- JV Enhances Presence and Solar Opportunities in U.S. Market -
MENLO PARK, Calif., April 28 /PRNewswire-Asia-FirstCall/ -- Solar EnerTech Corp. (OTC Bulletin Board: SOEN) (the "Company") today announced the establishment of a joint venture with Jiangsu Shunda Semiconductor Development Co. Ltd. ("Jiangsu Shunda"), a leading PV raw material manufacturer, to pursue solar expansion opportunities in the U.S. region.
Jiangsu Shunda is one of the largest polysilicon and wafer manufacturers in China, with an annual production output of approximately 1,500 metric tons of polysilicon.
The U.S. JV company, which will be called Shunda-SolarE Technologies, Inc., is expected to begin operating in early May of 2009. The joint venture is expected to utilize Jiangsu Shunda's strength in polysilicon and wafer supply and Solar EnerTech's advanced solar cell technologies as well as its resources in the U.S. market. Overall, both parties believe the joint venture establishes a vertically integrated operation in the U.S. market with services ranging from the production of polysilicon to ingots and wafers, to solar cells, panels and solar system installation.
Jiangsu Shunda and Solar EnerTech contributed $1.0 million and $0.7 million in cash respectively to the initial setup cost of the JV. Jiangsu Shunda will own 55% of the JV company, Solar EnerTech will own 35% and the management of the JV will own the remaining 10%. Mr. Yunda Ni, President of Jiangsu Shunda will serve as the JV Chairman of the Board, Mr. Leo Young, CEO of Solar EnerTech will serve as the Board's Vice Chairman. The Board of Directors will be comprised of five seats, three of which will be reserved for Jiangsu Shunda and two for Solar EnerTech. A Chief Executive Officer of Shunda-SolarE Technologies is expected to be identified in the near future.
Mr. Leo Young, CEO of Solar EnerTech, commented, "We are extremely pleased to establish this joint venture with Jiangsu Shunda, a highly successful polysilicon manufacturer in China. We have a compelling opportunity to penetrate the U.S. market with the establishment of this JV. Solar EnerTech has strong R&D capabilities supported by an outstanding technical team, and a fully operational U.S. office governed by experienced management whereas Jiangsu Shunda maintains a UL listing, which is instrumental in conducting large scale operations in the U.S. market, and controls the upstream supply which can provide large volumes of silicon feedstock to the JV in order to secure sizeable contract orders in the growing U.S. market. Together, we can more easily penetrate U.S. solar opportunities and establish Shunda-SolarE as a leading brand recognized for high quality solar products and service. We plan on providing investors with additional information on this JV in the coming weeks and months ahead."
Mr. Ni, President of Jiangsu Shunda commented, "The goal of this joint venture is to build market share in the U.S. and maximize profitability. There is great synergy between both companies as well as with myself and Leo. Together, we believe we have an excellent opportunity to expand our market presence in the U.S. We look forward to a successful venture together."
Additional information on this joint venture can be found in the Company's filing with the SEC.
About Jiangsu Shunda
Based in Yangzhou, China, JiangSu Shunda Group focuses on the photovoltaic market and produces polysilicon, monocrystalline ingots, and wafers. With an annual production output of approximately 1,500 metric tons of polysilicon, Jiangsu Shunda Semiconductor is one of the largest polysilicon and wafer manufacturers in China.
About Solar EnerTech Corp.
Solar EnerTech is a photovoltaic ("PV") solar energy cell manufacturing enterprise incorporated in the United States with its corporate office in Menlo Park, California. The Company has established a sophisticated 63,000 square foot manufacturing plant located in China, in Shanghai's Jinqiao Modern Technology Park. Currently, the Company is capable of producing 50MW of solar cells from its existing production line.
Solar EnerTech has also established a Joint R&D Lab at Shanghai University to develop higher efficiency cells and to put the results of that research to use in its manufacturing processes. Led by one of the industry's top scientists, the Company expects its R&D program to help bring Solar EnerTech to the forefront of advanced solar technology research and production.
Showing posts with label polysilicon. Show all posts
Showing posts with label polysilicon. Show all posts
Tuesday, April 28, 2009
Thursday, February 26, 2009
Suntech Reports Fourth Quarter and Full Year 2008 Financial Results
SAN FRANCISCO and WUXI, China, Feb. 18 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced financial results for the fourth quarter and full year ended December 31, 2008.
Fourth Quarter 2008 Financial Highlights(1)
-- Total net revenues grew 4.2% year-over-year to $414.4 million.
-- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
Excluding the provision for inventory and purchase commitments,
adjusted non-GAAP consolidated gross margin in the fourth quarter
was 13.1%.
-- GAAP net loss was $65.9 million, or negative $0.42 per diluted
American Depository Share (ADS). On a non-GAAP basis, Suntech's net
loss was $42.4 million, or negative $0.27 per diluted ADS. Each ADS
represents one ordinary share.
-- Net debt decreased by $273.7 million to $1,117.8 million as of
December 31, 2008.
Full Year 2008 Financial Highlights(1)
-- Total net revenues grew 42.7% year-over-year to $1,923.5 million.
-- Full year 2008 total shipments of solar products grew 36.0%
year-over-year to 497.5 MW.
-- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.
-- GAAP net income for the full year was $111.0 million or $0.66 per
ADS. On a non-GAAP basis, Suntech's net income for the full year was
$149.7 million or $0.89 per diluted ADS.
-- Achieved 1GW solar cell and module production capacity.
"Customer recognition of Suntech's high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "During 2008, we bolstered our on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."
"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."
"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech's reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.
RECENT BUSINESS HIGHLIGHTS
Silicon Procurement
-- Suntech and MEMC Electronic Materials amended their 10-year silicon
wafer supply agreement. As amended, the dollar value of silicon
wafer purchases from MEMC remains unchanged, but a volume increase
and a price reduction for 2009 have been effectuated.
-- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
independent polysilicon producer, for a total cash consideration of
approximately $8.1 million. Suntech previously entered into an
agreement to purchase up to $1.5 billion high purity polysilicon
from Asia Silicon over a seven-year period. Polysilicon cost
decreases to less than $40 per kilogram during the term of the
agreement.
Notable PV Projects
-- Suntech was chosen to design and construct a BIPV system totaling
3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
The project will be the largest BIPV installation in China.
-- Suntech supplied 5MW of Suntech solar panels for the largest solar
plant in the Middle East, a 10MW solar electricity system to power
Masdar City, the world's first carbon neutral city being built in
Abu Dhabi, United Arab Emirates. The solar system is being built and
designed by leading Abu Dhabi based solar power system integrator,
Enviromena Power Systems.
Product Offering Expansion
-- Suntech entered into an exclusive agreement giving Suntech rights
related to the worldwide manufacturing, distribution and marketing
of Applied Solar's building integrated solar roof tile product,
SolarBlend(TM), and roof membrane product, SolarEze(TM). The
agreements combine Suntech's industry-leading products with Applied
Solar's innovative BIPV applications to provide a more comprehensive
set of product offerings to the residential and commercial market.
U.S. Dealer Network
-- Suntech continued expanding its dealer network of residential
rooftop installers and integrators in the U.S. Currently, Suntech's
network includes over 100 dealers, up from 30 at the end of the
third quarter of 2008.
Technology
-- Suntech has a fully operational 34MW Pluto PV cell line and is in
the process of adding another 68MW of Pluto capacity. Suntech
expects to receive industry certification for Pluto PV modules in
the second quarter of 2009 and targets shipments of more than 50MW
of Pluto modules in 2009.
-- The Pluto high efficiency technology consistently achieves
conversion efficiencies of close to 17% on multi-crystalline PV
cells and close to 19% on mono-crystalline PV cells. Suntech
anticipates that the higher conversion efficiencies will improve
power output by up to 12% above conventional screen-printed PV cells,
enable improved space utilization and reduce installation and other
balance of system costs.
Convertible Senior Note Repurchase
-- Through December 31, 2008, Suntech repurchased $93.8 million
aggregate principal amount of its 0.25% Convertible Senior Notes due
2012 for cash consideration of $61.0 million. As a result, Suntech
realized a net gain of approximately $31.1 million.
Capital and Credit Facilities
-- Suntech had approximately $2.4 billion of approved credit lines to
be used for fixed asset purchase, working capital or trade financing
as of December 31, 2008. Of these credit facilities approximately
$1.2 billion had been drawn down as of December 31, 2008. Suntech
expects that its capital will be sufficient to cover its capital
expenditures in 2009 while maintaining adequate working capital to
support its operations.
Fourth Quarter 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard PV Modules $382.6 92.3 % $11.4 3.0 %
Others $31.8 7.7 % ($7.8) (24.0%)
Total Net Revenues $414.4 100 % $3.6 0.9 %
Provision for
inventory and
purchase
commitment $50.7 12.2 %
Adjusted Non-GAAP
Gross Profit $54.3 13.1 %
Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.
Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.
Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non- GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.
Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.
Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.
Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.
In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate.
Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.
Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech's investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.
Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.
On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.
On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.
In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.
Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short- term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.
Restricted cash was $70.7 million as of December 31, 2008.
Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.
Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.
Full Year 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard $1,785.8 92.8 % $343.8 19.3 %
PV
Modules
Others $137.7 7.2 % $5.7 4.1 %
Total Net $1,923.5 100 % $349.5 18.2 %
Revenues
Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.
On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.
On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over- year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.
In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.
Business Outlook
Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.
Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.
Fourth Quarter 2008 Financial Highlights(1)
-- Total net revenues grew 4.2% year-over-year to $414.4 million.
-- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
Excluding the provision for inventory and purchase commitments,
adjusted non-GAAP consolidated gross margin in the fourth quarter
was 13.1%.
-- GAAP net loss was $65.9 million, or negative $0.42 per diluted
American Depository Share (ADS). On a non-GAAP basis, Suntech's net
loss was $42.4 million, or negative $0.27 per diluted ADS. Each ADS
represents one ordinary share.
