SAN FRANCISCO and WUXI, China, May 8, 2009 /PRNewswire-Asia via COMTEX/ -- Suntech Power Holdings Co., Ltd., the world's largest manufacturer of crystalline silicon photovoltaic (PV) modules, today announced that in the first quarter of 2009, Suntech re-purchased $150.4 million aggregate principal amount of its 0.25% convertible senior notes due 2012 for a total cash consideration of $129.9 million. As of May 8, 2009, Suntech had $255.8 million principal amount of its 2012 convertible senior notes outstanding.
Suntech may from time to time seek to make additional repurchases of its convertible senior notes. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements and other factors.
Showing posts with label PV module. Show all posts
Showing posts with label PV module. Show all posts
Friday, May 15, 2009
Friday, May 8, 2009
Suntech Joins Solar Panel Recycling Program
While the serviceable life of most solar panels is at least a couple of decades and some solar panel installations commissioned in the 1970's are still functioning today; at some stage in the time ahead a flood of panels will need to be disposed of - and preferably recycled.
Solar panels are essentially simple devices containing materials such as silicon, glass, aluminium and semiconductor materials that are all recyclable. Only a very small percentage of a solar panel's weight need ever be totally discarded. Recycling of solar panels is not only technically and economically feasible, but it could greatly decrease the overall ecological footprint associated with production
Suntech Power Holdings Co., Ltd. (stock: STP) the world's largest manufacturer of crystalline silicon photovoltaic (PV) modules, announced recently that the company has joined PV Cycle; a European association establishing a voluntary take-back and recycling program for solar panels. Suntech said that with 1GW of Suntech solar panels sold since its inception, the company believes it is essential that Suntech take a proactive role in developing effective recycling programs.
Through PV Cycle, the solar panel industry aims to develop overall waste management and recycling policy that achieves the highest economically feasible and environmentally responsible collection and recycling of PV modules. PV Cycle now covers around 80% of the European photovoltaic market with its 35 member companies spread around the world.
While PV Cycle is only covering the European market at present and no similar organisation yet exists in Australia, PV Cycle's efforts will certainly lay the groundwork that other regions will be able to follow.
Solar panels are essentially simple devices containing materials such as silicon, glass, aluminium and semiconductor materials that are all recyclable. Only a very small percentage of a solar panel's weight need ever be totally discarded. Recycling of solar panels is not only technically and economically feasible, but it could greatly decrease the overall ecological footprint associated with production
Suntech Power Holdings Co., Ltd. (stock: STP) the world's largest manufacturer of crystalline silicon photovoltaic (PV) modules, announced recently that the company has joined PV Cycle; a European association establishing a voluntary take-back and recycling program for solar panels. Suntech said that with 1GW of Suntech solar panels sold since its inception, the company believes it is essential that Suntech take a proactive role in developing effective recycling programs.
Through PV Cycle, the solar panel industry aims to develop overall waste management and recycling policy that achieves the highest economically feasible and environmentally responsible collection and recycling of PV modules. PV Cycle now covers around 80% of the European photovoltaic market with its 35 member companies spread around the world.
While PV Cycle is only covering the European market at present and no similar organisation yet exists in Australia, PV Cycle's efforts will certainly lay the groundwork that other regions will be able to follow.
Trina Solar Expands European Sales and Marketing Team
CHANGZHOU, China, May 6 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced that the Company has expanded its European sales and marketing team.
Due to the continued development of its business initiatives in Europe and the growing demand for Trina Solar's quality products in over 18 countries, the Company has expanded its Sales and Marketing team to better serve the established markets of Germany, Italy, France, and Spain, as well as the emerging markets such as the Czech Republic, Portugal, the Netherlands, Austria, and Greece. The Company is pleased to announce two new appointments, who joined the Company's strong sales team in April 2009.
Ben Hill, formerly at BP Solar, has joined Trina Solar as Director of Sales & Marketing for Europe. Mr. Hill is a well-known and respected industry leader with over 23 years of experience in the photovoltaic industry. Prior to joining Trina Solar, he spent over 10 years at BP Solar, serving in both Germany and Spain and in various senior positions including Sales & Marketing Director for Europe, Africa and the Middle East, and most recently, as a Regional Director for Europe. Prior to BP Solar, he served as a Division Manager for Battery Control, DC Lighting and Solar at Sollatek Ltd. Mr. Hill will manage Trina Solar's operations in Europe and will refine and implement the Company's ambitious regional growth plans.
Daniel Priem has joined Trina Solar as Central European Manager. Mr. Priem has over 10 years of experience in solar and other renewable energies. Prior to joining the Company, Mr. Priem spent over seven years at SunTechnics, a Conergy Group company, as a sales representative for Central Europe, manager of SunTechnics (Sydney), sales head for Southeast Asia and Australia, and finally as Conergy Group's commercial manager for Southern Europe. Mr. Priem also served as the business development manager for Innovative Windpower AG.
"We view Europe as an essential market region that includes key markets under current development," said Arturo Herrero, Trina Solar's Vice President of Sales & Marketing, who oversees Trina Solar's global sales and marketing. "We are delighted to strengthen our sales and marketing team with such talented and experienced personnel who bring years of regional and global knowledge and experience from well-known PV solar companies to our business."
Due to the continued development of its business initiatives in Europe and the growing demand for Trina Solar's quality products in over 18 countries, the Company has expanded its Sales and Marketing team to better serve the established markets of Germany, Italy, France, and Spain, as well as the emerging markets such as the Czech Republic, Portugal, the Netherlands, Austria, and Greece. The Company is pleased to announce two new appointments, who joined the Company's strong sales team in April 2009.
Ben Hill, formerly at BP Solar, has joined Trina Solar as Director of Sales & Marketing for Europe. Mr. Hill is a well-known and respected industry leader with over 23 years of experience in the photovoltaic industry. Prior to joining Trina Solar, he spent over 10 years at BP Solar, serving in both Germany and Spain and in various senior positions including Sales & Marketing Director for Europe, Africa and the Middle East, and most recently, as a Regional Director for Europe. Prior to BP Solar, he served as a Division Manager for Battery Control, DC Lighting and Solar at Sollatek Ltd. Mr. Hill will manage Trina Solar's operations in Europe and will refine and implement the Company's ambitious regional growth plans.
Daniel Priem has joined Trina Solar as Central European Manager. Mr. Priem has over 10 years of experience in solar and other renewable energies. Prior to joining the Company, Mr. Priem spent over seven years at SunTechnics, a Conergy Group company, as a sales representative for Central Europe, manager of SunTechnics (Sydney), sales head for Southeast Asia and Australia, and finally as Conergy Group's commercial manager for Southern Europe. Mr. Priem also served as the business development manager for Innovative Windpower AG.
"We view Europe as an essential market region that includes key markets under current development," said Arturo Herrero, Trina Solar's Vice President of Sales & Marketing, who oversees Trina Solar's global sales and marketing. "We are delighted to strengthen our sales and marketing team with such talented and experienced personnel who bring years of regional and global knowledge and experience from well-known PV solar companies to our business."
Tuesday, April 28, 2009
Chint Solar Raises $50 Million
Chint Solar, a Chinese solar power producer, has raised $50 million in venture capital funding co-led by Cybernaut and Shanghai Alliance Investment Ltd. Chint Solar was formed in 2006 as a subsidiary of Chinese electrical and power conglomerate Chint Group. It reached 100 MW of production capacity in July 2008, and expects to reach 1,100 MW production capacity by 2012.
PRESS RELEASE
Chint Solar announced that it has successfully closed a US$50 million round of fundraising - in the worst global financial conditions in decades - from a syndicate of global investors.
Cybernaut and Shanghai Alliance Investment Limited were lead investors in this round. A number of notable overseas and domestic funds formed the rest of the syndicate.
Founded in 2006 as a subsidiary of the Chint Group, China's leading electrical and power conglomerate, Chint Solar reached 100 MW of production capacity in July 2008, and is on track to increase exponentially to 1,100 MW production capacity by 2012.
Chint Solar's main product line features both thin film and crystalline silicon photovoltaic cells and modules. The company has made an aggressive push to focus its business on amorphous microcrystalline (a-Si/µc-Si) tandem junction thin film, a next-generation solar technology with dramatically lower costs-per-watt than conventional crystalline silicon.
Through a-Si/µc-Si thin film, Chint Solar expects to be among the first companies in the world to reduce PV module cost to below US$1 per watt, and total PV system cost to below US$2 per watt, a critical industry benchmark known as "grid parity".
"The successful closure of this round of fundraising under unprecedented and turbulent financial conditions that witnessed the near-total shutdown of global capital markets is a testament to the superiority of Chint Solar's technology, the viability of Chint Solar's business strategy, and the strength of Chint Solar's team," said Dr. Liyou Yang, CEO of Chint Solar.
"We are very pleased to lead this effort," said Min Zhu, founder and Managing Partner of Cybernaut. "Chint Solar's technical strengths are well-known, and its partnership with Chint Group, China's leading electrical manufacturer, makes it the only photovoltaic company in the world that can achieve a complete systems-level integration. I am confident that, as a result, Chint Solar's products will be among the highest in reliability and lowest in cost in the industry, and Chint Solar will rapidly become one of the world's leading photovoltaic solutions providers."
Cybernaut is a leading global venture capital firm based in Hangzhou, China. Founded in 2005 by Mr. Min Zhu, the co-founder and former President and CTO of WebEx Communications, which was acquired by Cisco Systems in 2007 for US$3.2 billion, Cybernaut has an outstanding track record and has won numerous accolades including the Forbes 2008 China's Most Influential VC.
Shanghai Alliance Investment Limited (SAIL) is a leading domestic investment company and designated asset manager for China's State-owned Assets Supervision and Administration Commission (SASAC) in the areas of high-tech and financial services.
PRESS RELEASE
Chint Solar announced that it has successfully closed a US$50 million round of fundraising - in the worst global financial conditions in decades - from a syndicate of global investors.
Cybernaut and Shanghai Alliance Investment Limited were lead investors in this round. A number of notable overseas and domestic funds formed the rest of the syndicate.
Founded in 2006 as a subsidiary of the Chint Group, China's leading electrical and power conglomerate, Chint Solar reached 100 MW of production capacity in July 2008, and is on track to increase exponentially to 1,100 MW production capacity by 2012.
Chint Solar's main product line features both thin film and crystalline silicon photovoltaic cells and modules. The company has made an aggressive push to focus its business on amorphous microcrystalline (a-Si/µc-Si) tandem junction thin film, a next-generation solar technology with dramatically lower costs-per-watt than conventional crystalline silicon.
Through a-Si/µc-Si thin film, Chint Solar expects to be among the first companies in the world to reduce PV module cost to below US$1 per watt, and total PV system cost to below US$2 per watt, a critical industry benchmark known as "grid parity".
"The successful closure of this round of fundraising under unprecedented and turbulent financial conditions that witnessed the near-total shutdown of global capital markets is a testament to the superiority of Chint Solar's technology, the viability of Chint Solar's business strategy, and the strength of Chint Solar's team," said Dr. Liyou Yang, CEO of Chint Solar.
"We are very pleased to lead this effort," said Min Zhu, founder and Managing Partner of Cybernaut. "Chint Solar's technical strengths are well-known, and its partnership with Chint Group, China's leading electrical manufacturer, makes it the only photovoltaic company in the world that can achieve a complete systems-level integration. I am confident that, as a result, Chint Solar's products will be among the highest in reliability and lowest in cost in the industry, and Chint Solar will rapidly become one of the world's leading photovoltaic solutions providers."
Cybernaut is a leading global venture capital firm based in Hangzhou, China. Founded in 2005 by Mr. Min Zhu, the co-founder and former President and CTO of WebEx Communications, which was acquired by Cisco Systems in 2007 for US$3.2 billion, Cybernaut has an outstanding track record and has won numerous accolades including the Forbes 2008 China's Most Influential VC.
Shanghai Alliance Investment Limited (SAIL) is a leading domestic investment company and designated asset manager for China's State-owned Assets Supervision and Administration Commission (SASAC) in the areas of high-tech and financial services.
Taiwan BIPV maker Kinmac Solar sets up PV module joint venture in China
Nuying Huang, Taipei; Adam Hwang, DIGITIMES [Tuesday 28 April 2009]
Kinmac Solar (renamed from Lucky Power Technology), a Taiwan-based maker of BIPV (building-integrated photovoltaic) modules, has decided to establish a joint-venture assembly plant for making PV modules with Jinzhou Yangguang Energy, a maker of solar-grade monocrystalline silicon ingots/wafers in northeastern China.
