LOS ANGELES and BEIJING, Aug. 13 /Xinhua-PRNewswire-FirstCall/ -- Deli Solar (USA), Inc. (OTC Bulletin Board: DLSL), an established significant seller of solar water heaters and space heating devices in the People's Republic of China (the "PRC"), announced its results for the second quarter which ended June 30, 2007.
Sales for the second quarter of 2007 increased 33% to $9.4 million compared to $7.1 million for the same quarter in 2006. Revenues were comprised of over 63,000 solar water heaters and 37,000 boilers sold during the quarter. Gross profit for the three months ended June 30, 2007 was $1.9 million, an increase of approximately 30% from the second quarter of 2006. Gross margins were 20.5% to 21.1% for the second quarter of 2007 and 2006 respectively.
Operating expenses for the three months ended June 30, 2007 decreased 4% to $1.1 million compared to the same period in 2006 and a result of prudent management of general and administrative expenses despite a 32% increase in advertising expenses focused on gaining market share.
Operating income for the second quarter of 2007 totaled $0.8 million compared to $0.3 million for the same period in 2006, representing a 163% increase. Net income for the 2007 second quarter increased 113% to $0.6 million, representing earnings per share of $.10, from $0.3 million in net income, or $.04 per share during the second quarter of 2006. Calculations were based upon 6.6 million and 8 million shares outstanding respectively.
"Revenue growth was driven by higher unit sales of solar water heaters and residential boilers which benefited from continued investment in brand marketing, sales promotions and further expansion of our sales distribution network," commented Mr. Deli Du, President and Chief Executive Officer. ''While margins were slightly impacted by competition and pricing pressure, our ability to prudently manage raw material and organizational costs enabled us to dramatically increase operating profitability. In addition, we made further progress installing our new flat plate collector production and water assembly line, which we expect to be fully operational during September 2007. We expect this to enhance our production efficiencies and improve the quality of our products while contributing a positive impact on future operating margins,'' continued Mr. Du.
Six Month Results
Sales increased approximately 32% to $12.4 million for six months ended June 30, 2007 as compared to $9.4 million for the same period last year resulting from continued investment in brand marketing, sales promotion and development of a sales distribution network. Operating expenses for the six months ended June 30, 2007 were $1.6 million as compared to $1.5 million for the same period in 2006, an increase of 4%. Operating income for the six months ended June 30, 2007 was $1.1 million, increased 109% as compared to $0.5 million for the six months ended June 30, 2006.
Net income was $0.9 million in the six months ended June 30, 2007, compared with $0.5 million in the same period last year, an increase of $0.4 million, or approximately 84%. This equated to earnings of $.14 per share compared to $.06 per share for the first six months of 2006 based on 6.4 million and 8 million fully diluted shares respectively.
Balance Sheet and Cash Flow Discussion
The Company reported $5.7 million in cash and equivalents on June 30, 2007, a current ratio of 12.3 to 1 and was debt free. The Company completed a $2.5 million financing in June 2007. Net cash flow from operations was $0.3 million for the six months ended June 30, 2007, a slight increase from the same year ago period. In addition, the Company incurred approximately $0.4 million in capital expenditures on new facilities and assembly lines at its Bazhou factory during the first six months of 2007.
"We continue to make further progress on our acquisition strategy as we signed a purchase agreement on May 18, 2007 to buy 51% of Tianjin Huaneng Energy Equipment Company, which manufactures energy saving boilers and environmental protection equipment for industrial customers. As part of the acquisition we paid approximately $1.6 million in July 2007 with approximately $100,000 balance due and a separate finders' fee. We also agreed to invest approximately $2.5 million into the new company to expand production capabilities and operations. With an effective accounting date of July 1, 2007, we anticipate this purchase will contribute to both revenues and profitability during the balance of this year. Separately, we continue to pursue the purchase of a 60% equity stake in Shenzhen Xiongri Solar Power Co., Ltd., which provides solar water heaters for commercial customers and multi-family developers throughout Shenzhen,'' Mr. Du concluded.
About Deli Solar (USA), Inc.
Deli Solar (USA) Inc. operates through its wholly owned subsidiaries Bazhou Deli Solar Energy Heating Co. Ltd. ("Deli Solar (Bazhou)") and Beijing Deli Solar Technology Development Co., Ltd. ("Deli Solar (Beijing)"), both located in the PRC. The Company sells and distributes hot water and space heating devices to customers in the PRC. For more information, please visit http://www.delisolar.com .
Tuesday, August 14, 2007
Suntech Reports Second Quarter 2007 Financial Results
WUXI, China, Aug. 9 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic
(PV) cells and modules, today announced second quarter 2007 financial
results.
Second Quarter 2007 Highlights(1)
-- Exceeding guidance, total production output was over 80MW and total net revenues grew 147.7% year-over-year to $317.4 million.
-- On a non-GAAP(2) basis, Suntech group's net income was $48.9 million. Excluding the impact of MSK, net income was $50.8 million or $0.30 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
-- Suntech group's non-GAAP gross margin in its core Wafer to Module business was 23.9% and blended non-GAAP gross margin was 21.1%. Margin improvement was primarily due to the increase in delivery of lower priced wafers from long-term contract wafer suppliers.
-- Annualized PV cell production capacity expansion is on track to reach 480MW by the end of 2007.