-- Net debt decreased by $273.7 million to $1,117.8 million as of
December 31, 2008.
Full Year 2008 Financial Highlights(1)
-- Total net revenues grew 42.7% year-over-year to $1,923.5 million.
-- Full year 2008 total shipments of solar products grew 36.0%
year-over-year to 497.5 MW.
-- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.
-- GAAP net income for the full year was $111.0 million or $0.66 per
ADS. On a non-GAAP basis, Suntech's net income for the full year was
$149.7 million or $0.89 per diluted ADS.
-- Achieved 1GW solar cell and module production capacity.
"Customer recognition of Suntech's high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "During 2008, we bolstered our on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."
"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."
"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech's reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.
RECENT BUSINESS HIGHLIGHTS
Silicon Procurement
-- Suntech and MEMC Electronic Materials amended their 10-year silicon
wafer supply agreement. As amended, the dollar value of silicon
wafer purchases from MEMC remains unchanged, but a volume increase
and a price reduction for 2009 have been effectuated.
-- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
independent polysilicon producer, for a total cash consideration of
approximately $8.1 million. Suntech previously entered into an
agreement to purchase up to $1.5 billion high purity polysilicon
from Asia Silicon over a seven-year period. Polysilicon cost
decreases to less than $40 per kilogram during the term of the
agreement.
Notable PV Projects
-- Suntech was chosen to design and construct a BIPV system totaling
3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
The project will be the largest BIPV installation in China.
-- Suntech supplied 5MW of Suntech solar panels for the largest solar
plant in the Middle East, a 10MW solar electricity system to power
Masdar City, the world's first carbon neutral city being built in
Abu Dhabi, United Arab Emirates. The solar system is being built and
designed by leading Abu Dhabi based solar power system integrator,
Enviromena Power Systems.
Product Offering Expansion
-- Suntech entered into an exclusive agreement giving Suntech rights
related to the worldwide manufacturing, distribution and marketing
of Applied Solar's building integrated solar roof tile product,
SolarBlend(TM), and roof membrane product, SolarEze(TM). The
agreements combine Suntech's industry-leading products with Applied
Solar's innovative BIPV applications to provide a more comprehensive
set of product offerings to the residential and commercial market.
U.S. Dealer Network
-- Suntech continued expanding its dealer network of residential
rooftop installers and integrators in the U.S. Currently, Suntech's
network includes over 100 dealers, up from 30 at the end of the
third quarter of 2008.
Technology
-- Suntech has a fully operational 34MW Pluto PV cell line and is in
the process of adding another 68MW of Pluto capacity. Suntech
expects to receive industry certification for Pluto PV modules in
the second quarter of 2009 and targets shipments of more than 50MW
of Pluto modules in 2009.
-- The Pluto high efficiency technology consistently achieves
conversion efficiencies of close to 17% on multi-crystalline PV
cells and close to 19% on mono-crystalline PV cells. Suntech
anticipates that the higher conversion efficiencies will improve
power output by up to 12% above conventional screen-printed PV cells,
enable improved space utilization and reduce installation and other
balance of system costs.
Convertible Senior Note Repurchase
-- Through December 31, 2008, Suntech repurchased $93.8 million
aggregate principal amount of its 0.25% Convertible Senior Notes due
2012 for cash consideration of $61.0 million. As a result, Suntech
realized a net gain of approximately $31.1 million.
Capital and Credit Facilities
-- Suntech had approximately $2.4 billion of approved credit lines to
be used for fixed asset purchase, working capital or trade financing
as of December 31, 2008. Of these credit facilities approximately
$1.2 billion had been drawn down as of December 31, 2008. Suntech
expects that its capital will be sufficient to cover its capital
expenditures in 2009 while maintaining adequate working capital to
support its operations.
Fourth Quarter 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard PV Modules $382.6 92.3 % $11.4 3.0 %
Others $31.8 7.7 % ($7.8) (24.0%)
Total Net Revenues $414.4 100 % $3.6 0.9 %
Provision for
inventory and
purchase
commitment $50.7 12.2 %
Adjusted Non-GAAP
Gross Profit $54.3 13.1 %
Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.
Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.
Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non- GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.
Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.
Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.
Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.
In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate.
Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.
Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech's investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.
Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.
On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.
On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.
In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.
Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short- term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.
Restricted cash was $70.7 million as of December 31, 2008.
Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.
Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.
Full Year 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard $1,785.8 92.8 % $343.8 19.3 %
PV
Modules
Others $137.7 7.2 % $5.7 4.1 %
Total Net $1,923.5 100 % $349.5 18.2 %
Revenues
Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.
On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.
On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over- year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.
In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.
Business Outlook
Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.
Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.
Tuesday, February 24, 2009
Yingli Green Energy Reports Fourth Quarter and Full Year 2008 Results
BAODING, China, Feb. 10 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) (''Yingli Green Energy'' or the ''Company''), one of the world's leading vertically integrated photovoltaic (''PV'') product manufacturers, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2008.
Fourth Quarter 2008 Consolidated Financial and Operating Highlights
-- PV module shipments totaled 78.8 MW.
-- Total net revenues were RMB 1,761.2 million (US$258.1 million).
-- Gross profit was RMB 232.9 million (US$34.1 million) and gross margin
was 13.2%.
-- Operating income was RMB 97.8 million (US$14.3 million) and operating
margin was 5.6%.
-- Net income was RMB 100.6 million (US$14.7 million) and diluted earnings
per ordinary share and per American depositary share (''ADS'') were
RMB 0.79 (US$0.12).
-- On an adjusted non-GAAP(1) basis, net income was RMB 126.8 million
(US$18.6 million) and diluted earnings per ordinary share and per ADS
were RMB 0.99 (US$0.15).
Full Year 2008 Consolidated Financial and Operating Highlights
-- PV module shipments were 281.5 MW, compared to the Company's previous
guidance of 270 MW to 280 MW.
-- Total net revenues were RMB 7,553.0 million (US$1,107.1 million),
compared to the Company's previous guidance of US$1,053 million to
US$1,106 million.
-- Gross profit was RMB 1,629.6 million (US$238.9 million).
-- Net income was RMB 682.1 million (US$100.0 million) and fully diluted
earnings per ordinary share and per ADS were RMB 5.27 (US$0.77).
-- On an adjusted non-GAAP(1) basis, net income for the full year 2008 was
RMB 782.8 million (US$114.7 million) and fully diluted earnings per
ordinary share and per ADS were RMB 6.04 (US$0.89).
-- New sales contracts bring total PV module sales under contract for
delivery in 2009 to 317.4 MW.
(1) All non-GAAP measures exclude share-based compensation and
amortization of intangible assets arising from purchase price
allocation in connection with a series of acquisitions of equity
interest in Baoding Tianwei Yingli New Energy Resources Co., Ltd.
(''Tianwei Yingli''), an operating subsidiary of the Company. For
further details on non-GAAP measures, please refer to the
reconciliation table and a detailed discussion of the Company's use of
non-GAAP information set forth elsewhere in this earnings release.
''In spite of difficult global economic and market conditions, we are pleased to report that we exceeded our shipment volume and total net revenue targets for the full year 2008,'' commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. ''We continue to see the benefits of our vertically integrated model, which allows us to bring our high quality modules to market at competitive prices, and believe that Yingli Green Energy is well-positioned to capture additional market share in 2009. To further enhance our position in the increasingly competitive PV industry, we will continue pursuing initiatives to enhance our product quality, brand recognition and our sales and distribution channels around the world.''
''To strengthen our market presence and enhance our comprehensive customer service, we have established offices and subsidiaries in key markets including Germany, Spain, Italy and the United States. In addition, Yingli Green Energy entered into a long-term strategic cooperation with TUV Rheinland (Shanghai) Co., Ltd. Under the strategic partnership, TUV Rheinland will conduct periodic factory inspections to review production, testing and calibration procedures and assist Yingli Green Energy in certification planning and execution to support new product introductions, which will provide our customers with an additional level of quality assurance,'' Mr. Miao continued.
''Our recent acquisition of Cyber Power and its polysilicon manufacturing subsidiary, Fine Silicon, is a key step toward the full vertical integration of our manufacturing processes. We believe this acquisition will not only help us secure high quality polysilicon to meet our customers' demands for top quality PV products but will also help control and stabilize our polysilicon costs to improve our margins as well as further increase visibility to achieving grid parity,'' Mr. Miao continued.
''Furthermore, to be better positioned to face challenges during this economic downturn, we have been actively sourcing additional capital to support the execution of our strategic business plan and have recently completed a number of financing transactions with domestic and overseas financial institutions.''
''We remain confident in the long-term fundamentals of the solar industry and believe our steady progress towards grid parity, combined with the supportive renewable energy policies of major governments around the world, should position us to emerge as an even stronger player,'' Mr. Miao concluded.
Fourth Quarter 2008 Financial Results
Total Net Revenues
Total net revenues were RMB 1,761.2 million (US$258.1 million) in the fourth quarter of 2008, a decrease of 20.3% from RMB 2,209.8 million in the third quarter of 2008 and an increase of 21.2% from RMB 1,453.2 million in the fourth quarter of 2007. The decrease from the third quarter of 2008 was primarily due to a lower average selling price and slightly lower shipment volume. The average selling price for PV modules(2) in the fourth quarter of 2008 was US$3.19 per watt, a decrease of 21.0% from US$4.04 per watt in the third quarter of 2008. Total PV module shipments decreased 1.5% to 78.8 MW in the fourth quarter of 2008 from 80.0 MW in the third quarter of 2008. The decreases in both average selling price and shipments were mainly caused by weakened demand as the result of weakened macroeconomic conditions, including changes in the feed-in tariff policy in Spain and tighter credit for PV system project financing. Furthermore, as a majority of the Company's PV module shipments were under contracts denominated in Euros, average selling price was also negatively impacted by the depreciation of the Euro against the Renminbi in the fourth quarter of 2008.
