReneSola does not expect the earthquake to have a material effect on its operations in Sichuan province.
Production Capacity
With our current facilities reaching full capacity and strong customer demand for additional wafer sales contracts, ReneSola is pleased to announce a further expansion in its wafer manufacturing capacity to 1,000 MW by the end of 2009. The Company believes the new wafer manufacturing capacity will provide important ramp-up capabilities to meet increasing market demand. Negotiations on equipment purchases are currently under way and are expected to be completed within the next couple of months.
Second Quarter Outlook
We anticipate production output to be in the range of 75 MW to 80 MW in the second quarter of 2008 compared to 66.5 MW in the first quarter of 2008 and 23 MW in the second quarter of 2007. Gross margin for the second quarter of 2008 is expected to remain stable. On April 17, 2008, we increased previously issued full year 2008 production output to 310 MW to 320 MW and revenue guidance to US$530 million to US$550 million for 2008. We are once again increasing our outlook for full year 2008 and expect production output to be in the range of 330 MW to 340 MW with annual net revenues of approximately US$570 million to US$590 million.
ReneSola Announces Six-Year 525 MW Solar Wafer Supply Agreement with Gintech Energy Corporation
JIASHAN, China, May 14 /Xinhua-PRNewswire-FirstCall/ -- ReneSola Ltd("ReneSola" or the "Company") (NYSE: SOL) (AIM: SOLA.L), a leading Chinesemanufacturer of solar wafers, today announced that it has signed a six-year525 megawatt ("MW") wafer supply agreement with Gintech Energy Corporation("Gintech").
Under the terms of the agreement, ReneSola will supply Gintech with 525MW of solar wafers over a six-year period commencing in mid-2008. Gintechis a leading manufacturer of solar cells and is publicly traded on theTaiwan Stock Exchange.
"The recent wafer supply agreement with Gintech further demonstrates our commitment to expanding ReneSola's reach within key markets and strengthens our base of long-term customers," said Mr. Xianshou Li, ReneSola's chief executive officer. "Gintech's fast growth and well-known manufacturing capabilities will contribute to a diversified customer baseas we increase our wafer production output."
About ReneSola
ReneSola Ltd ("ReneSola") is a leading solar wafer manufacturer in China. Capitalizing on proprietary technologies and technical know-how, ReneSola manufactures monocrystalline and multicrystalline solar wafers, which are thin sheets of crystalline silicon material primarily used in the production of solar cells. In addition, ReneSola strives to enhance its competitiveness through upstream integration into virgin polysilicon manufacturing. ReneSola possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola's shares are currently traded on the New York Stock Exchange (NYSE: SOL) and the AIM of the London Stock Exchange (AIM:SOLA.L). For more information about ReneSola, please visit http://www.renesola.com .
Under the terms of the agreement, ReneSola will supply Gintech with 525MW of solar wafers over a six-year period commencing in mid-2008. Gintechis a leading manufacturer of solar cells and is publicly traded on theTaiwan Stock Exchange.
"The recent wafer supply agreement with Gintech further demonstrates our commitment to expanding ReneSola's reach within key markets and strengthens our base of long-term customers," said Mr. Xianshou Li, ReneSola's chief executive officer. "Gintech's fast growth and well-known manufacturing capabilities will contribute to a diversified customer baseas we increase our wafer production output."
About ReneSola
ReneSola Ltd ("ReneSola") is a leading solar wafer manufacturer in China. Capitalizing on proprietary technologies and technical know-how, ReneSola manufactures monocrystalline and multicrystalline solar wafers, which are thin sheets of crystalline silicon material primarily used in the production of solar cells. In addition, ReneSola strives to enhance its competitiveness through upstream integration into virgin polysilicon manufacturing. ReneSola possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola's shares are currently traded on the New York Stock Exchange (NYSE: SOL) and the AIM of the London Stock Exchange (AIM:SOLA.L). For more information about ReneSola, please visit http://www.renesola.com .
Hoku and Solarfun Approve Amendment and Extension of Polysilicon Supply Agreement
May 13, 2008: 06:45 AM EST
Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, and Solarfun Power Hong Kong Limited, a subsidiary of Solarfun Power Holdings Co., Ltd. (NASDAQ: SOLF), an established manufacturer of both photovoltaic (PV) cells and modules in China, today announced that they have amended their polysilicon supply contract to increase the term of the contract from eight to ten years. Total amounts that may be payable to Hoku Materials under the contract have increased from up to approximately $306 million for the eight year contract, to up to approximately $384 million for the amended ten year contract. Hoku Materials and Solarfun also agreed to a mutual right to terminate the supply agreement if Hoku Materials is unable to raise an aggregate of $75 million in financing for its polysilicon production plant by December 31, 2008 (including the $25 million that was already raised by Hoku Scientific's sale of common stock in February 2008). Solarfun may also terminate the agreement if Hoku Materials is unable to complete polysilicon shipment milestones and quality specifications by December 31, 2009.
"We're strengthening our relationship with Solarfun by extending the term from eight to ten years," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. "A ten-year term allows us to better plan for our long-term operations, including the timing of future product sales and plant expansions. Adding the financing milestone gives each company the flexibility to terminate the contract if Hoku is ultimately unable to finance the completion of the plant. This makes sense for both companies, as it would be impossible to honor a long-term purchase and supply commitment if the plant is ultimately not built."
"We are pleased with the amendment of our contract with Hoku," said Solarfun's chief executive officer, Harold Hoskens. "We look forward to their timely delivery of polysilicon as scheduled by the 2nd half of 2009."
About Hoku Scientific, Inc.
Hoku Scientific, Inc. (NASDAQ: HOKU) is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar is a provider of turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokuscientific.com.
Hoku® and Hoku Scientific® are registered trademarks and Hoku Solar(TM) and Hoku Fuel Cells(TM) are trademarks of Hoku Scientific, Inc. Hoku Materials(TM) is a trademark of Hoku Materials, Inc. All rights reserved.
About Solarfun Power Holdings Co., Ltd.
Solarfun Power Holdings Co, Ltd. (NASDAQ: SOLF) manufactures both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules, and manufactures 100% of its modules with in-house produced PV cells. Solarfun sells its products both through third-party distributors, OEM manufacturers and directly to system integrators. Solarfun was founded in 2004 and its products have been certified to TUV and UL safety and quality standards. For more information visit www.solarfun.com.cn.
Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, and Solarfun Power Hong Kong Limited, a subsidiary of Solarfun Power Holdings Co., Ltd. (NASDAQ: SOLF), an established manufacturer of both photovoltaic (PV) cells and modules in China, today announced that they have amended their polysilicon supply contract to increase the term of the contract from eight to ten years. Total amounts that may be payable to Hoku Materials under the contract have increased from up to approximately $306 million for the eight year contract, to up to approximately $384 million for the amended ten year contract. Hoku Materials and Solarfun also agreed to a mutual right to terminate the supply agreement if Hoku Materials is unable to raise an aggregate of $75 million in financing for its polysilicon production plant by December 31, 2008 (including the $25 million that was already raised by Hoku Scientific's sale of common stock in February 2008). Solarfun may also terminate the agreement if Hoku Materials is unable to complete polysilicon shipment milestones and quality specifications by December 31, 2009.
"We're strengthening our relationship with Solarfun by extending the term from eight to ten years," said Dustin Shindo, chairman and chief executive officer of Hoku Scientific. "A ten-year term allows us to better plan for our long-term operations, including the timing of future product sales and plant expansions. Adding the financing milestone gives each company the flexibility to terminate the contract if Hoku is ultimately unable to finance the completion of the plant. This makes sense for both companies, as it would be impossible to honor a long-term purchase and supply commitment if the plant is ultimately not built."
"We are pleased with the amendment of our contract with Hoku," said Solarfun's chief executive officer, Harold Hoskens. "We look forward to their timely delivery of polysilicon as scheduled by the 2nd half of 2009."
About Hoku Scientific, Inc.
Hoku Scientific, Inc. (NASDAQ: HOKU) is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar is a provider of turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokuscientific.com.
Hoku® and Hoku Scientific® are registered trademarks and Hoku Solar(TM) and Hoku Fuel Cells(TM) are trademarks of Hoku Scientific, Inc. Hoku Materials(TM) is a trademark of Hoku Materials, Inc. All rights reserved.
About Solarfun Power Holdings Co., Ltd.
Solarfun Power Holdings Co, Ltd. (NASDAQ: SOLF) manufactures both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules, and manufactures 100% of its modules with in-house produced PV cells. Solarfun sells its products both through third-party distributors, OEM manufacturers and directly to system integrators. Solarfun was founded in 2004 and its products have been certified to TUV and UL safety and quality standards. For more information visit www.solarfun.com.cn.
Canadian Solar Reports First Quarter 2008 Results
Q108 Results
-- Q108 net revenues of $171.2 million, a 34% increase over Q407 net revenues of $127.5 million -- Q108 net income per diluted share of $0.61, compared to Q407 net income per diluted share of $0.21
-- Q108 shipments of 41.8MW, compared to Q407 shipments of 37.8MW 2008 Outlook and Developments
-- Reiterating full year 2008 net revenue guidance of $650-$750 million on shipments of 200-220MW, excluding e-Module shipments.
-- Production of e-Modules, a medium power module product using 100% upgraded metallurgical grade (UMG) silicon, began in March and shipments started in May.
-- Phase Two of the solar cell plant on track with the installation of an additional 150MW of annual nameplate cell capacity starting in May
-- Phase One of our ingot and wafer plant in Luoyang on track with installation of 60MW annual nameplate wafer capacity starting in May
JIANGSU, China, May 13 /Xinhua-PRNewswire/ -- Canadian Solar Inc. ("theCompany," "CSI" or "we") (Nasdaq: CSIQ) today reported its preliminary unaudited US GAAP financial information for the first quarter ended March31, 2008.
Net revenues for the quarter were $171.2 million (including $2.2million of silicon material sales), compared to net revenues of $17.5million for the first quarter of 2007 (including $2.8 million of silicon materials sales) and $127.5 million for the fourth quarter of 2007(including $2.4 million of silicon materials sales). Net income for the quarter was $19.0 million, or $0.61 per diluted share, compared to a netloss of $3.9 million, or $0.14 per diluted share, for the first quarter of2007 and net income of $5.9 million, or $0.21 per diluted share, for the fourth quarter of 2007. If share-based compensation expenses of $2.2million were excluded, non-GAAP net income for the quarter would have been$21.2 million, or $0.65 per diluted share.
Dr. Shawn Qu, Chairman and CEO of CSI, commented: "I am very pleased with our first quarter results and proud to say that our team has now achieved four consecutive quarters of revenue growth and profit margin improvement. Our impressive performance in the first quarter was due to aresult of robust market demand for our products, strong pricing, effective management of foreign exchange exposure, strong operational execution of our flexible vertical integration business model, and our balanced supply strategy, which allowed us to increase our product delivery despite ageneral market shortage of silicon materials. In Q1, we significantly increased our internal solar cell production, which resulted in a positive impact on our bottom line. Our new Changshu solar module plant was completed on schedule during the quarter. This gave us the ability to quickly increase shipments in March following the severe weather conditions earlier in the year. Deliveries from most of our strategic suppliers are now generally on track."
Bing Zhu, CFO of CSI, noted: "We delivered on our promise to improve our gross margins and we were able to increase diluted earnings per shareby close to 200% compared with Q4 2007 due to our disciplined financial management and continued operational efficiency. The significant upside to our bottom line was mainly contributed by three factors -- strong pricing, the strong Euro vs. USD, and our internal cost cutting. Although the large foreign exchange gain is likely a one-time event, we believe that the other factors will remain positive, and will, therefore, help us maintain asimilar level of profitability going forward."
Revenue by Geography (US $ millions)
Q108 Q407 Q107
Region Revenue % Revenue % Revenue %
Europe 167.6 97.9% 124.1 97.3% 12.1 69.4%
Asia 2.4 1.4% 2.9 2.3% 3.3 18.9%
Americas 1.2 0.7% 0.5 0.4% 2.1 11.7%
Total Net 171.2 100% 127.5 100% 17.5 100%
Revenue
Note: Asian revenue included $2.2 million of silicon materials sales in the first quarter of 2008 and $2.4 million of silicon materials sales in the fourth quarter of 2007.
Recent Developments
We commenced commercial production of e-Modules, a cost-effective medium power solar module product using 100% upgraded metallurgical grade(UMG) silicon, in March. We converted one of our solar cell lines and dedicated it to UMG cells in early April and ramped up to full production shortly thereafter. We have produced approximately one MW of UMG cells over the past four weeks. We believe that we have so far achieved the technical and economic parameters which we preset for the ramp up phase. Delivery of e-Modules to our European and US customers started in early May. We believe that we are on track to achieve our prior estimate of shipping 30-40MW of e-Modules in 2008.
