By Fu Chenghao | 2009-4-7 |
TRINA Solar Ltd, a leading solar product maker, expects China to account for 10 percent of the global photovoltaic market in three years to five years from less than 1 percent now as the government boosts support for the alternative energy.
"It's possible if we say, by 2012, China's installed solar PV capacity could reach 2.5 gigawatts while it would be 25GW for the world," Gao Jifan, Trina's chairman and CEO, said.
Although China is the world's top PV manufacturer, the domestic solar PV market has suffered from high costs and limited subsidies.
The Ministry of Finance said late last month that China would provide a subsidy of 20 yuan (US$2.93) per watt for solar projects that have a capacity of at least 50 kilowatts and attached to buildings, covering nearly half the cost.
Gao said the subsidy is a "precursor" of a long-term state support, although some analysts said the latest subsidy was limited to roof-top solar panels and not for large-scale solar projects.
New York-listed Trina, which is based in Changzhou, Jiangsu Province, expects to sell 10 megawatts in China this year out of a planned total shipment of up to 400MW of solar modules, Gao said.
In 2008, the domestic market accounted for only a bit more than 1 percent of its shipment of 201MW.
The United States market could account for 15 percent of Trina's sales this year, up from less than 5 percent in 2008, thanks to the Obama administration's backing of renewable energy sources, he said.
Trina is not in a hurry to acquire assets but is looking at opportunities, according to Gao who said Europe would remain a top market.
Showing posts with label alternative energy. Show all posts
Showing posts with label alternative energy. Show all posts
Saturday, April 11, 2009
Wednesday, November 19, 2008
Taiwan silicon wafer firm sees '09 capacity up 40-50 pct
HSINCHU, Taiwan, Nov 18 (Reuters) - Sino-American Silicon Products Inc, Taiwan's top maker of silicon wafers for solar cells, said on Tuesday it will boost its capacity 40-50 percent next year, amid booming demand for alternative energy.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
Tuesday, November 11, 2008
China's Fast Growing Renewable Energies
By Joao Alves, Vice President, Capital Eight, on Tuesday, 11 November 2008
The rapid pace of growth and the environmental impacts of a coal-based economy have led China to look at renewable energies for sustainable development. Government action and private initiative are creating one of the largest Alternative Energies producers in the world, with Wind Power taking a prominent position and major foreign companies already present or looking to enter the market.
In today's context of scarce and expensive traditional energy sources, renewables are once again becoming a more and more popular alternative worldwide. China's specific situation is nowadays especially important for several reasons, including:
- The sheer size of the country its population, which in 2007 accounted for 16.8 per cent of the worldwide consumption of primary energy (only surpassed by the United States);
- Its economic growth and resulting increase in energy needs (10 per cent per year since 2000), both for producing goods and to meet improving living standards;
- The environmental impact of traditional energy sources (China depends on coal for 69 per cent of its energy) and the uncomfortable position of being one of the world's two largest emitters of CO2;
- Its geological features, in which the existing reserves of oil, natural gas and coal might be completely used in 15, 30 and 80 years respectively;
- China wanting to be, as much as possible, self-sufficient energy wise (and, hence, the ongoing acquisition of foreign energy assets, in Africa, Asia and even Europe).
- The increased use of renewable energy sources would address all these issues, at least partially. However, by then end of 2006, renewables accounted for just 7 per cent of China's total primary energy consumption.
Government Guidance
The Chinese Government has been stepping up its efforts in fostering the development of alternative energies. This becomes clear if we look at four key documents:
- The Renewable Energies Law, issued in February 2005 ("Law"), that establishes the general guidelines for the industry in areas such as pricing, cost sharing and financing, among others;
- The Medium and Long-Term Development Plan for Renewable Energy in China, published in September 2007 ("Plan"), stating that by 2020, 15 per cent of all energy should come from renewable sources, with a 30 per cent share by 2050. By 2020, according to the Plan, 300 GW of hydro capacity, 30 GW of wind, 30 GW of biomass and 1.8 GW of solar energy should be installed;
- The Catalogue for the Guidance of Foreign Investment Industries, amended in October 2007 ("Catalogue"), which places the "construction and management of new energy power plants (solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.)" in the Encouraged Industries category;
- The White Paper: China's Policies and Actions on Climate Change, released in October 2008, that places an emphasis on energy conservation and optimisation of the energy mix, namely by reducing the role of coal as the primary energy source.
The Specific Case Of Wind Power
According to data from the European Wind Energy Association, China was the fifth-largest wind energy producer worldwide at the end of 2007. With an installed capacity of 6GW (3.5GW installed during 2007 alone), it still trails Germany (22.2GW) and Spain (16.8GW) by a large margin.
While these figures show that there is still a reasonably wide gap between the 6GW of installed capacity and the 30GW objective for 2020, the truth is that at this rate, the Government's goals seem very conservative. Greenpeace has stated that by 2020 China will have 50-100GW of installed capacity, while China's National Development and Reform Commission (NDRC) has been quoted as admitting that 120GW is a more likely scenario by 2020. Considering the official surveys that estimate a 1000GW feasible wind power capacity, this seems well within reach.
A couple of areas have been subject to most attention and investment: the first one is in the North-Northwest, especially in Inner Mongolia and Xinjiang; the second area is along China's coastline, from Shandong all the way around to Guangxi. Additionally, offshore wind resources, although less explored, offer the greatest promise.
However, two very significant barriers have stood in the way of foreign investment in such a high potential industry: 1) the bidding system used to award major projects. Chinese companies tend to win the largest, centrally awarded projects by proposing to sell electricity to the grid at very low prices. These companies are apparently not so concerned with making money from renewables as they are with having a certain percentage of alternative energies in their energy portfolio, in order to meet Government demands; and 2) in a country where the market has little say in energy prices (the most notable cases being the low gas prices that have lead the government to compensate oil majors) it has been difficult for western companies to devise a profitable operation under these constraints.
Despite these barriers, foreign companies have been investing in two areas in the industry in China:
- Wind Turbine Manufacturers. The two largest companies worldwide are already manufacturing in China. The Danish company Vestas, with a 23 per cent global market share, has been producing in China since 2005, with several factories in Tianjin. The Spanish group Gamesa, with a 15 per cent global market share, has invested EUR40m to achieve a 700MW yearly turbine production capacity, also in Tianjin - and China is already responsible for 15 per cent of worldwide sales. Other large players, such as GE, Suzlon and Nordex, are also manufacturing locally.
- Wind Energy Producers. Australian company Roaring 40s is currently involved in seven wind farms (under construction and operating), in Shandong and Jilin provinces. It operates under a very specific JV model with a Chinese SOE partner (three projects with one company, four projects with another), looking for smaller projects (50MW) and negotiating directly with local authorities, therefore avoiding the larger, centrally awarded projects where large Chinese companies control their turf. Recently, it has signed an agreement with Datang Jilin Power Generation, a large traditional energy producing SOE, to develop a 1000MW wind farm. Construction will begin in 2008, and will be one of the largest projects in the world.
Another company involved in seven projects, all in Inner Mongolia, is Honiton Energy Holdings, which also operates in 50MW incremental projects but for larger wind farms. The company is based in China but has foreign investors and was recently acquired by a Dubai Investment Bank and a Singapore operator, in a USD2 bn deal. Unlike Roaring 40s, Honiton approaches each project alone, without JVs with Chinese companies. An interesting landmark achieved, according to the company, was the signing of the first Power Purchasing Agreement by a foreign firm - 25 years in duration, the first 35,000 hours will be sold at RMB0.548kw/h and subsequently at existing market prices.
Barriers Are Real, But Investment Opportunities Exist
There are still important obstacles in the way of foreign investment with some large infrastructure/energy focused funds finding it nearly impossible to enter the market. Private equity funds have confirmed that they have been looking at some renewable energy projects, but could not make the numbers work, at least for energy production. In equipment manufacturing, the outlook seems brighter.
However, the cases presented above prove that China is currently a real market in renewables - both for power generation as well as for manufacturing equipment. Like in most sectors in the country, it's essential to be ingenious, flexible and persistent to overcome existing obstacles.
The rapid pace of growth and the environmental impacts of a coal-based economy have led China to look at renewable energies for sustainable development. Government action and private initiative are creating one of the largest Alternative Energies producers in the world, with Wind Power taking a prominent position and major foreign companies already present or looking to enter the market.
In today's context of scarce and expensive traditional energy sources, renewables are once again becoming a more and more popular alternative worldwide. China's specific situation is nowadays especially important for several reasons, including:
- The sheer size of the country its population, which in 2007 accounted for 16.8 per cent of the worldwide consumption of primary energy (only surpassed by the United States);
- Its economic growth and resulting increase in energy needs (10 per cent per year since 2000), both for producing goods and to meet improving living standards;
- The environmental impact of traditional energy sources (China depends on coal for 69 per cent of its energy) and the uncomfortable position of being one of the world's two largest emitters of CO2;
- Its geological features, in which the existing reserves of oil, natural gas and coal might be completely used in 15, 30 and 80 years respectively;
- China wanting to be, as much as possible, self-sufficient energy wise (and, hence, the ongoing acquisition of foreign energy assets, in Africa, Asia and even Europe).
- The increased use of renewable energy sources would address all these issues, at least partially. However, by then end of 2006, renewables accounted for just 7 per cent of China's total primary energy consumption.
Government Guidance
The Chinese Government has been stepping up its efforts in fostering the development of alternative energies. This becomes clear if we look at four key documents:
- The Renewable Energies Law, issued in February 2005 ("Law"), that establishes the general guidelines for the industry in areas such as pricing, cost sharing and financing, among others;
- The Medium and Long-Term Development Plan for Renewable Energy in China, published in September 2007 ("Plan"), stating that by 2020, 15 per cent of all energy should come from renewable sources, with a 30 per cent share by 2050. By 2020, according to the Plan, 300 GW of hydro capacity, 30 GW of wind, 30 GW of biomass and 1.8 GW of solar energy should be installed;
- The Catalogue for the Guidance of Foreign Investment Industries, amended in October 2007 ("Catalogue"), which places the "construction and management of new energy power plants (solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.)" in the Encouraged Industries category;
- The White Paper: China's Policies and Actions on Climate Change, released in October 2008, that places an emphasis on energy conservation and optimisation of the energy mix, namely by reducing the role of coal as the primary energy source.
The Specific Case Of Wind Power
According to data from the European Wind Energy Association, China was the fifth-largest wind energy producer worldwide at the end of 2007. With an installed capacity of 6GW (3.5GW installed during 2007 alone), it still trails Germany (22.2GW) and Spain (16.8GW) by a large margin.
While these figures show that there is still a reasonably wide gap between the 6GW of installed capacity and the 30GW objective for 2020, the truth is that at this rate, the Government's goals seem very conservative. Greenpeace has stated that by 2020 China will have 50-100GW of installed capacity, while China's National Development and Reform Commission (NDRC) has been quoted as admitting that 120GW is a more likely scenario by 2020. Considering the official surveys that estimate a 1000GW feasible wind power capacity, this seems well within reach.
A couple of areas have been subject to most attention and investment: the first one is in the North-Northwest, especially in Inner Mongolia and Xinjiang; the second area is along China's coastline, from Shandong all the way around to Guangxi. Additionally, offshore wind resources, although less explored, offer the greatest promise.