(2) We compute average selling price of PV modules per watt for a given
period as the total sales of PV modules divided by the total watts of
the PV modules sold during such period, and translated into U.S.
dollars at the noon buying rate at the end of such period as certified
for customs purpose by the Federal Reserve Bank of New York.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2008 was RMB 232.9 million (US$34.1 million), a decrease of 52.7% from RMB 492.6 million in the third quarter of 2008 and a decrease of 35.2% from RMB 359.6 million in the fourth quarter of 2007. Gross margin was 13.2% in the fourth quarter of 2008, down from 22.3% in the third quarter of 2008 and 24.7% in the fourth quarter of 2007. The decrease in gross margin was primarily due to the decrease in the average selling price caused primarily by weakened macroeconomic conditions and the depreciation of the Euro against the Renminbi, and was partially offset by the reduced unit cost of PV modules resulting from lower cost of blended polysilicon in the fourth quarter of 2008 and lower polysilicon usage per watt achieved through the Company's continued research and development efforts.
Operating Expenses
Operating expenses in the fourth quarter of 2008 were RMB 135.1 million (US$19.8 million), compared to RMB 115.5 million in the third quarter of 2008 and RMB 92.6 million in the fourth quarter of 2007. Operating expenses as a percentage of total net revenues increased to 7.7% in the fourth quarter of 2008 from 5.2% in the third quarter of 2008 and 6.4% in the fourth quarter of 2007. The increase in operating expenses as a percentage of total net revenues was primarily attributable to higher research and development expenses, increased general and administrative expenses relating to financing transactions recognized in the fourth quarter of 2008, and decreased total net revenues.
Operating Income and Margin
Operating income in the fourth quarter of 2008 was RMB 97.8 million (US$14.3 million), a decrease of 74.1% from RMB 377.1 million in the third quarter of 2008 and a decrease of 63.4% from RMB 267.0 million in the fourth quarter of 2007. Operating margin decreased to 5.6% in the fourth quarter of 2008 from 17.1% in the third quarter of 2008 and 18.4% in the fourth quarter of 2007.
Interest Expense
Interest expense was RMB 48.5 million (US$7.1 million) in the fourth quarter of 2008, compared to RMB 31.6 million in the third quarter of 2008 and RMB 19.6 million in the fourth quarter of 2007. The increase in interest expense was consistent with both the increase in short-term borrowings from RMB 1,794.9 million as of September 30, 2008 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from RMB 340.9 million as of September 30, 2008 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in the fourth quarter of 2008 was 7.18%, which increased from 6.76% in the third quarter of 2008.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 68.7 million (US$10.1 million) in the fourth quarter of 2008, compared to a foreign currency exchange loss of RMB 133.1 million in the third quarter of 2008 and a foreign currency exchange loss of RMB 29.2 million in the fourth quarter of 2007. The foreign currency exchange gain in the fourth quarter of 2008 was primarily due to a gain of RMB 107.0 million from foreign currency forward contracts realized in the fourth quarter of 2008, which was partially offset by an exchange loss of RMB 38.3 million from foreign currency denominated transactions, primarily accounts receivables and raw material prepayments denominated in Euros, as the Euro depreciated by 3.41% against the Renminbi in the fourth quarter of 2008.
Income Tax Benefit (Expense)
Income tax benefit was RMB 17.0 million (US$2.5 million) in the fourth quarter of 2008, compared to RMB 0.2 million in the third quarter of 2008 and an income tax expense of RMB 15.3 million in the fourth quarter of 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli Energy (China) Co., Ltd (''Yingli China''), the Company's wholly-owned subsidiary, were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
As a result of the factors discussed above, net income was RMB 100.6 million (US$14.7 million) in the fourth quarter of 2008, a decrease of 33.3% from RMB 150.8 million in the third quarter of 2008 and a decrease of 27.3% from RMB 138.4 million in the fourth quarter of 2007. Diluted earnings per ordinary share and per ADS were RMB 0.79 (US$0.12) in the fourth quarter of 2008, compared to RMB 1.17 in the third quarter of 2008.
On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, an operating subsidiary of the Company, net income was RMB 126.8 million (US$18.6 million) in the fourth quarter of 2008, down 27.7% from RMB 175.3 million in the third quarter of 2008. Adjusted non-GAAP diluted earnings per ordinary share and per ADS were RMB 0.99 (US$0.15) in the fourth quarter of 2008, compared to RMB 1.35 in the third quarter of 2008.
Balance Sheet Analysis
As of December 31, 2008, Yingli Green Energy had RMB 1,108.9 million (US$162.5 million) in cash and RMB 3,224.1 million (US$472.6 million) in working capital, compared to RMB 737.1 million in cash and RMB 3,372.8 million in working capital as of September 30, 2008. Short-term borrowings increased from RMB 1,794.9 million in the third quarter of 2008 to RMB 2,044.2 million (US$299.6 million) in the fourth quarter of 2008. Long-term bank borrowings increased from RMB 340.9 million in the third quarter of 2008 to RMB 663.0 million (US$97.2 million) in the fourth quarter of 2008. As of the date of this press release, the Company had approximately RMB 4,545 million in authorized lines of credit, of which RMB 3,040 million had been utilized. Days sales outstanding was 75 days in the fourth quarter of 2008, compared to 48 days in the third quarter of 2008, primarily as a result of weakened macroeconomic conditions.
Full Year 2008 Results
Total Net Revenues
Total net revenues for the full year 2008 were RMB 7,553.0 million (US$1,107.1 million), which increased by 86.1% from RMB 4,059.3 million in the year of 2007. The increase was primarily due to a significant rise in total shipments of PV modules, which increased to 281.5 MW in 2008 from 142.5 MW in 2007. The increase in total shipments was primarily due to the Company's expanded sales and marketing efforts in Europe, supported by the completion of an additional 200 MW of total production capacity of polysilicon ingots and wafers, PV cells and PV modules in September 2008. The average selling price for PV modules for the full year 2008 was US$3.88 per watt, slightly higher than US$3.86 per watt in 2007.
Gross Profit and Margin
Gross profit for the full year 2008 was RMB 1,629.6 million (US$238.9 million), which increased by 70.3% from RMB 956.8 million in the year of 2007. Gross margin was 21.6% for the full year 2008, compared to 23.6% in 2007. The decrease in gross margin for the full year 2008 was primarily due to the lower gross margin in the fourth quarter of 2008, which was the result of significantly weakened macroeconomic conditions in the fourth quarter of 2008 and the depreciation of the Euro and the U.S. dollar against the Renminbi.
Operating Expenses
Operating expenses for the full year 2008 were RMB 476.3 million (US$69.8 million), an increase of 71.8% from RMB 277.3 million in 2007. The increase in operating expenses was primarily due to higher research and development expenses and increased marketing and promotional efforts resulting from the Company's expanded scale of operations. Operating expenses as a percentage of revenue decreased to 6.3% in the full year 2008 from 6.8% in the year of 2007, primarily due to economies of scale and better control of sales and marketing expenses and general and administrative expenses.
Interest Expense
Interest expense for the full year 2008 was RMB 149.2 million (US$21.9 million), an increase of 130.1% from RMB 64.8 million in 2007. The increase in interest expense was consistent with the increase in short-term borrowings from RMB 1,261.3 million as of December 31, 2007 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from nil as of December 31, 2007 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in 2008 was 6.61%, which increased from 5.97% in 2007.
Income Tax Benefit (Expense)
Income tax benefit was RMB 19.5 million (US$2.9 million) for the full year 2008, compared to an income tax expense of RMB 12.9 million for the full year 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli China were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
Net income was RMB 682.1 million (US$100.0 million) and fully diluted earnings per ordinary share and per ADS were RMB 5.27 (US$0.77) for the full year 2008.
On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, net income was RMB 782.8 million (US$114.7 million) for the full year 2008. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS were RMB 6.04 (US$0.89) for the full year 2008.
Fourth Quarter 2008 and Recent Business Highlights
Sales
-- As of the date of this press release, the Company had signed sales
contracts for the delivery of approximately 317.4 MW of PV modules in
2009.
Financing
-- Yingli China entered into a credit agreement with a fund managed by
Asia Debt Management Hong Kong Limited for a three-year loan facility
of up to US$80.0 million.
-- In connection with its acquisition of Cyber Power, the Company
committed to issue senior secured convertible notes totaling up to
US$50.0 million to Trustbridge Partners II, L.P., US$20.0 million of
which has been issued.
-- Yingli China entered into an eight-year US$70 million loan agreement
with China Development Bank.
-- Tianwei Yingli entered into a new credit line trade finance facility
agreement with the Export-Import Bank of China ("China Eximbank"),
which brought the aggregate credit line available from China Eximbank
to RMB 1.0 billion or its U.S. dollar equivalent.
-- Long term credit facility agreement, entered into with DEG - Deutsche
Investitions - und Entwicklungsgesellschaft mbH and the Netherlands
Development Finance Company, expanded to US$75 million with the
inclusion of The Societe de Promotion et de Participation pour la
Cooperation Economique to the lending group.
Others
-- Appointment of a new Chief Technology Officer, Dr. Dengyuan Song, who
has more than 27 years of experience in the research and development of
photovoltaic cells, silicon materials and semiconductor PV devices.
-- Tianwei Yingli and Yingli China were recognized by the Chinese
government as ''High and New Technology Enterprises'' entitled to a
preferential enterprise income tax rate of 15% for three years under
the PRC Enterprise Income Tax Law.
-- Completion of US$77.6 million acquisition of Cyber Power Group Limited,
which, through its principal operating subsidiary in China, Fine
Silicon Co., Ltd., plans to begin production of solar-grade polysilicon
in the second half of 2009.
-- Appointment of a new Vice President of Technology, Mr. Jingfeng Xiong,
a highly respected executive and engineer with a wealth of theoretical
knowledge and practical experience in research and development and
manufacturing at Yingli Green Energy.
-- Entered into memorandum of understanding with TUV Rheinland (Shanghai)
Co., Ltd. to form a strategic partnership covering a range of quality
control initiatives at the Company.