"I am pleased to report excellent results for the second quarter," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "We once again exceeded our output target as we saw unprecedented demand for Suntech's high quality solar panels across a range of international markets. In fact, our sales demand has been so strong that we have already signed contracts to deliver over 150MW of our PV modules in 2008. To put that in perspective, that is nearly equal to Suntech's entire output in 2006. As we deepen our sales channels and networks in key geographies, we believe we will continue to grow faster than our competitors as well as the underlying markets."
"In the second quarter, our margins improved as ASPs remained in line with our expectations and silicon deliveries from our long-term suppliers returned to schedule." Dr. Shi added, "Our MSK integration efforts combined with the strategic refocus on building-integrated photovoltaic products (BIPV) has also led to greater global sales traction and improvements in the margin impact of our MSK products."
Commenting on Suntech's technology, Dr. Shi said, "We are pleased with the progress of our solar innovation initiatives. Despite the success of our high performance semi-conductor finger technology, our ground-breaking 20% efficiency Pluto technology is demonstrating even more impressive results in pilot production and we are on track to commence commercial production using this technology in 2008."
Dr. Shi continued, "Through this period of dynamic growth, we are determined to expand production capacity and increase our competitiveness by leveraging our manufacturing efficiency, technology advantages, and balanced silicon sourcing strategy."
Recent Business Highlights
-- Demand for Suntech's PV products in Spain continued to grow in the second quarter particularly through collaborations with key customers on multi-megawatt projects. Suntech is on track to become one of the largest suppliers of PV products to Spain.
-- Suntech began shipping PV modules for the 8.2MW Alamosa solar power plant project in Colorado which is one of the largest PV projects in the United States to date.
-- Suntech recently improved its long-term silicon position by signing a contract with Hoku Materials to purchase up to $678 million of polysilicon over a ten-year period. Shipments of set volumes of polysilicon at fixed prices are scheduled to begin in 2009.
-- Suntech's MSK branded BIPV system was a key component of Kingspan Off - Site's "Lighthouse" net-zero carbon home, which is the first house designed to comply with the British government's Code for Sustainable Homes Level 6. By 2016, all new homes built in the United Kingdom will be required to be designed and constructed to meet the Code for Sustainable Homes Level 6.
-- The Company recently completed phase 1 of an 800kW BIPV curtain wall project at Wuxi Airport in China. The installation showcases Suntech's BIPV capabilities and serves as a model project for other potential solar installations in China.
-- Suntech successfully met the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX") regarding internal controls over financial reporting. The internal control systems have helped Suntech improve operating efficiency and manage rapid production and sales growth.
Second Quarter 2007 Results
Non-GAAP Non-GAAP
Net Revenues % of Net Gross Profit Gross
(in $ millions) Revenues (in $ millions) Margin (%)
Standard PV Modules $313.5 98.8 % $66.3 21.2 %
-- Wafer to Modules 274.6 86.5 65.5 23.9
-- Cell to Modules* 38.9 12.3 0.8 2.0
Others 3.9 1.2 0.6 15.6
Total (consolidated) $317.4 100 % $66.9 21.1 %
Total (excluding MSK) $297.5 -- $67.5 22.7 %
* The Cell to Modules segment includes both Suntech modules produced from
third-party cells and MSK's slow moving module inventory.
On a GAAP basis, gross profit was $64.3 million and gross margin was
20.3%, operating income was $38.1 million, and net income was $41.3 million
or $0.25 per diluted ADS.
Non-GAAP operating expenses in the second quarter of 2007 were $21.4
million and accounted for 6.7% of net revenues.
Non-GAAP income from operations for the second quarter of 2007 was
$45.6 million and non-GAAP operating margin was 14.4%.
Non-GAAP net income attributable to holders of ordinary shares for the
second quarter of 2007 was $48.9 million, or $0.29 per non-GAAP diluted
ADS.
In the second quarter of 2007, capital expenditures, which were
primarily related to production capacity expansion and the construction of
the Wuxi and Luoyang production facilities, were $51.7 million and
depreciation and amortization expenses were $4.2 million.
During the second quarter of 2007, the total number of diluted ADSs
outstanding increased from 164.1 million to 168.9 million, primarily due to
an increase of 4.8 million ADSs on an "as converted" basis. The additional
ADSs represent the final portion of the 10.3 million ADSs that may be
issued in the future as a result of the February 2007 convertible note
offering of $500 million.
Suntech's results for the second quarter of 2007 excluding MSK were as
follows:
Non-GAAP operating expenses as a percentage of net revenues were 6.4%,
non-GAAP income from operations was $48.5 million and non-GAAP operating
margin was 16.3%, and non-GAAP net income was $50.8 million. Suntech's
successful execution of its integration initiatives was reflected in this
quarter's results as Suntech reduced its loss from MSK operations by
approximately 40% from the first quarter of 2007 to $1.9 million.
Senior Management Hires and Promotions
Suntech announced the following key promotions and new hires:
Mr. Steven Chan who was previously the Vice President of Business
Development has been promoted to the position of Chief Strategy Officer.
Mr. Chan will be focused on enhancing and solidifying Suntech's long term
focus to be a leading solar energy company. In addition to strategy and
business development, he will also be responsible for the investor
relations and marketing function. His near term focus will be to head new
business initiatives in North America as well as to foster key
relationships with partners and suppliers.
Mr. Hao Zhi who was previously the Investment Controller has been
promoted to the position of Investment Director. Mr. Hao will head the
company's investment initiatives including mergers and acquisitions,
strategic ventures and alliances.