However, two very significant barriers have stood in the way of foreign investment in such a high potential industry: 1) the bidding system used to award major projects. Chinese companies tend to win the largest, centrally awarded projects by proposing to sell electricity to the grid at very low prices. These companies are apparently not so concerned with making money from renewables as they are with having a certain percentage of alternative energies in their energy portfolio, in order to meet Government demands; and 2) in a country where the market has little say in energy prices (the most notable cases being the low gas prices that have lead the government to compensate oil majors) it has been difficult for western companies to devise a profitable operation under these constraints.
Despite these barriers, foreign companies have been investing in two areas in the industry in China:
- Wind Turbine Manufacturers. The two largest companies worldwide are already manufacturing in China. The Danish company Vestas, with a 23 per cent global market share, has been producing in China since 2005, with several factories in Tianjin. The Spanish group Gamesa, with a 15 per cent global market share, has invested EUR40m to achieve a 700MW yearly turbine production capacity, also in Tianjin - and China is already responsible for 15 per cent of worldwide sales. Other large players, such as GE, Suzlon and Nordex, are also manufacturing locally.
- Wind Energy Producers. Australian company Roaring 40s is currently involved in seven wind farms (under construction and operating), in Shandong and Jilin provinces. It operates under a very specific JV model with a Chinese SOE partner (three projects with one company, four projects with another), looking for smaller projects (50MW) and negotiating directly with local authorities, therefore avoiding the larger, centrally awarded projects where large Chinese companies control their turf. Recently, it has signed an agreement with Datang Jilin Power Generation, a large traditional energy producing SOE, to develop a 1000MW wind farm. Construction will begin in 2008, and will be one of the largest projects in the world.
Another company involved in seven projects, all in Inner Mongolia, is Honiton Energy Holdings, which also operates in 50MW incremental projects but for larger wind farms. The company is based in China but has foreign investors and was recently acquired by a Dubai Investment Bank and a Singapore operator, in a USD2 bn deal. Unlike Roaring 40s, Honiton approaches each project alone, without JVs with Chinese companies. An interesting landmark achieved, according to the company, was the signing of the first Power Purchasing Agreement by a foreign firm - 25 years in duration, the first 35,000 hours will be sold at RMB0.548kw/h and subsequently at existing market prices.
Barriers Are Real, But Investment Opportunities Exist
There are still important obstacles in the way of foreign investment with some large infrastructure/energy focused funds finding it nearly impossible to enter the market. Private equity funds have confirmed that they have been looking at some renewable energy projects, but could not make the numbers work, at least for energy production. In equipment manufacturing, the outlook seems brighter.
However, the cases presented above prove that China is currently a real market in renewables - both for power generation as well as for manufacturing equipment. Like in most sectors in the country, it's essential to be ingenious, flexible and persistent to overcome existing obstacles.
Tuesday, September 25, 2007
Yingli Green Energy Added to NASDAQ Clean Edge U.S. Indexes
BAODING, China--(BUSINESS WIRE)--Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading vertically integrated photovoltaic ("PV") product manufacturer in China, today announced that it will be added to the NASDAQ Clean Edge U.S. Index (Nasdaq: CLEN) and the NASDAQ Clean Edge U.S. Liquid Series Index (Nasdaq: CELS) (the "Indexes"), effective with the market open on Monday, September 24, 2007.
Mr. Bryan Li, Chief Financial Officer of Yingli Green Energy, commented, "As a leading vertically integrated PV manufacturer in China, we have always been dedicated to the promotion of clean and sustainable energy and we are very honored to be added to the NASDAQ Clean Edge U.S. Index and the NASDAQ Clean Edge U.S. Liquid Series Index. We hope the Indexes will help further strengthen the development of the whole alternative energy industry."
According to NASDAQ's press release on semi-annual changes to the NASDAQ Clean Edge U.S. Indexes dated September 17, 2007, the Indexes are designed to track the performance of clean-energy companies that are publicly traded in the U.S. The Indexes include companies engaged in the manufacturing, development, distribution, and installation of emerging clean-energy technologies such as solar photovoltaics, biofuels and advanced batteries. The five major sub-sectors that the Indexes cover are Renewable Electricity Generation, Renewable Fuels, Energy Storage & Conversion, Energy Intelligence and Advanced Energy-Related Materials.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited ("Yingli Green Energy") is one of the leading vertically integrated photovoltaic ("PV") product manufacturers in China. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in China.
Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in China to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 megawatts by 2010. 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, China and the United States.
Mr. Bryan Li, Chief Financial Officer of Yingli Green Energy, commented, "As a leading vertically integrated PV manufacturer in China, we have always been dedicated to the promotion of clean and sustainable energy and we are very honored to be added to the NASDAQ Clean Edge U.S. Index and the NASDAQ Clean Edge U.S. Liquid Series Index. We hope the Indexes will help further strengthen the development of the whole alternative energy industry."
According to NASDAQ's press release on semi-annual changes to the NASDAQ Clean Edge U.S. Indexes dated September 17, 2007, the Indexes are designed to track the performance of clean-energy companies that are publicly traded in the U.S. The Indexes include companies engaged in the manufacturing, development, distribution, and installation of emerging clean-energy technologies such as solar photovoltaics, biofuels and advanced batteries. The five major sub-sectors that the Indexes cover are Renewable Electricity Generation, Renewable Fuels, Energy Storage & Conversion, Energy Intelligence and Advanced Energy-Related Materials.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited ("Yingli Green Energy") is one of the leading vertically integrated photovoltaic ("PV") product manufacturers in China. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in China.
Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in China to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 megawatts by 2010. 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, China and the United States.
Friday, September 21, 2007
China's New Road Map for the Development of Energy and Technology
Vice Chairman of the Standing Committee of the National People's Congress and the president of the Chinese Academy of Science Lu Yongxiang said on September 19 that energy is the basis of China's sustainable economic and social development and the national competence. It's time to establish a sustainable energy system in China. To set up a strategic road map for China's development of energy and technology remains an important pledge toward the establishment of a sustainable energy system and achieving an optimal energy structure.
On the same day, at the Symposium of the Sustainable Energy Development Strategy held in Beijing, Lu put forward his road map for the Development of China's energy and technology. He outlined three short-term, mid-term and long-term objectives.
Short-term objectives (till 2020): Emphasis should be put on developing energy-saving and clean energy technology; improving ways energy is efficiently utilized; striving for breakthroughs in zero emissions, Integrated Gasification Combined Cycle (IGCC) and so on; developing key technologies to capture, store and use carbon dioxide plus provide demonstrations of these technologies; pushing forward highly efficient coal liquefaction technologies toward demonstration stages and consequent applications; actively developing renewable energy technologies and finally; further developing non-traditional fossil energy technologies.
Mid-term objectives (around 2030): Priority should be given to promoting nuclear energy and renewable energy as primary sources. China must strive to make breakthroughs in the following areas: fast neutron reactor technology, highly efficient solar conversion technology, Intelligent Energy Grids and so on.
Long-term objectives (around 2050) China must establish a system for sustainable energy development that will basically meet the overall energy demand for China's economic and social development and reduce the country's degree of dependence on fossil energy to less than 60 percent, thus turning renewable energy into one of the leading energy resources. Expanding application and commercialization of renewable energy technology and seeking breakthroughs in fusion energy technology are also included.
Lu Yongxiang stated that, the CAS, as our nation's strategic technological force, should focus on developing core technologies revolving around energy-saving and advanced, clean, renewable or alternative energy. The CAS will look to the future and make proper arrangements for research core areas that may exert significant influence on the future.
(China.org.cn by Zhang Ming'ai, September 20, 2007)
On the same day, at the Symposium of the Sustainable Energy Development Strategy held in Beijing, Lu put forward his road map for the Development of China's energy and technology. He outlined three short-term, mid-term and long-term objectives.
Short-term objectives (till 2020): Emphasis should be put on developing energy-saving and clean energy technology; improving ways energy is efficiently utilized; striving for breakthroughs in zero emissions, Integrated Gasification Combined Cycle (IGCC) and so on; developing key technologies to capture, store and use carbon dioxide plus provide demonstrations of these technologies; pushing forward highly efficient coal liquefaction technologies toward demonstration stages and consequent applications; actively developing renewable energy technologies and finally; further developing non-traditional fossil energy technologies.
Mid-term objectives (around 2030): Priority should be given to promoting nuclear energy and renewable energy as primary sources. China must strive to make breakthroughs in the following areas: fast neutron reactor technology, highly efficient solar conversion technology, Intelligent Energy Grids and so on.
Long-term objectives (around 2050) China must establish a system for sustainable energy development that will basically meet the overall energy demand for China's economic and social development and reduce the country's degree of dependence on fossil energy to less than 60 percent, thus turning renewable energy into one of the leading energy resources. Expanding application and commercialization of renewable energy technology and seeking breakthroughs in fusion energy technology are also included.
Lu Yongxiang stated that, the CAS, as our nation's strategic technological force, should focus on developing core technologies revolving around energy-saving and advanced, clean, renewable or alternative energy. The CAS will look to the future and make proper arrangements for research core areas that may exert significant influence on the future.
(China.org.cn by Zhang Ming'ai, September 20, 2007)
Tuesday, August 14, 2007
Suntech Reports Second Quarter 2007 Financial Results
WUXI, China, Aug. 9 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic
(PV) cells and modules, today announced second quarter 2007 financial
results.
Second Quarter 2007 Highlights(1)
-- Exceeding guidance, total production output was over 80MW and total net revenues grew 147.7% year-over-year to $317.4 million.
-- On a non-GAAP(2) basis, Suntech group's net income was $48.9 million. Excluding the impact of MSK, net income was $50.8 million or $0.30 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
-- Suntech group's non-GAAP gross margin in its core Wafer to Module business was 23.9% and blended non-GAAP gross margin was 21.1%. Margin improvement was primarily due to the increase in delivery of lower priced wafers from long-term contract wafer suppliers.
-- Annualized PV cell production capacity expansion is on track to reach 480MW by the end of 2007.
"I am pleased to report excellent results for the second quarter," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "We once again exceeded our output target as we saw unprecedented demand for Suntech's high quality solar panels across a range of international markets. In fact, our sales demand has been so strong that we have already signed contracts to deliver over 150MW of our PV modules in 2008. To put that in perspective, that is nearly equal to Suntech's entire output in 2006. As we deepen our sales channels and networks in key geographies, we believe we will continue to grow faster than our competitors as well as the underlying markets."
"In the second quarter, our margins improved as ASPs remained in line with our expectations and silicon deliveries from our long-term suppliers returned to schedule." Dr. Shi added, "Our MSK integration efforts combined with the strategic refocus on building-integrated photovoltaic products (BIPV) has also led to greater global sales traction and improvements in the margin impact of our MSK products."
Commenting on Suntech's technology, Dr. Shi said, "We are pleased with the progress of our solar innovation initiatives. Despite the success of our high performance semi-conductor finger technology, our ground-breaking 20% efficiency Pluto technology is demonstrating even more impressive results in pilot production and we are on track to commence commercial production using this technology in 2008."
Dr. Shi continued, "Through this period of dynamic growth, we are determined to expand production capacity and increase our competitiveness by leveraging our manufacturing efficiency, technology advantages, and balanced silicon sourcing strategy."