Business Outlook for Full Year 2009
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company reaffirms that its PV module shipment target is expected to be in the estimated range of 550 MW to 600 MW for fiscal year 2009, which represents an increase of 96.1% to 113.9% compared to fiscal year 2008, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the Company's mid- to long-term virgin polysilicon supply agreements, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average selling price of PV modules and further depreciation of the Euro against the U.S. dollar, the Company currently expects that its gross margin target for fiscal year 2009 to be in the estimated range of 22% to 24%.
Non-GAAP Financial Measures
To supplement the financial measures calculated in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes certain non-GAAP financial measures of adjusted net income and adjusted diluted earnings per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, an operating subsidiary of the Company. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such items are not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non- GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars for the fourth quarter and full year 2008 in this earnings release, made solely for the purpose of reader's convenience, is based on the noon buying rate in the New York City for cable transfers of Renminbi as certified for customs purpose by the Federal Reserve Bank of New York as of December 31, 2008, which was RMB 6.8225 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at such rate, or at any other rate. The percentages stated in this earnings release are calculated based on Renminbi.
Fourth Quarter 2008 Consolidated Financial and Operating Highlights
-- PV module shipments totaled 78.8 MW.
-- Total net revenues were RMB 1,761.2 million (US$258.1 million).
-- Gross profit was RMB 232.9 million (US$34.1 million) and gross margin
was 13.2%.
-- Operating income was RMB 97.8 million (US$14.3 million) and operating
margin was 5.6%.
-- Net income was RMB 100.6 million (US$14.7 million) and diluted earnings
per ordinary share and per American depositary share (''ADS'') were
RMB 0.79 (US$0.12).
-- On an adjusted non-GAAP(1) basis, net income was RMB 126.8 million
(US$18.6 million) and diluted earnings per ordinary share and per ADS
were RMB 0.99 (US$0.15).
Full Year 2008 Consolidated Financial and Operating Highlights
-- PV module shipments were 281.5 MW, compared to the Company's previous
guidance of 270 MW to 280 MW.
-- Total net revenues were RMB 7,553.0 million (US$1,107.1 million),
compared to the Company's previous guidance of US$1,053 million to
US$1,106 million.
-- Gross profit was RMB 1,629.6 million (US$238.9 million).
-- Net income was RMB 682.1 million (US$100.0 million) and fully diluted
earnings per ordinary share and per ADS were RMB 5.27 (US$0.77).
-- On an adjusted non-GAAP(1) basis, net income for the full year 2008 was
RMB 782.8 million (US$114.7 million) and fully diluted earnings per
ordinary share and per ADS were RMB 6.04 (US$0.89).
-- New sales contracts bring total PV module sales under contract for
delivery in 2009 to 317.4 MW.
(1) All non-GAAP measures exclude share-based compensation and
amortization of intangible assets arising from purchase price
allocation in connection with a series of acquisitions of equity
interest in Baoding Tianwei Yingli New Energy Resources Co., Ltd.
(''Tianwei Yingli''), an operating subsidiary of the Company. For
further details on non-GAAP measures, please refer to the
reconciliation table and a detailed discussion of the Company's use of
non-GAAP information set forth elsewhere in this earnings release.
''In spite of difficult global economic and market conditions, we are pleased to report that we exceeded our shipment volume and total net revenue targets for the full year 2008,'' commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. ''We continue to see the benefits of our vertically integrated model, which allows us to bring our high quality modules to market at competitive prices, and believe that Yingli Green Energy is well-positioned to capture additional market share in 2009. To further enhance our position in the increasingly competitive PV industry, we will continue pursuing initiatives to enhance our product quality, brand recognition and our sales and distribution channels around the world.''
''To strengthen our market presence and enhance our comprehensive customer service, we have established offices and subsidiaries in key markets including Germany, Spain, Italy and the United States. In addition, Yingli Green Energy entered into a long-term strategic cooperation with TUV Rheinland (Shanghai) Co., Ltd. Under the strategic partnership, TUV Rheinland will conduct periodic factory inspections to review production, testing and calibration procedures and assist Yingli Green Energy in certification planning and execution to support new product introductions, which will provide our customers with an additional level of quality assurance,'' Mr. Miao continued.
''Our recent acquisition of Cyber Power and its polysilicon manufacturing subsidiary, Fine Silicon, is a key step toward the full vertical integration of our manufacturing processes. We believe this acquisition will not only help us secure high quality polysilicon to meet our customers' demands for top quality PV products but will also help control and stabilize our polysilicon costs to improve our margins as well as further increase visibility to achieving grid parity,'' Mr. Miao continued.
''Furthermore, to be better positioned to face challenges during this economic downturn, we have been actively sourcing additional capital to support the execution of our strategic business plan and have recently completed a number of financing transactions with domestic and overseas financial institutions.''
''We remain confident in the long-term fundamentals of the solar industry and believe our steady progress towards grid parity, combined with the supportive renewable energy policies of major governments around the world, should position us to emerge as an even stronger player,'' Mr. Miao concluded.
Fourth Quarter 2008 Financial Results
Total Net Revenues
Total net revenues were RMB 1,761.2 million (US$258.1 million) in the fourth quarter of 2008, a decrease of 20.3% from RMB 2,209.8 million in the third quarter of 2008 and an increase of 21.2% from RMB 1,453.2 million in the fourth quarter of 2007. The decrease from the third quarter of 2008 was primarily due to a lower average selling price and slightly lower shipment volume. The average selling price for PV modules(2) in the fourth quarter of 2008 was US$3.19 per watt, a decrease of 21.0% from US$4.04 per watt in the third quarter of 2008. Total PV module shipments decreased 1.5% to 78.8 MW in the fourth quarter of 2008 from 80.0 MW in the third quarter of 2008. The decreases in both average selling price and shipments were mainly caused by weakened demand as the result of weakened macroeconomic conditions, including changes in the feed-in tariff policy in Spain and tighter credit for PV system project financing. Furthermore, as a majority of the Company's PV module shipments were under contracts denominated in Euros, average selling price was also negatively impacted by the depreciation of the Euro against the Renminbi in the fourth quarter of 2008.
(2) We compute average selling price of PV modules per watt for a given
period as the total sales of PV modules divided by the total watts of
the PV modules sold during such period, and translated into U.S.
dollars at the noon buying rate at the end of such period as certified
for customs purpose by the Federal Reserve Bank of New York.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2008 was RMB 232.9 million (US$34.1 million), a decrease of 52.7% from RMB 492.6 million in the third quarter of 2008 and a decrease of 35.2% from RMB 359.6 million in the fourth quarter of 2007. Gross margin was 13.2% in the fourth quarter of 2008, down from 22.3% in the third quarter of 2008 and 24.7% in the fourth quarter of 2007. The decrease in gross margin was primarily due to the decrease in the average selling price caused primarily by weakened macroeconomic conditions and the depreciation of the Euro against the Renminbi, and was partially offset by the reduced unit cost of PV modules resulting from lower cost of blended polysilicon in the fourth quarter of 2008 and lower polysilicon usage per watt achieved through the Company's continued research and development efforts.
Operating Expenses
Operating expenses in the fourth quarter of 2008 were RMB 135.1 million (US$19.8 million), compared to RMB 115.5 million in the third quarter of 2008 and RMB 92.6 million in the fourth quarter of 2007. Operating expenses as a percentage of total net revenues increased to 7.7% in the fourth quarter of 2008 from 5.2% in the third quarter of 2008 and 6.4% in the fourth quarter of 2007. The increase in operating expenses as a percentage of total net revenues was primarily attributable to higher research and development expenses, increased general and administrative expenses relating to financing transactions recognized in the fourth quarter of 2008, and decreased total net revenues.
Operating Income and Margin
Operating income in the fourth quarter of 2008 was RMB 97.8 million (US$14.3 million), a decrease of 74.1% from RMB 377.1 million in the third quarter of 2008 and a decrease of 63.4% from RMB 267.0 million in the fourth quarter of 2007. Operating margin decreased to 5.6% in the fourth quarter of 2008 from 17.1% in the third quarter of 2008 and 18.4% in the fourth quarter of 2007.
Interest Expense
Interest expense was RMB 48.5 million (US$7.1 million) in the fourth quarter of 2008, compared to RMB 31.6 million in the third quarter of 2008 and RMB 19.6 million in the fourth quarter of 2007. The increase in interest expense was consistent with both the increase in short-term borrowings from RMB 1,794.9 million as of September 30, 2008 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from RMB 340.9 million as of September 30, 2008 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in the fourth quarter of 2008 was 7.18%, which increased from 6.76% in the third quarter of 2008.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 68.7 million (US$10.1 million) in the fourth quarter of 2008, compared to a foreign currency exchange loss of RMB 133.1 million in the third quarter of 2008 and a foreign currency exchange loss of RMB 29.2 million in the fourth quarter of 2007. The foreign currency exchange gain in the fourth quarter of 2008 was primarily due to a gain of RMB 107.0 million from foreign currency forward contracts realized in the fourth quarter of 2008, which was partially offset by an exchange loss of RMB 38.3 million from foreign currency denominated transactions, primarily accounts receivables and raw material prepayments denominated in Euros, as the Euro depreciated by 3.41% against the Renminbi in the fourth quarter of 2008.
Income Tax Benefit (Expense)
Income tax benefit was RMB 17.0 million (US$2.5 million) in the fourth quarter of 2008, compared to RMB 0.2 million in the third quarter of 2008 and an income tax expense of RMB 15.3 million in the fourth quarter of 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli Energy (China) Co., Ltd (''Yingli China''), the Company's wholly-owned subsidiary, were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
As a result of the factors discussed above, net income was RMB 100.6 million (US$14.7 million) in the fourth quarter of 2008, a decrease of 33.3% from RMB 150.8 million in the third quarter of 2008 and a decrease of 27.3% from RMB 138.4 million in the fourth quarter of 2007. Diluted earnings per ordinary share and per ADS were RMB 0.79 (US$0.12) in the fourth quarter of 2008, compared to RMB 1.17 in the third quarter of 2008.