Outlook
Dr. Qu continued: "We also believe that we are on track to achieve our prior guidance of shipping 200 -220MW of regular solar modules in 2008, not including shipments of e-Modules, and to continue our record of quarter over quarter revenue growth. We intend to continue our long-term and proven supply chain strategy of combining internal solar wafer and cell production with direct purchasing from a select number of long-term strategic wafer and cell suppliers. We expect that many of the positive market trends that we witnessed in Q1 will continue for the rest of the year, and believe that the gross margin that we were able to achieve in Q1 bodes well for our ability to achieve our 13% - 15% gross margin target for the year."
Net revenue for Q208 is expected to be in the range of $185 - $190 million, with non-GAAP net income, determined by excluding share based compensation expenses, expected to be in the range of $17 - $18 million. Shipments for Q208 are expected to be approximately 45MW, including some tolling business.
Looking ahead to 2009, if all of our long-term supply contracts are fully implemented, we will have access to 200MW of regular polysilicon and wafers. Based on our strong position as a worldwide photovoltaic solar module supplier and the expansion plans of our strategic partners, we believe that we should be able to secure an additional 200MW of regular polysilicon and wafers, thereby enabling us to produce approximately 400MW of regular photovoltaic solar modules. In addition, we expect to produce100 - 150MW of UMG silicon products in 2009.
-- Q108 net revenues of $171.2 million, a 34% increase over Q407 net revenues of $127.5 million -- Q108 net income per diluted share of $0.61, compared to Q407 net income per diluted share of $0.21
-- Q108 shipments of 41.8MW, compared to Q407 shipments of 37.8MW 2008 Outlook and Developments
-- Reiterating full year 2008 net revenue guidance of $650-$750 million on shipments of 200-220MW, excluding e-Module shipments.
-- Production of e-Modules, a medium power module product using 100% upgraded metallurgical grade (UMG) silicon, began in March and shipments started in May.
-- Phase Two of the solar cell plant on track with the installation of an additional 150MW of annual nameplate cell capacity starting in May
-- Phase One of our ingot and wafer plant in Luoyang on track with installation of 60MW annual nameplate wafer capacity starting in May
JIANGSU, China, May 13 /Xinhua-PRNewswire/ -- Canadian Solar Inc. ("theCompany," "CSI" or "we") (Nasdaq: CSIQ) today reported its preliminary unaudited US GAAP financial information for the first quarter ended March31, 2008.
Net revenues for the quarter were $171.2 million (including $2.2million of silicon material sales), compared to net revenues of $17.5million for the first quarter of 2007 (including $2.8 million of silicon materials sales) and $127.5 million for the fourth quarter of 2007(including $2.4 million of silicon materials sales). Net income for the quarter was $19.0 million, or $0.61 per diluted share, compared to a netloss of $3.9 million, or $0.14 per diluted share, for the first quarter of2007 and net income of $5.9 million, or $0.21 per diluted share, for the fourth quarter of 2007. If share-based compensation expenses of $2.2million were excluded, non-GAAP net income for the quarter would have been$21.2 million, or $0.65 per diluted share.
Dr. Shawn Qu, Chairman and CEO of CSI, commented: "I am very pleased with our first quarter results and proud to say that our team has now achieved four consecutive quarters of revenue growth and profit margin improvement. Our impressive performance in the first quarter was due to aresult of robust market demand for our products, strong pricing, effective management of foreign exchange exposure, strong operational execution of our flexible vertical integration business model, and our balanced supply strategy, which allowed us to increase our product delivery despite ageneral market shortage of silicon materials. In Q1, we significantly increased our internal solar cell production, which resulted in a positive impact on our bottom line. Our new Changshu solar module plant was completed on schedule during the quarter. This gave us the ability to quickly increase shipments in March following the severe weather conditions earlier in the year. Deliveries from most of our strategic suppliers are now generally on track."
Bing Zhu, CFO of CSI, noted: "We delivered on our promise to improve our gross margins and we were able to increase diluted earnings per shareby close to 200% compared with Q4 2007 due to our disciplined financial management and continued operational efficiency. The significant upside to our bottom line was mainly contributed by three factors -- strong pricing, the strong Euro vs. USD, and our internal cost cutting. Although the large foreign exchange gain is likely a one-time event, we believe that the other factors will remain positive, and will, therefore, help us maintain asimilar level of profitability going forward."
Revenue by Geography (US $ millions)
Q108 Q407 Q107
Region Revenue % Revenue % Revenue %
Europe 167.6 97.9% 124.1 97.3% 12.1 69.4%
Asia 2.4 1.4% 2.9 2.3% 3.3 18.9%
Americas 1.2 0.7% 0.5 0.4% 2.1 11.7%
Total Net 171.2 100% 127.5 100% 17.5 100%
Revenue
Note: Asian revenue included $2.2 million of silicon materials sales in the first quarter of 2008 and $2.4 million of silicon materials sales in the fourth quarter of 2007.
Recent Developments
We commenced commercial production of e-Modules, a cost-effective medium power solar module product using 100% upgraded metallurgical grade(UMG) silicon, in March. We converted one of our solar cell lines and dedicated it to UMG cells in early April and ramped up to full production shortly thereafter. We have produced approximately one MW of UMG cells over the past four weeks. We believe that we have so far achieved the technical and economic parameters which we preset for the ramp up phase. Delivery of e-Modules to our European and US customers started in early May. We believe that we are on track to achieve our prior estimate of shipping 30-40MW of e-Modules in 2008.
Outlook
Dr. Qu continued: "We also believe that we are on track to achieve our prior guidance of shipping 200 -220MW of regular solar modules in 2008, not including shipments of e-Modules, and to continue our record of quarter over quarter revenue growth. We intend to continue our long-term and proven supply chain strategy of combining internal solar wafer and cell production with direct purchasing from a select number of long-term strategic wafer and cell suppliers. We expect that many of the positive market trends that we witnessed in Q1 will continue for the rest of the year, and believe that the gross margin that we were able to achieve in Q1 bodes well for our ability to achieve our 13% - 15% gross margin target for the year."