Recent Business Highlights
-- Demand for Suntech's PV products in Spain continued to grow in the second quarter particularly through collaborations with key customers on multi-megawatt projects. Suntech is on track to become one of the largest suppliers of PV products to Spain.
-- Suntech began shipping PV modules for the 8.2MW Alamosa solar power plant project in Colorado which is one of the largest PV projects in the United States to date.
-- Suntech recently improved its long-term silicon position by signing a contract with Hoku Materials to purchase up to $678 million of polysilicon over a ten-year period. Shipments of set volumes of polysilicon at fixed prices are scheduled to begin in 2009.
-- Suntech's MSK branded BIPV system was a key component of Kingspan Off - Site's "Lighthouse" net-zero carbon home, which is the first house designed to comply with the British government's Code for Sustainable Homes Level 6. By 2016, all new homes built in the United Kingdom will be required to be designed and constructed to meet the Code for Sustainable Homes Level 6.
-- The Company recently completed phase 1 of an 800kW BIPV curtain wall project at Wuxi Airport in China. The installation showcases Suntech's BIPV capabilities and serves as a model project for other potential solar installations in China.
-- Suntech successfully met the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX") regarding internal controls over financial reporting. The internal control systems have helped Suntech improve operating efficiency and manage rapid production and sales growth.
Second Quarter 2007 Results
Non-GAAP Non-GAAP
Net Revenues % of Net Gross Profit Gross
(in $ millions) Revenues (in $ millions) Margin (%)
Standard PV Modules $313.5 98.8 % $66.3 21.2 %
-- Wafer to Modules 274.6 86.5 65.5 23.9
-- Cell to Modules* 38.9 12.3 0.8 2.0
Others 3.9 1.2 0.6 15.6
Total (consolidated) $317.4 100 % $66.9 21.1 %
Total (excluding MSK) $297.5 -- $67.5 22.7 %
* The Cell to Modules segment includes both Suntech modules produced from
third-party cells and MSK's slow moving module inventory.
On a GAAP basis, gross profit was $64.3 million and gross margin was
20.3%, operating income was $38.1 million, and net income was $41.3 million
or $0.25 per diluted ADS.
Non-GAAP operating expenses in the second quarter of 2007 were $21.4
million and accounted for 6.7% of net revenues.
Non-GAAP income from operations for the second quarter of 2007 was
$45.6 million and non-GAAP operating margin was 14.4%.
Non-GAAP net income attributable to holders of ordinary shares for the
second quarter of 2007 was $48.9 million, or $0.29 per non-GAAP diluted
ADS.
In the second quarter of 2007, capital expenditures, which were
primarily related to production capacity expansion and the construction of
the Wuxi and Luoyang production facilities, were $51.7 million and
depreciation and amortization expenses were $4.2 million.
During the second quarter of 2007, the total number of diluted ADSs
outstanding increased from 164.1 million to 168.9 million, primarily due to
an increase of 4.8 million ADSs on an "as converted" basis. The additional
ADSs represent the final portion of the 10.3 million ADSs that may be
issued in the future as a result of the February 2007 convertible note
offering of $500 million.
Suntech's results for the second quarter of 2007 excluding MSK were as
follows:
Non-GAAP operating expenses as a percentage of net revenues were 6.4%,
non-GAAP income from operations was $48.5 million and non-GAAP operating
margin was 16.3%, and non-GAAP net income was $50.8 million. Suntech's
successful execution of its integration initiatives was reflected in this
quarter's results as Suntech reduced its loss from MSK operations by
approximately 40% from the first quarter of 2007 to $1.9 million.
Senior Management Hires and Promotions
Suntech announced the following key promotions and new hires:
Mr. Steven Chan who was previously the Vice President of Business
Development has been promoted to the position of Chief Strategy Officer.
Mr. Chan will be focused on enhancing and solidifying Suntech's long term
focus to be a leading solar energy company. In addition to strategy and
business development, he will also be responsible for the investor
relations and marketing function. His near term focus will be to head new
business initiatives in North America as well as to foster key
relationships with partners and suppliers.
Mr. Hao Zhi who was previously the Investment Controller has been
promoted to the position of Investment Director. Mr. Hao will head the
company's investment initiatives including mergers and acquisitions,
strategic ventures and alliances.
Dr. Frank Zhang and Mr. Henry Ng are newly hired general managers who
will manage Suntech's key production facilities. Dr. Zhang will oversee
Suntech's thin film manufacturing facility in Shanghai and Mr. Ng will
oversee Suntech's core PV manufacturing facility in Wuxi including its new
one Gigawatt facility. Both Dr. Zhang and Mr. Ng have extensive experience
in the related semiconductor manufacturing industry.
Prior to joining Suntech, Dr. Zhang was the Chief Operating Officer at
China Resources Semiconductor Wafer & Chip Company, a semiconductor foundry
in China. He also held a number of senior positions at Honeywell in
California. Dr. Zhang received his MBA from the China Europe International
Business School, Shanghai, and his Ph.D. in Mechanical and Materials
Engineering from Clarkson University, New York.
Mr. Ng previously worked for over 10 years at Sony's manufacturing
facilities in Singapore and China. Most recently he served as senior
general manager of Sony's Huizhou facility that manufactures specialty LLCD
chips. Prior to that, Mr. Ng acted as general manager at MI Wuxi Co., Ltd,
a precision plastic molding company, Volex Cable Assembly (Suzhou), a first
tier telecom and automotive supplier, and at Seagate Technology. Mr. Ng
received a B.Sc degree from the National University of Singapore in Applied
Physics.
Mr. Jason Somer was hired as the Senior Director of Business
Development to be based in the United States. Mr. Somer was previously the
Director of Legal Affairs at IronPort Systems, an e-mail and Web security
appliance company in San Francisco that was acquired by Cisco Systems.
Prior to that he held legal and business development positions at Neoforma,
a Nasdaq-listed healthcare technology company in San Jose. Mr. Somer had
previously worked as a corporate/securities associate for law firms in New
York City, most recently Morrison & Foerster. Mr. Somer received an LL.M.
from Boston University, an LL.B. from the University of British Columbia,
and a B.Sc. from the University of Western Ontario.
Outlook for Third Quarter and Full Year 2007
Based on current operating and other conditions, Suntech expects its
third quarter 2007 total production output to be in the estimated range of
94MW to 96MW.
Conference Call Information
Suntech's earnings announcement conference call will take place on
August 9, 2007 at 8:00a.m., Eastern Time, which corresponds to August 9,
2007 at 8:00p.m., Beijing/Hong Kong time.
To access the conference call, please dial +1-617-597-5344 (for U.S.
callers) or +852-3002-1672 (for international callers) and ask to be
connected to the Suntech earnings conference call. A live and archived
webcast of the conference call will be available on the Investors section
of Suntech's website at http://www.suntech-power.com .
A replay of the conference call will be available until August 20, 2007
by dialing +1 617-801-6888 (passcode: 14519969).
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in
the world as measured by both production output and capacity of solar cells
and modules. Suntech provides solar solutions for a green future. Suntech
designs, develops, manufactures, and markets a variety of high quality,
cost effective and environmentally friendly PV cells and modules for
electric power applications in the residential, commercial, industrial, and
public utility sectors. Suntech's majority-owned subsidiary, MSK
Corporation is one of the top-ranked companies in the building-integrated
photovoltaics (BIPV) space. Suntech's customers are located in various
markets worldwide, including key markets throughout Europe, North America,
Japan and China. For more information, please visit
http://www.suntech-power.com .
Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic
(PV) cells and modules, today announced second quarter 2007 financial
results.
Second Quarter 2007 Highlights(1)
-- Exceeding guidance, total production output was over 80MW and total net revenues grew 147.7% year-over-year to $317.4 million.
-- On a non-GAAP(2) basis, Suntech group's net income was $48.9 million. Excluding the impact of MSK, net income was $50.8 million or $0.30 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
-- Suntech group's non-GAAP gross margin in its core Wafer to Module business was 23.9% and blended non-GAAP gross margin was 21.1%. Margin improvement was primarily due to the increase in delivery of lower priced wafers from long-term contract wafer suppliers.
-- Annualized PV cell production capacity expansion is on track to reach 480MW by the end of 2007.
"I am pleased to report excellent results for the second quarter," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "We once again exceeded our output target as we saw unprecedented demand for Suntech's high quality solar panels across a range of international markets. In fact, our sales demand has been so strong that we have already signed contracts to deliver over 150MW of our PV modules in 2008. To put that in perspective, that is nearly equal to Suntech's entire output in 2006. As we deepen our sales channels and networks in key geographies, we believe we will continue to grow faster than our competitors as well as the underlying markets."
"In the second quarter, our margins improved as ASPs remained in line with our expectations and silicon deliveries from our long-term suppliers returned to schedule." Dr. Shi added, "Our MSK integration efforts combined with the strategic refocus on building-integrated photovoltaic products (BIPV) has also led to greater global sales traction and improvements in the margin impact of our MSK products."
Commenting on Suntech's technology, Dr. Shi said, "We are pleased with the progress of our solar innovation initiatives. Despite the success of our high performance semi-conductor finger technology, our ground-breaking 20% efficiency Pluto technology is demonstrating even more impressive results in pilot production and we are on track to commence commercial production using this technology in 2008."
Dr. Shi continued, "Through this period of dynamic growth, we are determined to expand production capacity and increase our competitiveness by leveraging our manufacturing efficiency, technology advantages, and balanced silicon sourcing strategy."
Recent Business Highlights
-- Demand for Suntech's PV products in Spain continued to grow in the second quarter particularly through collaborations with key customers on multi-megawatt projects. Suntech is on track to become one of the largest suppliers of PV products to Spain.
-- Suntech began shipping PV modules for the 8.2MW Alamosa solar power plant project in Colorado which is one of the largest PV projects in the United States to date.
-- Suntech recently improved its long-term silicon position by signing a contract with Hoku Materials to purchase up to $678 million of polysilicon over a ten-year period. Shipments of set volumes of polysilicon at fixed prices are scheduled to begin in 2009.
-- Suntech's MSK branded BIPV system was a key component of Kingspan Off - Site's "Lighthouse" net-zero carbon home, which is the first house designed to comply with the British government's Code for Sustainable Homes Level 6. By 2016, all new homes built in the United Kingdom will be required to be designed and constructed to meet the Code for Sustainable Homes Level 6.
-- The Company recently completed phase 1 of an 800kW BIPV curtain wall project at Wuxi Airport in China. The installation showcases Suntech's BIPV capabilities and serves as a model project for other potential solar installations in China.
-- Suntech successfully met the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX") regarding internal controls over financial reporting. The internal control systems have helped Suntech improve operating efficiency and manage rapid production and sales growth.
Second Quarter 2007 Results
Non-GAAP Non-GAAP
Net Revenues % of Net Gross Profit Gross
(in $ millions) Revenues (in $ millions) Margin (%)
Standard PV Modules $313.5 98.8 % $66.3 21.2 %
-- Wafer to Modules 274.6 86.5 65.5 23.9
-- Cell to Modules* 38.9 12.3 0.8 2.0
Others 3.9 1.2 0.6 15.6
Total (consolidated) $317.4 100 % $66.9 21.1 %
Total (excluding MSK) $297.5 -- $67.5 22.7 %
* The Cell to Modules segment includes both Suntech modules produced from
third-party cells and MSK's slow moving module inventory.