On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, an operating subsidiary of the Company, net income was RMB 126.8 million (US$18.6 million) in the fourth quarter of 2008, down 27.7% from RMB 175.3 million in the third quarter of 2008. Adjusted non-GAAP diluted earnings per ordinary share and per ADS were RMB 0.99 (US$0.15) in the fourth quarter of 2008, compared to RMB 1.35 in the third quarter of 2008.
Balance Sheet Analysis
As of December 31, 2008, Yingli Green Energy had RMB 1,108.9 million (US$162.5 million) in cash and RMB 3,224.1 million (US$472.6 million) in working capital, compared to RMB 737.1 million in cash and RMB 3,372.8 million in working capital as of September 30, 2008. Short-term borrowings increased from RMB 1,794.9 million in the third quarter of 2008 to RMB 2,044.2 million (US$299.6 million) in the fourth quarter of 2008. Long-term bank borrowings increased from RMB 340.9 million in the third quarter of 2008 to RMB 663.0 million (US$97.2 million) in the fourth quarter of 2008. As of the date of this press release, the Company had approximately RMB 4,545 million in authorized lines of credit, of which RMB 3,040 million had been utilized. Days sales outstanding was 75 days in the fourth quarter of 2008, compared to 48 days in the third quarter of 2008, primarily as a result of weakened macroeconomic conditions.
Full Year 2008 Results
Total Net Revenues
Total net revenues for the full year 2008 were RMB 7,553.0 million (US$1,107.1 million), which increased by 86.1% from RMB 4,059.3 million in the year of 2007. The increase was primarily due to a significant rise in total shipments of PV modules, which increased to 281.5 MW in 2008 from 142.5 MW in 2007. The increase in total shipments was primarily due to the Company's expanded sales and marketing efforts in Europe, supported by the completion of an additional 200 MW of total production capacity of polysilicon ingots and wafers, PV cells and PV modules in September 2008. The average selling price for PV modules for the full year 2008 was US$3.88 per watt, slightly higher than US$3.86 per watt in 2007.
Gross Profit and Margin
Gross profit for the full year 2008 was RMB 1,629.6 million (US$238.9 million), which increased by 70.3% from RMB 956.8 million in the year of 2007. Gross margin was 21.6% for the full year 2008, compared to 23.6% in 2007. The decrease in gross margin for the full year 2008 was primarily due to the lower gross margin in the fourth quarter of 2008, which was the result of significantly weakened macroeconomic conditions in the fourth quarter of 2008 and the depreciation of the Euro and the U.S. dollar against the Renminbi.
Operating Expenses
Operating expenses for the full year 2008 were RMB 476.3 million (US$69.8 million), an increase of 71.8% from RMB 277.3 million in 2007. The increase in operating expenses was primarily due to higher research and development expenses and increased marketing and promotional efforts resulting from the Company's expanded scale of operations. Operating expenses as a percentage of revenue decreased to 6.3% in the full year 2008 from 6.8% in the year of 2007, primarily due to economies of scale and better control of sales and marketing expenses and general and administrative expenses.
Interest Expense
Interest expense for the full year 2008 was RMB 149.2 million (US$21.9 million), an increase of 130.1% from RMB 64.8 million in 2007. The increase in interest expense was consistent with the increase in short-term borrowings from RMB 1,261.3 million as of December 31, 2007 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from nil as of December 31, 2007 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in 2008 was 6.61%, which increased from 5.97% in 2007.
Income Tax Benefit (Expense)
Income tax benefit was RMB 19.5 million (US$2.9 million) for the full year 2008, compared to an income tax expense of RMB 12.9 million for the full year 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli China were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.
Net Income
Net income was RMB 682.1 million (US$100.0 million) and fully diluted earnings per ordinary share and per ADS were RMB 5.27 (US$0.77) for the full year 2008.
On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, net income was RMB 782.8 million (US$114.7 million) for the full year 2008. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS were RMB 6.04 (US$0.89) for the full year 2008.
Fourth Quarter 2008 and Recent Business Highlights
Sales
-- As of the date of this press release, the Company had signed sales
contracts for the delivery of approximately 317.4 MW of PV modules in
2009.
Financing
-- Yingli China entered into a credit agreement with a fund managed by
Asia Debt Management Hong Kong Limited for a three-year loan facility
of up to US$80.0 million.
-- In connection with its acquisition of Cyber Power, the Company
committed to issue senior secured convertible notes totaling up to
US$50.0 million to Trustbridge Partners II, L.P., US$20.0 million of
which has been issued.
-- Yingli China entered into an eight-year US$70 million loan agreement
with China Development Bank.
-- Tianwei Yingli entered into a new credit line trade finance facility
agreement with the Export-Import Bank of China ("China Eximbank"),
which brought the aggregate credit line available from China Eximbank
to RMB 1.0 billion or its U.S. dollar equivalent.
-- Long term credit facility agreement, entered into with DEG - Deutsche
Investitions - und Entwicklungsgesellschaft mbH and the Netherlands
Development Finance Company, expanded to US$75 million with the
inclusion of The Societe de Promotion et de Participation pour la
Cooperation Economique to the lending group.
Others
-- Appointment of a new Chief Technology Officer, Dr. Dengyuan Song, who
has more than 27 years of experience in the research and development of
photovoltaic cells, silicon materials and semiconductor PV devices.
-- Tianwei Yingli and Yingli China were recognized by the Chinese
government as ''High and New Technology Enterprises'' entitled to a
preferential enterprise income tax rate of 15% for three years under
the PRC Enterprise Income Tax Law.
-- Completion of US$77.6 million acquisition of Cyber Power Group Limited,
which, through its principal operating subsidiary in China, Fine
Silicon Co., Ltd., plans to begin production of solar-grade polysilicon
in the second half of 2009.
-- Appointment of a new Vice President of Technology, Mr. Jingfeng Xiong,
a highly respected executive and engineer with a wealth of theoretical
knowledge and practical experience in research and development and
manufacturing at Yingli Green Energy.
-- Entered into memorandum of understanding with TUV Rheinland (Shanghai)
Co., Ltd. to form a strategic partnership covering a range of quality
control initiatives at the Company.
Business Outlook for Full Year 2009
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company reaffirms that its PV module shipment target is expected to be in the estimated range of 550 MW to 600 MW for fiscal year 2009, which represents an increase of 96.1% to 113.9% compared to fiscal year 2008, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the Company's mid- to long-term virgin polysilicon supply agreements, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average selling price of PV modules and further depreciation of the Euro against the U.S. dollar, the Company currently expects that its gross margin target for fiscal year 2009 to be in the estimated range of 22% to 24%.
Non-GAAP Financial Measures
To supplement the financial measures calculated in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes certain non-GAAP financial measures of adjusted net income and adjusted diluted earnings per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, an operating subsidiary of the Company. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such items are not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non- GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars for the fourth quarter and full year 2008 in this earnings release, made solely for the purpose of reader's convenience, is based on the noon buying rate in the New York City for cable transfers of Renminbi as certified for customs purpose by the Federal Reserve Bank of New York as of December 31, 2008, which was RMB 6.8225 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at such rate, or at any other rate. The percentages stated in this earnings release are calculated based on Renminbi.
Saturday, January 31, 2009
ReneSola secures funding for Sichuan facility
1/27/2009
JIASHAN, CHINA: Solar wafer manufacturer ReneSola subsidiary Sichuan ReneSola Material has signed a RMB 800 million (US$117 million) five year project loan agreement with the Sichuan branch of China Construction Bank to support the construction of a polysilicon production facility in Meishan, Sichuan province.
ReneSola Chief Financial Officer Charles Bai said that the company had now secured around 90 percent of the capital needed to fund the project to completion.
Pilot production for phase one of the Sichuan polysilicon facility is expected to begin late in the second quarter of 2009, while phase two will begin late in the third quarter. Each phase will consist of 1,500 metric tons (1,476 tons) of polysilicon production.
The facility will provide ReneSola with a stable source of polysilicon feedstock for its wafers.
JIASHAN, CHINA: Solar wafer manufacturer ReneSola subsidiary Sichuan ReneSola Material has signed a RMB 800 million (US$117 million) five year project loan agreement with the Sichuan branch of China Construction Bank to support the construction of a polysilicon production facility in Meishan, Sichuan province.
ReneSola Chief Financial Officer Charles Bai said that the company had now secured around 90 percent of the capital needed to fund the project to completion.
Pilot production for phase one of the Sichuan polysilicon facility is expected to begin late in the second quarter of 2009, while phase two will begin late in the third quarter. Each phase will consist of 1,500 metric tons (1,476 tons) of polysilicon production.
The facility will provide ReneSola with a stable source of polysilicon feedstock for its wafers.
Tuesday, January 20, 2009
ReneSola Announces Wafer Supply Agreement With BP Solar
JIASHAN, China, Jan. 20 /PRNewswire-Asia-FirstCall/ -- ReneSola Ltd (''ReneSola'' or the ''Company''), a leading Chinese manufacturer of solar wafers, today announced that it has signed a one-year wafer supply agreement with BP Solar International Inc. (''BP Solar''). Under the terms of the contract, ReneSola will supply BP Solar with 120 megawatts (''MW'') of monocrystalline and multicrystalline solar wafers in 2009 and BP Solar will supply 700 metric tonnes of polysilicon to ReneSola.
''We are pleased to extend our relationship with BP Solar, one of the world's leading solar companies,'' commented Mr. Xianshou Li, ReneSola's chief executive officer. ''This contract demonstrates our continuing efforts to strengthen ties with existing global customers and expand our international business beyond Asia.''