Net revenue for Q208 is expected to be in the range of $185 - $190 million, with non-GAAP net income, determined by excluding share based compensation expenses, expected to be in the range of $17 - $18 million. Shipments for Q208 are expected to be approximately 45MW, including some tolling business.
Looking ahead to 2009, if all of our long-term supply contracts are fully implemented, we will have access to 200MW of regular polysilicon and wafers. Based on our strong position as a worldwide photovoltaic solar module supplier and the expansion plans of our strategic partners, we believe that we should be able to secure an additional 200MW of regular polysilicon and wafers, thereby enabling us to produce approximately 400MW of regular photovoltaic solar modules. In addition, we expect to produce100 - 150MW of UMG silicon products in 2009.
China to issue preferential policy for solar power development
Shanghai. May 12. INTERFAX-CHINA - The Chinese government will soon release a new preferential policy designed to support the development of domestic solar power projects, and is currently in the final stages of deciding how best to support the industry, a senior government researcher revealed at an industry conference held in Shanghai last Friday.
Hoku and Suntech Announce Amended Polysilicon Supply Contract
Term Fixed at 10 Years; Financing Deadline Extended to December 31, 2008
May 12, 2008: 05:46 PM EST
Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, and Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that they have amended their polysilicon supply contract to confirm the ten-year term of the contract, which was previously subject to a mutual right for either party to unilaterally reduce the term to seven years. In addition, pursuant to the amendment, Hoku Materials has been granted a right of first refusal to deliver all or any portion of the polysilicon in the form of wafers on commercial terms that are no less favorable to Suntech than it would otherwise be able to obtain. Total amounts that may be payable to Hoku Materials under the ten-year term of the contract are approximately $678 million, plus amounts payable for excess shipments that may be delivered in calendar year 2009.
Suntech and Hoku Materials further agreed to extend the date when either party may terminate the supply agreement if Hoku Materials is unable to complete the financing for its polysilicon production plant until December 31, 2008, and to reduce the financing milestone to $75 million, including the $25 million that was already raised by Hoku Scientific's sale of common stock in February 2008. Prior to the amendment, either Hoku Materials or Suntech had the right to terminate the supply agreement if Hoku Materials was unable to secure an aggregate of $100 million on or before May 31, 2008, to finance the procurement and construction of its planned polysilicon plant in Pocatello, Idaho.
Suntech also agreed to use its best efforts to obtain trichlorosilane, or TCS, in 2008 and 2009 for Hoku Materials's use at its production facility. Hoku Materials plans to build on-site TCS production facilities as part of its polysilicon plant, which are expected to be complete in 2009; however, until Hoku Materials's TCS plant is complete, TCS from a third party will enable the commencement of production faster than otherwise possible. If Suntech is able to obtain TCS for Hoku Materials, then Hoku Materials will allocate to Suntech additional polysilicon production output in 2009 that is in excess of Hoku Materials's pre-existing 2009 customer commitments.
"These amendments reflect our mutual commitment to strengthening the long-term relationship between Hoku and Suntech," said Dustin Shindo, Chairman and Chief Executive Officer of Hoku Scientific. "Locking-in the term at 10 years gives us greater certainty in planning our long-term operations, while Suntech's commitment to help us obtain TCS in 2008 and 2009 could improve our near-term operating results. Allowing us a right of first refusal to deliver wafers gives us the flexibility to vertically integrate a downstream process if we decide to pursue that strategy in the future."
Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "Hoku has made tremendous progress over the past year, and we are pleased to strengthen our relationship with them. Confirming the term at ten years gives Suntech more visibility on long-term polysilicon pricing that will further our goal of achieving grid parity in solar."
About Hoku Scientific, Inc.
Hoku Scientific (NASDAQ: HOKU) is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar markets, sells and installs turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokuscientific.com.
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK Solar Design Line(TM). Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com.
May 12, 2008: 05:46 PM EST
Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, and Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that they have amended their polysilicon supply contract to confirm the ten-year term of the contract, which was previously subject to a mutual right for either party to unilaterally reduce the term to seven years. In addition, pursuant to the amendment, Hoku Materials has been granted a right of first refusal to deliver all or any portion of the polysilicon in the form of wafers on commercial terms that are no less favorable to Suntech than it would otherwise be able to obtain. Total amounts that may be payable to Hoku Materials under the ten-year term of the contract are approximately $678 million, plus amounts payable for excess shipments that may be delivered in calendar year 2009.
Suntech and Hoku Materials further agreed to extend the date when either party may terminate the supply agreement if Hoku Materials is unable to complete the financing for its polysilicon production plant until December 31, 2008, and to reduce the financing milestone to $75 million, including the $25 million that was already raised by Hoku Scientific's sale of common stock in February 2008. Prior to the amendment, either Hoku Materials or Suntech had the right to terminate the supply agreement if Hoku Materials was unable to secure an aggregate of $100 million on or before May 31, 2008, to finance the procurement and construction of its planned polysilicon plant in Pocatello, Idaho.
Suntech also agreed to use its best efforts to obtain trichlorosilane, or TCS, in 2008 and 2009 for Hoku Materials's use at its production facility. Hoku Materials plans to build on-site TCS production facilities as part of its polysilicon plant, which are expected to be complete in 2009; however, until Hoku Materials's TCS plant is complete, TCS from a third party will enable the commencement of production faster than otherwise possible. If Suntech is able to obtain TCS for Hoku Materials, then Hoku Materials will allocate to Suntech additional polysilicon production output in 2009 that is in excess of Hoku Materials's pre-existing 2009 customer commitments.
"These amendments reflect our mutual commitment to strengthening the long-term relationship between Hoku and Suntech," said Dustin Shindo, Chairman and Chief Executive Officer of Hoku Scientific. "Locking-in the term at 10 years gives us greater certainty in planning our long-term operations, while Suntech's commitment to help us obtain TCS in 2008 and 2009 could improve our near-term operating results. Allowing us a right of first refusal to deliver wafers gives us the flexibility to vertically integrate a downstream process if we decide to pursue that strategy in the future."
Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "Hoku has made tremendous progress over the past year, and we are pleased to strengthen our relationship with them. Confirming the term at ten years gives Suntech more visibility on long-term polysilicon pricing that will further our goal of achieving grid parity in solar."
About Hoku Scientific, Inc.