Kinmac said the joint venture will have initial capital of 90 million yuan (US$13.2 million). Kinmac said it will hold a 49% stake in the joint venture, and Jinzhou Yangguang the rest.
The joint venture will set up an initial annual PV module production capacity of 100MWp in 2009 and then add 100-300MWp annually over the next three years, Kinmac said.
Kinmac said it also plans to expand it BIPV module capacity in northern Taiwan in July 2009 from 30MWp currently to 60MWp.
Kinmac Solar (renamed from Lucky Power Technology), a Taiwan-based maker of BIPV (building-integrated photovoltaic) modules, has decided to establish a joint-venture assembly plant for making PV modules with Jinzhou Yangguang Energy, a maker of solar-grade monocrystalline silicon ingots/wafers in northeastern China.
Kinmac said the joint venture will have initial capital of 90 million yuan (US$13.2 million). Kinmac said it will hold a 49% stake in the joint venture, and Jinzhou Yangguang the rest.
The joint venture will set up an initial annual PV module production capacity of 100MWp in 2009 and then add 100-300MWp annually over the next three years, Kinmac said.
Kinmac said it also plans to expand it BIPV module capacity in northern Taiwan in July 2009 from 30MWp currently to 60MWp.
Thursday, February 26, 2009
Suntech Reports Fourth Quarter and Full Year 2008 Financial Results
SAN FRANCISCO and WUXI, China, Feb. 18 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced financial results for the fourth quarter and full year ended December 31, 2008.
Fourth Quarter 2008 Financial Highlights(1)
-- Total net revenues grew 4.2% year-over-year to $414.4 million.
-- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
Excluding the provision for inventory and purchase commitments,
adjusted non-GAAP consolidated gross margin in the fourth quarter
was 13.1%.
-- GAAP net loss was $65.9 million, or negative $0.42 per diluted
American Depository Share (ADS). On a non-GAAP basis, Suntech's net
loss was $42.4 million, or negative $0.27 per diluted ADS. Each ADS
represents one ordinary share.
-- Net debt decreased by $273.7 million to $1,117.8 million as of
December 31, 2008.
Full Year 2008 Financial Highlights(1)
-- Total net revenues grew 42.7% year-over-year to $1,923.5 million.
-- Full year 2008 total shipments of solar products grew 36.0%
year-over-year to 497.5 MW.
-- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.
-- GAAP net income for the full year was $111.0 million or $0.66 per
ADS. On a non-GAAP basis, Suntech's net income for the full year was
$149.7 million or $0.89 per diluted ADS.
-- Achieved 1GW solar cell and module production capacity.
"Customer recognition of Suntech's high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "During 2008, we bolstered our on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."
"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."
"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech's reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.
RECENT BUSINESS HIGHLIGHTS
Silicon Procurement
-- Suntech and MEMC Electronic Materials amended their 10-year silicon
wafer supply agreement. As amended, the dollar value of silicon
wafer purchases from MEMC remains unchanged, but a volume increase
and a price reduction for 2009 have been effectuated.
-- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
independent polysilicon producer, for a total cash consideration of
approximately $8.1 million. Suntech previously entered into an
agreement to purchase up to $1.5 billion high purity polysilicon
from Asia Silicon over a seven-year period. Polysilicon cost
decreases to less than $40 per kilogram during the term of the
agreement.
Notable PV Projects
-- Suntech was chosen to design and construct a BIPV system totaling
3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
The project will be the largest BIPV installation in China.
-- Suntech supplied 5MW of Suntech solar panels for the largest solar
plant in the Middle East, a 10MW solar electricity system to power
Masdar City, the world's first carbon neutral city being built in
Abu Dhabi, United Arab Emirates. The solar system is being built and
designed by leading Abu Dhabi based solar power system integrator,
Enviromena Power Systems.
Product Offering Expansion
-- Suntech entered into an exclusive agreement giving Suntech rights
related to the worldwide manufacturing, distribution and marketing
of Applied Solar's building integrated solar roof tile product,
SolarBlend(TM), and roof membrane product, SolarEze(TM). The
agreements combine Suntech's industry-leading products with Applied
Solar's innovative BIPV applications to provide a more comprehensive
set of product offerings to the residential and commercial market.
U.S. Dealer Network
-- Suntech continued expanding its dealer network of residential
rooftop installers and integrators in the U.S. Currently, Suntech's
network includes over 100 dealers, up from 30 at the end of the
third quarter of 2008.
Technology
-- Suntech has a fully operational 34MW Pluto PV cell line and is in
the process of adding another 68MW of Pluto capacity. Suntech
expects to receive industry certification for Pluto PV modules in
the second quarter of 2009 and targets shipments of more than 50MW
of Pluto modules in 2009.
-- The Pluto high efficiency technology consistently achieves
conversion efficiencies of close to 17% on multi-crystalline PV
cells and close to 19% on mono-crystalline PV cells. Suntech
anticipates that the higher conversion efficiencies will improve
power output by up to 12% above conventional screen-printed PV cells,
enable improved space utilization and reduce installation and other
balance of system costs.
Convertible Senior Note Repurchase
-- Through December 31, 2008, Suntech repurchased $93.8 million
aggregate principal amount of its 0.25% Convertible Senior Notes due
2012 for cash consideration of $61.0 million. As a result, Suntech
realized a net gain of approximately $31.1 million.
Capital and Credit Facilities
-- Suntech had approximately $2.4 billion of approved credit lines to
be used for fixed asset purchase, working capital or trade financing
as of December 31, 2008. Of these credit facilities approximately
$1.2 billion had been drawn down as of December 31, 2008. Suntech
expects that its capital will be sufficient to cover its capital
expenditures in 2009 while maintaining adequate working capital to
support its operations.
Fourth Quarter 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard PV Modules $382.6 92.3 % $11.4 3.0 %
Others $31.8 7.7 % ($7.8) (24.0%)
Total Net Revenues $414.4 100 % $3.6 0.9 %
Provision for
inventory and
purchase
commitment $50.7 12.2 %
Adjusted Non-GAAP
Gross Profit $54.3 13.1 %
Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.
Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.
Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non- GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.
Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.
Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.
Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.
In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate.
Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.
Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech's investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.
Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.
On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.
On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.
In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.
Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short- term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.
Restricted cash was $70.7 million as of December 31, 2008.
Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.
Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.
Full Year 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard $1,785.8 92.8 % $343.8 19.3 %
PV
Modules
Others $137.7 7.2 % $5.7 4.1 %
Total Net $1,923.5 100 % $349.5 18.2 %
Revenues
Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.
On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.
On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over- year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.
In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.
Business Outlook
Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.
Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.
Fourth Quarter 2008 Financial Highlights(1)
-- Total net revenues grew 4.2% year-over-year to $414.4 million.
-- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
Excluding the provision for inventory and purchase commitments,
adjusted non-GAAP consolidated gross margin in the fourth quarter
was 13.1%.
-- GAAP net loss was $65.9 million, or negative $0.42 per diluted
American Depository Share (ADS). On a non-GAAP basis, Suntech's net
loss was $42.4 million, or negative $0.27 per diluted ADS. Each ADS
represents one ordinary share.
-- Net debt decreased by $273.7 million to $1,117.8 million as of
December 31, 2008.
Full Year 2008 Financial Highlights(1)
-- Total net revenues grew 42.7% year-over-year to $1,923.5 million.
-- Full year 2008 total shipments of solar products grew 36.0%
year-over-year to 497.5 MW.
-- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.
-- GAAP net income for the full year was $111.0 million or $0.66 per
ADS. On a non-GAAP basis, Suntech's net income for the full year was
$149.7 million or $0.89 per diluted ADS.
-- Achieved 1GW solar cell and module production capacity.
"Customer recognition of Suntech's high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "During 2008, we bolstered our on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."
"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."
"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech's reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.
RECENT BUSINESS HIGHLIGHTS
Silicon Procurement
-- Suntech and MEMC Electronic Materials amended their 10-year silicon
wafer supply agreement. As amended, the dollar value of silicon
wafer purchases from MEMC remains unchanged, but a volume increase
and a price reduction for 2009 have been effectuated.
-- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
independent polysilicon producer, for a total cash consideration of
approximately $8.1 million. Suntech previously entered into an
agreement to purchase up to $1.5 billion high purity polysilicon
from Asia Silicon over a seven-year period. Polysilicon cost
decreases to less than $40 per kilogram during the term of the
agreement.
Notable PV Projects
-- Suntech was chosen to design and construct a BIPV system totaling
3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
The project will be the largest BIPV installation in China.
-- Suntech supplied 5MW of Suntech solar panels for the largest solar
plant in the Middle East, a 10MW solar electricity system to power
Masdar City, the world's first carbon neutral city being built in
Abu Dhabi, United Arab Emirates. The solar system is being built and
designed by leading Abu Dhabi based solar power system integrator,
Enviromena Power Systems.
Product Offering Expansion
-- Suntech entered into an exclusive agreement giving Suntech rights
related to the worldwide manufacturing, distribution and marketing
of Applied Solar's building integrated solar roof tile product,
SolarBlend(TM), and roof membrane product, SolarEze(TM). The
agreements combine Suntech's industry-leading products with Applied
Solar's innovative BIPV applications to provide a more comprehensive
set of product offerings to the residential and commercial market.
U.S. Dealer Network
-- Suntech continued expanding its dealer network of residential
rooftop installers and integrators in the U.S. Currently, Suntech's
network includes over 100 dealers, up from 30 at the end of the
third quarter of 2008.
Technology
-- Suntech has a fully operational 34MW Pluto PV cell line and is in
the process of adding another 68MW of Pluto capacity. Suntech
expects to receive industry certification for Pluto PV modules in
the second quarter of 2009 and targets shipments of more than 50MW
of Pluto modules in 2009.
-- The Pluto high efficiency technology consistently achieves
conversion efficiencies of close to 17% on multi-crystalline PV
cells and close to 19% on mono-crystalline PV cells. Suntech
anticipates that the higher conversion efficiencies will improve
power output by up to 12% above conventional screen-printed PV cells,
enable improved space utilization and reduce installation and other
balance of system costs.
Convertible Senior Note Repurchase
-- Through December 31, 2008, Suntech repurchased $93.8 million
aggregate principal amount of its 0.25% Convertible Senior Notes due
2012 for cash consideration of $61.0 million. As a result, Suntech
realized a net gain of approximately $31.1 million.
Capital and Credit Facilities
-- Suntech had approximately $2.4 billion of approved credit lines to
be used for fixed asset purchase, working capital or trade financing
as of December 31, 2008. Of these credit facilities approximately
$1.2 billion had been drawn down as of December 31, 2008. Suntech
expects that its capital will be sufficient to cover its capital
expenditures in 2009 while maintaining adequate working capital to
support its operations.
Fourth Quarter 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard PV Modules $382.6 92.3 % $11.4 3.0 %
Others $31.8 7.7 % ($7.8) (24.0%)
Total Net Revenues $414.4 100 % $3.6 0.9 %
Provision for
inventory and
purchase
commitment $50.7 12.2 %
Adjusted Non-GAAP
Gross Profit $54.3 13.1 %
Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.
Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.
Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non- GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.
Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.
Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.
Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.
In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate.
Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.
Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech's investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.
Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.
On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.
On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.
In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.
Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short- term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.
Restricted cash was $70.7 million as of December 31, 2008.
Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.
Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.
Full Year 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard $1,785.8 92.8 % $343.8 19.3 %
PV
Modules
Others $137.7 7.2 % $5.7 4.1 %
Total Net $1,923.5 100 % $349.5 18.2 %
Revenues
Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.
On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.
On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over- year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.
In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.
Business Outlook
Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.
Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.
Trina Solar Announces Selected Estimated Fourth Quarter and Full Year 2008 Financial Results
CHANGZHOU, China, Feb. 17 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced the following selected estimated financial results for the quarter and the full year ended December 31, 2008.
For the fourth quarter 2008, the Company expects:
-- total net revenues for the fourth quarter to exceed its previous
guidance range of $190 million to $210 million
-- fourth quarter positive net operating cashflow to be approximately $60
million
-- short-term debt to be reduced by approximately $41 million to $249
million
-- a non-cash inventory provision between $16 million and $18 million
For the full year 2008, the Company expects:
-- total net revenues for the full year 2008 to meet its previous guidance
range of $800 million to $850 million
-- total module shipments for the full year 2008 to meet its previous
guidance range of 200 MW to 206 MW
"Against a very challenging operating environment, where preservation of cash and balance sheet fundamentals were our priorities, the notable reduction in both our silicon and non-silicon manufacturing costs resulted in our highest ever quarterly operating cashflow," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "This allowed us to significantly reduce our short-term debt to further improve our capital structure and maintain our liquidity for 2009."