About ReneSola
ReneSola Ltd (''ReneSola'') is a leading global manufacturer of solar wafers based in China. Capitalizing on proprietary technologies and technical know-how, ReneSola manufactures monocrystalline and multicrystalline solar wafers. In addition, ReneSola strives to enhance its competitiveness through upstream integration into virgin polysilicon manufacturing. ReneSola possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola's shares are currently traded on the New York Stock Exchange (NYSE: SOL) and the AIM of the London Stock Exchange (AIM: SOLA). For more information about ReneSola, please visit www.renesola.com .
About BP Solar
BP Solar, part of BP Alternative Energy, is a global company with over 2300 employees. BP Solar designs, manufactures and markets products which use the sun's energy to generate electricity for a wide range of applications in the residential, commercial and industrial sectors. With over 30 years of experience and installations in more than 160 countries, BP Solar is one of the world's leading solar companies with solar cell and module manufacturing plants in Bangalore, India; Madrid, Spain; and Frederick, MD, USA; and module manufacturing in Xi'an, China. In Frederick it also has casting and wafering facilities. BP Solar invests more than $10m annually in photovoltaic research and development.
BP Alternative Energy, launched in November 2005, combines all of BP's interests in low and zero-carbon energy including wind, solar, hydrogen power with carbon capture and storage and biofuels for low carbon transport and distributed energy for emerging markets.
BP is one of the world's largest energy companies, with interests in more than 100 countries and over 96,000 employees.
''We are pleased to extend our relationship with BP Solar, one of the world's leading solar companies,'' commented Mr. Xianshou Li, ReneSola's chief executive officer. ''This contract demonstrates our continuing efforts to strengthen ties with existing global customers and expand our international business beyond Asia.''
About ReneSola
ReneSola Ltd (''ReneSola'') is a leading global manufacturer of solar wafers based in China. Capitalizing on proprietary technologies and technical know-how, ReneSola manufactures monocrystalline and multicrystalline solar wafers. In addition, ReneSola strives to enhance its competitiveness through upstream integration into virgin polysilicon manufacturing. ReneSola possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola's shares are currently traded on the New York Stock Exchange (NYSE: SOL) and the AIM of the London Stock Exchange (AIM: SOLA). For more information about ReneSola, please visit www.renesola.com .
About BP Solar
BP Solar, part of BP Alternative Energy, is a global company with over 2300 employees. BP Solar designs, manufactures and markets products which use the sun's energy to generate electricity for a wide range of applications in the residential, commercial and industrial sectors. With over 30 years of experience and installations in more than 160 countries, BP Solar is one of the world's leading solar companies with solar cell and module manufacturing plants in Bangalore, India; Madrid, Spain; and Frederick, MD, USA; and module manufacturing in Xi'an, China. In Frederick it also has casting and wafering facilities. BP Solar invests more than $10m annually in photovoltaic research and development.
BP Alternative Energy, launched in November 2005, combines all of BP's interests in low and zero-carbon energy including wind, solar, hydrogen power with carbon capture and storage and biofuels for low carbon transport and distributed energy for emerging markets.
BP is one of the world's largest energy companies, with interests in more than 100 countries and over 96,000 employees.
LDK Solar Starts Polysilicon Project
XINYU, Jan 19, 2009 (SinoCast Daily Business Beat via COMTEX) --Chinese solar wafer producer LDK Solar Co., Ltd. recently held an ceremony for the operation of the Phase I of its 16,000-ton polysilicon project in Xinyu City, Jiangxi Province, East China.
The project that broke earth in February 2008 adopts the world-class modified Siemens processes, and it is expected to rank top worldwide by production cost and energy consumption after fully operation.
The firm is to start running the Phase II, which will be capable of producing 5,000 tons of polysilicon per year and is part of a 15,000-ton plant, in mid-2009.
LDK Solar targets to have annual polysilicon production capacity of 16,000 tons at 2009-end, and it will use all the output to make solar wafer, in a bid to secure raw material supply and lower production cost. Besides, the rising polysilicon production capacity will help the company materialize the target of become capable of producing 3,200 megawatts of solar wafer in 2010.
The project that broke earth in February 2008 adopts the world-class modified Siemens processes, and it is expected to rank top worldwide by production cost and energy consumption after fully operation.
The firm is to start running the Phase II, which will be capable of producing 5,000 tons of polysilicon per year and is part of a 15,000-ton plant, in mid-2009.
LDK Solar targets to have annual polysilicon production capacity of 16,000 tons at 2009-end, and it will use all the output to make solar wafer, in a bid to secure raw material supply and lower production cost. Besides, the rising polysilicon production capacity will help the company materialize the target of become capable of producing 3,200 megawatts of solar wafer in 2010.
Tuesday, January 13, 2009
LDK Solar delays operation of polysilicon projects
BEIJING, Jan 13, 2009 (Xinhua via COMTEX) -- China's wafer manufacturer LDK Solar Co., Ltd. (LDK.NYSE) recently delayed the operation of two polysilicon projects for half a year, involving a production capacity of 6,000 tons.
So the two polysilicon projects will come into operation in the mid of 2009.
Agreements with suppliers of steel, cement and other construction materials need be re-signed when the prices have slumped, and it also takes time to re-check the polysilicon production facilities after some similar facilities in China incurred environmental protection and production accidents continuously, said Yao Feng, spokesman of LDK Solar, when talking about the delay.
It's not necessary either to hurry through the construction project now as the price of polysilicon plunged from 400 U.S. dollars per kg to 150 U.S. dollars per kg, Yao added.
According to a senior official with LDK Solar, some of its customers also asked to postpone the shipment from 2008 to 2009.
LDK Solar had planned to expand the annual production capacity of polysilicon by 6,000 tons within 2008. Included are 5,000 tons from a 15,000-t/y polysilicon project and 1,000 tons from a 1,000-t/y polysilicon project.
Now, the minor one is in trial production but not put in full operation and the bigger one is scheduled to operate in the mid of 2009.
So the two polysilicon projects will come into operation in the mid of 2009.
Agreements with suppliers of steel, cement and other construction materials need be re-signed when the prices have slumped, and it also takes time to re-check the polysilicon production facilities after some similar facilities in China incurred environmental protection and production accidents continuously, said Yao Feng, spokesman of LDK Solar, when talking about the delay.
It's not necessary either to hurry through the construction project now as the price of polysilicon plunged from 400 U.S. dollars per kg to 150 U.S. dollars per kg, Yao added.
According to a senior official with LDK Solar, some of its customers also asked to postpone the shipment from 2008 to 2009.
LDK Solar had planned to expand the annual production capacity of polysilicon by 6,000 tons within 2008. Included are 5,000 tons from a 15,000-t/y polysilicon project and 1,000 tons from a 1,000-t/y polysilicon project.
Now, the minor one is in trial production but not put in full operation and the bigger one is scheduled to operate in the mid of 2009.
Thursday, January 8, 2009
Yingli Acquisition Marks Company's Expansion Into Polysilicon
Vertically integrated photovoltaic product manufacturer Yingli Green Energy Holding Company Limited (NYSE:YGE) announced on Thursday that it had completed the acquisition of Cyber Power Group Limited, the parent company of Baoding-based polysilicon producer Fine Silicon Co. Ltd. Yingli Green Energy paid $77.6 million to Cyber Power affiliate Grand Avenue Group, which is controlled by Yingli CEO Liansheng Miao, Baoding Yingli Group Company Limited and Yingli subsidiary Yingli Energy (China) Company.
Cyber Power's Fine Silicon subsidiary is a development stage enterprise that is scheduled to begin manufacturing polysilicon in the second half of 2009. The acquisition expands Yingli's production capacity to include solar-grade polysilicon, said Yingli chief financial officer Zongwei Li.
Cyber Power's Fine Silicon subsidiary is a development stage enterprise that is scheduled to begin manufacturing polysilicon in the second half of 2009. The acquisition expands Yingli's production capacity to include solar-grade polysilicon, said Yingli chief financial officer Zongwei Li.
Tuesday, January 6, 2009
LDK Solar Lowers Sales Outlook, Delays Factory Plan
January 5, 2009
LDK Solar on Monday slashed its sales and shipment estimates for the fourth quarter of 2008 and is now expecting a lackluster 2009, news that caused its stock to plunge by 15 percent.
The Chinese maker of silicon wafers, which are turned into solar cells for making solar panels, said preliminary data showed that it likely generated $425 million to $435 million for the quarter that ended in December, instead of the previously anticipated $555 million to $565 million.
LDK (NYSE: LDK) said it also shipped an estimated 245 megawatts to 255 megawatts worth of wafers during the quarter, down from the 260 megawatts to 270 megawatts.
Recession and customers who wanted to delay delivery prompted the lower sales, the company said. LDK plans to announce full fourth-quarter and 2008 financial results in late February or early March.
The revised estimates underscore how declining prices are whacking the solar industry. The company reduced revenue estimates by around 23 percent but lowered shipment by only 5 percent. Thus, prices are dropping far faster than any decline in actual demand for products.
The situation could get worse in 2009 as it completes manufacturing projects while facing declining demand.
LDK launched ambitious plans to build two factories in China for producing polysilicon, the main ingredient for making wafers, over the past year and half. The two polysilicon factories are LDK's first efforts to make polysilicon instead of relying on outside suppliers.
But LDK is having trouble bringing its first factory into full production mode, the company said Monday. The 1,000-metric ton factory was supposed to be completed and running at capacity by the end of 2008. The factory is producing polysilicon, but it isn't likely to reach full production until mid 2009.
LDK blames problems with the "optimization process" for the delay but didn't provide more details. Calls and emails to the company weren't immediately returned.
The company said the construction of its second polysilicon plant is on track. LDK expects the 15,000-metric ton factory to begin production in the second quarter of 2009.
The outlook for 2009 isn't rosy. LDK expects lower average selling prices for its products and lower wafer shipment this year.
For 2009, it expects to generate between $2.3 billion and $2.5 billion in sales. Shipment could reach between 1.57 gigawatts and 1.67 gigawatts.