Hoku Scientific (NASDAQ: HOKU) is a diversified clean energy technologies company with three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Hoku Materials plans to manufacture, market, and sell polysilicon for the solar market from its plant currently under construction in Pocatello, Idaho. Hoku Solar markets, sells and installs turnkey photovoltaic systems in Hawaii. Hoku Fuel Cells has developed proprietary fuel cell membranes and membrane electrode assemblies for stationary and automotive proton exchange membrane fuel cells. For more information visit www.hokuscientific.com.
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK Solar Design Line(TM). Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com.
Canadian Solar Appoints New Chief Financial Officer
JIANGSU, China, May 12 /Xinhua-PRNewswire/ -- Canadian Solar Inc. ("the Company," "Canadian Solar," or "we") (Nasdaq: CSIQ) announced today the board of directors has appointed Mr. Arthur Chien, the current Vice-President, Finance and Secretary of the Company to Chief Financial Officer and Director, effective June 7th, 2008. The appointment of Mr.Chien comes in response to Mr. Bing Zhu's decision to resign as a Director and Chief Financial Officer of the Company.
Mr. Zhu said, "It has been my pleasure to serve as the Chief Financial Officer of Canadian Solar over the past three years. While I have decided to move on and pursue other interests, I remain proud of the progress that has been made during my tenure at the Company. Over the last three years, I have contributed to Canadian Solar's growth from a small private company to a publicly listed corporation with targeted sales of $650 to $750 million for 2008. I believe that the Company is well-positioned to continue its strong growth into the future."
Arthur Chien was a director of Canadian Solar from December 2005 until he joined our management team in September 2007. Prior to his work at Canadian Solar, he was the managing director of Beijing Yinke Investment Consulting Co. Ltd., which provides financial consulting services. Mr.Chien was also the Chief Financial Officer of China Grand Enterprises Inc., a diversified investment holding company based in Beijing, China. Additionally, Mr. Chien has worked in finance, investment and management positions in several companies in China, Canada and Belgium including his appointment in 1995 as the assistant financial controller of the steel corddivision of Bekaert Group in Belgium. In 1996, he took the position of Chief Financial Officer of Bekaert China which operated five joint ventures in China. Mr. Chien graduated from the University of Science and Technologyof China with a Bachelor of Science degree in 1982. He also obtained a master's degree in economics from the University of Western Ontario,London, Ontario, Canada in 1989.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented: "We greatly appreciate the contributions Bing made during his tenure at the Company. He has been with us since before we went public in 2006, and played a critical role in establishing and improving Canadian Solar's financial management and internal control systems. We respect his decision and wish him and his family the very best for the future."
"We are also pleased to have Arthur continue as a member of management in this new role as part of our executive team," said Mr. Qu. "Arthur has been with us for more than two years both as board member and as Vice President, Finance. His experience and background in finance, accountingand operational experience will be invaluable as we move forward."
About Canadian Solar Inc. (Nasdaq: CSIQ)
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and custom-designed solar application products serving customers worldwide. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
Mr. Zhu said, "It has been my pleasure to serve as the Chief Financial Officer of Canadian Solar over the past three years. While I have decided to move on and pursue other interests, I remain proud of the progress that has been made during my tenure at the Company. Over the last three years, I have contributed to Canadian Solar's growth from a small private company to a publicly listed corporation with targeted sales of $650 to $750 million for 2008. I believe that the Company is well-positioned to continue its strong growth into the future."
Arthur Chien was a director of Canadian Solar from December 2005 until he joined our management team in September 2007. Prior to his work at Canadian Solar, he was the managing director of Beijing Yinke Investment Consulting Co. Ltd., which provides financial consulting services. Mr.Chien was also the Chief Financial Officer of China Grand Enterprises Inc., a diversified investment holding company based in Beijing, China. Additionally, Mr. Chien has worked in finance, investment and management positions in several companies in China, Canada and Belgium including his appointment in 1995 as the assistant financial controller of the steel corddivision of Bekaert Group in Belgium. In 1996, he took the position of Chief Financial Officer of Bekaert China which operated five joint ventures in China. Mr. Chien graduated from the University of Science and Technologyof China with a Bachelor of Science degree in 1982. He also obtained a master's degree in economics from the University of Western Ontario,London, Ontario, Canada in 1989.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented: "We greatly appreciate the contributions Bing made during his tenure at the Company. He has been with us since before we went public in 2006, and played a critical role in establishing and improving Canadian Solar's financial management and internal control systems. We respect his decision and wish him and his family the very best for the future."
"We are also pleased to have Arthur continue as a member of management in this new role as part of our executive team," said Mr. Qu. "Arthur has been with us for more than two years both as board member and as Vice President, Finance. His experience and background in finance, accountingand operational experience will be invaluable as we move forward."
About Canadian Solar Inc. (Nasdaq: CSIQ)
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and custom-designed solar application products serving customers worldwide. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
LDK Solar sees 2Q sales besting analyst estimates
Associated Press 05.12.08
NEW YORK - Chinese solar wafer maker LDK Solar Co. Ltd. on Monday predicted its second-quarter sales will surpass analysts' forecasts.
The company predicted revenue of $278 million to $288 million.
Analysts surveyed by Thomson Financial are forecasting revenue of $252 million, on average.
For the full year, LDK predicted revenue of $1.08 billion to $1.18 billion. Analysts expect sales of $1.08 billion.
LDK expects to ship 136 to 146 megawatts of solar wafers in the quarter, and 560 to 580 megawatts for the year.
NEW YORK - Chinese solar wafer maker LDK Solar Co. Ltd. on Monday predicted its second-quarter sales will surpass analysts' forecasts.
The company predicted revenue of $278 million to $288 million.
Analysts surveyed by Thomson Financial are forecasting revenue of $252 million, on average.
For the full year, LDK predicted revenue of $1.08 billion to $1.18 billion. Analysts expect sales of $1.08 billion.
LDK expects to ship 136 to 146 megawatts of solar wafers in the quarter, and 560 to 580 megawatts for the year.
JA Solar Holdings to offer $300M in senior notes
NEW YORK - Associated Press 05.12.08
China-based JA Solar Holdings Co. said Monday it plans to offer $300 million in convertible senior notes, due 2013.
JA Solar will grant underwriters an option to purchase up to an additional $45 million in notes, if more than $300 million of the notes are sold.
In some instances, the notes will be convertible into cash, American depositary shares, or a combination of both.
JA Solar will use proceeds to purchase and construct equipment and facilities, in addition to working capital and other corporate purposes.