The Company also announced that it anticipates a non-cash inventory provision between $16 million and $18 million mainly due to the revaluation of its silicon inventory linked to notable market price declines in the fourth quarter of 2008. The provision is expected to have a negative gross margin impact of 7% to 8%. With this provision, the Company expects its fourth quarter gross margin to be in the range of 9% to 10%, compared to its earlier previous guidance of 13% to 15%. The Company also expects its operating and net margins would be correspondingly affected.
As these selected estimated results are subject to finalization of the Company's financial closing procedures, the Company's actual results may differ from its current estimates.
The Company will review its fourth quarter and full year 2008 results via conference call on March 3, 2009 at 8:00 am (EST). Conference call details may be found via separate announcement, available at the company's website at http://www.trinasolar.com.
For the fourth quarter 2008, the Company expects:
-- total net revenues for the fourth quarter to exceed its previous
guidance range of $190 million to $210 million
-- fourth quarter positive net operating cashflow to be approximately $60
million
-- short-term debt to be reduced by approximately $41 million to $249
million
-- a non-cash inventory provision between $16 million and $18 million
For the full year 2008, the Company expects:
-- total net revenues for the full year 2008 to meet its previous guidance
range of $800 million to $850 million
-- total module shipments for the full year 2008 to meet its previous
guidance range of 200 MW to 206 MW
"Against a very challenging operating environment, where preservation of cash and balance sheet fundamentals were our priorities, the notable reduction in both our silicon and non-silicon manufacturing costs resulted in our highest ever quarterly operating cashflow," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "This allowed us to significantly reduce our short-term debt to further improve our capital structure and maintain our liquidity for 2009."
The Company also announced that it anticipates a non-cash inventory provision between $16 million and $18 million mainly due to the revaluation of its silicon inventory linked to notable market price declines in the fourth quarter of 2008. The provision is expected to have a negative gross margin impact of 7% to 8%. With this provision, the Company expects its fourth quarter gross margin to be in the range of 9% to 10%, compared to its earlier previous guidance of 13% to 15%. The Company also expects its operating and net margins would be correspondingly affected.
As these selected estimated results are subject to finalization of the Company's financial closing procedures, the Company's actual results may differ from its current estimates.
The Company will review its fourth quarter and full year 2008 results via conference call on March 3, 2009 at 8:00 am (EST). Conference call details may be found via separate announcement, available at the company's website at http://www.trinasolar.com.
Tuesday, February 24, 2009
Yingli Green Energy Reports Fourth Quarter and Full Year 2008 Results
BAODING, China, Feb. 10 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) (''Yingli Green Energy'' or the ''Company''), one of the world's leading vertically integrated photovoltaic (''PV'') product manufacturers, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2008.
Fourth Quarter 2008 Consolidated Financial and Operating Highlights
-- PV module shipments totaled 78.8 MW.
-- Total net revenues were RMB 1,761.2 million (US$258.1 million).
-- Gross profit was RMB 232.9 million (US$34.1 million) and gross margin
was 13.2%.
-- Operating income was RMB 97.8 million (US$14.3 million) and operating
margin was 5.6%.
-- Net income was RMB 100.6 million (US$14.7 million) and diluted earnings
per ordinary share and per American depositary share (''ADS'') were
RMB 0.79 (US$0.12).
-- On an adjusted non-GAAP(1) basis, net income was RMB 126.8 million
(US$18.6 million) and diluted earnings per ordinary share and per ADS
were RMB 0.99 (US$0.15).
Full Year 2008 Consolidated Financial and Operating Highlights
-- PV module shipments were 281.5 MW, compared to the Company's previous
guidance of 270 MW to 280 MW.
-- Total net revenues were RMB 7,553.0 million (US$1,107.1 million),
compared to the Company's previous guidance of US$1,053 million to
US$1,106 million.
-- Gross profit was RMB 1,629.6 million (US$238.9 million).
-- Net income was RMB 682.1 million (US$100.0 million) and fully diluted
earnings per ordinary share and per ADS were RMB 5.27 (US$0.77).
-- On an adjusted non-GAAP(1) basis, net income for the full year 2008 was
RMB 782.8 million (US$114.7 million) and fully diluted earnings per
ordinary share and per ADS were RMB 6.04 (US$0.89).
-- New sales contracts bring total PV module sales under contract for
delivery in 2009 to 317.4 MW.
(1) All non-GAAP measures exclude share-based compensation and
amortization of intangible assets arising from purchase price
allocation in connection with a series of acquisitions of equity
interest in Baoding Tianwei Yingli New Energy Resources Co., Ltd.
(''Tianwei Yingli''), an operating subsidiary of the Company. For
further details on non-GAAP measures, please refer to the
reconciliation table and a detailed discussion of the Company's use of
non-GAAP information set forth elsewhere in this earnings release.
''In spite of difficult global economic and market conditions, we are pleased to report that we exceeded our shipment volume and total net revenue targets for the full year 2008,'' commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. ''We continue to see the benefits of our vertically integrated model, which allows us to bring our high quality modules to market at competitive prices, and believe that Yingli Green Energy is well-positioned to capture additional market share in 2009. To further enhance our position in the increasingly competitive PV industry, we will continue pursuing initiatives to enhance our product quality, brand recognition and our sales and distribution channels around the world.''
''To strengthen our market presence and enhance our comprehensive customer service, we have established offices and subsidiaries in key markets including Germany, Spain, Italy and the United States. In addition, Yingli Green Energy entered into a long-term strategic cooperation with TUV Rheinland (Shanghai) Co., Ltd. Under the strategic partnership, TUV Rheinland will conduct periodic factory inspections to review production, testing and calibration procedures and assist Yingli Green Energy in certification planning and execution to support new product introductions, which will provide our customers with an additional level of quality assurance,'' Mr. Miao continued.
''Our recent acquisition of Cyber Power and its polysilicon manufacturing subsidiary, Fine Silicon, is a key step toward the full vertical integration of our manufacturing processes. We believe this acquisition will not only help us secure high quality polysilicon to meet our customers' demands for top quality PV products but will also help control and stabilize our polysilicon costs to improve our margins as well as further increase visibility to achieving grid parity,'' Mr. Miao continued.
''Furthermore, to be better positioned to face challenges during this economic downturn, we have been actively sourcing additional capital to support the execution of our strategic business plan and have recently completed a number of financing transactions with domestic and overseas financial institutions.''
''We remain confident in the long-term fundamentals of the solar industry and believe our steady progress towards grid parity, combined with the supportive renewable energy policies of major governments around the world, should position us to emerge as an even stronger player,'' Mr. Miao concluded.
Fourth Quarter 2008 Financial Results
Total Net Revenues
Total net revenues were RMB 1,761.2 million (US$258.1 million) in the fourth quarter of 2008, a decrease of 20.3% from RMB 2,209.8 million in the third quarter of 2008 and an increase of 21.2% from RMB 1,453.2 million in the fourth quarter of 2007. The decrease from the third quarter of 2008 was primarily due to a lower average selling price and slightly lower shipment volume. The average selling price for PV modules(2) in the fourth quarter of 2008 was US$3.19 per watt, a decrease of 21.0% from US$4.04 per watt in the third quarter of 2008. Total PV module shipments decreased 1.5% to 78.8 MW in the fourth quarter of 2008 from 80.0 MW in the third quarter of 2008. The decreases in both average selling price and shipments were mainly caused by weakened demand as the result of weakened macroeconomic conditions, including changes in the feed-in tariff policy in Spain and tighter credit for PV system project financing. Furthermore, as a majority of the Company's PV module shipments were under contracts denominated in Euros, average selling price was also negatively impacted by the depreciation of the Euro against the Renminbi in the fourth quarter of 2008.
(2) We compute average selling price of PV modules per watt for a given
period as the total sales of PV modules divided by the total watts of
the PV modules sold during such period, and translated into U.S.
dollars at the noon buying rate at the end of such period as certified
for customs purpose by the Federal Reserve Bank of New York.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2008 was RMB 232.9 million (US$34.1 million), a decrease of 52.7% from RMB 492.6 million in the third quarter of 2008 and a decrease of 35.2% from RMB 359.6 million in the fourth quarter of 2007. Gross margin was 13.2% in the fourth quarter of 2008, down from 22.3% in the third quarter of 2008 and 24.7% in the fourth quarter of 2007. The decrease in gross margin was primarily due to the decrease in the average selling price caused primarily by weakened macroeconomic conditions and the depreciation of the Euro against the Renminbi, and was partially offset by the reduced unit cost of PV modules resulting from lower cost of blended polysilicon in the fourth quarter of 2008 and lower polysilicon usage per watt achieved through the Company's continued research and development efforts.
Operating Expenses
Operating expenses in the fourth quarter of 2008 were RMB 135.1 million (US$19.8 million), compared to RMB 115.5 million in the third quarter of 2008 and RMB 92.6 million in the fourth quarter of 2007. Operating expenses as a percentage of total net revenues increased to 7.7% in the fourth quarter of 2008 from 5.2% in the third quarter of 2008 and 6.4% in the fourth quarter of 2007. The increase in operating expenses as a percentage of total net revenues was primarily attributable to higher research and development expenses, increased general and administrative expenses relating to financing transactions recognized in the fourth quarter of 2008, and decreased total net revenues.
Operating Income and Margin
Operating income in the fourth quarter of 2008 was RMB 97.8 million (US$14.3 million), a decrease of 74.1% from RMB 377.1 million in the third quarter of 2008 and a decrease of 63.4% from RMB 267.0 million in the fourth quarter of 2007. Operating margin decreased to 5.6% in the fourth quarter of 2008 from 17.1% in the third quarter of 2008 and 18.4% in the fourth quarter of 2007.
Interest Expense
Interest expense was RMB 48.5 million (US$7.1 million) in the fourth quarter of 2008, compared to RMB 31.6 million in the third quarter of 2008 and RMB 19.6 million in the fourth quarter of 2007. The increase in interest expense was consistent with both the increase in short-term borrowings from RMB 1,794.9 million as of September 30, 2008 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from RMB 340.9 million as of September 30, 2008 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in the fourth quarter of 2008 was 7.18%, which increased from 6.76% in the third quarter of 2008.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 68.7 million (US$10.1 million) in the fourth quarter of 2008, compared to a foreign currency exchange loss of RMB 133.1 million in the third quarter of 2008 and a foreign currency exchange loss of RMB 29.2 million in the fourth quarter of 2007. The foreign currency exchange gain in the fourth quarter of 2008 was primarily due to a gain of RMB 107.0 million from foreign currency forward contracts realized in the fourth quarter of 2008, which was partially offset by an exchange loss of RMB 38.3 million from foreign currency denominated transactions, primarily accounts receivables and raw material prepayments denominated in Euros, as the Euro depreciated by 3.41% against the Renminbi in the fourth quarter of 2008.
Income Tax Benefit (Expense)
Income tax benefit was RMB 17.0 million (US$2.5 million) in the fourth quarter of 2008, compared to RMB 0.2 million in the third quarter of 2008 and an income tax expense of RMB 15.3 million in the fourth quarter of 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli Energy (China) Co., Ltd (''Yingli China''), the Company's wholly-owned subsidiary, were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
As a result of the factors discussed above, net income was RMB 100.6 million (US$14.7 million) in the fourth quarter of 2008, a decrease of 33.3% from RMB 150.8 million in the third quarter of 2008 and a decrease of 27.3% from RMB 138.4 million in the fourth quarter of 2007. Diluted earnings per ordinary share and per ADS were RMB 0.79 (US$0.12) in the fourth quarter of 2008, compared to RMB 1.17 in the third quarter of 2008.
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, an operating subsidiary of the Company, net income was RMB 126.8 million (US$18.6 million) in the fourth quarter of 2008, down 27.7% from RMB 175.3 million in the third quarter of 2008. Adjusted non-GAAP diluted earnings per ordinary share and per ADS were RMB 0.99 (US$0.15) in the fourth quarter of 2008, compared to RMB 1.35 in the third quarter of 2008.