The company previously thought it would bring in between $2.9 billion and $3.1 billion in sales and ship between 1.8 gigawatts and 1.85 gigawatts worth of wafers in 2009. Its customers include Q-Cells, Suntech Power Holdings and Canadian Solar.
LDK now expects to produce between 3,000 metric tons and 5,000 metric tons of polysilicon instead of 5,000 metric tons to 7,000 metric tons.
The company's annual wafer capacity would reach 2.3 gigawatts in 2009, an estimate that hasn't changed from the prior forecast.
LDK's shares dropped more than 15 percent to reach $12.61 per share in after-market trading. The company announced the lower sales and forecast after the market closed.
LDK Solar on Monday slashed its sales and shipment estimates for the fourth quarter of 2008 and is now expecting a lackluster 2009, news that caused its stock to plunge by 15 percent.
The Chinese maker of silicon wafers, which are turned into solar cells for making solar panels, said preliminary data showed that it likely generated $425 million to $435 million for the quarter that ended in December, instead of the previously anticipated $555 million to $565 million.
LDK (NYSE: LDK) said it also shipped an estimated 245 megawatts to 255 megawatts worth of wafers during the quarter, down from the 260 megawatts to 270 megawatts.
Recession and customers who wanted to delay delivery prompted the lower sales, the company said. LDK plans to announce full fourth-quarter and 2008 financial results in late February or early March.
The revised estimates underscore how declining prices are whacking the solar industry. The company reduced revenue estimates by around 23 percent but lowered shipment by only 5 percent. Thus, prices are dropping far faster than any decline in actual demand for products.
The situation could get worse in 2009 as it completes manufacturing projects while facing declining demand.
LDK launched ambitious plans to build two factories in China for producing polysilicon, the main ingredient for making wafers, over the past year and half. The two polysilicon factories are LDK's first efforts to make polysilicon instead of relying on outside suppliers.
But LDK is having trouble bringing its first factory into full production mode, the company said Monday. The 1,000-metric ton factory was supposed to be completed and running at capacity by the end of 2008. The factory is producing polysilicon, but it isn't likely to reach full production until mid 2009.
LDK blames problems with the "optimization process" for the delay but didn't provide more details. Calls and emails to the company weren't immediately returned.
The company said the construction of its second polysilicon plant is on track. LDK expects the 15,000-metric ton factory to begin production in the second quarter of 2009.
The outlook for 2009 isn't rosy. LDK expects lower average selling prices for its products and lower wafer shipment this year.
For 2009, it expects to generate between $2.3 billion and $2.5 billion in sales. Shipment could reach between 1.57 gigawatts and 1.67 gigawatts.
The company previously thought it would bring in between $2.9 billion and $3.1 billion in sales and ship between 1.8 gigawatts and 1.85 gigawatts worth of wafers in 2009. Its customers include Q-Cells, Suntech Power Holdings and Canadian Solar.
LDK now expects to produce between 3,000 metric tons and 5,000 metric tons of polysilicon instead of 5,000 metric tons to 7,000 metric tons.
The company's annual wafer capacity would reach 2.3 gigawatts in 2009, an estimate that hasn't changed from the prior forecast.
LDK's shares dropped more than 15 percent to reach $12.61 per share in after-market trading. The company announced the lower sales and forecast after the market closed.
Monday, January 5, 2009
Yichang Nanbo (CSG) began to test the polysilicon production line
Yichang Nanbo (CSG) began to test the polysilicon production line in November 2008, and on December 30th 2008 Yichang Nanbo (CSG) successfully released their first furnace polysilicon product.
The polysilicon production capacity for the whole project is 4,500 to 5,000 metric tons, and the first phase project capacity is 1,500 metric tons.
The polysilicon production capacity for the whole project is 4,500 to 5,000 metric tons, and the first phase project capacity is 1,500 metric tons.
Asia Silicon Started to Produce Polysilicon
2008 December 31st Asia Silicon (Qinghai) Company released their first furnace polysilicon.
The total polysilicon production capacity for the project is 6,000 metric tons, and the first phase project capacity is 1,000 metric tons.
The total polysilicon production capacity for the project is 6,000 metric tons, and the first phase project capacity is 1,000 metric tons.
Saturday, December 27, 2008
Ningxia Yangguang Silicon Will Begin Polysilicon Mass Production in March 2009
2008 December 25th, Ningxia Yangguang Silicon held the ceremony to celebrate the successful release of their polysilicon product.
Their first furnace polysilicon was released on December 23rd with polysilicon purity over 99.99999% and qualified for the solar cell production. The first phase polyslicon project has production capacity of 1,500 metric tons, and the total production capacity will reach 4,500 metric tons.
The first phase polysilicon project was launched on 2007 August 28th, began the production adjustment in 2008 November, and will begin the mass production in 2009 March.
Their first furnace polysilicon was released on December 23rd with polysilicon purity over 99.99999% and qualified for the solar cell production. The first phase polyslicon project has production capacity of 1,500 metric tons, and the total production capacity will reach 4,500 metric tons.
The first phase polysilicon project was launched on 2007 August 28th, began the production adjustment in 2008 November, and will begin the mass production in 2009 March.
Tuesday, December 23, 2008
CCID Consulting: Review and Forecast on China's Solar Cell Industry
BEIJING, Dec.23 /PRNewswire-Asia/ -- CCID Consulting, China's leadingresearch, consulting and IT outsourcing service provider, and the firstChinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange:HK08235), recently released its article on China's solar cell industry.
Affected by global financial crisis in 2008, the global economy is going through a difficult winter. China's solar cell industry has been enjoying a period of stable and rapid growth in recent years, which is likely to be slowed under the current economic environment. However, China's solar cell industry still attracts manufacturers' and investors' attention in 2008. The output of China's solar cell industry in 2008 is expected to break through 2000MW. Compared with 2007, China's solar cell industry maintains a rapid development pace.
Figure: China's Solar Cell Output, 2005-2008
Source: CCID Consulting, Dec.2008
CCID Consulting forecasts that in 2009, with demands for renewable, clean and security energies increasing, innovations in thin film techniques and falling costs, China's solar cell industry will undergo a restructure period in its industry chain. The new application of thin film solar cell and other power supply will appear.
Governmental Support Brings Opportunities to the Solar Cell Industry
The promulgation and implementation of China's Renewable Energy Law will allow the size of China's photovoltaic industry to expand in the next two years; China's solar cell industry will become gradually mature. Among the 4 trillion Yuan the nation promised to invest to boost economic growth, energy-saving, environmental protection and new energy industries will be playing important roles, that these investment will drive the rapid development of the solar cell industry.
Thin Film Technology Under Spotlight
Among amorphous silicon photovoltaic cell technologies, thin film solar cell technology is considered to be most suitable for large scale industrialization. In next two years, thin film technical progress and conversion rate's improvement will gradually highlight thin film solar cell's cost advantage. Restricted by silicon materials, major manufacturers have transferred to invest in thin film. In 2009, this trend will be more obvious. With major manufacturers' thin film technical successive investment and production, despite that thin film technology cannot completely replace crystalline silicon technology in the short term, based on its cost advantage, its market share will increase rapidly.
Industry Chain Faces Local Adjustment
Solar power generation (photovoltaic generation) industry chain includes upstream polysilicon production, midstream silicon cutting and solar cell production and downstream solar cell components production. More and more enterprises will focus on the midstream and downstream. Upstream manufacturers and VC will enlarge their investment in silicon cutting and solar cell production. Industrial integration trend will strengthen.
Demands in China's Domestic Market to Surge Next Year
In the short term, China's solar cell industry will still need to rely heavily on silicon raw materials and terminal market. More than 90% of polysilicon, main raw material of solar battery depends on import and more than 90% terminal products rely on export. Demands on domestic solar battery market are to be lifted.
Solar battery products will be more popular, getting along with environment protection and energy saving policies. Mobile solar battery will appear in the market due to energy saving, 3G, uniform mobile phone charging interface, and other policies.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No.1 consultancy for government decisions and the No. 1 brand for informatization consulting.
Saturday, December 20, 2008
Luoyang Century Xinyuan Group builds 10,000 metric ton polysilicon project
2008 December 16th,
Luoyang Century Xinyuan Group held the ground breaking ceremony for their 10,000 metric ton polysilicon project. The total investment will be 5 billion RMB, and the 10,000 metric ton polysilicon project covers 3,000 metric ton non-Simens polysilicon project.
The investment for the first phase project is 1.5 billion RMB, and the first phase project will be completed by 2009 October with 2,300 metric ton polysilicon production capacity. The second phase project will get started in 2010 with investment of 3.5 billion RMB.
Luoyang Century Xinyuan Group held the ground breaking ceremony for their 10,000 metric ton polysilicon project. The total investment will be 5 billion RMB, and the 10,000 metric ton polysilicon project covers 3,000 metric ton non-Simens polysilicon project.
The investment for the first phase project is 1.5 billion RMB, and the first phase project will be completed by 2009 October with 2,300 metric ton polysilicon production capacity. The second phase project will get started in 2010 with investment of 3.5 billion RMB.
Monday, December 15, 2008
Metallurgical Group, Baogang to tap polysilicon market
By Jiang Wei (chinadaily.com.cn)
Updated: 2008-12-15 13:13
China Metallurgical Group Corporation (MCC), the country's leading mining and smelting operator, and Baotou Iron and Steel Group (Baogang) plan to invest 8 billion yuan ($1.17 billion) in a polysilicon-manufacturing project, taking advantage of the consolidation of their respective industries.
The two sides signed an agreement last Thursday but details of the project are still being worked out, China Business Journal reported. The project, if completed, will produce 5,000 tons of polysilicon a year.
The price of polysilicon, a major material used in producing solar panels, has dipped to 1,000 yuan per ton from 5,000 yuan per ton earlier this year while capability increased in the country, a development that experts say indicates an imminent industry consolidation.
Yang Yu'an, an industry expert, was quoted by Chinese Business Journal as saying that MCC has been involved in the sector for years but that Baogang will take the initiative for strategic planning.