On a GAAP basis, gross profit was $64.3 million and gross margin was
20.3%, operating income was $38.1 million, and net income was $41.3 million
or $0.25 per diluted ADS.
Non-GAAP operating expenses in the second quarter of 2007 were $21.4
million and accounted for 6.7% of net revenues.
Non-GAAP income from operations for the second quarter of 2007 was
$45.6 million and non-GAAP operating margin was 14.4%.
Non-GAAP net income attributable to holders of ordinary shares for the
second quarter of 2007 was $48.9 million, or $0.29 per non-GAAP diluted
ADS.
In the second quarter of 2007, capital expenditures, which were
primarily related to production capacity expansion and the construction of
the Wuxi and Luoyang production facilities, were $51.7 million and
depreciation and amortization expenses were $4.2 million.
During the second quarter of 2007, the total number of diluted ADSs
outstanding increased from 164.1 million to 168.9 million, primarily due to
an increase of 4.8 million ADSs on an "as converted" basis. The additional
ADSs represent the final portion of the 10.3 million ADSs that may be
issued in the future as a result of the February 2007 convertible note
offering of $500 million.
Suntech's results for the second quarter of 2007 excluding MSK were as
follows:
Non-GAAP operating expenses as a percentage of net revenues were 6.4%,
non-GAAP income from operations was $48.5 million and non-GAAP operating
margin was 16.3%, and non-GAAP net income was $50.8 million. Suntech's
successful execution of its integration initiatives was reflected in this
quarter's results as Suntech reduced its loss from MSK operations by
approximately 40% from the first quarter of 2007 to $1.9 million.
Senior Management Hires and Promotions
Suntech announced the following key promotions and new hires:
Mr. Steven Chan who was previously the Vice President of Business
Development has been promoted to the position of Chief Strategy Officer.
Mr. Chan will be focused on enhancing and solidifying Suntech's long term
focus to be a leading solar energy company. In addition to strategy and
business development, he will also be responsible for the investor
relations and marketing function. His near term focus will be to head new
business initiatives in North America as well as to foster key
relationships with partners and suppliers.
Mr. Hao Zhi who was previously the Investment Controller has been
promoted to the position of Investment Director. Mr. Hao will head the
company's investment initiatives including mergers and acquisitions,
strategic ventures and alliances.
Dr. Frank Zhang and Mr. Henry Ng are newly hired general managers who
will manage Suntech's key production facilities. Dr. Zhang will oversee
Suntech's thin film manufacturing facility in Shanghai and Mr. Ng will
oversee Suntech's core PV manufacturing facility in Wuxi including its new
one Gigawatt facility. Both Dr. Zhang and Mr. Ng have extensive experience
in the related semiconductor manufacturing industry.
Prior to joining Suntech, Dr. Zhang was the Chief Operating Officer at
China Resources Semiconductor Wafer & Chip Company, a semiconductor foundry
in China. He also held a number of senior positions at Honeywell in
California. Dr. Zhang received his MBA from the China Europe International
Business School, Shanghai, and his Ph.D. in Mechanical and Materials
Engineering from Clarkson University, New York.
Mr. Ng previously worked for over 10 years at Sony's manufacturing
facilities in Singapore and China. Most recently he served as senior
general manager of Sony's Huizhou facility that manufactures specialty LLCD
chips. Prior to that, Mr. Ng acted as general manager at MI Wuxi Co., Ltd,
a precision plastic molding company, Volex Cable Assembly (Suzhou), a first
tier telecom and automotive supplier, and at Seagate Technology. Mr. Ng
received a B.Sc degree from the National University of Singapore in Applied
Physics.
Mr. Jason Somer was hired as the Senior Director of Business
Development to be based in the United States. Mr. Somer was previously the
Director of Legal Affairs at IronPort Systems, an e-mail and Web security
appliance company in San Francisco that was acquired by Cisco Systems.
Prior to that he held legal and business development positions at Neoforma,
a Nasdaq-listed healthcare technology company in San Jose. Mr. Somer had
previously worked as a corporate/securities associate for law firms in New
York City, most recently Morrison & Foerster. Mr. Somer received an LL.M.
from Boston University, an LL.B. from the University of British Columbia,
and a B.Sc. from the University of Western Ontario.
Outlook for Third Quarter and Full Year 2007
Based on current operating and other conditions, Suntech expects its
third quarter 2007 total production output to be in the estimated range of
94MW to 96MW.
Conference Call Information
Suntech's earnings announcement conference call will take place on
August 9, 2007 at 8:00a.m., Eastern Time, which corresponds to August 9,
2007 at 8:00p.m., Beijing/Hong Kong time.
To access the conference call, please dial +1-617-597-5344 (for U.S.
callers) or +852-3002-1672 (for international callers) and ask to be
connected to the Suntech earnings conference call. A live and archived
webcast of the conference call will be available on the Investors section
of Suntech's website at http://www.suntech-power.com .
A replay of the conference call will be available until August 20, 2007
by dialing +1 617-801-6888 (passcode: 14519969).
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in
the world as measured by both production output and capacity of solar cells
and modules. Suntech provides solar solutions for a green future. Suntech
designs, develops, manufactures, and markets a variety of high quality,
cost effective and environmentally friendly PV cells and modules for
electric power applications in the residential, commercial, industrial, and
public utility sectors. Suntech's majority-owned subsidiary, MSK
Corporation is one of the top-ranked companies in the building-integrated
photovoltaics (BIPV) space. Suntech's customers are located in various
markets worldwide, including key markets throughout Europe, North America,
Japan and China. For more information, please visit
http://www.suntech-power.com .
Monday, August 13, 2007
Olympics: China trying to put on a ''green'' Olympics
BEIJING, Aug. 7 (Xinhua) -- The Chinese capital is adopting eco-friendly technologies in transportation, power supply, water and waste management to ensure a "green" Olympic Games, according to the Chinese Ministry of Science and Technology.
The city plans to use 100 hybrid-electric vehicles as public buses at all venues and several hundred electric vehicles will serve in the logistics departments of the Olympic Village and all stadiums while electric bicycles will be provided in the main Olympic area, according to the press release.
The project also covers Beijing's public transport system, setting a goal of having 80 percent of buses and 70 percent of taxis fueled by clean energy by 2008.
As part of the efforts, 14 electric buses have been running on one bus route for two years in Beijing as a pilot project while 1,300 buses fueled by compressed gas have been put into operation.
Of the two million square meters of buildings used for the Olympics, 26.9 percent will be powered by clean energy like solar energy, wind and geothermal power, the ministry said.
The seven main stadiums in Beijing will be equipped with solar generators with a total capacity of 480 kw while 90 percent of the lighting outside the stadiums and hot water supply in the Olympics Village will powered by solar energy.
Beijing will have its first wind power plant by the end of this year with a capacity of 50,000 kw, which will supply main stadiums.
All major Olympics venues are equipped with rainwater collectors and sewage recycling facilities to save water, the ministry said.
And 90 percent of the waste produced in the Olympic areas will be sent to waste plants for sorting and recycling, it said.
To realize these goals, the ministry, the Beijing municipal government and the Olympic organizers have spent 1.86 billion yuan(245 million U.S. dollars) in research and development of relevant technologies and facilities.
However, the city's environmental problems, particularly air quality, are still worrying many people a year before the Games.
The city plans to use 100 hybrid-electric vehicles as public buses at all venues and several hundred electric vehicles will serve in the logistics departments of the Olympic Village and all stadiums while electric bicycles will be provided in the main Olympic area, according to the press release.
The project also covers Beijing's public transport system, setting a goal of having 80 percent of buses and 70 percent of taxis fueled by clean energy by 2008.
As part of the efforts, 14 electric buses have been running on one bus route for two years in Beijing as a pilot project while 1,300 buses fueled by compressed gas have been put into operation.
Of the two million square meters of buildings used for the Olympics, 26.9 percent will be powered by clean energy like solar energy, wind and geothermal power, the ministry said.
The seven main stadiums in Beijing will be equipped with solar generators with a total capacity of 480 kw while 90 percent of the lighting outside the stadiums and hot water supply in the Olympics Village will powered by solar energy.
Beijing will have its first wind power plant by the end of this year with a capacity of 50,000 kw, which will supply main stadiums.
All major Olympics venues are equipped with rainwater collectors and sewage recycling facilities to save water, the ministry said.
And 90 percent of the waste produced in the Olympic areas will be sent to waste plants for sorting and recycling, it said.
To realize these goals, the ministry, the Beijing municipal government and the Olympic organizers have spent 1.86 billion yuan(245 million U.S. dollars) in research and development of relevant technologies and facilities.
However, the city's environmental problems, particularly air quality, are still worrying many people a year before the Games.
JA Solar Reports Second Quarter 2007 Results
August 08, 2007: 07:00 AM EST
* Total revenues for 2Q07 of RMB 457.0 million (US$60.0 million) compared to revenues of RMB 96.1 million (US$12.6 million) for 2Q06
* 2Q07 net income of RMB 1.63 (US$0.21) per diluted ADS compared to RMB 0.67(US$0.09) per diluted ADS in 2Q06
* Total capacity has reached 175MW per annum
HEBEI, China, Aug. 8, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the second quarter ended June 30, 2007.
Second Quarter 2007 Results
Total revenues for the second quarter of 2007 were RMB 457.0 million (US$60.0 million), compared to revenues of RMB 96.1 million (US$12.6 million) for the second quarter of 2006, and RMB 335.1 million (US$44.0 million) in the first quarter of 2007. The second quarter of 2007 revenues included solar cells processing service revenue of RMB 26.2 million (US$3.4 million), compared to Nil in the second quarter of 2006 and RMB 0.1 million (US$0.02 million) in the first quarter of 2007.
Total gross profit for the second quarter of 2007 was RMB 110.1 million (US$14.5 million), including solar cells processing service profit of RMB 19.8 million (US$2.6 million). Total gross margin was 24.10% for the second quarter of 2007. Excluding solar cells processing service gross profit, our gross margin was 20.96% compared to 20.50% in the first quarter of 2007.
Net income available to ordinary shareholders for the second quarter of 2007 was RMB 75.7 million (US$9.9 million) compared to a net income available to ordinary shareholders of RMB 17.8 million (US$2.3 million) for the second quarter of 2006, and net income available to ordinary shareholders of RMB 58.3 million (US$7.7 million) for the first quarter of 2007.
For the second quarter of 2007 basic and diluted earnings per ADS were RMB 1.64 (US$0.22) and RMB 1.63 (US$0.21) respectively. Each ADS represents three of our ordinary shares.
The second quarter of 2007 expenses included share-based compensation expense of RMB 12.0 million (US$1.6 million), or RMB 0.26 (US$ 0.03) per diluted ADS.
Capital expenditures were RMB 47.4 million (US$6.2 million) in the second quarter of 2007, as compared to RMB 101.2 million (US$13.3 million) in the previous quarter and RMB 39.6 million (US$5.2 million) in the second quarter of 2006. Depreciation and amortization expenses in the second quarter of 2007 were RMB 6.3 million (US$0.8 million), as compared to RMB 5.2 million (US$0.7 million) in the previous quarter and RMB 2.1 million (US$0.3 million) in the second quarter of 2006.