JA Solar said the offering will be made under a shelf registration already filed with the Securities and Exchange Commission.
China-based JA Solar Holdings Co. said Monday it plans to offer $300 million in convertible senior notes, due 2013.
JA Solar will grant underwriters an option to purchase up to an additional $45 million in notes, if more than $300 million of the notes are sold.
In some instances, the notes will be convertible into cash, American depositary shares, or a combination of both.
JA Solar will use proceeds to purchase and construct equipment and facilities, in addition to working capital and other corporate purposes.
JA Solar said the offering will be made under a shelf registration already filed with the Securities and Exchange Commission.
JA Solar Reports First Quarter 2008 Results
First Quarter 2008 Highlights
* Revenue of RMB 1.12 billion (US$160.0 million), an increase of 234.8% over Q1 2007
* Total gross profit of RMB 235.9 million (US$33.6 million), an increase of 243.0% over Q1 2007 * Gross margin of 21.0% as compared to 20.5% in Q1 2007
* Income from operations of RMB 163.6 million (US$23.3 million), an increase of 181.7% over Q1 2007
* Basic and diluted earnings per ADS of RMB 1.00 (US$0.14) and RMB 0.99 (US$0.14) as compared to RMB 0.53 (US$0.08) and RMB 0.52 (US$0.07) in Q1 2007
* Shipped 51.4 MW of solar cells during the quarter Outlook for 2008
* Reiterate expected full year 2008 revenue in the range of RMB 7.22 billion (US$1.03 billion) to RMB 8.02 billion (US$1.14 billion)
* New solar cell manufacturing lines in both Ningjin and Yangzhou to commence production on schedule during second half 2008
* Reiterate expected 2008 production output of no less than 340 MW and annual production capacity of no less than 500 MW by the end of 2008
* Gross margin above 20%
HEBEI, China, May 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the first quarter ended March 31, 2008.
First Quarter 2008 Results
Total revenue for the first quarter 2008 was RMB 1.12 billion (US$160.0 million), an increase of 234.8% from first quarter 2007 revenue of RMB 335.1 million (US$47.8 million), and an increase of 6.7% from fourth quarter 2007 revenue of RMB 1.05 billion (US$150.0 million).
Total gross profit for the first quarter 2008 was RMB 235.9 million (US$33.6 million) compared to RMB 68.8 million (US$9.8 million) in the first quarter 2007, and RMB 222.7 million (US$31.8 million) in the fourth quarter 2007. Gross margin was 21.0% in the first quarter 2008 compared to 20.5% in the first quarter 2007, and 21.2% in the fourth quarter 2007.
Net income available to ordinary shareholders for the first quarter 2008 was RMB 154.5 million (US$22.0 million) compared to net income available to ordinary shareholders of RMB 58.3 million (US$8.3 million) for the first quarter 2007, and net income available to ordinary shareholders of RMB 98.3 million (US$14.0 million) for the fourth quarter 2007.
For the first quarter 2008 basic and diluted earnings per ADS were RMB 1.00 (US$0.14) and RMB 0.99 (US$0.14), respectively. These are compared to basic and diluted earnings per ADS of RMB 0.53 (US$0.08) and RMB 0.52 (US$0.07), respectively, for the same period of 2007; and, RMB 0.65 (US$0.09) and RMB 0.64 (US$0.09), respectively, for the fourth quarter 2007. The first quarter 2008 included share-based compensation expense of RMB 52.2 million (US$7.4 million), foreign exchange losses of RMB 38.6 million (US$5.5 million) and a positive change of RMB 40.7 million (US$5.8 million) in fair value of embedded foreign exchange derivatives, relating to some of our supply agreements. This is compared to share-based compensation expenses of RMB 2.0 million (US$0.3 million) and foreign exchange losses of RMB 6.2 million (US$0.9 million) for the same period of 2007; and, share-based compensation expenses of RMB 61.2 million (US$8.7 million) and foreign exchange losses of RMB 57.3 million (US$8.2 million) for the fourth quarter of 2007.
Capital expenditures were RMB 69.5 million (US$9.9 million) in the first quarter 2008, as compared to RMB 101.2 million (US$14.4 million) in the first quarter 2007, and RMB 128.9 million (US$18.4 million) in the fourth quarter 2007. Depreciation and amortization expenses in the first quarter 2008 were RMB 13.5 million (US$1.9 million), as compared to RMB 5.2 million (US$0.7 million) in the first quarter 2007, and RMB 11.9 million (US$1.7 million) in the fourth quarter 2007.
As of March 31, 2008, JA Solar had cash and cash equivalents of RMB 1.45 billion (US$206.8 million) compared with RMB 1.80 billion (US$256.1 million) at the end of the first quarter 2007, and RMB 1.15 billion (US$163.3 million) at the end of the fourth quarter 2007. Short-term debt decreased to nil at the end of the first quarter 2008 from RMB 200.0 million (US$28.5 million) at the end of the first quarter 2007, and RMB 200.0 million (US$28.5 million) at the end of fourth quarter 2007.
Summary of megawatts produced and shipped
(includes cell processing service)
---------------------------------------------------------------------
Three months ended
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Megawatts March 31, 2007 December 31, 2007 March 31, 2008
---------------------------------------------------------------------
Produced 17.6 MW 48.7 MW 49.2 MW
---------------------------------------------------------------------
Shipped 14.4 MW 50.2 MW 51.4 MW
---------------------------------------------------------------------
Cost per watt excluding wafer cost US$0.234/Wp US$0.198/Wp US$0.200/Wp
---------------------------------------------------------------------
The conversion of Renminbi into U.S. dollars 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 March 31, 2008, which was RMB 7.012 to US$1.0000. 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 March 31, 2008, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We are excited about our results for the first quarter, as we achieved continued revenue growth and a strong increase in income from operations. We are experiencing strong market demand this year, and we anticipate continued high customer demand for 2009. To strengthen our supply position, we recently added GCL as another supply partner during the quarter, which gives us further confidence in meeting increased customer demand as we ramp up our production capacity.
"We have made significant progress with our key operational and R&D initiatives. Installation of our new cell lines is on track. We are confident that we will achieve our target of 500 MW of annual production capacity by year-end 2008. Our R&D programs are moving forward and have started delivering results."