Balance Sheet Analysis
As of December 31, 2008, Yingli Green Energy had RMB 1,108.9 million (US$162.5 million) in cash and RMB 3,224.1 million (US$472.6 million) in working capital, compared to RMB 737.1 million in cash and RMB 3,372.8 million in working capital as of September 30, 2008. Short-term borrowings increased from RMB 1,794.9 million in the third quarter of 2008 to RMB 2,044.2 million (US$299.6 million) in the fourth quarter of 2008. Long-term bank borrowings increased from RMB 340.9 million in the third quarter of 2008 to RMB 663.0 million (US$97.2 million) in the fourth quarter of 2008. As of the date of this press release, the Company had approximately RMB 4,545 million in authorized lines of credit, of which RMB 3,040 million had been utilized. Days sales outstanding was 75 days in the fourth quarter of 2008, compared to 48 days in the third quarter of 2008, primarily as a result of weakened macroeconomic conditions.
Full Year 2008 Results
Total Net Revenues
Total net revenues for the full year 2008 were RMB 7,553.0 million (US$1,107.1 million), which increased by 86.1% from RMB 4,059.3 million in the year of 2007. The increase was primarily due to a significant rise in total shipments of PV modules, which increased to 281.5 MW in 2008 from 142.5 MW in 2007. The increase in total shipments was primarily due to the Company's expanded sales and marketing efforts in Europe, supported by the completion of an additional 200 MW of total production capacity of polysilicon ingots and wafers, PV cells and PV modules in September 2008. The average selling price for PV modules for the full year 2008 was US$3.88 per watt, slightly higher than US$3.86 per watt in 2007.
Gross Profit and Margin
Gross profit for the full year 2008 was RMB 1,629.6 million (US$238.9 million), which increased by 70.3% from RMB 956.8 million in the year of 2007. Gross margin was 21.6% for the full year 2008, compared to 23.6% in 2007. The decrease in gross margin for the full year 2008 was primarily due to the lower gross margin in the fourth quarter of 2008, which was the result of significantly weakened macroeconomic conditions in the fourth quarter of 2008 and the depreciation of the Euro and the U.S. dollar against the Renminbi.
Operating Expenses
Operating expenses for the full year 2008 were RMB 476.3 million (US$69.8 million), an increase of 71.8% from RMB 277.3 million in 2007. The increase in operating expenses was primarily due to higher research and development expenses and increased marketing and promotional efforts resulting from the Company's expanded scale of operations. Operating expenses as a percentage of revenue decreased to 6.3% in the full year 2008 from 6.8% in the year of 2007, primarily due to economies of scale and better control of sales and marketing expenses and general and administrative expenses.
Interest Expense
Interest expense for the full year 2008 was RMB 149.2 million (US$21.9 million), an increase of 130.1% from RMB 64.8 million in 2007. The increase in interest expense was consistent with the increase in short-term borrowings from RMB 1,261.3 million as of December 31, 2007 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from nil as of December 31, 2007 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in 2008 was 6.61%, which increased from 5.97% in 2007.
Income Tax Benefit (Expense)
Income tax benefit was RMB 19.5 million (US$2.9 million) for the full year 2008, compared to an income tax expense of RMB 12.9 million for the full year 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli China were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
Net income was RMB 682.1 million (US$100.0 million) and fully diluted earnings per ordinary share and per ADS were RMB 5.27 (US$0.77) for the full year 2008.
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, net income was RMB 782.8 million (US$114.7 million) for the full year 2008. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS were RMB 6.04 (US$0.89) for the full year 2008.
Fourth Quarter 2008 and Recent Business Highlights
Sales
-- As of the date of this press release, the Company had signed sales
contracts for the delivery of approximately 317.4 MW of PV modules in
2009.
Financing
-- Yingli China entered into a credit agreement with a fund managed by
Asia Debt Management Hong Kong Limited for a three-year loan facility
of up to US$80.0 million.
-- In connection with its acquisition of Cyber Power, the Company
committed to issue senior secured convertible notes totaling up to
US$50.0 million to Trustbridge Partners II, L.P., US$20.0 million of
which has been issued.
-- Yingli China entered into an eight-year US$70 million loan agreement
with China Development Bank.
-- Tianwei Yingli entered into a new credit line trade finance facility
agreement with the Export-Import Bank of China ("China Eximbank"),
which brought the aggregate credit line available from China Eximbank
to RMB 1.0 billion or its U.S. dollar equivalent.
-- Long term credit facility agreement, entered into with DEG - Deutsche
Investitions - und Entwicklungsgesellschaft mbH and the Netherlands
Development Finance Company, expanded to US$75 million with the
inclusion of The Societe de Promotion et de Participation pour la
Cooperation Economique to the lending group.
Others
-- Appointment of a new Chief Technology Officer, Dr. Dengyuan Song, who
has more than 27 years of experience in the research and development of
photovoltaic cells, silicon materials and semiconductor PV devices.
-- Tianwei Yingli and Yingli China were recognized by the Chinese
government as ''High and New Technology Enterprises'' entitled to a
preferential enterprise income tax rate of 15% for three years under
the PRC Enterprise Income Tax Law.
-- Completion of US$77.6 million acquisition of Cyber Power Group Limited,
which, through its principal operating subsidiary in China, Fine
Silicon Co., Ltd., plans to begin production of solar-grade polysilicon
in the second half of 2009.
-- Appointment of a new Vice President of Technology, Mr. Jingfeng Xiong,
a highly respected executive and engineer with a wealth of theoretical
knowledge and practical experience in research and development and
manufacturing at Yingli Green Energy.
-- Entered into memorandum of understanding with TUV Rheinland (Shanghai)
Co., Ltd. to form a strategic partnership covering a range of quality
control initiatives at the Company.
Business Outlook for Full Year 2009
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company reaffirms that its PV module shipment target is expected to be in the estimated range of 550 MW to 600 MW for fiscal year 2009, which represents an increase of 96.1% to 113.9% compared to fiscal year 2008, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the Company's mid- to long-term virgin polysilicon supply agreements, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average selling price of PV modules and further depreciation of the Euro against the U.S. dollar, the Company currently expects that its gross margin target for fiscal year 2009 to be in the estimated range of 22% to 24%.
Non-GAAP Financial Measures
To supplement the financial measures calculated 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 diluted 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, an operating subsidiary of the Company. 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 fourth quarter and full year 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 December 31, 2008, which was RMB 6.8225 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.
Fourth Quarter 2008 Consolidated Financial and Operating Highlights
-- PV module shipments totaled 78.8 MW.
-- Total net revenues were RMB 1,761.2 million (US$258.1 million).
-- Gross profit was RMB 232.9 million (US$34.1 million) and gross margin
was 13.2%.
-- Operating income was RMB 97.8 million (US$14.3 million) and operating
margin was 5.6%.
-- Net income was RMB 100.6 million (US$14.7 million) and diluted earnings
per ordinary share and per American depositary share (''ADS'') were
RMB 0.79 (US$0.12).
-- On an adjusted non-GAAP(1) basis, net income was RMB 126.8 million
(US$18.6 million) and diluted earnings per ordinary share and per ADS
were RMB 0.99 (US$0.15).
Full Year 2008 Consolidated Financial and Operating Highlights
-- PV module shipments were 281.5 MW, compared to the Company's previous
guidance of 270 MW to 280 MW.
-- Total net revenues were RMB 7,553.0 million (US$1,107.1 million),
compared to the Company's previous guidance of US$1,053 million to
US$1,106 million.
-- Gross profit was RMB 1,629.6 million (US$238.9 million).
-- Net income was RMB 682.1 million (US$100.0 million) and fully diluted
earnings per ordinary share and per ADS were RMB 5.27 (US$0.77).
-- On an adjusted non-GAAP(1) basis, net income for the full year 2008 was
RMB 782.8 million (US$114.7 million) and fully diluted earnings per
ordinary share and per ADS were RMB 6.04 (US$0.89).
-- New sales contracts bring total PV module sales under contract for
delivery in 2009 to 317.4 MW.
(1) All non-GAAP measures exclude share-based compensation and
amortization of intangible assets arising from purchase price
allocation in connection with a series of acquisitions of equity
interest in Baoding Tianwei Yingli New Energy Resources Co., Ltd.
(''Tianwei Yingli''), an operating subsidiary of the Company. For
further details on non-GAAP measures, please refer to the
reconciliation table and a detailed discussion of the Company's use of
non-GAAP information set forth elsewhere in this earnings release.
''In spite of difficult global economic and market conditions, we are pleased to report that we exceeded our shipment volume and total net revenue targets for the full year 2008,'' commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. ''We continue to see the benefits of our vertically integrated model, which allows us to bring our high quality modules to market at competitive prices, and believe that Yingli Green Energy is well-positioned to capture additional market share in 2009. To further enhance our position in the increasingly competitive PV industry, we will continue pursuing initiatives to enhance our product quality, brand recognition and our sales and distribution channels around the world.''
''To strengthen our market presence and enhance our comprehensive customer service, we have established offices and subsidiaries in key markets including Germany, Spain, Italy and the United States. In addition, Yingli Green Energy entered into a long-term strategic cooperation with TUV Rheinland (Shanghai) Co., Ltd. Under the strategic partnership, TUV Rheinland will conduct periodic factory inspections to review production, testing and calibration procedures and assist Yingli Green Energy in certification planning and execution to support new product introductions, which will provide our customers with an additional level of quality assurance,'' Mr. Miao continued.
''Our recent acquisition of Cyber Power and its polysilicon manufacturing subsidiary, Fine Silicon, is a key step toward the full vertical integration of our manufacturing processes. We believe this acquisition will not only help us secure high quality polysilicon to meet our customers' demands for top quality PV products but will also help control and stabilize our polysilicon costs to improve our margins as well as further increase visibility to achieving grid parity,'' Mr. Miao continued.
''Furthermore, to be better positioned to face challenges during this economic downturn, we have been actively sourcing additional capital to support the execution of our strategic business plan and have recently completed a number of financing transactions with domestic and overseas financial institutions.''
''We remain confident in the long-term fundamentals of the solar industry and believe our steady progress towards grid parity, combined with the supportive renewable energy policies of major governments around the world, should position us to emerge as an even stronger player,'' Mr. Miao concluded.
Fourth Quarter 2008 Financial Results
Total Net Revenues
Total net revenues were RMB 1,761.2 million (US$258.1 million) in the fourth quarter of 2008, a decrease of 20.3% from RMB 2,209.8 million in the third quarter of 2008 and an increase of 21.2% from RMB 1,453.2 million in the fourth quarter of 2007. The decrease from the third quarter of 2008 was primarily due to a lower average selling price and slightly lower shipment volume. The average selling price for PV modules(2) in the fourth quarter of 2008 was US$3.19 per watt, a decrease of 21.0% from US$4.04 per watt in the third quarter of 2008. Total PV module shipments decreased 1.5% to 78.8 MW in the fourth quarter of 2008 from 80.0 MW in the third quarter of 2008. The decreases in both average selling price and shipments were mainly caused by weakened demand as the result of weakened macroeconomic conditions, including changes in the feed-in tariff policy in Spain and tighter credit for PV system project financing. Furthermore, as a majority of the Company's PV module shipments were under contracts denominated in Euros, average selling price was also negatively impacted by the depreciation of the Euro against the Renminbi in the fourth quarter of 2008.
(2) We compute average selling price of PV modules per watt for a given
period as the total sales of PV modules divided by the total watts of
the PV modules sold during such period, and translated into U.S.
dollars at the noon buying rate at the end of such period as certified
for customs purpose by the Federal Reserve Bank of New York.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2008 was RMB 232.9 million (US$34.1 million), a decrease of 52.7% from RMB 492.6 million in the third quarter of 2008 and a decrease of 35.2% from RMB 359.6 million in the fourth quarter of 2007. Gross margin was 13.2% in the fourth quarter of 2008, down from 22.3% in the third quarter of 2008 and 24.7% in the fourth quarter of 2007. The decrease in gross margin was primarily due to the decrease in the average selling price caused primarily by weakened macroeconomic conditions and the depreciation of the Euro against the Renminbi, and was partially offset by the reduced unit cost of PV modules resulting from lower cost of blended polysilicon in the fourth quarter of 2008 and lower polysilicon usage per watt achieved through the Company's continued research and development efforts.
Operating Expenses
Operating expenses in the fourth quarter of 2008 were RMB 135.1 million (US$19.8 million), compared to RMB 115.5 million in the third quarter of 2008 and RMB 92.6 million in the fourth quarter of 2007. Operating expenses as a percentage of total net revenues increased to 7.7% in the fourth quarter of 2008 from 5.2% in the third quarter of 2008 and 6.4% in the fourth quarter of 2007. The increase in operating expenses as a percentage of total net revenues was primarily attributable to higher research and development expenses, increased general and administrative expenses relating to financing transactions recognized in the fourth quarter of 2008, and decreased total net revenues.