As of June 30, 2007, JA Solar had cash and cash equivalents of RMB 1.6 billion (US$205.7 million) compared with RMB 1.8 billion (US$235.9 million) at the end of the first quarter of 2007. Short term debt decreased to RMB 150 million (US$19.7 million) at the end of the second quarter of 2007 from RMB 200 million (US$26.3 million) at the end of the first quarter of 2007.
Set out below is a summary of megawatts produced and shipped (including processing service): ---------------------------------------------------------------------
Three months ended
---------------------------------------------------------------------
Megawatts June 30, 2006 March 31, 2007 June 30, 2007
---------------------------------------------------------------------
Produced 3.0MW 17.6MW 22.6MW
---------------------------------------------------------------------
Shipped 3.1MW 14.4MW 24.0MW
---------------------------------------------------------------------
The conversion of Renminbi into U.S. dollars in this release, made solely for the convenience of the reader, is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of June 29, 2007, which was RMB 7.6120 to US$1.0000. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on June 29, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
Samuel Yang, JA Solar's Chief Executive Officer, said, "Our business momentum and track record of execution continued in the second quarter. Results came in at or above the high-end of our internal target for revenue, gross margin and net income. Four new production lines commenced production ahead of schedule. The JA Solar brand is becoming the standard for high-quality, high-performance monocrystalline solar cells. We remain focused on leveraging this differentiated position to further our customer diversification and global expansion efforts."
Herman Zhao, JA Solar's Chief Financial Officer, said, "Gross margin increased in the second quarter of 2007 from the first quarter of 2007 despite incurring routine costs. We now have a total of 175 MW of solar cell manufacturing capacity per annum. As we move into the second half of the year we will begin to solidify our capacity expansion plans for 2008 based on customer forecasts."
Company Raises 2007 Outlook
Based on current market conditions and customer forecasts, the Company is raising its production outlook for 2007 from approximately 100MW to 110MW. This would result in revenues for the full year of 2007 in the range of approximately RMB 2,284 million (US$300 million) to RMB 2,360 million (US$310 million), with a gross margin expected to be approximately 19.5%, compared to prior guidance for revenues in the range of RMB 2,128 million (US$280 million) to RMB 2,205 million (US$290 million), with a gross margin expected to be approximately 19.5%.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We remain optimistic in our outlook for the second half of 2007. The increase in our guidance for the full year of 2007 reflects the strong demand globally for our high-quality, high-performance monocrystalline solar cells. We continue to diversify our customer base to take advantage of beneficial strategic relationships."
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Wednesday, August 8, 2007 (in Hebei). This will be 9:00 a.m. on Wednesday, August 8, in New York. During the call, time will be set aside for analysts and interested investors to ask questions of executive officers.
The call may be accessed by dialing +1-201-689-8560. A live webcast of the conference call will be available on the Company's website at www.jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing +1-201-612-7415. The account number to access the replay is 3055 and the passcode is 250008.
About JA Solar Holdings Co., Ltd.
Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance monocrystalline solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit http://www.jasolar.com.
* Total revenues for 2Q07 of RMB 457.0 million (US$60.0 million) compared to revenues of RMB 96.1 million (US$12.6 million) for 2Q06
* 2Q07 net income of RMB 1.63 (US$0.21) per diluted ADS compared to RMB 0.67(US$0.09) per diluted ADS in 2Q06
* Total capacity has reached 175MW per annum
HEBEI, China, Aug. 8, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the second quarter ended June 30, 2007.
Second Quarter 2007 Results
Total revenues for the second quarter of 2007 were RMB 457.0 million (US$60.0 million), compared to revenues of RMB 96.1 million (US$12.6 million) for the second quarter of 2006, and RMB 335.1 million (US$44.0 million) in the first quarter of 2007. The second quarter of 2007 revenues included solar cells processing service revenue of RMB 26.2 million (US$3.4 million), compared to Nil in the second quarter of 2006 and RMB 0.1 million (US$0.02 million) in the first quarter of 2007.
Total gross profit for the second quarter of 2007 was RMB 110.1 million (US$14.5 million), including solar cells processing service profit of RMB 19.8 million (US$2.6 million). Total gross margin was 24.10% for the second quarter of 2007. Excluding solar cells processing service gross profit, our gross margin was 20.96% compared to 20.50% in the first quarter of 2007.
Net income available to ordinary shareholders for the second quarter of 2007 was RMB 75.7 million (US$9.9 million) compared to a net income available to ordinary shareholders of RMB 17.8 million (US$2.3 million) for the second quarter of 2006, and net income available to ordinary shareholders of RMB 58.3 million (US$7.7 million) for the first quarter of 2007.
For the second quarter of 2007 basic and diluted earnings per ADS were RMB 1.64 (US$0.22) and RMB 1.63 (US$0.21) respectively. Each ADS represents three of our ordinary shares.
The second quarter of 2007 expenses included share-based compensation expense of RMB 12.0 million (US$1.6 million), or RMB 0.26 (US$ 0.03) per diluted ADS.
Capital expenditures were RMB 47.4 million (US$6.2 million) in the second quarter of 2007, as compared to RMB 101.2 million (US$13.3 million) in the previous quarter and RMB 39.6 million (US$5.2 million) in the second quarter of 2006. Depreciation and amortization expenses in the second quarter of 2007 were RMB 6.3 million (US$0.8 million), as compared to RMB 5.2 million (US$0.7 million) in the previous quarter and RMB 2.1 million (US$0.3 million) in the second quarter of 2006.
As of June 30, 2007, JA Solar had cash and cash equivalents of RMB 1.6 billion (US$205.7 million) compared with RMB 1.8 billion (US$235.9 million) at the end of the first quarter of 2007. Short term debt decreased to RMB 150 million (US$19.7 million) at the end of the second quarter of 2007 from RMB 200 million (US$26.3 million) at the end of the first quarter of 2007.
Set out below is a summary of megawatts produced and shipped (including processing service): ---------------------------------------------------------------------
Three months ended
---------------------------------------------------------------------
Megawatts June 30, 2006 March 31, 2007 June 30, 2007
---------------------------------------------------------------------
Produced 3.0MW 17.6MW 22.6MW
---------------------------------------------------------------------
Shipped 3.1MW 14.4MW 24.0MW
---------------------------------------------------------------------
The conversion of Renminbi into U.S. dollars in this release, made solely for the convenience of the reader, is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of June 29, 2007, which was RMB 7.6120 to US$1.0000. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on June 29, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
Samuel Yang, JA Solar's Chief Executive Officer, said, "Our business momentum and track record of execution continued in the second quarter. Results came in at or above the high-end of our internal target for revenue, gross margin and net income. Four new production lines commenced production ahead of schedule. The JA Solar brand is becoming the standard for high-quality, high-performance monocrystalline solar cells. We remain focused on leveraging this differentiated position to further our customer diversification and global expansion efforts."
Herman Zhao, JA Solar's Chief Financial Officer, said, "Gross margin increased in the second quarter of 2007 from the first quarter of 2007 despite incurring routine costs. We now have a total of 175 MW of solar cell manufacturing capacity per annum. As we move into the second half of the year we will begin to solidify our capacity expansion plans for 2008 based on customer forecasts."
Company Raises 2007 Outlook
Based on current market conditions and customer forecasts, the Company is raising its production outlook for 2007 from approximately 100MW to 110MW. This would result in revenues for the full year of 2007 in the range of approximately RMB 2,284 million (US$300 million) to RMB 2,360 million (US$310 million), with a gross margin expected to be approximately 19.5%, compared to prior guidance for revenues in the range of RMB 2,128 million (US$280 million) to RMB 2,205 million (US$290 million), with a gross margin expected to be approximately 19.5%.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We remain optimistic in our outlook for the second half of 2007. The increase in our guidance for the full year of 2007 reflects the strong demand globally for our high-quality, high-performance monocrystalline solar cells. We continue to diversify our customer base to take advantage of beneficial strategic relationships."
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Wednesday, August 8, 2007 (in Hebei). This will be 9:00 a.m. on Wednesday, August 8, in New York. During the call, time will be set aside for analysts and interested investors to ask questions of executive officers.
The call may be accessed by dialing +1-201-689-8560. A live webcast of the conference call will be available on the Company's website at www.jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing +1-201-612-7415. The account number to access the replay is 3055 and the passcode is 250008.
About JA Solar Holdings Co., Ltd.
Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance monocrystalline solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit http://www.jasolar.com.
Saturday, August 4, 2007
LDK Solar Reports Financial Results for the Second Quarter 2007
August 01, 2007: 04:05 PM EST
XINYU CITY, China and SUNNYVALE, Calif., Aug. 1 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the second quarter ended June 30, 2007.
All financial results are reported on a U.S. GAAP basis.
Second Quarter 2007 Financial Highlights:
-- Revenue of $99.1 million, up 716% from the year ago quarter
-- Gross profit of $34.9 million, up 1,265% from the year ago quarter
-- Net income of $28.7 million, or $0.29 per diluted ADS, up 2,083% from the year ago quarter
-- Increased annualized multicrystalline wafer production capacity from 215 MW to 300 MW, up 40% quarter-over-quarter
Net sales for the second quarter of fiscal 2007 were $99.1 million, up 35% sequentially from $73.4 million for the first quarter of fiscal 2007, and up 716% year-over-year from $12.1 million for the second quarter of fiscal 2006.
Gross profit for the second quarter of fiscal 2007 was $34.9 million, up 23% sequentially from $28.4 million for the first quarter of fiscal 2007, and up 1,265% year-over-year from $2.6 million for the second quarter of fiscal 2006. Gross margin for the second quarter of fiscal 2007 was 35.2%, compared with 38.7% in the first quarter of fiscal 2007 and 21.0% in the second quarter of fiscal 2006.
Net income for the second quarter of fiscal 2007 was $28.7 million, or $0.29 per diluted ADS, compared to net income of $24.5 million, or $0.27 per diluted ADS for the first quarter of fiscal 2007, and $1.3 million, or $0.02 per diluted ADS for the second quarter of fiscal 2006.
The Company ended the second quarter of fiscal 2007 with $250.6 million in cash and cash equivalents.
"We are pleased to report strong results for the second quarter, our first as a public company," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our results demonstrate our success in providing our customers, leading global solar cell and module manufacturers, with high-quality multicrystalline solar wafers at significant cost advantages. During the quarter, we executed our growth strategy on plan and continued the rapid expansion of our production capacity. In addition to ramping our production lines, we continued to make progress on our cost reduction efforts through further advancements of our production processes.
"We recently ordered additional DSS furnaces and wire saws to further expand our manufacturing capacity to 1,600 MW by the end of 2009. We also announced the purchase of polysilicon production equipment, enabling LDK to produce virgin silicon feedstock. By augmenting our strategy upstream, we believe we will enhance our cost efficiencies," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.
For the third quarter of fiscal 2007, LDK estimates revenue is expected to be in the range of $115 to $125 million and fully diluted earnings per ADS of $0.29 to $0.32.
Conference Call Details
The LDK Second Quarter teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on Wednesday, August 1, 2007. To listen to the live conference call, please dial 800-257-6607 (within U.S.) or 303-262-2006 (outside U.S.) at 4:50 p.m. ET on August 1, 2007. An audio replay of the call will be available to investors through August 6, 2007, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11093873#.