Dr. Frank Zhang and Mr. Henry Ng are newly hired general managers who
will manage Suntech's key production facilities. Dr. Zhang will oversee
Suntech's thin film manufacturing facility in Shanghai and Mr. Ng will
oversee Suntech's core PV manufacturing facility in Wuxi including its new
one Gigawatt facility. Both Dr. Zhang and Mr. Ng have extensive experience
in the related semiconductor manufacturing industry.
Prior to joining Suntech, Dr. Zhang was the Chief Operating Officer at
China Resources Semiconductor Wafer & Chip Company, a semiconductor foundry
in China. He also held a number of senior positions at Honeywell in
California. Dr. Zhang received his MBA from the China Europe International
Business School, Shanghai, and his Ph.D. in Mechanical and Materials
Engineering from Clarkson University, New York.
Mr. Ng previously worked for over 10 years at Sony's manufacturing
facilities in Singapore and China. Most recently he served as senior
general manager of Sony's Huizhou facility that manufactures specialty LLCD
chips. Prior to that, Mr. Ng acted as general manager at MI Wuxi Co., Ltd,
a precision plastic molding company, Volex Cable Assembly (Suzhou), a first
tier telecom and automotive supplier, and at Seagate Technology. Mr. Ng
received a B.Sc degree from the National University of Singapore in Applied
Physics.
Mr. Jason Somer was hired as the Senior Director of Business
Development to be based in the United States. Mr. Somer was previously the
Director of Legal Affairs at IronPort Systems, an e-mail and Web security
appliance company in San Francisco that was acquired by Cisco Systems.
Prior to that he held legal and business development positions at Neoforma,
a Nasdaq-listed healthcare technology company in San Jose. Mr. Somer had
previously worked as a corporate/securities associate for law firms in New
York City, most recently Morrison & Foerster. Mr. Somer received an LL.M.
from Boston University, an LL.B. from the University of British Columbia,
and a B.Sc. from the University of Western Ontario.
Outlook for Third Quarter and Full Year 2007
Based on current operating and other conditions, Suntech expects its
third quarter 2007 total production output to be in the estimated range of
94MW to 96MW.
Conference Call Information
Suntech's earnings announcement conference call will take place on
August 9, 2007 at 8:00a.m., Eastern Time, which corresponds to August 9,
2007 at 8:00p.m., Beijing/Hong Kong time.
To access the conference call, please dial +1-617-597-5344 (for U.S.
callers) or +852-3002-1672 (for international callers) and ask to be
connected to the Suntech earnings conference call. A live and archived
webcast of the conference call will be available on the Investors section
of Suntech's website at http://www.suntech-power.com .
A replay of the conference call will be available until August 20, 2007
by dialing +1 617-801-6888 (passcode: 14519969).
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in
the world as measured by both production output and capacity of solar cells
and modules. Suntech provides solar solutions for a green future. Suntech
designs, develops, manufactures, and markets a variety of high quality,
cost effective and environmentally friendly PV cells and modules for
electric power applications in the residential, commercial, industrial, and
public utility sectors. Suntech's majority-owned subsidiary, MSK
Corporation is one of the top-ranked companies in the building-integrated
photovoltaics (BIPV) space. Suntech's customers are located in various
markets worldwide, including key markets throughout Europe, North America,
Japan and China. For more information, please visit
http://www.suntech-power.com .
Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic
(PV) cells and modules, today announced second quarter 2007 financial
results.
Second Quarter 2007 Highlights(1)
-- Exceeding guidance, total production output was over 80MW and total net revenues grew 147.7% year-over-year to $317.4 million.
-- On a non-GAAP(2) basis, Suntech group's net income was $48.9 million. Excluding the impact of MSK, net income was $50.8 million or $0.30 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
-- Suntech group's non-GAAP gross margin in its core Wafer to Module business was 23.9% and blended non-GAAP gross margin was 21.1%. Margin improvement was primarily due to the increase in delivery of lower priced wafers from long-term contract wafer suppliers.
-- Annualized PV cell production capacity expansion is on track to reach 480MW by the end of 2007.
"I am pleased to report excellent results for the second quarter," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "We once again exceeded our output target as we saw unprecedented demand for Suntech's high quality solar panels across a range of international markets. In fact, our sales demand has been so strong that we have already signed contracts to deliver over 150MW of our PV modules in 2008. To put that in perspective, that is nearly equal to Suntech's entire output in 2006. As we deepen our sales channels and networks in key geographies, we believe we will continue to grow faster than our competitors as well as the underlying markets."
"In the second quarter, our margins improved as ASPs remained in line with our expectations and silicon deliveries from our long-term suppliers returned to schedule." Dr. Shi added, "Our MSK integration efforts combined with the strategic refocus on building-integrated photovoltaic products (BIPV) has also led to greater global sales traction and improvements in the margin impact of our MSK products."
Commenting on Suntech's technology, Dr. Shi said, "We are pleased with the progress of our solar innovation initiatives. Despite the success of our high performance semi-conductor finger technology, our ground-breaking 20% efficiency Pluto technology is demonstrating even more impressive results in pilot production and we are on track to commence commercial production using this technology in 2008."
Dr. Shi continued, "Through this period of dynamic growth, we are determined to expand production capacity and increase our competitiveness by leveraging our manufacturing efficiency, technology advantages, and balanced silicon sourcing strategy."
Recent Business Highlights
-- Demand for Suntech's PV products in Spain continued to grow in the second quarter particularly through collaborations with key customers on multi-megawatt projects. Suntech is on track to become one of the largest suppliers of PV products to Spain.