Operating Income and Margin
Operating income in the fourth quarter of 2008 was RMB 97.8 million (US$14.3 million), a decrease of 74.1% from RMB 377.1 million in the third quarter of 2008 and a decrease of 63.4% from RMB 267.0 million in the fourth quarter of 2007. Operating margin decreased to 5.6% in the fourth quarter of 2008 from 17.1% in the third quarter of 2008 and 18.4% in the fourth quarter of 2007.
Interest Expense
Interest expense was RMB 48.5 million (US$7.1 million) in the fourth quarter of 2008, compared to RMB 31.6 million in the third quarter of 2008 and RMB 19.6 million in the fourth quarter of 2007. The increase in interest expense was consistent with both the increase in short-term borrowings from RMB 1,794.9 million as of September 30, 2008 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from RMB 340.9 million as of September 30, 2008 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in the fourth quarter of 2008 was 7.18%, which increased from 6.76% in the third quarter of 2008.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 68.7 million (US$10.1 million) in the fourth quarter of 2008, compared to a foreign currency exchange loss of RMB 133.1 million in the third quarter of 2008 and a foreign currency exchange loss of RMB 29.2 million in the fourth quarter of 2007. The foreign currency exchange gain in the fourth quarter of 2008 was primarily due to a gain of RMB 107.0 million from foreign currency forward contracts realized in the fourth quarter of 2008, which was partially offset by an exchange loss of RMB 38.3 million from foreign currency denominated transactions, primarily accounts receivables and raw material prepayments denominated in Euros, as the Euro depreciated by 3.41% against the Renminbi in the fourth quarter of 2008.
Income Tax Benefit (Expense)
Income tax benefit was RMB 17.0 million (US$2.5 million) in the fourth quarter of 2008, compared to RMB 0.2 million in the third quarter of 2008 and an income tax expense of RMB 15.3 million in the fourth quarter of 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli Energy (China) Co., Ltd (''Yingli China''), the Company's wholly-owned subsidiary, were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
As a result of the factors discussed above, net income was RMB 100.6 million (US$14.7 million) in the fourth quarter of 2008, a decrease of 33.3% from RMB 150.8 million in the third quarter of 2008 and a decrease of 27.3% from RMB 138.4 million in the fourth quarter of 2007. Diluted earnings per ordinary share and per ADS were RMB 0.79 (US$0.12) in the fourth quarter of 2008, compared to RMB 1.17 in the third quarter of 2008.
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, an operating subsidiary of the Company, net income was RMB 126.8 million (US$18.6 million) in the fourth quarter of 2008, down 27.7% from RMB 175.3 million in the third quarter of 2008. Adjusted non-GAAP diluted earnings per ordinary share and per ADS were RMB 0.99 (US$0.15) in the fourth quarter of 2008, compared to RMB 1.35 in the third quarter of 2008.
Balance Sheet Analysis
As of December 31, 2008, Yingli Green Energy had RMB 1,108.9 million (US$162.5 million) in cash and RMB 3,224.1 million (US$472.6 million) in working capital, compared to RMB 737.1 million in cash and RMB 3,372.8 million in working capital as of September 30, 2008. Short-term borrowings increased from RMB 1,794.9 million in the third quarter of 2008 to RMB 2,044.2 million (US$299.6 million) in the fourth quarter of 2008. Long-term bank borrowings increased from RMB 340.9 million in the third quarter of 2008 to RMB 663.0 million (US$97.2 million) in the fourth quarter of 2008. As of the date of this press release, the Company had approximately RMB 4,545 million in authorized lines of credit, of which RMB 3,040 million had been utilized. Days sales outstanding was 75 days in the fourth quarter of 2008, compared to 48 days in the third quarter of 2008, primarily as a result of weakened macroeconomic conditions.
Full Year 2008 Results
Total Net Revenues
Total net revenues for the full year 2008 were RMB 7,553.0 million (US$1,107.1 million), which increased by 86.1% from RMB 4,059.3 million in the year of 2007. The increase was primarily due to a significant rise in total shipments of PV modules, which increased to 281.5 MW in 2008 from 142.5 MW in 2007. The increase in total shipments was primarily due to the Company's expanded sales and marketing efforts in Europe, supported by the completion of an additional 200 MW of total production capacity of polysilicon ingots and wafers, PV cells and PV modules in September 2008. The average selling price for PV modules for the full year 2008 was US$3.88 per watt, slightly higher than US$3.86 per watt in 2007.
Gross Profit and Margin
Gross profit for the full year 2008 was RMB 1,629.6 million (US$238.9 million), which increased by 70.3% from RMB 956.8 million in the year of 2007. Gross margin was 21.6% for the full year 2008, compared to 23.6% in 2007. The decrease in gross margin for the full year 2008 was primarily due to the lower gross margin in the fourth quarter of 2008, which was the result of significantly weakened macroeconomic conditions in the fourth quarter of 2008 and the depreciation of the Euro and the U.S. dollar against the Renminbi.
Operating Expenses
Operating expenses for the full year 2008 were RMB 476.3 million (US$69.8 million), an increase of 71.8% from RMB 277.3 million in 2007. The increase in operating expenses was primarily due to higher research and development expenses and increased marketing and promotional efforts resulting from the Company's expanded scale of operations. Operating expenses as a percentage of revenue decreased to 6.3% in the full year 2008 from 6.8% in the year of 2007, primarily due to economies of scale and better control of sales and marketing expenses and general and administrative expenses.
Interest Expense
Interest expense for the full year 2008 was RMB 149.2 million (US$21.9 million), an increase of 130.1% from RMB 64.8 million in 2007. The increase in interest expense was consistent with the increase in short-term borrowings from RMB 1,261.3 million as of December 31, 2007 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from nil as of December 31, 2007 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in 2008 was 6.61%, which increased from 5.97% in 2007.
Income Tax Benefit (Expense)
Income tax benefit was RMB 19.5 million (US$2.9 million) for the full year 2008, compared to an income tax expense of RMB 12.9 million for the full year 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli China were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
Net income was RMB 682.1 million (US$100.0 million) and fully diluted earnings per ordinary share and per ADS were RMB 5.27 (US$0.77) for the full year 2008.
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, net income was RMB 782.8 million (US$114.7 million) for the full year 2008. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS were RMB 6.04 (US$0.89) for the full year 2008.
Fourth Quarter 2008 and Recent Business Highlights
Sales
-- As of the date of this press release, the Company had signed sales
contracts for the delivery of approximately 317.4 MW of PV modules in
2009.
Financing
-- Yingli China entered into a credit agreement with a fund managed by
Asia Debt Management Hong Kong Limited for a three-year loan facility
of up to US$80.0 million.
-- In connection with its acquisition of Cyber Power, the Company
committed to issue senior secured convertible notes totaling up to
US$50.0 million to Trustbridge Partners II, L.P., US$20.0 million of
which has been issued.
-- Yingli China entered into an eight-year US$70 million loan agreement
with China Development Bank.
-- Tianwei Yingli entered into a new credit line trade finance facility
agreement with the Export-Import Bank of China ("China Eximbank"),
which brought the aggregate credit line available from China Eximbank
to RMB 1.0 billion or its U.S. dollar equivalent.
-- Long term credit facility agreement, entered into with DEG - Deutsche
Investitions - und Entwicklungsgesellschaft mbH and the Netherlands
Development Finance Company, expanded to US$75 million with the
inclusion of The Societe de Promotion et de Participation pour la
Cooperation Economique to the lending group.
Others
-- Appointment of a new Chief Technology Officer, Dr. Dengyuan Song, who
has more than 27 years of experience in the research and development of
photovoltaic cells, silicon materials and semiconductor PV devices.
-- Tianwei Yingli and Yingli China were recognized by the Chinese
government as ''High and New Technology Enterprises'' entitled to a
preferential enterprise income tax rate of 15% for three years under
the PRC Enterprise Income Tax Law.
-- Completion of US$77.6 million acquisition of Cyber Power Group Limited,
which, through its principal operating subsidiary in China, Fine
Silicon Co., Ltd., plans to begin production of solar-grade polysilicon
in the second half of 2009.
-- Appointment of a new Vice President of Technology, Mr. Jingfeng Xiong,
a highly respected executive and engineer with a wealth of theoretical
knowledge and practical experience in research and development and
manufacturing at Yingli Green Energy.
-- Entered into memorandum of understanding with TUV Rheinland (Shanghai)
Co., Ltd. to form a strategic partnership covering a range of quality
control initiatives at the Company.
Business Outlook for Full Year 2009
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company reaffirms that its PV module shipment target is expected to be in the estimated range of 550 MW to 600 MW for fiscal year 2009, which represents an increase of 96.1% to 113.9% compared to fiscal year 2008, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the Company's mid- to long-term virgin polysilicon supply agreements, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average selling price of PV modules and further depreciation of the Euro against the U.S. dollar, the Company currently expects that its gross margin target for fiscal year 2009 to be in the estimated range of 22% to 24%.
Non-GAAP Financial Measures
To supplement the financial measures calculated 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 diluted 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, an operating subsidiary of the Company. 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 fourth quarter and full year 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 December 31, 2008, which was RMB 6.8225 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.
Saturday, January 31, 2009
Trina Solar Signs Sales Agreement With GA Solar
Friday, Jan 30, 2009
CHANGZHOU, China, Jan. 29 /PRNewswire-Asia-FirstCall/ --Trina Solar Limited a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced that its subsidiary, Changzhou Trina Solar Energy Co.,Ltd., entered into a sales agreement with Spanish customer Gestamp Asetym Solar, S.L. ("GA Solar"). The agreement was signed during the recent World Future Energy Summit 2009 in Abu Dhabi,held on January 19-21.
Under the terms of this agreement, Trina Solar will supply GA Solar between 20 to 36 MW of PV modules for one year at pre-determined prices. Shipments under this agreement have recently been initiated.
"We are excited to have entered into this sales agreement which affirms our successful long-term supply partnership with GA Solar in the past," stated Mr. Arturo Herrero, Vice-President of Sales & Marketing of Trina Solar. "GA Solar's plan to implement new solar projects in markets such as Italy, Greece, the United States and the Middle East will be supported by their parent company's presence in over twenty countries, and we believe that our experience in working with PV system integrators can play an important part in GA's expansion plan."
"This agreement reinforces and confirms the strategic alliance between both companies," declared Mr. Jose Maria Rodriguez Paraja, Strategic Development Director of GA Solar. "This association assures a high quality technical solution that will enable us to successfully approach diverse PV markets worldwide, thereby assuring our needed requirements are fulfilled in terms of reliability, competitiveness and excellence proven by Trina Solar in our recent years of partnership.
CHANGZHOU, China, Jan. 29 /PRNewswire-Asia-FirstCall/ --Trina Solar Limited a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced that its subsidiary, Changzhou Trina Solar Energy Co.,Ltd., entered into a sales agreement with Spanish customer Gestamp Asetym Solar, S.L. ("GA Solar"). The agreement was signed during the recent World Future Energy Summit 2009 in Abu Dhabi,held on January 19-21.
Under the terms of this agreement, Trina Solar will supply GA Solar between 20 to 36 MW of PV modules for one year at pre-determined prices. Shipments under this agreement have recently been initiated.
"We are excited to have entered into this sales agreement which affirms our successful long-term supply partnership with GA Solar in the past," stated Mr. Arturo Herrero, Vice-President of Sales & Marketing of Trina Solar. "GA Solar's plan to implement new solar projects in markets such as Italy, Greece, the United States and the Middle East will be supported by their parent company's presence in over twenty countries, and we believe that our experience in working with PV system integrators can play an important part in GA's expansion plan."
"This agreement reinforces and confirms the strategic alliance between both companies," declared Mr. Jose Maria Rodriguez Paraja, Strategic Development Director of GA Solar. "This association assures a high quality technical solution that will enable us to successfully approach diverse PV markets worldwide, thereby assuring our needed requirements are fulfilled in terms of reliability, competitiveness and excellence proven by Trina Solar in our recent years of partnership.
Suntech and Standard Solar Reach 5 Megawatt Solar Panel Supply Agreement
Wednesday, Jan 28, 2009
SAN FRANCISCO and GAITHERSBURG, Md., Jan. 27/PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's leading manufacturer of photovoltaic (PV) modules, and Standard Solar, Inc. are looking forward to powering cleaner energy solutions throughout the Mid-Atlantic U.S. under a new agreement by which Suntech will supply up to 5 megawatts of photovoltaic solar panels to the Maryland-based solar developerand installer during 2009.