Updated: 2008-12-15 13:13
China Metallurgical Group Corporation (MCC), the country's leading mining and smelting operator, and Baotou Iron and Steel Group (Baogang) plan to invest 8 billion yuan ($1.17 billion) in a polysilicon-manufacturing project, taking advantage of the consolidation of their respective industries.
The two sides signed an agreement last Thursday but details of the project are still being worked out, China Business Journal reported. The project, if completed, will produce 5,000 tons of polysilicon a year.
The price of polysilicon, a major material used in producing solar panels, has dipped to 1,000 yuan per ton from 5,000 yuan per ton earlier this year while capability increased in the country, a development that experts say indicates an imminent industry consolidation.
Yang Yu'an, an industry expert, was quoted by Chinese Business Journal as saying that MCC has been involved in the sector for years but that Baogang will take the initiative for strategic planning.
Saturday, December 13, 2008
Shenyang 6,000 metric ton polysilicon project investment agreement signed
2008 December 8th, Liaoning Shuangyi Silicon, American Chemtex and Shenyang municapal government signed to invest in polysilicon production project.
The total investment will be over 5 billion RMB, and the project will be completed in 2014, and the total polysilicon production capacity will reach 6,000 metric tons.
The total investment will be over 5 billion RMB, and the project will be completed in 2014, and the total polysilicon production capacity will reach 6,000 metric tons.
Friday, December 12, 2008
Yichang Nanbo Silicon (CSG) Trichlorosilane Leaked
On the morning of 2008 October 10th, Trichlorosilane pipe leakage took place at Yichang Nanbo Silicon (CSG) during the polysilicon testing production.
The danger was removed two hours' later, and no wound and death is reported except that 18 people felt uncomfortable and stayed at the hospital.
It is said that the failure was caused by the crack of the weld seam.
The danger was removed two hours' later, and no wound and death is reported except that 18 people felt uncomfortable and stayed at the hospital.
It is said that the failure was caused by the crack of the weld seam.
Tuesday, December 9, 2008
ReneSola Announces Divestment of Henan Polysilicon Joint Venture
JIASHAN, China, Dec 08, 2008 /PRNewswire-Asia-FirstCall via COMTEX/ -- ReneSola Ltd ("ReneSola" or the "Company") , a leading Chinese manufacturer of solar wafers, today announced that it has sold its 49% equity interest (the "Divestment") in Linzhou Zhongsheng Semiconductor Silicon Material Co., Ltd. (the "Joint Venture").
In August 2007, ReneSola and Linzhou Zhongsheng Steel Co., Ltd. ("Zhongsheng Steel") established the Joint Venture to engage in virgin polysilicon production in Linzhou, Henan Province, China. The Company invested approximately RMB103 million for an equity interest of 49% in the Joint Venture. In June 2008, the Company and Zhongsheng Steel amended the commercial arrangement in the joint venture contract to reduce the contracted obligation of the Company to purchase the output of the Joint Venture from 90% to a minimum of 55% at market price with a term of three years, instead of 30 years in the original agreement.
For the nine months ended September 30, 2008, the Joint Venture recorded revenues of RMB266 million and a net profit of approximately RMB131 million. Prior to the Divestment ReneSola equity accounted for its interest in the Joint Venture. In the three months ended September 30, 2008, the Company's equity interest in the earnings of the Joint Venture was US$5.2 million.
The Company has sold its 49% equity interest in the Joint Venture to Zhongsheng Steel for a total consideration of RMB200 million, represented by cash paid on completion of RMB44 million and either a credit of RMB156 million through a discount of RMB500/kg to the polysilicon spot price for future supplies or cash in the amount of RMB156 million.
"As part of our ongoing evaluation of our raw material sourcing strategy for 2009 we have determined it is in the best interests of our shareholders to divest our equity interest in the Henan polysilicon production facility," said Mr. Xianshou Li, ReneSola's chief executive officer.
Mr. Li continued, "The Linzhou facility will continue to provide us with polysilicon at a discounted price until the RMB156 million is fully credited. Our existing polysilicon purchase contracts, combined with the additional production from our Sichuan polysilicon plant and the Linzhou facility and expected tolling arrangements, should fully support our required feedstock for our 2009 wafer production output."
About ReneSola
ReneSola Ltd ("ReneSola") is a leading global manufacturer of solar wafers based in China. Capitalizing on proprietary technologies and technical know- how, ReneSola manufactures monocrystalline and multicrystalline solar wafers. In addition, ReneSola strives to enhance its competitiveness through upstream integration into virgin polysilicon manufacturing. ReneSola possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola's shares are currently traded on the New York Stock Exchange and the AIM market of the London Stock Exchange. For more information about ReneSola, please visit http://www.renesola.com .
In August 2007, ReneSola and Linzhou Zhongsheng Steel Co., Ltd. ("Zhongsheng Steel") established the Joint Venture to engage in virgin polysilicon production in Linzhou, Henan Province, China. The Company invested approximately RMB103 million for an equity interest of 49% in the Joint Venture. In June 2008, the Company and Zhongsheng Steel amended the commercial arrangement in the joint venture contract to reduce the contracted obligation of the Company to purchase the output of the Joint Venture from 90% to a minimum of 55% at market price with a term of three years, instead of 30 years in the original agreement.
For the nine months ended September 30, 2008, the Joint Venture recorded revenues of RMB266 million and a net profit of approximately RMB131 million. Prior to the Divestment ReneSola equity accounted for its interest in the Joint Venture. In the three months ended September 30, 2008, the Company's equity interest in the earnings of the Joint Venture was US$5.2 million.
The Company has sold its 49% equity interest in the Joint Venture to Zhongsheng Steel for a total consideration of RMB200 million, represented by cash paid on completion of RMB44 million and either a credit of RMB156 million through a discount of RMB500/kg to the polysilicon spot price for future supplies or cash in the amount of RMB156 million.
"As part of our ongoing evaluation of our raw material sourcing strategy for 2009 we have determined it is in the best interests of our shareholders to divest our equity interest in the Henan polysilicon production facility," said Mr. Xianshou Li, ReneSola's chief executive officer.
Mr. Li continued, "The Linzhou facility will continue to provide us with polysilicon at a discounted price until the RMB156 million is fully credited. Our existing polysilicon purchase contracts, combined with the additional production from our Sichuan polysilicon plant and the Linzhou facility and expected tolling arrangements, should fully support our required feedstock for our 2009 wafer production output."
About ReneSola
ReneSola Ltd ("ReneSola") is a leading global manufacturer of solar wafers based in China. Capitalizing on proprietary technologies and technical know- how, ReneSola manufactures monocrystalline and multicrystalline solar wafers. In addition, ReneSola strives to enhance its competitiveness through upstream integration into virgin polysilicon manufacturing. ReneSola possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola's shares are currently traded on the New York Stock Exchange and the AIM market of the London Stock Exchange. For more information about ReneSola, please visit http://www.renesola.com .
Friday, December 5, 2008
Yingli Green Energy Reaffirms Business Outlook for Fiscal Year 2009
Copyright 2008 PR Newswire. All Rights Reserved2008-12-05
BAODING, China, Dec. 5 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or "the Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today reaffirmed its business outlook for fiscal year 2009, as previously announced on the Company's earnings conference call on November 26, 2008, in response to certain recent news articles erroneously stating that the Company expected its total PV module shipments to reach 400 megawatts in 2009.
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company estimates that its total PV module shipments in 2009 will be approximately 550 MW to 600 MW, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the several mid- to long-term virgin polysilicon supply agreements with leading global polysilicon suppliers which will start delivery at the beginning of 2009, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average sales price of PV modules and further depreciation of the Euro versus U.S. dollar, the Company estimates that its gross margin in 2009 will be at least 24%.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 400 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. For more information, please visit .
BAODING, China, Dec. 5 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or "the Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today reaffirmed its business outlook for fiscal year 2009, as previously announced on the Company's earnings conference call on November 26, 2008, in response to certain recent news articles erroneously stating that the Company expected its total PV module shipments to reach 400 megawatts in 2009.
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company estimates that its total PV module shipments in 2009 will be approximately 550 MW to 600 MW, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.
In addition, after taking into consideration the several mid- to long-term virgin polysilicon supply agreements with leading global polysilicon suppliers which will start delivery at the beginning of 2009, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average sales price of PV modules and further depreciation of the Euro versus U.S. dollar, the Company estimates that its gross margin in 2009 will be at least 24%.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 400 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. For more information, please visit .
Thursday, December 4, 2008
China Yingli sees panel shipments up 60 pct in 2009
HONG KONG, Dec 3 (Reuters) - Chinese solar cell maker Yingli Green Energy Holding Co Ltd expects its shipments of solar modules to rise 60 percent next year, with demand for solar panels likely to exceed supply despite the global economic downturn.
Yingli expects shipments of solar modules to reach 400 megawatts (MW) next year from about 250 this year, Cherradi Nabih, Yingli Green's vice president for manufacturing, said on the sidelines of the Clinton Global Initiative conference.
"In a way the crisis has helped the industry. Because of the crisis, there has been big pressure on the price of materials, including polysilicon, which is down about 50 percent this year from last year," said Nabih.
The fall in the price of polysilicon, a key material for solar cells that turn sunlight to electricity, has made Yingli's production more cost efficient, he said.
(Reporting by Leonora Walet)
Yingli expects shipments of solar modules to reach 400 megawatts (MW) next year from about 250 this year, Cherradi Nabih, Yingli Green's vice president for manufacturing, said on the sidelines of the Clinton Global Initiative conference.
"In a way the crisis has helped the industry. Because of the crisis, there has been big pressure on the price of materials, including polysilicon, which is down about 50 percent this year from last year," said Nabih.
The fall in the price of polysilicon, a key material for solar cells that turn sunlight to electricity, has made Yingli's production more cost efficient, he said.
(Reporting by Leonora Walet)
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