-- Suntech began shipping PV modules for the 8.2MW Alamosa solar power plant project in Colorado which is one of the largest PV projects in the United States to date.
-- Suntech recently improved its long-term silicon position by signing a contract with Hoku Materials to purchase up to $678 million of polysilicon over a ten-year period. Shipments of set volumes of polysilicon at fixed prices are scheduled to begin in 2009.
-- Suntech's MSK branded BIPV system was a key component of Kingspan Off - Site's "Lighthouse" net-zero carbon home, which is the first house designed to comply with the British government's Code for Sustainable Homes Level 6. By 2016, all new homes built in the United Kingdom will be required to be designed and constructed to meet the Code for Sustainable Homes Level 6.
-- The Company recently completed phase 1 of an 800kW BIPV curtain wall project at Wuxi Airport in China. The installation showcases Suntech's BIPV capabilities and serves as a model project for other potential solar installations in China.
-- Suntech successfully met the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX") regarding internal controls over financial reporting. The internal control systems have helped Suntech improve operating efficiency and manage rapid production and sales growth.
Second Quarter 2007 Results
Non-GAAP Non-GAAP
Net Revenues % of Net Gross Profit Gross
(in $ millions) Revenues (in $ millions) Margin (%)
Standard PV Modules $313.5 98.8 % $66.3 21.2 %
-- Wafer to Modules 274.6 86.5 65.5 23.9
-- Cell to Modules* 38.9 12.3 0.8 2.0
Others 3.9 1.2 0.6 15.6
Total (consolidated) $317.4 100 % $66.9 21.1 %
Total (excluding MSK) $297.5 -- $67.5 22.7 %
* The Cell to Modules segment includes both Suntech modules produced from
third-party cells and MSK's slow moving module inventory.
On a GAAP basis, gross profit was $64.3 million and gross margin was
20.3%, operating income was $38.1 million, and net income was $41.3 million
or $0.25 per diluted ADS.
Non-GAAP operating expenses in the second quarter of 2007 were $21.4
million and accounted for 6.7% of net revenues.
Non-GAAP income from operations for the second quarter of 2007 was
$45.6 million and non-GAAP operating margin was 14.4%.
Non-GAAP net income attributable to holders of ordinary shares for the
second quarter of 2007 was $48.9 million, or $0.29 per non-GAAP diluted
ADS.
In the second quarter of 2007, capital expenditures, which were
primarily related to production capacity expansion and the construction of
the Wuxi and Luoyang production facilities, were $51.7 million and
depreciation and amortization expenses were $4.2 million.
During the second quarter of 2007, the total number of diluted ADSs
outstanding increased from 164.1 million to 168.9 million, primarily due to
an increase of 4.8 million ADSs on an "as converted" basis. The additional
ADSs represent the final portion of the 10.3 million ADSs that may be
issued in the future as a result of the February 2007 convertible note
offering of $500 million.
Suntech's results for the second quarter of 2007 excluding MSK were as
follows:
Non-GAAP operating expenses as a percentage of net revenues were 6.4%,
non-GAAP income from operations was $48.5 million and non-GAAP operating
margin was 16.3%, and non-GAAP net income was $50.8 million. Suntech's
successful execution of its integration initiatives was reflected in this
quarter's results as Suntech reduced its loss from MSK operations by
approximately 40% from the first quarter of 2007 to $1.9 million.
Senior Management Hires and Promotions
Suntech announced the following key promotions and new hires:
Mr. Steven Chan who was previously the Vice President of Business
Development has been promoted to the position of Chief Strategy Officer.
Mr. Chan will be focused on enhancing and solidifying Suntech's long term
focus to be a leading solar energy company. In addition to strategy and
business development, he will also be responsible for the investor
relations and marketing function. His near term focus will be to head new
business initiatives in North America as well as to foster key
relationships with partners and suppliers.
Mr. Hao Zhi who was previously the Investment Controller has been
promoted to the position of Investment Director. Mr. Hao will head the
company's investment initiatives including mergers and acquisitions,
strategic ventures and alliances.
Dr. Frank Zhang and Mr. Henry Ng are newly hired general managers who
will manage Suntech's key production facilities. Dr. Zhang will oversee
Suntech's thin film manufacturing facility in Shanghai and Mr. Ng will
oversee Suntech's core PV manufacturing facility in Wuxi including its new
one Gigawatt facility. Both Dr. Zhang and Mr. Ng have extensive experience
in the related semiconductor manufacturing industry.
Prior to joining Suntech, Dr. Zhang was the Chief Operating Officer at
China Resources Semiconductor Wafer & Chip Company, a semiconductor foundry
in China. He also held a number of senior positions at Honeywell in
California. Dr. Zhang received his MBA from the China Europe International
Business School, Shanghai, and his Ph.D. in Mechanical and Materials
Engineering from Clarkson University, New York.
Mr. Ng previously worked for over 10 years at Sony's manufacturing
facilities in Singapore and China. Most recently he served as senior
general manager of Sony's Huizhou facility that manufactures specialty LLCD
chips. Prior to that, Mr. Ng acted as general manager at MI Wuxi Co., Ltd,
a precision plastic molding company, Volex Cable Assembly (Suzhou), a first
tier telecom and automotive supplier, and at Seagate Technology. Mr. Ng
received a B.Sc degree from the National University of Singapore in Applied
Physics.