JA Solar's CFO, Mr. Daniel Lui said, "Our Q1 results once again demonstrated that our operational execution and disciplined financial management enabled us to achieve impressive revenue growth, increase profitability, and maintain our margin target. As we rapidly increase our size and scale with a continued emphasis on operational and cost efficiencies, we are confident that we will meet our growth targets, maintain profit margins, and grow profitably."
2008 Outlook
Based on current customer demand and market forecasts, we reiterate our expectations for revenue for the full year 2008 in the range of RMB 7.22 billion (US$1.03 billion) to RMB 8.02 billion (US$1.14 billion). Our revenue guidance in RMB remains unchanged. The higher amount in USD is due to a lower USD/RMB exchange rate used in the first quarter 2008 than the fourth quarter 2007. Gross margin for 2008 is expected to remain above 20%.
We reiterate our target for total production output of no less than 340 MW for 2008, with a total annual production capacity of no less than 500 MW by year-end 2008. Currently, we are building ten new solar cell manufacturing lines in Ningjin, Hebei Province. Between June to October 2008, we will add two 25 MW lines per month, totaling 250 MW of new capacity by the end of October. In our new production base in Yangzhou, we will add three 25 MW lines by the end of the fourth quarter 2008, totaling 75 MW of new capacity. The capital expenditures are expected to be RMB 966.8 million (US$137.9 million), primarily for capacity expansion. R&D expense is expected to be RMB 35.1 million (US$5.0 million).
* Revenue of RMB 1.12 billion (US$160.0 million), an increase of 234.8% over Q1 2007
* Total gross profit of RMB 235.9 million (US$33.6 million), an increase of 243.0% over Q1 2007 * Gross margin of 21.0% as compared to 20.5% in Q1 2007
* Income from operations of RMB 163.6 million (US$23.3 million), an increase of 181.7% over Q1 2007
* Basic and diluted earnings per ADS of RMB 1.00 (US$0.14) and RMB 0.99 (US$0.14) as compared to RMB 0.53 (US$0.08) and RMB 0.52 (US$0.07) in Q1 2007
* Shipped 51.4 MW of solar cells during the quarter Outlook for 2008
* Reiterate expected full year 2008 revenue in the range of RMB 7.22 billion (US$1.03 billion) to RMB 8.02 billion (US$1.14 billion)
* New solar cell manufacturing lines in both Ningjin and Yangzhou to commence production on schedule during second half 2008
* Reiterate expected 2008 production output of no less than 340 MW and annual production capacity of no less than 500 MW by the end of 2008
* Gross margin above 20%
HEBEI, China, May 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the first quarter ended March 31, 2008.
First Quarter 2008 Results
Total revenue for the first quarter 2008 was RMB 1.12 billion (US$160.0 million), an increase of 234.8% from first quarter 2007 revenue of RMB 335.1 million (US$47.8 million), and an increase of 6.7% from fourth quarter 2007 revenue of RMB 1.05 billion (US$150.0 million).
Total gross profit for the first quarter 2008 was RMB 235.9 million (US$33.6 million) compared to RMB 68.8 million (US$9.8 million) in the first quarter 2007, and RMB 222.7 million (US$31.8 million) in the fourth quarter 2007. Gross margin was 21.0% in the first quarter 2008 compared to 20.5% in the first quarter 2007, and 21.2% in the fourth quarter 2007.
Net income available to ordinary shareholders for the first quarter 2008 was RMB 154.5 million (US$22.0 million) compared to net income available to ordinary shareholders of RMB 58.3 million (US$8.3 million) for the first quarter 2007, and net income available to ordinary shareholders of RMB 98.3 million (US$14.0 million) for the fourth quarter 2007.
For the first quarter 2008 basic and diluted earnings per ADS were RMB 1.00 (US$0.14) and RMB 0.99 (US$0.14), respectively. These are compared to basic and diluted earnings per ADS of RMB 0.53 (US$0.08) and RMB 0.52 (US$0.07), respectively, for the same period of 2007; and, RMB 0.65 (US$0.09) and RMB 0.64 (US$0.09), respectively, for the fourth quarter 2007. The first quarter 2008 included share-based compensation expense of RMB 52.2 million (US$7.4 million), foreign exchange losses of RMB 38.6 million (US$5.5 million) and a positive change of RMB 40.7 million (US$5.8 million) in fair value of embedded foreign exchange derivatives, relating to some of our supply agreements. This is compared to share-based compensation expenses of RMB 2.0 million (US$0.3 million) and foreign exchange losses of RMB 6.2 million (US$0.9 million) for the same period of 2007; and, share-based compensation expenses of RMB 61.2 million (US$8.7 million) and foreign exchange losses of RMB 57.3 million (US$8.2 million) for the fourth quarter of 2007.
Capital expenditures were RMB 69.5 million (US$9.9 million) in the first quarter 2008, as compared to RMB 101.2 million (US$14.4 million) in the first quarter 2007, and RMB 128.9 million (US$18.4 million) in the fourth quarter 2007. Depreciation and amortization expenses in the first quarter 2008 were RMB 13.5 million (US$1.9 million), as compared to RMB 5.2 million (US$0.7 million) in the first quarter 2007, and RMB 11.9 million (US$1.7 million) in the fourth quarter 2007.
As of March 31, 2008, JA Solar had cash and cash equivalents of RMB 1.45 billion (US$206.8 million) compared with RMB 1.80 billion (US$256.1 million) at the end of the first quarter 2007, and RMB 1.15 billion (US$163.3 million) at the end of the fourth quarter 2007. Short-term debt decreased to nil at the end of the first quarter 2008 from RMB 200.0 million (US$28.5 million) at the end of the first quarter 2007, and RMB 200.0 million (US$28.5 million) at the end of fourth quarter 2007.
Summary of megawatts produced and shipped
(includes cell processing service)
---------------------------------------------------------------------
Three months ended
---------------------------------------------------------------------
Megawatts March 31, 2007 December 31, 2007 March 31, 2008
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Produced 17.6 MW 48.7 MW 49.2 MW
---------------------------------------------------------------------
Shipped 14.4 MW 50.2 MW 51.4 MW
---------------------------------------------------------------------
Cost per watt excluding wafer cost US$0.234/Wp US$0.198/Wp US$0.200/Wp
---------------------------------------------------------------------
The conversion of Renminbi into U.S. dollars 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 March 31, 2008, which was RMB 7.012 to US$1.0000. 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 March 31, 2008, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We are excited about our results for the first quarter, as we achieved continued revenue growth and a strong increase in income from operations. We are experiencing strong market demand this year, and we anticipate continued high customer demand for 2009. To strengthen our supply position, we recently added GCL as another supply partner during the quarter, which gives us further confidence in meeting increased customer demand as we ramp up our production capacity.