"Partnering with Suntech, a top-tier manufactureroffering a broad assortment of high-quality solar panels, better equipsStandard Solar to fulfill its rapidly growing customer requirements from NewJersey and Pennsylvania to North Carolina and Virginia," said ScottWiater, Vice President of Procurement at Standard Solar.
"Suntech looks forward to partnering with StandardSolar in supplying cleaner, cost-effective solutions to businesses, governmentagencies and homeowners. In addition to reducing the dependence on highlypolluting fossil fuels, we believe that the solar industry can also help togenerate new domestic, green jobs," said Roger Efird, President, SuntechAmerica, Inc.
In his address after taking the oath of office and becomingthe nation's 44th President, Barack Obama called for Americans to "harnessthe sun . . . to meet the demands of a new age."
"This agreement," said Standard Solar Presidentand Chief Executive Officer Anthony Clifford, "strengthens our ability torespond to this challenge. We cannot agree more with our new President when headded from the West front of the U.S. Capitol: "All this we can do. Andall this we will do."
Standard Solar looks forward to deploying Suntech's high-quality panels in solar solutions that deliver cost-effective power.Recently, Standard Solar helped Kelly & Sons Electrical Construction sourceits electricity supply through a power purchase agreement with Washington GasEnergy Services. Find more information about this power purchase agreement athttp://www.standardsolar.com/News-and-Events/Press-Releases.aspx.
Suntech recently achieved 1 gigawatt of global solar panel production capacity. In doing so, it completed an 18,000 square meter, 1megawatt solar facade -- the world's largest to date -- at its new world headquarters in Wuxi, China. You can find a photo of this precedent-setting application on Suntech's website at http://www.suntech-power.com under Press:Press Assets.
SAN FRANCISCO and GAITHERSBURG, Md., Jan. 27/PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's leading manufacturer of photovoltaic (PV) modules, and Standard Solar, Inc. are looking forward to powering cleaner energy solutions throughout the Mid-Atlantic U.S. under a new agreement by which Suntech will supply up to 5 megawatts of photovoltaic solar panels to the Maryland-based solar developerand installer during 2009.
"Partnering with Suntech, a top-tier manufactureroffering a broad assortment of high-quality solar panels, better equipsStandard Solar to fulfill its rapidly growing customer requirements from NewJersey and Pennsylvania to North Carolina and Virginia," said ScottWiater, Vice President of Procurement at Standard Solar.
"Suntech looks forward to partnering with StandardSolar in supplying cleaner, cost-effective solutions to businesses, governmentagencies and homeowners. In addition to reducing the dependence on highlypolluting fossil fuels, we believe that the solar industry can also help togenerate new domestic, green jobs," said Roger Efird, President, SuntechAmerica, Inc.
In his address after taking the oath of office and becomingthe nation's 44th President, Barack Obama called for Americans to "harnessthe sun . . . to meet the demands of a new age."
"This agreement," said Standard Solar Presidentand Chief Executive Officer Anthony Clifford, "strengthens our ability torespond to this challenge. We cannot agree more with our new President when headded from the West front of the U.S. Capitol: "All this we can do. Andall this we will do."
Standard Solar looks forward to deploying Suntech's high-quality panels in solar solutions that deliver cost-effective power.Recently, Standard Solar helped Kelly & Sons Electrical Construction sourceits electricity supply through a power purchase agreement with Washington GasEnergy Services. Find more information about this power purchase agreement athttp://www.standardsolar.com/News-and-Events/Press-Releases.aspx.
Suntech recently achieved 1 gigawatt of global solar panel production capacity. In doing so, it completed an 18,000 square meter, 1megawatt solar facade -- the world's largest to date -- at its new world headquarters in Wuxi, China. You can find a photo of this precedent-setting application on Suntech's website at http://www.suntech-power.com under Press:Press Assets.
Suntech Reports Preliminary Fourth Quarter and Full Year 2008 Financial Results
Company Exceeds Fourth Quarter Revenue and Full Year PV Product Shipment Guidance; Announces Repurchase of $93.8 Million of Convertible Senior Notes SAN FRANCISCO and WUXI, China, Jan. 23
SAN FRANCISCO and WUXI, China, Jan. 23 /PRNewswire-Asia/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module
manufacturer, today announced preliminary financial results for the fourth
quarter and full year 2008.
For the fourth quarter of 2008, Suntech expects total net revenues to be
in the range of $405 million to $420 million, above previously issued guidance
of revenues in the range of $345 million to $360 million. Full year 2008 total
net revenues are expected to be in the range of $1.91 billion to $1.93 billion
and full year 2008 PV product shipments are expected to be in the range of
493MW to 496MW.
As a result of the rapid decline in silicon prices in the fourth quarter,
Suntech expects to make an inventory provision in the range of $46 million to
$58 million, which would have a negative impact to the gross margin of 11% to
14%. Fourth quarter 2008 consolidated GAAP gross margin is expected to be in
the range of -1% to 2%.
"We are pleased to have exceeded our revised revenue and shipment guidance
for the fourth quarter and full year 2008," said Dr. Zhengrong Shi, Suntech's
Chairman and CEO. "While the weakening macro-economic environment and limited
availability of credit has led to rapid changes in market conditions and
reduced visibility, we believe that there is relatively strong underlying
demand for Suntech products. We also believe that in this challenging
environment, customers recognize the value in partnering with Suntech due to
our reputation for consistently delivering premium quality modules, record of
very successful projects, localized customer service and commitment to solar
innovation."
Convertible Senior Notes Repurchase and Investment Impairment
During the fourth quarter of 2008, Suntech conducted open market
repurchases of Suntech's 0.25% Convertible Senior Notes due 2012. Through
December 31, 2008, Suntech re-purchased $93.8 million aggregate principal
amount of the Convertible Senior Notes for a total cash consideration of $61.0
million. As a result, Suntech realized a net gain of approximately $30 million.
Suntech may from time to time seek to make additional repurchases of its
Convertible Senior Notes. Such repurchases, if any, will depend on prevailing
market conditions, our liquidity requirements and other factors.
Due to the rapid decline in silicon prices and difficult financing
environment, Suntech expects to incur an expense related to the impairment of
Suntech's investments in Nitol Solar and Hoku Materials. The total value of
the investment impairment is expected to be in the range of approximately $49
million to $52 million.
As of December 31, 2008, Suntech's cash and cash equivalents balance was
approximately $508 million, which is approximately $113 million higher than
the cash and cash equivalents balance at the end of the third quarter of 2008.
Cash and cash equivalents increased primarily due to the liquidation of some
short term investments and the accelerated collection of some Value Added Tax
Recoverable.
Amy Zhang, Suntech's Chief Financial Officer, said, "The prudent
restructuring of our balance sheet enabled us to simultaneously reduce our
Convertible Senior Notes commitment and increase our cash balance during the
fourth quarter. With our relatively strong financial status, we believe we are
well positioned to weather the global economic downturn and capitalize on the
long term growth potential of the solar industry."
The Company also announced that it had reduced the workforce by
approximately 800 employees as a result of ongoing performance evaluation in
the fourth quarter of 2008. In addition, Suntech suspended the hiring of a
further 2,000 new staff in line with the Company's decision to maintain
production capacity at 1GW as a result of the difficult economic environment.
Suntech will consider further expansion and hiring when market conditions
improve. Suntech's headcount as of December 31, 2008 was 9,070.
The estimates presented in this press release are preliminary. Adjustments
to the estimates and projections set forth in this press release may be
identified as a result of, among other things, finalization of the company's
financial closing procedures and external audit process for the year ended
December 31, 2008. As such, these estimates and our expectations set forth
herein may change materially.
Suntech will hold a conference call to discuss fourth quarter and full
year 2008 financial results at 8am EST on February 18, 2009. For further
information and dial in details please visit http://www.suntech-power.com
under Investor Center: Financial Events.
SAN FRANCISCO and WUXI, China, Jan. 23 /PRNewswire-Asia/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module
manufacturer, today announced preliminary financial results for the fourth
quarter and full year 2008.
For the fourth quarter of 2008, Suntech expects total net revenues to be
in the range of $405 million to $420 million, above previously issued guidance
of revenues in the range of $345 million to $360 million. Full year 2008 total
net revenues are expected to be in the range of $1.91 billion to $1.93 billion
and full year 2008 PV product shipments are expected to be in the range of
493MW to 496MW.
As a result of the rapid decline in silicon prices in the fourth quarter,
Suntech expects to make an inventory provision in the range of $46 million to
$58 million, which would have a negative impact to the gross margin of 11% to
14%. Fourth quarter 2008 consolidated GAAP gross margin is expected to be in
the range of -1% to 2%.
"We are pleased to have exceeded our revised revenue and shipment guidance
for the fourth quarter and full year 2008," said Dr. Zhengrong Shi, Suntech's
Chairman and CEO. "While the weakening macro-economic environment and limited
availability of credit has led to rapid changes in market conditions and
reduced visibility, we believe that there is relatively strong underlying
demand for Suntech products. We also believe that in this challenging
environment, customers recognize the value in partnering with Suntech due to
our reputation for consistently delivering premium quality modules, record of
very successful projects, localized customer service and commitment to solar
innovation."
Convertible Senior Notes Repurchase and Investment Impairment
During the fourth quarter of 2008, Suntech conducted open market
repurchases of Suntech's 0.25% Convertible Senior Notes due 2012. Through
December 31, 2008, Suntech re-purchased $93.8 million aggregate principal
amount of the Convertible Senior Notes for a total cash consideration of $61.0
million. As a result, Suntech realized a net gain of approximately $30 million.
Suntech may from time to time seek to make additional repurchases of its
Convertible Senior Notes. Such repurchases, if any, will depend on prevailing
market conditions, our liquidity requirements and other factors.
Due to the rapid decline in silicon prices and difficult financing
environment, Suntech expects to incur an expense related to the impairment of
Suntech's investments in Nitol Solar and Hoku Materials. The total value of
the investment impairment is expected to be in the range of approximately $49
million to $52 million.
As of December 31, 2008, Suntech's cash and cash equivalents balance was
approximately $508 million, which is approximately $113 million higher than
the cash and cash equivalents balance at the end of the third quarter of 2008.
Cash and cash equivalents increased primarily due to the liquidation of some
short term investments and the accelerated collection of some Value Added Tax
Recoverable.
Amy Zhang, Suntech's Chief Financial Officer, said, "The prudent
restructuring of our balance sheet enabled us to simultaneously reduce our
Convertible Senior Notes commitment and increase our cash balance during the
fourth quarter. With our relatively strong financial status, we believe we are
well positioned to weather the global economic downturn and capitalize on the
long term growth potential of the solar industry."
The Company also announced that it had reduced the workforce by
approximately 800 employees as a result of ongoing performance evaluation in
the fourth quarter of 2008. In addition, Suntech suspended the hiring of a
further 2,000 new staff in line with the Company's decision to maintain
production capacity at 1GW as a result of the difficult economic environment.
Suntech will consider further expansion and hiring when market conditions
improve. Suntech's headcount as of December 31, 2008 was 9,070.
The estimates presented in this press release are preliminary. Adjustments
to the estimates and projections set forth in this press release may be
identified as a result of, among other things, finalization of the company's
financial closing procedures and external audit process for the year ended
December 31, 2008. As such, these estimates and our expectations set forth
herein may change materially.
Suntech will hold a conference call to discuss fourth quarter and full
year 2008 financial results at 8am EST on February 18, 2009. For further
information and dial in details please visit http://www.suntech-power.com
under Investor Center: Financial Events.
Sunday, January 18, 2009
China PV module sector sees departure of 70% of makers
Nuying Huang, Taipei; Adam Hwang, DIGITIMES [Thursday 15 January 2009]
China's photovoltaic (PV) module sector, faced with fast decreasing global demand, saw a drastic reshuffling process in the fourth quarter of 2008 and as many as 250, or 70%, of its originally 350 makers have been forced out of the market because of relatively unhealthy corporate structure and poorer competitiveness, with about 100 large ones remaining, according to industry sources.
The surviving PV module makers are large makers with strong vertical integration, some of whom are invested by government organizations, the sources pointed out. Suntech Power is the largest China-based maker of both solar cells and PV modules with an annual PV module production capacity of 1GWp, followed by Yingli Green Energy with 800-1,000MWp, Trina Solar with 700-800MWp and Solarfun Power with 600MWp, the sources indicated.