Mr. Jason Somer was hired as the Senior Director of Business
Development to be based in the United States. Mr. Somer was previously the
Director of Legal Affairs at IronPort Systems, an e-mail and Web security
appliance company in San Francisco that was acquired by Cisco Systems.
Prior to that he held legal and business development positions at Neoforma,
a Nasdaq-listed healthcare technology company in San Jose. Mr. Somer had
previously worked as a corporate/securities associate for law firms in New
York City, most recently Morrison & Foerster. Mr. Somer received an LL.M.
from Boston University, an LL.B. from the University of British Columbia,
and a B.Sc. from the University of Western Ontario.
Outlook for Third Quarter and Full Year 2007
Based on current operating and other conditions, Suntech expects its
third quarter 2007 total production output to be in the estimated range of
94MW to 96MW.
Conference Call Information
Suntech's earnings announcement conference call will take place on
August 9, 2007 at 8:00a.m., Eastern Time, which corresponds to August 9,
2007 at 8:00p.m., Beijing/Hong Kong time.
To access the conference call, please dial +1-617-597-5344 (for U.S.
callers) or +852-3002-1672 (for international callers) and ask to be
connected to the Suntech earnings conference call. A live and archived
webcast of the conference call will be available on the Investors section
of Suntech's website at http://www.suntech-power.com .
A replay of the conference call will be available until August 20, 2007
by dialing +1 617-801-6888 (passcode: 14519969).
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in
the world as measured by both production output and capacity of solar cells
and modules. Suntech provides solar solutions for a green future. Suntech
designs, develops, manufactures, and markets a variety of high quality,
cost effective and environmentally friendly PV cells and modules for
electric power applications in the residential, commercial, industrial, and
public utility sectors. Suntech's majority-owned subsidiary, MSK
Corporation is one of the top-ranked companies in the building-integrated
photovoltaics (BIPV) space. Suntech's customers are located in various
markets worldwide, including key markets throughout Europe, North America,
Japan and China. For more information, please visit
http://www.suntech-power.com .
Monday, August 13, 2007
Olympics: China trying to put on a ''green'' Olympics
BEIJING, Aug. 7 (Xinhua) -- The Chinese capital is adopting eco-friendly technologies in transportation, power supply, water and waste management to ensure a "green" Olympic Games, according to the Chinese Ministry of Science and Technology.
The city plans to use 100 hybrid-electric vehicles as public buses at all venues and several hundred electric vehicles will serve in the logistics departments of the Olympic Village and all stadiums while electric bicycles will be provided in the main Olympic area, according to the press release.
The project also covers Beijing's public transport system, setting a goal of having 80 percent of buses and 70 percent of taxis fueled by clean energy by 2008.
As part of the efforts, 14 electric buses have been running on one bus route for two years in Beijing as a pilot project while 1,300 buses fueled by compressed gas have been put into operation.
Of the two million square meters of buildings used for the Olympics, 26.9 percent will be powered by clean energy like solar energy, wind and geothermal power, the ministry said.
The seven main stadiums in Beijing will be equipped with solar generators with a total capacity of 480 kw while 90 percent of the lighting outside the stadiums and hot water supply in the Olympics Village will powered by solar energy.
Beijing will have its first wind power plant by the end of this year with a capacity of 50,000 kw, which will supply main stadiums.
All major Olympics venues are equipped with rainwater collectors and sewage recycling facilities to save water, the ministry said.
And 90 percent of the waste produced in the Olympic areas will be sent to waste plants for sorting and recycling, it said.
To realize these goals, the ministry, the Beijing municipal government and the Olympic organizers have spent 1.86 billion yuan(245 million U.S. dollars) in research and development of relevant technologies and facilities.
However, the city's environmental problems, particularly air quality, are still worrying many people a year before the Games.
The city plans to use 100 hybrid-electric vehicles as public buses at all venues and several hundred electric vehicles will serve in the logistics departments of the Olympic Village and all stadiums while electric bicycles will be provided in the main Olympic area, according to the press release.
The project also covers Beijing's public transport system, setting a goal of having 80 percent of buses and 70 percent of taxis fueled by clean energy by 2008.
As part of the efforts, 14 electric buses have been running on one bus route for two years in Beijing as a pilot project while 1,300 buses fueled by compressed gas have been put into operation.
Of the two million square meters of buildings used for the Olympics, 26.9 percent will be powered by clean energy like solar energy, wind and geothermal power, the ministry said.
The seven main stadiums in Beijing will be equipped with solar generators with a total capacity of 480 kw while 90 percent of the lighting outside the stadiums and hot water supply in the Olympics Village will powered by solar energy.
Beijing will have its first wind power plant by the end of this year with a capacity of 50,000 kw, which will supply main stadiums.
All major Olympics venues are equipped with rainwater collectors and sewage recycling facilities to save water, the ministry said.
And 90 percent of the waste produced in the Olympic areas will be sent to waste plants for sorting and recycling, it said.
To realize these goals, the ministry, the Beijing municipal government and the Olympic organizers have spent 1.86 billion yuan(245 million U.S. dollars) in research and development of relevant technologies and facilities.
However, the city's environmental problems, particularly air quality, are still worrying many people a year before the Games.
JA Solar Reports Second Quarter 2007 Results
August 08, 2007: 07:00 AM EST
* Total revenues for 2Q07 of RMB 457.0 million (US$60.0 million) compared to revenues of RMB 96.1 million (US$12.6 million) for 2Q06
* 2Q07 net income of RMB 1.63 (US$0.21) per diluted ADS compared to RMB 0.67(US$0.09) per diluted ADS in 2Q06
* Total capacity has reached 175MW per annum
HEBEI, China, Aug. 8, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the second quarter ended June 30, 2007.