A live webcast of the call will be available on the company's investor relations website at http://investor.ldksolar.com.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
XINYU CITY, China and SUNNYVALE, Calif., Aug. 1 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. , a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the second quarter ended June 30, 2007.
All financial results are reported on a U.S. GAAP basis.
Second Quarter 2007 Financial Highlights:
-- Revenue of $99.1 million, up 716% from the year ago quarter
-- Gross profit of $34.9 million, up 1,265% from the year ago quarter
-- Net income of $28.7 million, or $0.29 per diluted ADS, up 2,083% from the year ago quarter
-- Increased annualized multicrystalline wafer production capacity from 215 MW to 300 MW, up 40% quarter-over-quarter
Net sales for the second quarter of fiscal 2007 were $99.1 million, up 35% sequentially from $73.4 million for the first quarter of fiscal 2007, and up 716% year-over-year from $12.1 million for the second quarter of fiscal 2006.
Gross profit for the second quarter of fiscal 2007 was $34.9 million, up 23% sequentially from $28.4 million for the first quarter of fiscal 2007, and up 1,265% year-over-year from $2.6 million for the second quarter of fiscal 2006. Gross margin for the second quarter of fiscal 2007 was 35.2%, compared with 38.7% in the first quarter of fiscal 2007 and 21.0% in the second quarter of fiscal 2006.
Net income for the second quarter of fiscal 2007 was $28.7 million, or $0.29 per diluted ADS, compared to net income of $24.5 million, or $0.27 per diluted ADS for the first quarter of fiscal 2007, and $1.3 million, or $0.02 per diluted ADS for the second quarter of fiscal 2006.
The Company ended the second quarter of fiscal 2007 with $250.6 million in cash and cash equivalents.
"We are pleased to report strong results for the second quarter, our first as a public company," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our results demonstrate our success in providing our customers, leading global solar cell and module manufacturers, with high-quality multicrystalline solar wafers at significant cost advantages. During the quarter, we executed our growth strategy on plan and continued the rapid expansion of our production capacity. In addition to ramping our production lines, we continued to make progress on our cost reduction efforts through further advancements of our production processes.
"We recently ordered additional DSS furnaces and wire saws to further expand our manufacturing capacity to 1,600 MW by the end of 2009. We also announced the purchase of polysilicon production equipment, enabling LDK to produce virgin silicon feedstock. By augmenting our strategy upstream, we believe we will enhance our cost efficiencies," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.
For the third quarter of fiscal 2007, LDK estimates revenue is expected to be in the range of $115 to $125 million and fully diluted earnings per ADS of $0.29 to $0.32.
Conference Call Details
The LDK Second Quarter teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on Wednesday, August 1, 2007. To listen to the live conference call, please dial 800-257-6607 (within U.S.) or 303-262-2006 (outside U.S.) at 4:50 p.m. ET on August 1, 2007. An audio replay of the call will be available to investors through August 6, 2007, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11093873#.
A live webcast of the call will be available on the company's investor relations website at http://investor.ldksolar.com.
About LDK Solar
LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK's headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People's Republic of China. The company's office in the United States is located in Sunnyvale, California.
Wednesday, August 1, 2007
Mainstreaming Clean Energy in Rizhao, China
On June 15, the city of Rizhao, China, received a 2007 World Clean Energy Award (WCEA) in the category of "Policy and Lawmaking" for its popularization of clean energy. The award’s presenters noted that in a nation known for its heavy dependence on coal, Rizhao represents an inspiring example of the mainstreaming of renewable energy sources. Large-scale solar power and marsh gas applications in the city directly benefit more than 1.5 million residents, dramatically reducing their yearly energy costs while providing other environmental and health benefits.
Policy and lawmaking by Rizhao's local administration have been instrumental in bringing about the city's energy revolution. Since his appointment in 2001, Mayor Lizhaoqian and the Rizhao Municipal Government have adopted several measures and policies aimed at popularizing clean energy technology, including the Regulations on Implementing Solar Energy and Construction Integration that standardize the use of solar energy--particularly solar water heaters--in new buildings. Building examiners must approve all construction procedures before the buildings are sanctioned, and any blueprints that lack built-in solar water heaters will fail to pass final approval.
Solar water heaters are currently installed in 99 percent of all buildings in Rizhao's urban area, and in more than 30 percent of residences in rural areas. Additionally, more than 6,000 families in Rizhao use solar cookers in their kitchens. During the fallow months, a transparent, biodegradable film is used to cover approximately 470 million square meters of the city's farmland to allow for an increase in the land temperature and faster maturation of crops in the spring. The city is also home to more than 560,000 square meters of solar photovoltaic panels, which have effectively reduced conventional electricity usage by 348 million kilowatthours per year.
More than 15,000 residential units in Rizhao use technologies that allow them to generate marsh gas from agricultural waste water, with the units capable of generating up to 230,000 cubic meters daily. Currently, the city's annual marsh gas production is 4.5 million cubic meters, which replaces the use of some 3,100 tons of coal annually. Installed marsh gas power generators have a total production capacity of 13,500 kilowatthours, which would reduce the use of coal this year by 36,000 tons.
Mayor Lizhaoqian and his team note that one of the key challenges for China is finding solutions to develop and rapidly scale up the use of sustainable, clean energy. Speaking of China's economic advancement, he articulated that, "to maintain a high growth rate of the economy, restriction by energy and environment is nowadays an inevitable problem in China. Therefore, it has been an important task during the economic and social development in China to search for new energies, develop energy efficiency technologies, reduce environmental pollution, and build a resource-saving society."
According to the WCEA presenters, Rizhao's many achievements highlight the great potential for government policy and legislation to achieve major changes in the energy sector in a relatively short period of time. Upon receiving the award, Mayor Lizhaoqian said it was "a great honor and encouragement for our work.... Winning the award enhances our confidence and determination to make more efforts on clean energy, and it will have significant and long-term influence on the popularization and utilization of clean energy in our city." He noted that his administration will continue to explore new approaches to popularize and utilize clean energy, in an effort to build Rizhao into "an eco-city featuring energy efficiency, sound ecology, and a beautiful environment."
Policy and lawmaking by Rizhao's local administration have been instrumental in bringing about the city's energy revolution. Since his appointment in 2001, Mayor Lizhaoqian and the Rizhao Municipal Government have adopted several measures and policies aimed at popularizing clean energy technology, including the Regulations on Implementing Solar Energy and Construction Integration that standardize the use of solar energy--particularly solar water heaters--in new buildings. Building examiners must approve all construction procedures before the buildings are sanctioned, and any blueprints that lack built-in solar water heaters will fail to pass final approval.
Solar water heaters are currently installed in 99 percent of all buildings in Rizhao's urban area, and in more than 30 percent of residences in rural areas. Additionally, more than 6,000 families in Rizhao use solar cookers in their kitchens. During the fallow months, a transparent, biodegradable film is used to cover approximately 470 million square meters of the city's farmland to allow for an increase in the land temperature and faster maturation of crops in the spring. The city is also home to more than 560,000 square meters of solar photovoltaic panels, which have effectively reduced conventional electricity usage by 348 million kilowatthours per year.
More than 15,000 residential units in Rizhao use technologies that allow them to generate marsh gas from agricultural waste water, with the units capable of generating up to 230,000 cubic meters daily. Currently, the city's annual marsh gas production is 4.5 million cubic meters, which replaces the use of some 3,100 tons of coal annually. Installed marsh gas power generators have a total production capacity of 13,500 kilowatthours, which would reduce the use of coal this year by 36,000 tons.
Mayor Lizhaoqian and his team note that one of the key challenges for China is finding solutions to develop and rapidly scale up the use of sustainable, clean energy. Speaking of China's economic advancement, he articulated that, "to maintain a high growth rate of the economy, restriction by energy and environment is nowadays an inevitable problem in China. Therefore, it has been an important task during the economic and social development in China to search for new energies, develop energy efficiency technologies, reduce environmental pollution, and build a resource-saving society."
According to the WCEA presenters, Rizhao's many achievements highlight the great potential for government policy and legislation to achieve major changes in the energy sector in a relatively short period of time. Upon receiving the award, Mayor Lizhaoqian said it was "a great honor and encouragement for our work.... Winning the award enhances our confidence and determination to make more efforts on clean energy, and it will have significant and long-term influence on the popularization and utilization of clean energy in our city." He noted that his administration will continue to explore new approaches to popularize and utilize clean energy, in an effort to build Rizhao into "an eco-city featuring energy efficiency, sound ecology, and a beautiful environment."
Sunday, July 29, 2007
China Sunergy Strengthens Management Team with the Appointment of Allen Wang as CEO
NANJING, China, July 27 /Xinhua-PRNewswire/ -- China Sunergy Co., Ltd. , a specialized solar cell manufacturer based in Nanjing, China, announced today that it has appointed Allen Wang as its new Chief Executive Officer ("CEO") with immediate effect. Mr. Wang will succeed Mr. Tingxiu Lu, who will remain as Executive Chairman and continue to be an integral part of the management team and a member of China Sunergy's Board of Directors.
Mr. Wang, 53, brings with him over 26 years experience in operations management and sales with leading technology companies in China, the US and Taiwan. His particular strengths are in supply chain management, operational management and procurement.
Mr. Wang joins China Sunergy from NEC China, where he was Senior Vice President and General Manager of its operations division focusing on supply chain management, quality assurance and customer service. Prior to joining NEC, he spent nearly ten years with Motorola in a variety of senior operational management roles including time spent establishing, developing and overseeing Motorola's handset joint venture in China, which he took from start-up to a business with annual sales of US$600 million per/annum within three years. In addition to his experience in China, Mr. Wang also spent eight years in the US with AT&T.
Mr. Tingxiu Lu, Chairman and CEO of China Sunergy, commented: "I am delighted that Allen Wang has decided to join us and look forward to working closely with him over the coming months. I was particularly impressed by both his drive and ability to grasp the more technical element of our business and believe that these factors, combined with his considerable operational experience and proven ability to grow a business, will be of enormous benefit to us as we seek to forge closer ties with suppliers and expand our operations."
Mr. Wang further added: "It is a great honor to be appointed to be the CEO of such a young and dynamic company as China Sunergy. As an engineer, I am extremely impressed by the strength of the company's research and development efforts and look forward to ensuring that these efforts can be commercially realized as we seek to expand our customer base and secure long-term contracts with our suppliers."
An engineer by training, Mr. Wang holds an MA in mechanical engineering from Yale University, an MA in electrical engineering and PhD in Computer Science from Northwestern University and an MBA from the University of Chicago. He is fluent in both English and Mandarin Chinese.
In the light of Allen Wang's appointment as a director to the board, Mr. Shiliang Guo will step down as a board member with immediate effect.
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. ("China Sunergy") is a leading manufacturer of solar cell products in China as measured by production capacity. China Sunergy manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. China Sunergy sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets. For more information please go to http://www.chinasunergy.com .
Mr. Wang, 53, brings with him over 26 years experience in operations management and sales with leading technology companies in China, the US and Taiwan. His particular strengths are in supply chain management, operational management and procurement.
Mr. Wang joins China Sunergy from NEC China, where he was Senior Vice President and General Manager of its operations division focusing on supply chain management, quality assurance and customer service. Prior to joining NEC, he spent nearly ten years with Motorola in a variety of senior operational management roles including time spent establishing, developing and overseeing Motorola's handset joint venture in China, which he took from start-up to a business with annual sales of US$600 million per/annum within three years. In addition to his experience in China, Mr. Wang also spent eight years in the US with AT&T.