Unlike China, Taiwan's PV module industry consists of about 100 independent makers with comparatively small annual production capacities of up to 300MWp, while main makers of solar cells such as Motech Industries and Gintech Energy are unwilling to step into making PV modules because they consider it conflict of interest with their clients from the PV module sector, the sources pointed out.
China's photovoltaic (PV) module sector, faced with fast decreasing global demand, saw a drastic reshuffling process in the fourth quarter of 2008 and as many as 250, or 70%, of its originally 350 makers have been forced out of the market because of relatively unhealthy corporate structure and poorer competitiveness, with about 100 large ones remaining, according to industry sources.
The surviving PV module makers are large makers with strong vertical integration, some of whom are invested by government organizations, the sources pointed out. Suntech Power is the largest China-based maker of both solar cells and PV modules with an annual PV module production capacity of 1GWp, followed by Yingli Green Energy with 800-1,000MWp, Trina Solar with 700-800MWp and Solarfun Power with 600MWp, the sources indicated.
Unlike China, Taiwan's PV module industry consists of about 100 independent makers with comparatively small annual production capacities of up to 300MWp, while main makers of solar cells such as Motech Industries and Gintech Energy are unwilling to step into making PV modules because they consider it conflict of interest with their clients from the PV module sector, the sources pointed out.
Tuesday, January 6, 2009
Yingli Green Energy Signs 15 MW Sales Contract with GOLDBECK Solar
BAODING, China, Jan. 5 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited ("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 GOLDBECK Solar GmbH ("GOLDBECK Solar"), a leading German PV system specialist company for PV applications on industrial buildings. Under the terms of the contract, Yingli Green Energy is expected to supply a minimum of 15 MW of PV modules to GOLDBECK Solar in 2009. In addition, the contract provides a framework for GOLDBECK Solar to purchase up to an additional 58 MW of PV modules from Yingli Green Energy in 2009.
"We are pleased to have Yingli as one of our key suppliers," said Joachim Goldbeck, General Manager of GOLDBECK Solar. "We aim to provide our customers maximum value with our products and services. Cooperating with top tier suppliers like Yingli is one of our principal strategies for achieving these goals in order to secure customers on a long-term basis."
"We look forward to working closely with GOLDBECK Solar in 2009," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "Given the cost advantage and quality control capability of our vertically integrated business model, we can provide reliable and high quality products at a reasonable and competitive price, in line with our strategy to continually enhance the value that we provide to our customers. We believe this will lead to a broader and deeper penetration of our products and brand awareness worldwide."
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
"We are pleased to have Yingli as one of our key suppliers," said Joachim Goldbeck, General Manager of GOLDBECK Solar. "We aim to provide our customers maximum value with our products and services. Cooperating with top tier suppliers like Yingli is one of our principal strategies for achieving these goals in order to secure customers on a long-term basis."
"We look forward to working closely with GOLDBECK Solar in 2009," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "Given the cost advantage and quality control capability of our vertically integrated business model, we can provide reliable and high quality products at a reasonable and competitive price, in line with our strategy to continually enhance the value that we provide to our customers. We believe this will lead to a broader and deeper penetration of our products and brand awareness worldwide."
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
Friday, December 19, 2008
Suntech to Deliver 3MW of Integrated Solar Systems to World Expo Shanghai 2010
SAN FRANCISCO and WUXI, China, Dec. 19 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced that it has won a bid to supply, design and install building integrated photovoltaic systems (BIPV) with a total capacityof 3MW on the China and Theme Pavilions at the World Expo Shanghai 2010 ("theExpo"). The projects, which will be the largest BIPV installations in China, are scheduled to be completed by September 2009.
Centered on the theme "Better City, Better Life", the Expo will explore global initiatives that enable sustainable urban development. The China and Theme Pavilions which will be developed by Shenergy Group, one of Shanghai's leading energy companies, will emphasize the importance of urban harmony with the natural environment, including the sustainable use of natural resources such as water and sunlight. The 3MW building integrated rooftop solar systems will be designed, developed and installed by Suntech's in-house system integration team. World Expo Shanghai 2010 will be held from May 1 - October31, 2010 in Shanghai, China.
"Building integrated solar systems, which turn common building materials such as rooftops and facades into power generators, are a logical step for the evolution of the urban environment. Our selection underscores Suntech's position as a global brand and world leader in the solar industry as well as our leading system integration capability in China. We are honored to display China's technological expertise in renewable energy to the world at the Expo,"said Dr. Zhengrong Shi, Suntech's Chairman and CEO.
The sustainable theme of the Expo echoes China's broader commitment to renewable energy solutions. As part of its Renewable Energy Law in 2005, China established a target to generate 15% of its total electricity from renewable energy sources by 2020. China plans to invest $180 billion in renewable energy over a 15-year period, fostering the emergence of renewable energy and sustainable development, including solar, wind, hydropower and biomass.
"Showcasing two of the world's largest building integrated solar systemsat the World Expo Shanghai 2010 indicates China's growing recognition of solar's ability to play a key role in renewable energy generation and sustainable urban development. With China's clear commitment to increasing adoption of renewable energy solutions, we are confident that the Chinese solar market will experience rapid growth in the next few years," Dr. Shi continued.
Suntech's system integration team is one of the most experienced and capable in China. They have completed a range of technically complex building integrated solar systems including the 120kW Beijing Jingya Hotel curtain wall, an 800kW Light Thru system on the Wuxi Airport, and the 1MW BIPV facade at Suntech's new headquarters in Wuxi.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of solar modules. Suntech designs, develops, manufactures, and markets premium-quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's patent-pending Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods.
Suntech also offers one of the broadest ranges of building-integrated solar products under the MSK Solar Design Line(TM). Suntech designs and delivers commercial and utility scale solar power systems through its wholly owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering and will own and operate projects greater than 10 megawatts in the United States through Gemini Solar Development Company, a joint venture with MMA RenewableVentures. With regional headquarters in China, Switzerland and San Franciscoand sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visithttp://www.suntech-power.com .
Centered on the theme "Better City, Better Life", the Expo will explore global initiatives that enable sustainable urban development. The China and Theme Pavilions which will be developed by Shenergy Group, one of Shanghai's leading energy companies, will emphasize the importance of urban harmony with the natural environment, including the sustainable use of natural resources such as water and sunlight. The 3MW building integrated rooftop solar systems will be designed, developed and installed by Suntech's in-house system integration team. World Expo Shanghai 2010 will be held from May 1 - October31, 2010 in Shanghai, China.
"Building integrated solar systems, which turn common building materials such as rooftops and facades into power generators, are a logical step for the evolution of the urban environment. Our selection underscores Suntech's position as a global brand and world leader in the solar industry as well as our leading system integration capability in China. We are honored to display China's technological expertise in renewable energy to the world at the Expo,"said Dr. Zhengrong Shi, Suntech's Chairman and CEO.
The sustainable theme of the Expo echoes China's broader commitment to renewable energy solutions. As part of its Renewable Energy Law in 2005, China established a target to generate 15% of its total electricity from renewable energy sources by 2020. China plans to invest $180 billion in renewable energy over a 15-year period, fostering the emergence of renewable energy and sustainable development, including solar, wind, hydropower and biomass.
"Showcasing two of the world's largest building integrated solar systemsat the World Expo Shanghai 2010 indicates China's growing recognition of solar's ability to play a key role in renewable energy generation and sustainable urban development. With China's clear commitment to increasing adoption of renewable energy solutions, we are confident that the Chinese solar market will experience rapid growth in the next few years," Dr. Shi continued.
Suntech's system integration team is one of the most experienced and capable in China. They have completed a range of technically complex building integrated solar systems including the 120kW Beijing Jingya Hotel curtain wall, an 800kW Light Thru system on the Wuxi Airport, and the 1MW BIPV facade at Suntech's new headquarters in Wuxi.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of solar modules. Suntech designs, develops, manufactures, and markets premium-quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's patent-pending Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods.
Suntech also offers one of the broadest ranges of building-integrated solar products under the MSK Solar Design Line(TM). Suntech designs and delivers commercial and utility scale solar power systems through its wholly owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering and will own and operate projects greater than 10 megawatts in the United States through Gemini Solar Development Company, a joint venture with MMA RenewableVentures. With regional headquarters in China, Switzerland and San Franciscoand sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visithttp://www.suntech-power.com .
Yingli Green Energy Signs Sales Agreements with Two Leading German PV System Integrators
BAODING, China, Dec. 19 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited ("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 sales agreements with two leading German PV system integrators, City Solar Kraftwerke AG ("City Solar") and Wirsol Deutschland GmbH ("Wirsol").
20 MW PV Module Sales Agreement with City Solar
Under the sales agreement with City Solar, one of the leading German developers and turnkey providers of large-scale PV power plants, Yingli Green Energy is expected to supply 20 MW of PV modules to City Solar in 2009. In addition, City Solar has an option to purchase an additional 30 MW of PV modules from Yingli Green Energy in 2009.
"We are delighted to initiate our business relationship with Yingli Green Energy," commented Mr. Steffen Kammler, President and Chief Executive Officer of City Solar. "We believe we can provide more profitable solar power plants to our customers by using Yingli Green Energy's PV modules with their reliable quality and stable output performance, which are vital for the successful and profitable operation of solar power plants throughout their lifetime."
15 MW PV Module Sales Agreement with Wirsol
Under the sales agreement with Wirsol, one of the leading German PV system specialists delivering solar-based solutions to both residential and commercial customers, Yingli Green Energy is expected to supply 15 MW of PV modules to Wirsol from December 2008 through October 2009. In addition, Wirsol has an option to purchase an additional 20 MW of PV modules from Yingli Green Energy in 2009.
"We are please to sign this contract with Yingli Green Energy," commented Mr. Markus Wirth, managing director of Wirsol. "As a German solar specialist with the quality seal of RAL certification, we work under strictly controlled quality standards: All work processes are documented and transparent, from the first consultation to installation and beyond. We have gained sufficient confidence in Yingli Green Energy's capability to provide high-quality and reliable products through testing its products under real conditions in our own solar park and from our visits to its facilities which impressed us with its advanced automation level and rigorous quality program."
"We are pleased to announce our sales contract with City Solar and Wirsol," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "We have established a solid position as a reliable PV module supplier for large-scale PV power plants and other solar power solutions worldwide, thanks to our successful track record and long history in cooperating with utilities and PV system installers in Europe. We expect to continue to capture market share in a more competitive environment with our high quality products, brand recognition and competitive PV module pricing. In addition, we believe the recent dramatic decrease in polysilicon prices and our excellent performance in maintaining low non-polysilicon costs will further help us along the way towards achieving grid parity."
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
20 MW PV Module Sales Agreement with City Solar
Under the sales agreement with City Solar, one of the leading German developers and turnkey providers of large-scale PV power plants, Yingli Green Energy is expected to supply 20 MW of PV modules to City Solar in 2009. In addition, City Solar has an option to purchase an additional 30 MW of PV modules from Yingli Green Energy in 2009.
"We are delighted to initiate our business relationship with Yingli Green Energy," commented Mr. Steffen Kammler, President and Chief Executive Officer of City Solar. "We believe we can provide more profitable solar power plants to our customers by using Yingli Green Energy's PV modules with their reliable quality and stable output performance, which are vital for the successful and profitable operation of solar power plants throughout their lifetime."
15 MW PV Module Sales Agreement with Wirsol
Under the sales agreement with Wirsol, one of the leading German PV system specialists delivering solar-based solutions to both residential and commercial customers, Yingli Green Energy is expected to supply 15 MW of PV modules to Wirsol from December 2008 through October 2009. In addition, Wirsol has an option to purchase an additional 20 MW of PV modules from Yingli Green Energy in 2009.
"We are please to sign this contract with Yingli Green Energy," commented Mr. Markus Wirth, managing director of Wirsol. "As a German solar specialist with the quality seal of RAL certification, we work under strictly controlled quality standards: All work processes are documented and transparent, from the first consultation to installation and beyond. We have gained sufficient confidence in Yingli Green Energy's capability to provide high-quality and reliable products through testing its products under real conditions in our own solar park and from our visits to its facilities which impressed us with its advanced automation level and rigorous quality program."
"We are pleased to announce our sales contract with City Solar and Wirsol," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "We have established a solid position as a reliable PV module supplier for large-scale PV power plants and other solar power solutions worldwide, thanks to our successful track record and long history in cooperating with utilities and PV system installers in Europe. We expect to continue to capture market share in a more competitive environment with our high quality products, brand recognition and competitive PV module pricing. In addition, we believe the recent dramatic decrease in polysilicon prices and our excellent performance in maintaining low non-polysilicon costs will further help us along the way towards achieving grid parity."