Second Quarter 2007 Results
Total revenues for the second quarter of 2007 were RMB 457.0 million (US$60.0 million), compared to revenues of RMB 96.1 million (US$12.6 million) for the second quarter of 2006, and RMB 335.1 million (US$44.0 million) in the first quarter of 2007. The second quarter of 2007 revenues included solar cells processing service revenue of RMB 26.2 million (US$3.4 million), compared to Nil in the second quarter of 2006 and RMB 0.1 million (US$0.02 million) in the first quarter of 2007.
Total gross profit for the second quarter of 2007 was RMB 110.1 million (US$14.5 million), including solar cells processing service profit of RMB 19.8 million (US$2.6 million). Total gross margin was 24.10% for the second quarter of 2007. Excluding solar cells processing service gross profit, our gross margin was 20.96% compared to 20.50% in the first quarter of 2007.
Net income available to ordinary shareholders for the second quarter of 2007 was RMB 75.7 million (US$9.9 million) compared to a net income available to ordinary shareholders of RMB 17.8 million (US$2.3 million) for the second quarter of 2006, and net income available to ordinary shareholders of RMB 58.3 million (US$7.7 million) for the first quarter of 2007.
For the second quarter of 2007 basic and diluted earnings per ADS were RMB 1.64 (US$0.22) and RMB 1.63 (US$0.21) respectively. Each ADS represents three of our ordinary shares.
The second quarter of 2007 expenses included share-based compensation expense of RMB 12.0 million (US$1.6 million), or RMB 0.26 (US$ 0.03) per diluted ADS.
Capital expenditures were RMB 47.4 million (US$6.2 million) in the second quarter of 2007, as compared to RMB 101.2 million (US$13.3 million) in the previous quarter and RMB 39.6 million (US$5.2 million) in the second quarter of 2006. Depreciation and amortization expenses in the second quarter of 2007 were RMB 6.3 million (US$0.8 million), as compared to RMB 5.2 million (US$0.7 million) in the previous quarter and RMB 2.1 million (US$0.3 million) in the second quarter of 2006.
As of June 30, 2007, JA Solar had cash and cash equivalents of RMB 1.6 billion (US$205.7 million) compared with RMB 1.8 billion (US$235.9 million) at the end of the first quarter of 2007. Short term debt decreased to RMB 150 million (US$19.7 million) at the end of the second quarter of 2007 from RMB 200 million (US$26.3 million) at the end of the first quarter of 2007.
Set out below is a summary of megawatts produced and shipped (including processing service): ---------------------------------------------------------------------
Three months ended
---------------------------------------------------------------------
Megawatts June 30, 2006 March 31, 2007 June 30, 2007
---------------------------------------------------------------------
Produced 3.0MW 17.6MW 22.6MW
---------------------------------------------------------------------
Shipped 3.1MW 14.4MW 24.0MW
---------------------------------------------------------------------
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 June 29, 2007, which was RMB 7.6120 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 June 29, 2007, 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, "Our business momentum and track record of execution continued in the second quarter. Results came in at or above the high-end of our internal target for revenue, gross margin and net income. Four new production lines commenced production ahead of schedule. The JA Solar brand is becoming the standard for high-quality, high-performance monocrystalline solar cells. We remain focused on leveraging this differentiated position to further our customer diversification and global expansion efforts."
Herman Zhao, JA Solar's Chief Financial Officer, said, "Gross margin increased in the second quarter of 2007 from the first quarter of 2007 despite incurring routine costs. We now have a total of 175 MW of solar cell manufacturing capacity per annum. As we move into the second half of the year we will begin to solidify our capacity expansion plans for 2008 based on customer forecasts."
Company Raises 2007 Outlook
Based on current market conditions and customer forecasts, the Company is raising its production outlook for 2007 from approximately 100MW to 110MW. This would result in revenues for the full year of 2007 in the range of approximately RMB 2,284 million (US$300 million) to RMB 2,360 million (US$310 million), with a gross margin expected to be approximately 19.5%, compared to prior guidance for revenues in the range of RMB 2,128 million (US$280 million) to RMB 2,205 million (US$290 million), with a gross margin expected to be approximately 19.5%.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We remain optimistic in our outlook for the second half of 2007. The increase in our guidance for the full year of 2007 reflects the strong demand globally for our high-quality, high-performance monocrystalline solar cells. We continue to diversify our customer base to take advantage of beneficial strategic relationships."
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Wednesday, August 8, 2007 (in Hebei). This will be 9:00 a.m. on Wednesday, August 8, in New York. During the call, time will be set aside for analysts and interested investors to ask questions of executive officers.
The call may be accessed by dialing +1-201-689-8560. A live webcast of the conference call will be available on the Company's website at www.jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing +1-201-612-7415. The account number to access the replay is 3055 and the passcode is 250008.
About JA Solar Holdings Co., Ltd.
Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance monocrystalline solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit http://www.jasolar.com.
* Total revenues for 2Q07 of RMB 457.0 million (US$60.0 million) compared to revenues of RMB 96.1 million (US$12.6 million) for 2Q06
* 2Q07 net income of RMB 1.63 (US$0.21) per diluted ADS compared to RMB 0.67(US$0.09) per diluted ADS in 2Q06
* Total capacity has reached 175MW per annum
HEBEI, China, Aug. 8, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the second quarter ended June 30, 2007.