Mr. Tingxiu Lu, Chairman and CEO of China Sunergy, commented: "I am delighted that Allen Wang has decided to join us and look forward to working closely with him over the coming months. I was particularly impressed by both his drive and ability to grasp the more technical element of our business and believe that these factors, combined with his considerable operational experience and proven ability to grow a business, will be of enormous benefit to us as we seek to forge closer ties with suppliers and expand our operations."
Mr. Wang further added: "It is a great honor to be appointed to be the CEO of such a young and dynamic company as China Sunergy. As an engineer, I am extremely impressed by the strength of the company's research and development efforts and look forward to ensuring that these efforts can be commercially realized as we seek to expand our customer base and secure long-term contracts with our suppliers."
An engineer by training, Mr. Wang holds an MA in mechanical engineering from Yale University, an MA in electrical engineering and PhD in Computer Science from Northwestern University and an MBA from the University of Chicago. He is fluent in both English and Mandarin Chinese.
In the light of Allen Wang's appointment as a director to the board, Mr. Shiliang Guo will step down as a board member with immediate effect.
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. ("China Sunergy") is a leading manufacturer of solar cell products in China as measured by production capacity. China Sunergy manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. China Sunergy sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets. For more information please go to http://www.chinasunergy.com .
Wednesday, July 25, 2007
China is able to produce all the solar cell production equipments
Solar energy sector is quite hot in China, there are several dozens of solar cell manufacturers and several hundreds of solar panel manufacturers in China.
The cost advantage brings great opportunities to the solar cell production equipments manufacturers, and then these manufacturers have fund to improve their technologies to better serve their clients.
At present these Chinese solar cell production equipments manufacturers are able to produce all the equipments used in the solar cell production. To be frank, some of their technologies are not as advanced as the ones used by the Western manufacturers, but their equipments do meet the clients' certain demand. I am sure that several years later their equipments will be further improved and adopt the most advanced technologies.
The cost advantage brings great opportunities to the solar cell production equipments manufacturers, and then these manufacturers have fund to improve their technologies to better serve their clients.
At present these Chinese solar cell production equipments manufacturers are able to produce all the equipments used in the solar cell production. To be frank, some of their technologies are not as advanced as the ones used by the Western manufacturers, but their equipments do meet the clients' certain demand. I am sure that several years later their equipments will be further improved and adopt the most advanced technologies.
Clean tech within China presents clear opportunity
China is not feted for its stewardship of the environment. One recent World Bank report found that 16 of the world's 20 most polluted cities were in China; a draft version of another report puts the total economic cost of outdoor air and water pollution at around $100 billion a year, or 5.8 percent of China's GDP.
By some estimates, China has now overtaken America to become the world's largest producer of greenhouse gases. Environmental protests, such as one that took place in Xiamen last month in response to a plan to build a chemical plant in the city, are on the rise.
Pollution resulting from China's growth is a huge problem, but to investors it presents an enormous opportunity. Venture-capital investment in clean tech in China is picking up, increasing by 147 percent from $170 million in 2005 to $420 million last year, according to the Cleantech Group, an industry research body. Most of this investment was in solar energy, a booming field in which several Chinese firms have gone public in the past year.
But although China has now become the world's third-largest manufacturer of solar panels, most of them are exported, thanks to the subsidies offered in the developed world.
Several initiatives aim to promote the development and deployment of clean technologies within China itself. The most prominent is the Clean Development Mechanism (CDM) of the Kyoto protocol, the United Nations treaty on climate change. Under the CDM, projects that reduce emissions of greenhouse gases in poor countries earn credits, which can be purchased by rich countries in lieu of reducing their own emissions as required by the treaty. The Chinese government has already approved 524 such projects; China accounted for 61 percent of the CDM market last year, which was worth nearly $5 billion.
The Chinese government is also introducing environmental targets of its own in areas such as building regulations, appliance efficiency and the energy consumption of big companies. Meeting them will require vast sums to be spent on new technologies, and several schemes involving local and foreign institutions aim to encourage that investment.
The latest, announced in Beijing last week, is a nonprofit, public-private organization called the Joint U.S.-China Co-operation on Clean Energy. It grew out of an energy conference that took place in Shanghai in April and is headed by Peggy Liu, a former Silicon Valley executive who is now a venture capitalist in China.
Liu says its aim is to compress 30 years of clean-tech development into just 10, in part by bringing together innovators and investors. It will promote investment in both reducing energy demand and greening supply. It is particularly enthusiastic about the prospects for trimming energy consumption in buildings, which can be two or three times more energy-hungry in China than elsewhere.
Rob Watson, a member of the joint committee and the man behind LEED, a popular standard used to certify green buildings around the world, said he has been commuting to China regularly in recent years to advise local builders and contractors. He likens the energy-distribution system to a "leaky bucket" and says plugging the obvious holes could have a big impact relatively quickly.
Last year the government set a goal of reducing the energy consumption of new buildings by 50 percent, and in some cases by 65 percent. Yet success depends not only on the strength of regulations, but also on the zeal with which local authorities enforce them. As in the rest of the world, relatively few green technologies are competitive without subsidies or incentives of some sort. A shining exception is solar-powered water heaters, of which China has more than any other country. Chinese firms sold $2.6 billion of them last year alone.
The combination of environmental degradation, economic growth and manufacturing prowess means that China "has the opportunity to be at the forefront in finding solutions to the energy problem that the world faces," said Richard Branson, a British businessman who is investing in a range of clean-tech initiatives.
In the 1960s, after all, Japan was also a fast-growing, polluted country; yet today Japanese firms are the leading manufacturers of hybrid cars and solar panels.
By some estimates, China has now overtaken America to become the world's largest producer of greenhouse gases. Environmental protests, such as one that took place in Xiamen last month in response to a plan to build a chemical plant in the city, are on the rise.
Pollution resulting from China's growth is a huge problem, but to investors it presents an enormous opportunity. Venture-capital investment in clean tech in China is picking up, increasing by 147 percent from $170 million in 2005 to $420 million last year, according to the Cleantech Group, an industry research body. Most of this investment was in solar energy, a booming field in which several Chinese firms have gone public in the past year.
But although China has now become the world's third-largest manufacturer of solar panels, most of them are exported, thanks to the subsidies offered in the developed world.
Several initiatives aim to promote the development and deployment of clean technologies within China itself. The most prominent is the Clean Development Mechanism (CDM) of the Kyoto protocol, the United Nations treaty on climate change. Under the CDM, projects that reduce emissions of greenhouse gases in poor countries earn credits, which can be purchased by rich countries in lieu of reducing their own emissions as required by the treaty. The Chinese government has already approved 524 such projects; China accounted for 61 percent of the CDM market last year, which was worth nearly $5 billion.
The Chinese government is also introducing environmental targets of its own in areas such as building regulations, appliance efficiency and the energy consumption of big companies. Meeting them will require vast sums to be spent on new technologies, and several schemes involving local and foreign institutions aim to encourage that investment.
The latest, announced in Beijing last week, is a nonprofit, public-private organization called the Joint U.S.-China Co-operation on Clean Energy. It grew out of an energy conference that took place in Shanghai in April and is headed by Peggy Liu, a former Silicon Valley executive who is now a venture capitalist in China.
Liu says its aim is to compress 30 years of clean-tech development into just 10, in part by bringing together innovators and investors. It will promote investment in both reducing energy demand and greening supply. It is particularly enthusiastic about the prospects for trimming energy consumption in buildings, which can be two or three times more energy-hungry in China than elsewhere.
Rob Watson, a member of the joint committee and the man behind LEED, a popular standard used to certify green buildings around the world, said he has been commuting to China regularly in recent years to advise local builders and contractors. He likens the energy-distribution system to a "leaky bucket" and says plugging the obvious holes could have a big impact relatively quickly.
Last year the government set a goal of reducing the energy consumption of new buildings by 50 percent, and in some cases by 65 percent. Yet success depends not only on the strength of regulations, but also on the zeal with which local authorities enforce them. As in the rest of the world, relatively few green technologies are competitive without subsidies or incentives of some sort. A shining exception is solar-powered water heaters, of which China has more than any other country. Chinese firms sold $2.6 billion of them last year alone.
The combination of environmental degradation, economic growth and manufacturing prowess means that China "has the opportunity to be at the forefront in finding solutions to the energy problem that the world faces," said Richard Branson, a British businessman who is investing in a range of clean-tech initiatives.
In the 1960s, after all, Japan was also a fast-growing, polluted country; yet today Japanese firms are the leading manufacturers of hybrid cars and solar panels.
Monday, July 23, 2007
Xinjiang SunOasis to construct three solar power stations in Tibet
Shanghai. July 23. INTERFAX-CHINA - China Xinjiang SunOasis Co. Ltd., a hi-tech enterprise engaged in the solar energy industry, signed a cooperative contract last week with China Mobile Group to construct three solar power stations in the Tibet Autonomous Region, state media reported over the weekend. The three solar power stations will be finished at the end of August.
Friday, July 20, 2007
CSI Received US$50 Million Syndicated Loan
July 19, 2007: 07:46 AM EST
JIANGSU, China, July 19 /Xinhua-PRNewswire/ -- Canadian Solar Inc. (''the Company'', or ''CSI'') announced today that it has signed an aggregate US$50 million syndicated loan agreement with Industrial and Commercial Bank of China (ICBC) and Communication Bank of China. The majority of this loan will be used for the expansion of CSI's solar cell manufacturing facilities in the Suzhou New District. This new loan agreement, together with other existing banking arrangements, provides CSI with approximately US$90 million in available credit lines. CSI also signed strategic partnership agreements with both banks, which pledged continuous support to CSI's five- year growth plan.
Dr. Shawn Qu, Chairman and Chief Executive Officer of CSI, together with other representatives from CSI and the bank syndicate were present at the signing ceremony held in Jiangsu, China.
Dr. Shawn Qu, Chairman and CEO of CSI, said, ''We appreciate the support of our local banks as they continue to be supportive, long-term strategic partners. This credit agreement is very positive for CSI, as it enables us to execute our long-term growth plan without causing any dilution to shareholders. We have already completed our second 25MW cell line, currently in test run. We expect this second line to be at full production in August. We continue to expect lines three and four to be completed for full production in the fourth quarter. By then, CSI will have 100MW of annual cell manufacturing capacity. CSI remains well-positioned for continued fast growth given our global customer base, reputation for high quality modules, and the financial strength to support the increased customer demand levels.''
About Canadian Solar Inc.
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and customer-designed solar application products serving worldwide customers. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
JIANGSU, China, July 19 /Xinhua-PRNewswire/ -- Canadian Solar Inc. (''the Company'', or ''CSI'') announced today that it has signed an aggregate US$50 million syndicated loan agreement with Industrial and Commercial Bank of China (ICBC) and Communication Bank of China. The majority of this loan will be used for the expansion of CSI's solar cell manufacturing facilities in the Suzhou New District. This new loan agreement, together with other existing banking arrangements, provides CSI with approximately US$90 million in available credit lines. CSI also signed strategic partnership agreements with both banks, which pledged continuous support to CSI's five- year growth plan.