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
Trina Solar Announces 'MeSolar' Brand UMG-Silicon Based Product Line
18 December 2008
CHANGZHOU, China, Dec. 18 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (''Trina Solar'' or the ''Company''), a leading integrated manufacturer of photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced the launch of the brand name "MeSolar" for its newly in-house developed line of products based on Upgraded Metallurgical Grade ("UMG") silicon materials.
The product line is part of Trina Solar's strategy to expand its product portfolio in order to address customers' increasing demand for lower cost solar module systems. "We are pleased to introduce the brand name 'MeSolar' which represents our high quality and efficient modules using UMG silicon materials, with advantageous prices for our customers," stated Arturo Herrero, Trina Solar's Vice President of Sales & Marketing. "MeSolar" products undergo a stringent production process as well as rigorous quality control checks as a result of initial optimization and critical development stages during testing along the entire value chain, starting from UMG silicon materials, wafers, and cells, to modules, the final product.
Jifan Gao, Trina Solar's Chairman and CEO, stated, "We expect that UMG feedstock technology will continue to advance in the next year, which combine with improved manufacturing efficiencies should provide significant and sustainable cost advantages forward for added value to our customers."
Trina Solar plans to launch production of "MeSolar", employing its existing, dedicated manufacturing lines, with sales and deliveries planned throughout 2009. The UMG-based "MeSolar" modules have a 20-year warranty.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL) 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 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. Trina Solar's products provide reliable and environmentally-friendly electric power for a growing variety of end-user applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
CHANGZHOU, China, Dec. 18 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (''Trina Solar'' or the ''Company''), a leading integrated manufacturer of photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced the launch of the brand name "MeSolar" for its newly in-house developed line of products based on Upgraded Metallurgical Grade ("UMG") silicon materials.
The product line is part of Trina Solar's strategy to expand its product portfolio in order to address customers' increasing demand for lower cost solar module systems. "We are pleased to introduce the brand name 'MeSolar' which represents our high quality and efficient modules using UMG silicon materials, with advantageous prices for our customers," stated Arturo Herrero, Trina Solar's Vice President of Sales & Marketing. "MeSolar" products undergo a stringent production process as well as rigorous quality control checks as a result of initial optimization and critical development stages during testing along the entire value chain, starting from UMG silicon materials, wafers, and cells, to modules, the final product.
Jifan Gao, Trina Solar's Chairman and CEO, stated, "We expect that UMG feedstock technology will continue to advance in the next year, which combine with improved manufacturing efficiencies should provide significant and sustainable cost advantages forward for added value to our customers."
Trina Solar plans to launch production of "MeSolar", employing its existing, dedicated manufacturing lines, with sales and deliveries planned throughout 2009. The UMG-based "MeSolar" modules have a 20-year warranty.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL) 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 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. Trina Solar's products provide reliable and environmentally-friendly electric power for a growing variety of end-user applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
Tuesday, December 16, 2008
Suntech Opens Sales and Customer Service Office in Italy
SAN FRANCISCO and WUXI, China, Dec. 16 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced the opening of a sales office in Milan, Italy to provide enhanced sales and service support to Suntech's Italian customer base.
Jerry Stokes, Suntech's President of Europe, said, "Our new office in Milan is another step towards the increasing globalization of Suntech's sales and service capabilities. To complement our core sales competency, we are building a multi-faceted team across Europe that is in tune with local market conditions and can respond to customer needs promptly. We believe our customers appreciate this commitment and see Suntech as a reliable, long term solar partner."
Mauro Sgherri, Suntech's Director of Sales, Italy, said, "Suntech's involvement in many of the highest profile solar projects in Europe combined with a deep dedication to quality and continuous technology improvement distinguishes Suntech's solar offering in the Italian market. Moreover, Suntech's industry leading scale, broad product portfolio and timely product delivery highlight our market leadership. We have established a top tier customer base of companies that have long term solar plans and have already built an order book in Italy of over 130 megawatts for 2009. We look forward to supporting the growth plans of our Italian customers through the stablesupply of high quality solar modules and responsive customer service."
The Italian market is set to grow rapidly in 2009 due to strong support from the Italian government in the form of solar subsidies that range from EUR0.36/kWh for large ground-mounted PV systems and up to EUR0.49/kWh for building integrated PV systems. The high solar irradiation provides excellent conditions for generating solar energy.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) 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 BIPV products under the MSK Solar Design Line(TM). Suntech hassales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com .
Jerry Stokes, Suntech's President of Europe, said, "Our new office in Milan is another step towards the increasing globalization of Suntech's sales and service capabilities. To complement our core sales competency, we are building a multi-faceted team across Europe that is in tune with local market conditions and can respond to customer needs promptly. We believe our customers appreciate this commitment and see Suntech as a reliable, long term solar partner."
Mauro Sgherri, Suntech's Director of Sales, Italy, said, "Suntech's involvement in many of the highest profile solar projects in Europe combined with a deep dedication to quality and continuous technology improvement distinguishes Suntech's solar offering in the Italian market. Moreover, Suntech's industry leading scale, broad product portfolio and timely product delivery highlight our market leadership. We have established a top tier customer base of companies that have long term solar plans and have already built an order book in Italy of over 130 megawatts for 2009. We look forward to supporting the growth plans of our Italian customers through the stablesupply of high quality solar modules and responsive customer service."
The Italian market is set to grow rapidly in 2009 due to strong support from the Italian government in the form of solar subsidies that range from EUR0.36/kWh for large ground-mounted PV systems and up to EUR0.49/kWh for building integrated PV systems. The high solar irradiation provides excellent conditions for generating solar energy.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) 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 BIPV products under the MSK Solar Design Line(TM). Suntech hassales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com .
Tuesday, December 9, 2008
More than 50% of PV module makers in China stop production, claim sources
Staff reporter, Taipei; Adam Hwang, DIGITIMES [Monday 8 December 2008]
There were originally about 350 photovoltaic (PV) module makers in China, but approximately 200 of them have stopped production or shut down since two months ago, according to PV industry sources in Taiwan.
These makers have been forced to go out of business by financial troubles arising from the global financial crisis and decreased global demand for PV modules, the sources indicated.
Makers of crystalline silicon solar cells in China generally have high inventory levels that are unlikely to be cleaned in a quarter, the sources said. Some China makers of solar cells have offered spot market prices of as low as US$2.1-2.5/watt in an attempt to reduce inventories, while the spot market prices quoted by Taiwan-based competitors stand at US$2.6-2.7 currently, the sources noted.
There were originally about 350 photovoltaic (PV) module makers in China, but approximately 200 of them have stopped production or shut down since two months ago, according to PV industry sources in Taiwan.
These makers have been forced to go out of business by financial troubles arising from the global financial crisis and decreased global demand for PV modules, the sources indicated.
Makers of crystalline silicon solar cells in China generally have high inventory levels that are unlikely to be cleaned in a quarter, the sources said. Some China makers of solar cells have offered spot market prices of as low as US$2.1-2.5/watt in an attempt to reduce inventories, while the spot market prices quoted by Taiwan-based competitors stand at US$2.6-2.7 currently, the sources noted.
Friday, December 5, 2008
Yingli Green Energy Signs New Sales Contracts with IBC Solar AG for Supply of 91 MW of PV Modules
BAODING, China, Dec 05, 2008 /PRNewswire-Asia-FirstCall via COMTEX/ -- Yingli Green Energy Holding Company Limited ("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 two sales contracts with IBC Solar AG ("IBC Solar"), one of the leading specialists in PV systems worldwide, to supply a total of 91 MW of PV modules to IBC Solar.
Under the terms of these contracts, Yingli Green Energy is expected to supply 91 MW of PV modules to IBC Solar from December 2008 to December 2009. Supplies under these contracts are agreed to be made at fixed prices for December 2008 and for the period from January through October 2009, which will be adjusted by mutual agreement if the market price falls below the fixed prices.
"The performance, reliability and quality of Yingli's PV modules, their excellent customer service and their brand recognition among our customers form the foundation of our business relationship," commented Mr. Udo Moehrstedt, president and founder of IBC Solar. "We are currently working on a range of significant projects with a broad range of customers. We believe our business cooperation with Yingli will help us expand our business in the future."
"We are very pleased to announce these significant new contracts, which we believe provide more visibility for our sales in 2009," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "The majority of our customers are companies with an established track record of successful operations, just like IBC Solar. We expect that these new contracts will further strengthen our leading position in the German market and provide a solid foundation for our continued success there in the coming year. In addition, we believe our competitive PV module pricing and reliable product quality, which are supported by our vertically integrated business model and one of the lowest non-polysilicon manufacturing cost structures in the industry, will further enhance customer loyalty and extend our market share in this competitive environment."
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
About IBC SOLAR
Since it was established in 1982, IBC Solar has been exclusively active in the photovoltaics sector. The IBC Solar group with several subsidiaries in Europe, Asia and USA currently supplies the global market with high-performance systems of every magnitude, from single-family home roofs, to large-scale solar projects. To date more than 350 megawatts (MWp) of photovoltaic power have been delivered in more than 50,000 solar power systems around the world. For more information, please visit http://www.ibc-solar.com .
Under the terms of these contracts, Yingli Green Energy is expected to supply 91 MW of PV modules to IBC Solar from December 2008 to December 2009. Supplies under these contracts are agreed to be made at fixed prices for December 2008 and for the period from January through October 2009, which will be adjusted by mutual agreement if the market price falls below the fixed prices.
"The performance, reliability and quality of Yingli's PV modules, their excellent customer service and their brand recognition among our customers form the foundation of our business relationship," commented Mr. Udo Moehrstedt, president and founder of IBC Solar. "We are currently working on a range of significant projects with a broad range of customers. We believe our business cooperation with Yingli will help us expand our business in the future."
"We are very pleased to announce these significant new contracts, which we believe provide more visibility for our sales in 2009," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "The majority of our customers are companies with an established track record of successful operations, just like IBC Solar. We expect that these new contracts will further strengthen our leading position in the German market and provide a solid foundation for our continued success there in the coming year. In addition, we believe our competitive PV module pricing and reliable product quality, which are supported by our vertically integrated business model and one of the lowest non-polysilicon manufacturing cost structures in the industry, will further enhance customer loyalty and extend our market share in this competitive environment."
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
About IBC SOLAR
Since it was established in 1982, IBC Solar has been exclusively active in the photovoltaics sector. The IBC Solar group with several subsidiaries in Europe, Asia and USA currently supplies the global market with high-performance systems of every magnitude, from single-family home roofs, to large-scale solar projects. To date more than 350 megawatts (MWp) of photovoltaic power have been delivered in more than 50,000 solar power systems around the world. For more information, please visit http://www.ibc-solar.com .
Yingli Green Energy Reaffirms Business Outlook for Fiscal Year 2009
Copyright 2008 PR Newswire. All Rights Reserved2008-12-05
BAODING, China, Dec. 5 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or "the Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today reaffirmed its business outlook for fiscal year 2009, as previously announced on the Company's earnings conference call on November 26, 2008, in response to certain recent news articles erroneously stating that the Company expected its total PV module shipments to reach 400 megawatts in 2009.
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company estimates that its total PV module shipments in 2009 will be approximately 550 MW to 600 MW, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the several mid- to long-term virgin polysilicon supply agreements with leading global polysilicon suppliers which will start delivery at the beginning of 2009, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average sales price of PV modules and further depreciation of the Euro versus U.S. dollar, the Company estimates that its gross margin in 2009 will be at least 24%.
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit .
BAODING, China, Dec. 5 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or "the Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today reaffirmed its business outlook for fiscal year 2009, as previously announced on the Company's earnings conference call on November 26, 2008, in response to certain recent news articles erroneously stating that the Company expected its total PV module shipments to reach 400 megawatts in 2009.
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company estimates that its total PV module shipments in 2009 will be approximately 550 MW to 600 MW, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the several mid- to long-term virgin polysilicon supply agreements with leading global polysilicon suppliers which will start delivery at the beginning of 2009, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average sales price of PV modules and further depreciation of the Euro versus U.S. dollar, the Company estimates that its gross margin in 2009 will be at least 24%.
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 operate on a stand-alone basis. With 400 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 a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter 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, South Korea, Belgium, France, China and the United States. For more information, please visit .
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