Second Quarter 2007 Results
Total revenues for the second quarter of 2007 were RMB 457.0 million (US$60.0 million), compared to revenues of RMB 96.1 million (US$12.6 million) for the second quarter of 2006, and RMB 335.1 million (US$44.0 million) in the first quarter of 2007. The second quarter of 2007 revenues included solar cells processing service revenue of RMB 26.2 million (US$3.4 million), compared to Nil in the second quarter of 2006 and RMB 0.1 million (US$0.02 million) in the first quarter of 2007.
Total gross profit for the second quarter of 2007 was RMB 110.1 million (US$14.5 million), including solar cells processing service profit of RMB 19.8 million (US$2.6 million). Total gross margin was 24.10% for the second quarter of 2007. Excluding solar cells processing service gross profit, our gross margin was 20.96% compared to 20.50% in the first quarter of 2007.
Net income available to ordinary shareholders for the second quarter of 2007 was RMB 75.7 million (US$9.9 million) compared to a net income available to ordinary shareholders of RMB 17.8 million (US$2.3 million) for the second quarter of 2006, and net income available to ordinary shareholders of RMB 58.3 million (US$7.7 million) for the first quarter of 2007.
For the second quarter of 2007 basic and diluted earnings per ADS were RMB 1.64 (US$0.22) and RMB 1.63 (US$0.21) respectively. Each ADS represents three of our ordinary shares.
The second quarter of 2007 expenses included share-based compensation expense of RMB 12.0 million (US$1.6 million), or RMB 0.26 (US$ 0.03) per diluted ADS.
Capital expenditures were RMB 47.4 million (US$6.2 million) in the second quarter of 2007, as compared to RMB 101.2 million (US$13.3 million) in the previous quarter and RMB 39.6 million (US$5.2 million) in the second quarter of 2006. Depreciation and amortization expenses in the second quarter of 2007 were RMB 6.3 million (US$0.8 million), as compared to RMB 5.2 million (US$0.7 million) in the previous quarter and RMB 2.1 million (US$0.3 million) in the second quarter of 2006.
As of June 30, 2007, JA Solar had cash and cash equivalents of RMB 1.6 billion (US$205.7 million) compared with RMB 1.8 billion (US$235.9 million) at the end of the first quarter of 2007. Short term debt decreased to RMB 150 million (US$19.7 million) at the end of the second quarter of 2007 from RMB 200 million (US$26.3 million) at the end of the first quarter of 2007.
Set out below is a summary of megawatts produced and shipped (including processing service): ---------------------------------------------------------------------
Three months ended
---------------------------------------------------------------------
Megawatts June 30, 2006 March 31, 2007 June 30, 2007
---------------------------------------------------------------------
Produced 3.0MW 17.6MW 22.6MW
---------------------------------------------------------------------
Shipped 3.1MW 14.4MW 24.0MW
---------------------------------------------------------------------
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 June 29, 2007, which was RMB 7.6120 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 June 29, 2007, 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, "Our business momentum and track record of execution continued in the second quarter. Results came in at or above the high-end of our internal target for revenue, gross margin and net income. Four new production lines commenced production ahead of schedule. The JA Solar brand is becoming the standard for high-quality, high-performance monocrystalline solar cells. We remain focused on leveraging this differentiated position to further our customer diversification and global expansion efforts."
Herman Zhao, JA Solar's Chief Financial Officer, said, "Gross margin increased in the second quarter of 2007 from the first quarter of 2007 despite incurring routine costs. We now have a total of 175 MW of solar cell manufacturing capacity per annum. As we move into the second half of the year we will begin to solidify our capacity expansion plans for 2008 based on customer forecasts."
Company Raises 2007 Outlook
Based on current market conditions and customer forecasts, the Company is raising its production outlook for 2007 from approximately 100MW to 110MW. This would result in revenues for the full year of 2007 in the range of approximately RMB 2,284 million (US$300 million) to RMB 2,360 million (US$310 million), with a gross margin expected to be approximately 19.5%, compared to prior guidance for revenues in the range of RMB 2,128 million (US$280 million) to RMB 2,205 million (US$290 million), with a gross margin expected to be approximately 19.5%.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We remain optimistic in our outlook for the second half of 2007. The increase in our guidance for the full year of 2007 reflects the strong demand globally for our high-quality, high-performance monocrystalline solar cells. We continue to diversify our customer base to take advantage of beneficial strategic relationships."
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Wednesday, August 8, 2007 (in Hebei). This will be 9:00 a.m. on Wednesday, August 8, in New York. During the call, time will be set aside for analysts and interested investors to ask questions of executive officers.
The call may be accessed by dialing +1-201-689-8560. A live webcast of the conference call will be available on the Company's website at www.jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing +1-201-612-7415. The account number to access the replay is 3055 and the passcode is 250008.
About JA Solar Holdings Co., Ltd.
Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance monocrystalline solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit http://www.jasolar.com.
Saturday, August 4, 2007
LDK Solar Reports Financial Results for the Second Quarter 2007
August 01, 2007: 04:05 PM EST
XINYU CITY, China and SUNNYVALE, Calif., Aug. 1 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the second quarter ended June 30, 2007.
All financial results are reported on a U.S. GAAP basis.