Dr. Shawn Qu, Chairman and Chief Executive Officer of CSI, together with other representatives from CSI and the bank syndicate were present at the signing ceremony held in Jiangsu, China.
Dr. Shawn Qu, Chairman and CEO of CSI, said, ''We appreciate the support of our local banks as they continue to be supportive, long-term strategic partners. This credit agreement is very positive for CSI, as it enables us to execute our long-term growth plan without causing any dilution to shareholders. We have already completed our second 25MW cell line, currently in test run. We expect this second line to be at full production in August. We continue to expect lines three and four to be completed for full production in the fourth quarter. By then, CSI will have 100MW of annual cell manufacturing capacity. CSI remains well-positioned for continued fast growth given our global customer base, reputation for high quality modules, and the financial strength to support the increased customer demand levels.''
About Canadian Solar Inc.
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and customer-designed solar application products serving worldwide customers. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
Cleantech Investments in China Soar
New report said 2007 investment will rise 38 percent.July 19, 2007
By Marie Alpman
Chinese cleantech companies scored $154 million in venture funding in the first-quarter, a fourfold increase from the same period two years ago, a new report released Thursday said.
The report from the Cleantech Group, a research firm based in Brighton, Mitchigan, that tracks cleantech investments around the world, also noted that investments in China’s cleantech sector for all of 2007 likely will surpass investments in 2006. The report estimated that total investments in alternative energy and other clean technologies in China will reach $580 million this year, compared to $420 million in 2006.
The report said investment in cleantech is being driven by China's Renewable Energy Law, which went into effect last year and states that 10 percent of the nation's energy output should come from renewable sources by 2010.
China's solar sector is particularly hot. In 2006, about 70 percent of the venture capital was spent on solar companies, and the biggest first-quarter 2007 deal was an $82 million investment, led by Goldman Sachs, in Jiangsu Shunda, a photovoltaic solar company. To boot, five Chinese solar companies went public on U.S. exchanges and London's AIM in 2006; so far this year, three more Chinese firms have been listed in the U.S.
According to the report, the next booming segment will be water purification. Investments in water technologies are expected to reach $100 million in 2008, the report said.
By Marie Alpman
Chinese cleantech companies scored $154 million in venture funding in the first-quarter, a fourfold increase from the same period two years ago, a new report released Thursday said.
The report from the Cleantech Group, a research firm based in Brighton, Mitchigan, that tracks cleantech investments around the world, also noted that investments in China’s cleantech sector for all of 2007 likely will surpass investments in 2006. The report estimated that total investments in alternative energy and other clean technologies in China will reach $580 million this year, compared to $420 million in 2006.
The report said investment in cleantech is being driven by China's Renewable Energy Law, which went into effect last year and states that 10 percent of the nation's energy output should come from renewable sources by 2010.
China's solar sector is particularly hot. In 2006, about 70 percent of the venture capital was spent on solar companies, and the biggest first-quarter 2007 deal was an $82 million investment, led by Goldman Sachs, in Jiangsu Shunda, a photovoltaic solar company. To boot, five Chinese solar companies went public on U.S. exchanges and London's AIM in 2006; so far this year, three more Chinese firms have been listed in the U.S.
According to the report, the next booming segment will be water purification. Investments in water technologies are expected to reach $100 million in 2008, the report said.
Friday, July 13, 2007
China produces 99.9999％ polysilicon with own technology
The Shanghai Institute of Technical Physics of the Chinese Academy of Sciences helped enterprise to commercially produce 99.9999％ polysilicon, and they also successfully produced some 99.999999% polysilicon samples.
Hi-Tech Wealth Announces Approval of Solar Mobile Phone Patents
BEIJING, July 12 /PRNewswire-FirstCall/ -- Hi-Tech Wealth Inc. , a leading consumer sales and marketing company engaged in the development and distribution of proprietary and branded digital mobile devices, today announced that it has received four patents covering the Company's design of its recently launched Solar Mobile Phone. Hi-Tech Wealth launched the Solar Mobile Phone in May 2007.
"Over the past year, we have introduced unique digital mobile devices like the Information Security phone and, most recently, the Solar Mobile Phone. We are so pleased to expand our patent portfolio and protect the innovative features we create and ultimately market to China's niche consumer markets," stated Dr. ZhengYu Zhang, Chief Executive Officer and Chairman of Hi-Tech Wealth.
Today's announcement reflects the following patent awards:
-- Patent No.200620120875.6, which covers the Solar Mobile Phone's built-
in battery;
-- Patent No.200620120876.0, which covers the Solar Mobile Phone's
handheld design;
-- Patent No.200620148418.8, which covers the Solar Mobile Phone's
handheld design;
-- and Patent No.200620148417.3, which covers the Solar Mobile Phone's
handheld design.
Dr. Zhang concluded, "We have several additional patent applications pending and we'll continue to pursue enhancing our patent portfolio to seek protection for our distinctive features and devices."
About Hi-Tech Wealth Inc.
With over two million of the Company's "Shang Wu Tong" branded mobile devices sold in China today, Hi-Tech Wealth Inc. is an integrated, multi- channel consumer sales and marketing company. Hi-Tech Wealth Inc. engages in the development and distribution of proprietary and branded digital mobile devices via direct response TV, internet sales, and through more than 1000 exclusive distributors throughout the PRC. Learn more about Hi-Tech Wealth Inc. at http://www.htwchina.com.
"Over the past year, we have introduced unique digital mobile devices like the Information Security phone and, most recently, the Solar Mobile Phone. We are so pleased to expand our patent portfolio and protect the innovative features we create and ultimately market to China's niche consumer markets," stated Dr. ZhengYu Zhang, Chief Executive Officer and Chairman of Hi-Tech Wealth.
Today's announcement reflects the following patent awards:
-- Patent No.200620120875.6, which covers the Solar Mobile Phone's built-
in battery;
-- Patent No.200620120876.0, which covers the Solar Mobile Phone's
handheld design;
-- Patent No.200620148418.8, which covers the Solar Mobile Phone's
handheld design;
-- and Patent No.200620148417.3, which covers the Solar Mobile Phone's
handheld design.
Dr. Zhang concluded, "We have several additional patent applications pending and we'll continue to pursue enhancing our patent portfolio to seek protection for our distinctive features and devices."
About Hi-Tech Wealth Inc.
With over two million of the Company's "Shang Wu Tong" branded mobile devices sold in China today, Hi-Tech Wealth Inc. is an integrated, multi- channel consumer sales and marketing company. Hi-Tech Wealth Inc. engages in the development and distribution of proprietary and branded digital mobile devices via direct response TV, internet sales, and through more than 1000 exclusive distributors throughout the PRC. Learn more about Hi-Tech Wealth Inc. at http://www.htwchina.com.
Thursday, July 12, 2007
China Sunergy rises on patent announcement
July 12, 2007
The week's solar stock euphoria continued with an announcement today from China Sunergy (NASDAQ: CSUN) that it has received patent approval on a new N-type solar cell.
Shares of China Sunergy are up 5 percent, or $0.64, to $11.80 this morning. The stock had slid the last two weeks from its post-IPO high of almost $14。
The State Intellectual Property Office of The People's Republic Of China ("SIPO") approved a patent for 20 years on the company's new N-cell design.
China Sunergy commericalizes both P and N-type materials, both of them traditionally used in "p-n junction" solar cells, the most common sort of solar cell.
China Sunergy has also submitted a patent application to SIPO for P-type selective emitter cell technology and expects approval in 2009.
''Our strong new product pipeline, which will include P-type selective emitter cells and N-type cells, and the exciting progress in commercializing the former, is giving us confidence that we will be one of the technology leaders in the years ahead. Furthermore, this will also help us address the raw material supply tightness that the industry is experiencing at the moment," said Tingxiu Lu, Chairman and CEO of China Sunergy.
China Sunergy sells solar cell products to Chinese and other module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets.
It's been a generally great week for Asian and other solar stocks, with customer wins and other positive news driving many in the sector upwards
The week's solar stock euphoria continued with an announcement today from China Sunergy (NASDAQ: CSUN) that it has received patent approval on a new N-type solar cell.
Shares of China Sunergy are up 5 percent, or $0.64, to $11.80 this morning. The stock had slid the last two weeks from its post-IPO high of almost $14。
The State Intellectual Property Office of The People's Republic Of China ("SIPO") approved a patent for 20 years on the company's new N-cell design.
China Sunergy commericalizes both P and N-type materials, both of them traditionally used in "p-n junction" solar cells, the most common sort of solar cell.
China Sunergy has also submitted a patent application to SIPO for P-type selective emitter cell technology and expects approval in 2009.
''Our strong new product pipeline, which will include P-type selective emitter cells and N-type cells, and the exciting progress in commercializing the former, is giving us confidence that we will be one of the technology leaders in the years ahead. Furthermore, this will also help us address the raw material supply tightness that the industry is experiencing at the moment," said Tingxiu Lu, Chairman and CEO of China Sunergy.
China Sunergy sells solar cell products to Chinese and other module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets.
It's been a generally great week for Asian and other solar stocks, with customer wins and other positive news driving many in the sector upwards
Baoding, China: Yingli Green Energy Wins Spanish Sales Contract
July 2, 2007
Yingli Green Energy, a vertically integrated photovoltaic, or PV, product manufacturer in China, has entered into a sales contract with Control y Montages Industriales CYMI S.A. ("CYMI") to supply 9.55 megawatts of PV modules to CYMI in 2007.
Mr. Liansheng Miao, the chairman and CEO of Yingli Green Energy, commented, "We are very pleased to announce this significant transaction in Spain, which further solidifies our market position and grows our market share in Spain, one of our most important markets, and demonstrates our capability in expanding our reach into the southern European markets as a result of increasing recognition of our brand and product quality. Due to the country's favorable feed-in tariffs and significant exposure to sunshine throughout the year, the PV market in Spain has grown rapidly in recent years. We believe that this will likely continue to provide us with opportunities."
Yingli Green Energy Holding Company Limited, through Baoding Tianwei Yingli New Energy Resources Co., Ltd., its principal operating subsidiary based in China, Yingli Green Energy designs, manufactures and sells PV modules, and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With an annual production capacity of 95 megawatts of polysilicon ingots and wafers, 90 megawatts of PV cells and 100 megawatts of PV modules as of today.
Yingli Green Energy, a vertically integrated photovoltaic, or PV, product manufacturer in China, has entered into a sales contract with Control y Montages Industriales CYMI S.A. ("CYMI") to supply 9.55 megawatts of PV modules to CYMI in 2007.
Mr. Liansheng Miao, the chairman and CEO of Yingli Green Energy, commented, "We are very pleased to announce this significant transaction in Spain, which further solidifies our market position and grows our market share in Spain, one of our most important markets, and demonstrates our capability in expanding our reach into the southern European markets as a result of increasing recognition of our brand and product quality. Due to the country's favorable feed-in tariffs and significant exposure to sunshine throughout the year, the PV market in Spain has grown rapidly in recent years. We believe that this will likely continue to provide us with opportunities."
Yingli Green Energy Holding Company Limited, through Baoding Tianwei Yingli New Energy Resources Co., Ltd., its principal operating subsidiary based in China, Yingli Green Energy designs, manufactures and sells PV modules, and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With an annual production capacity of 95 megawatts of polysilicon ingots and wafers, 90 megawatts of PV cells and 100 megawatts of PV modules as of today.
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