"We have made significant progress with our key operational and R&D initiatives. Installation of our new cell lines is on track. We are confident that we will achieve our target of 500 MW of annual production capacity by year-end 2008. Our R&D programs are moving forward and have started delivering results."
JA Solar's CFO, Mr. Daniel Lui said, "Our Q1 results once again demonstrated that our operational execution and disciplined financial management enabled us to achieve impressive revenue growth, increase profitability, and maintain our margin target. As we rapidly increase our size and scale with a continued emphasis on operational and cost efficiencies, we are confident that we will meet our growth targets, maintain profit margins, and grow profitably."
2008 Outlook
Based on current customer demand and market forecasts, we reiterate our expectations for revenue for the full year 2008 in the range of RMB 7.22 billion (US$1.03 billion) to RMB 8.02 billion (US$1.14 billion). Our revenue guidance in RMB remains unchanged. The higher amount in USD is due to a lower USD/RMB exchange rate used in the first quarter 2008 than the fourth quarter 2007. Gross margin for 2008 is expected to remain above 20%.
We reiterate our target for total production output of no less than 340 MW for 2008, with a total annual production capacity of no less than 500 MW by year-end 2008. Currently, we are building ten new solar cell manufacturing lines in Ningjin, Hebei Province. Between June to October 2008, we will add two 25 MW lines per month, totaling 250 MW of new capacity by the end of October. In our new production base in Yangzhou, we will add three 25 MW lines by the end of the fourth quarter 2008, totaling 75 MW of new capacity. The capital expenditures are expected to be RMB 966.8 million (US$137.9 million), primarily for capacity expansion. R&D expense is expected to be RMB 35.1 million (US$5.0 million).
The 1st solar PV building: main structure completed
May 08, 2008
The main structure of the 25-storeyed mansion, China's first solar PV (photovoltaic) building, was lately completed in the city of Baoding in China's northern Hebei Province.
The building will serve as a landmark for the country's new energy and energy equipment industry base. By applying large-sized breathable glass screen to its outside appearance, the building can generate 0.3 megavolts of electricity, tantamount to a mini-sized power plant, which will not only satisfy the needs of electric lighting for the building, but can be annexed with the power grid for electricity generation. By People's Daily Online
The main structure of the 25-storeyed mansion, China's first solar PV (photovoltaic) building, was lately completed in the city of Baoding in China's northern Hebei Province.
The building will serve as a landmark for the country's new energy and energy equipment industry base. By applying large-sized breathable glass screen to its outside appearance, the building can generate 0.3 megavolts of electricity, tantamount to a mini-sized power plant, which will not only satisfy the needs of electric lighting for the building, but can be annexed with the power grid for electricity generation. By People's Daily Online
Yingli Green Energy Signs Sales Contract with IBC Solar AG
Thursday, May. 08, 2008
BAODING, China — Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced that it has entered into a sales contract with IBC Solar AG ("IBC"), one of the leading specialists in PV systems worldwide. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 35 MW of PV modules to IBC from May 2008 to December 2008. In addition, IBC has an option to purchase a maximum of another 45 MW of PV modules from Yingli Green Energy in 2009.
"I believe this contract will further support the cooperation and deepen the relationship between our two companies," commented Thomas C. Sauer, CEO of IBC. "Yingli Green Energy's top quality products, brand name and solid track record have been a major reason behind our purchases from them in the past, and now we are pleased to significantly expand our relationship in the future."
"I am very pleased to announce this important contract which represents another milestone in our ongoing relationship with IBC," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "I believe this sales contract marks our continued success in expanding in Germany, which is one of the most important PV markets in the world, and further demonstrates that our product quality and brand name have been recognized by one of the leading PV system specialists in the market. In addition, IBC's broad reach makes them a particularly desirable partner. We remain deeply committed to solidifying our established customer relationships and we continue our efforts to promote our quality products and brand name to both existing and potential customers. I believe our efforts will further strengthen our position as one of the world's leading vertically integrated PV product manufacturers."
About IBC SOLAR AG
IBC SOLAR AG was founded in 1982 and since then has been active exclusively in the photovoltaic sector. Headquartered in Bavaria, the company was recognised as one of the 50 fastest growing companies in Bavaria in 2006. The IBC group and its subsidiaries in Europe, Asia and America provide markets worldwide with high performance photovoltaic systems of all sizes, from house roofs to major turnkey solar projects.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of the limited numbers of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States. For more information, please visit www.yinglisolar.com.
BAODING, China — Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced that it has entered into a sales contract with IBC Solar AG ("IBC"), one of the leading specialists in PV systems worldwide. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 35 MW of PV modules to IBC from May 2008 to December 2008. In addition, IBC has an option to purchase a maximum of another 45 MW of PV modules from Yingli Green Energy in 2009.
"I believe this contract will further support the cooperation and deepen the relationship between our two companies," commented Thomas C. Sauer, CEO of IBC. "Yingli Green Energy's top quality products, brand name and solid track record have been a major reason behind our purchases from them in the past, and now we are pleased to significantly expand our relationship in the future."
"I am very pleased to announce this important contract which represents another milestone in our ongoing relationship with IBC," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "I believe this sales contract marks our continued success in expanding in Germany, which is one of the most important PV markets in the world, and further demonstrates that our product quality and brand name have been recognized by one of the leading PV system specialists in the market. In addition, IBC's broad reach makes them a particularly desirable partner. We remain deeply committed to solidifying our established customer relationships and we continue our efforts to promote our quality products and brand name to both existing and potential customers. I believe our efforts will further strengthen our position as one of the world's leading vertically integrated PV product manufacturers."
About IBC SOLAR AG
IBC SOLAR AG was founded in 1982 and since then has been active exclusively in the photovoltaic sector. Headquartered in Bavaria, the company was recognised as one of the 50 fastest growing companies in Bavaria in 2006. The IBC group and its subsidiaries in Europe, Asia and America provide markets worldwide with high performance photovoltaic systems of all sizes, from house roofs to major turnkey solar projects.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of the limited numbers of large-scale PV companies in the world to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States. For more information, please visit www.yinglisolar.com.
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