Second Quarter 2007 Financial Highlights:
-- Revenue of $99.1 million, up 716% from the year ago quarter
-- Gross profit of $34.9 million, up 1,265% from the year ago quarter
-- Net income of $28.7 million, or $0.29 per diluted ADS, up 2,083% from the year ago quarter
-- Increased annualized multicrystalline wafer production capacity from 215 MW to 300 MW, up 40% quarter-over-quarter
Net sales for the second quarter of fiscal 2007 were $99.1 million, up 35% sequentially from $73.4 million for the first quarter of fiscal 2007, and up 716% year-over-year from $12.1 million for the second quarter of fiscal 2006.
Gross profit for the second quarter of fiscal 2007 was $34.9 million, up 23% sequentially from $28.4 million for the first quarter of fiscal 2007, and up 1,265% year-over-year from $2.6 million for the second quarter of fiscal 2006. Gross margin for the second quarter of fiscal 2007 was 35.2%, compared with 38.7% in the first quarter of fiscal 2007 and 21.0% in the second quarter of fiscal 2006.
Net income for the second quarter of fiscal 2007 was $28.7 million, or $0.29 per diluted ADS, compared to net income of $24.5 million, or $0.27 per diluted ADS for the first quarter of fiscal 2007, and $1.3 million, or $0.02 per diluted ADS for the second quarter of fiscal 2006.
The Company ended the second quarter of fiscal 2007 with $250.6 million in cash and cash equivalents.
"We are pleased to report strong results for the second quarter, our first as a public company," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our results demonstrate our success in providing our customers, leading global solar cell and module manufacturers, with high-quality multicrystalline solar wafers at significant cost advantages. During the quarter, we executed our growth strategy on plan and continued the rapid expansion of our production capacity. In addition to ramping our production lines, we continued to make progress on our cost reduction efforts through further advancements of our production processes.
"We recently ordered additional DSS furnaces and wire saws to further expand our manufacturing capacity to 1,600 MW by the end of 2009. We also announced the purchase of polysilicon production equipment, enabling LDK to produce virgin silicon feedstock. By augmenting our strategy upstream, we believe we will enhance our cost efficiencies," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.
For the third quarter of fiscal 2007, LDK estimates revenue is expected to be in the range of $115 to $125 million and fully diluted earnings per ADS of $0.29 to $0.32.
Conference Call Details
The LDK Second Quarter teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on Wednesday, August 1, 2007. To listen to the live conference call, please dial 800-257-6607 (within U.S.) or 303-262-2006 (outside U.S.) at 4:50 p.m. ET on August 1, 2007. An audio replay of the call will be available to investors through August 6, 2007, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11093873#.
A live webcast of the call will be available on the company's investor relations website at http://investor.ldksolar.com.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
XINYU CITY, China and SUNNYVALE, Calif., Aug. 1 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the second quarter ended June 30, 2007.
All financial results are reported on a U.S. GAAP basis.
Second Quarter 2007 Financial Highlights:
-- Revenue of $99.1 million, up 716% from the year ago quarter
-- Gross profit of $34.9 million, up 1,265% from the year ago quarter
-- Net income of $28.7 million, or $0.29 per diluted ADS, up 2,083% from the year ago quarter
-- Increased annualized multicrystalline wafer production capacity from 215 MW to 300 MW, up 40% quarter-over-quarter
Net sales for the second quarter of fiscal 2007 were $99.1 million, up 35% sequentially from $73.4 million for the first quarter of fiscal 2007, and up 716% year-over-year from $12.1 million for the second quarter of fiscal 2006.
Gross profit for the second quarter of fiscal 2007 was $34.9 million, up 23% sequentially from $28.4 million for the first quarter of fiscal 2007, and up 1,265% year-over-year from $2.6 million for the second quarter of fiscal 2006. Gross margin for the second quarter of fiscal 2007 was 35.2%, compared with 38.7% in the first quarter of fiscal 2007 and 21.0% in the second quarter of fiscal 2006.
Net income for the second quarter of fiscal 2007 was $28.7 million, or $0.29 per diluted ADS, compared to net income of $24.5 million, or $0.27 per diluted ADS for the first quarter of fiscal 2007, and $1.3 million, or $0.02 per diluted ADS for the second quarter of fiscal 2006.
The Company ended the second quarter of fiscal 2007 with $250.6 million in cash and cash equivalents.
"We are pleased to report strong results for the second quarter, our first as a public company," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our results demonstrate our success in providing our customers, leading global solar cell and module manufacturers, with high-quality multicrystalline solar wafers at significant cost advantages. During the quarter, we executed our growth strategy on plan and continued the rapid expansion of our production capacity. In addition to ramping our production lines, we continued to make progress on our cost reduction efforts through further advancements of our production processes.
"We recently ordered additional DSS furnaces and wire saws to further expand our manufacturing capacity to 1,600 MW by the end of 2009. We also announced the purchase of polysilicon production equipment, enabling LDK to produce virgin silicon feedstock. By augmenting our strategy upstream, we believe we will enhance our cost efficiencies," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.
For the third quarter of fiscal 2007, LDK estimates revenue is expected to be in the range of $115 to $125 million and fully diluted earnings per ADS of $0.29 to $0.32.
Conference Call Details
The LDK Second Quarter teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on Wednesday, August 1, 2007. To listen to the live conference call, please dial 800-257-6607 (within U.S.) or 303-262-2006 (outside U.S.) at 4:50 p.m. ET on August 1, 2007. An audio replay of the call will be available to investors through August 6, 2007, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11093873#.
A live webcast of the call will be available on the company's investor relations website at http://investor.ldksolar.com.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
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