CHANGZHOU, China, May 6 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced that the Company has expanded its European sales and marketing team.
Due to the continued development of its business initiatives in Europe and the growing demand for Trina Solar's quality products in over 18 countries, the Company has expanded its Sales and Marketing team to better serve the established markets of Germany, Italy, France, and Spain, as well as the emerging markets such as the Czech Republic, Portugal, the Netherlands, Austria, and Greece. The Company is pleased to announce two new appointments, who joined the Company's strong sales team in April 2009.
Ben Hill, formerly at BP Solar, has joined Trina Solar as Director of Sales & Marketing for Europe. Mr. Hill is a well-known and respected industry leader with over 23 years of experience in the photovoltaic industry. Prior to joining Trina Solar, he spent over 10 years at BP Solar, serving in both Germany and Spain and in various senior positions including Sales & Marketing Director for Europe, Africa and the Middle East, and most recently, as a Regional Director for Europe. Prior to BP Solar, he served as a Division Manager for Battery Control, DC Lighting and Solar at Sollatek Ltd. Mr. Hill will manage Trina Solar's operations in Europe and will refine and implement the Company's ambitious regional growth plans.
Daniel Priem has joined Trina Solar as Central European Manager. Mr. Priem has over 10 years of experience in solar and other renewable energies. Prior to joining the Company, Mr. Priem spent over seven years at SunTechnics, a Conergy Group company, as a sales representative for Central Europe, manager of SunTechnics (Sydney), sales head for Southeast Asia and Australia, and finally as Conergy Group's commercial manager for Southern Europe. Mr. Priem also served as the business development manager for Innovative Windpower AG.
"We view Europe as an essential market region that includes key markets under current development," said Arturo Herrero, Trina Solar's Vice President of Sales & Marketing, who oversees Trina Solar's global sales and marketing. "We are delighted to strengthen our sales and marketing team with such talented and experienced personnel who bring years of regional and global knowledge and experience from well-known PV solar companies to our business."
Showing posts with label solar ingot. Show all posts
Showing posts with label solar ingot. Show all posts
Friday, May 8, 2009
Sunday, April 26, 2009
JA Solar starts construction of new integrated solar cell plant
22 April 2009
JA Solar Holdings has broken ground on its Phase II, ingot, cell and module facility in Yangzhou, China. According to Chinese news reports, the production plant will cost approximately US$100 million and be completed by the end of 2009. The reports suggested the new plant would increase JA Solar’s production capacity by 300MW.
The new expansion project would seem to be inline with JA Solar’s planned capacity of 875MW by the end of 2009, up from 600MW in 2008. JA Solar claims a solar cell production line costs US$10 million, suggesting approximately 6-8 lines could be added.
JA Solar Holdings has broken ground on its Phase II, ingot, cell and module facility in Yangzhou, China. According to Chinese news reports, the production plant will cost approximately US$100 million and be completed by the end of 2009. The reports suggested the new plant would increase JA Solar’s production capacity by 300MW.
The new expansion project would seem to be inline with JA Solar’s planned capacity of 875MW by the end of 2009, up from 600MW in 2008. JA Solar claims a solar cell production line costs US$10 million, suggesting approximately 6-8 lines could be added.
Wednesday, November 19, 2008
Trina Solar Announces Third Quarter 2008 Results
By: PR Newswire
CHANGZHOU, China, Nov. 19 /PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced its financial results for the third quarter 2008.
Third Quarter 2008 Financial Highlights
-- Solar module shipments were 66.36 MW, up 213.7% from 21.15 MW in the third quarter of 2007 and 39.5% from 47.57 MW in the second quarter of 2008
-- Total net revenues increased to $290.7 million, up 252.1% year-over-year and 42.4% sequentially
-- Gross margin was 22.4%, compared to 20.1% in the third quarter of 2007 and 23.2% in the second quarter of 2008
-- Operating margin was 16.1%, compared to 8.4% in the third quarter of 2007 and 14.3% in the second quarter of 2008
-- Net income was $32.1 million, compared to $7.8 million in the third quarter of 2007 and $17.1 million in the second quarter of 2008
-- Net income includes a foreign currency exchange loss of $4.9 million
-- Earnings per fully diluted ADS were $1.17. The effect of the third quarter foreign currency exchange losses was approximately $0.17 per fully diluted ADS
"We are very pleased with our strong performance during the third quarter," said Jifan Gao, Trina Solar's Chairman and CEO. "Despite further rising silicon costs, over the last four reporting quarters we have either met or exceeded our aggressive goals for output, revenues and operating margin. In the third quarter we again demonstrated the ability to leverage on our integrated manufacturing capabilities, enhanced further by significant improvements in operating efficiencies and cost controls as measured by our operating expenses. We are also pleased by the recently announced expansion of our product portfolio via our in-house developed UMG-based module product. This timely offering is expected to address increasing customer demand for lower cost modules, with initial sales expected in fourth quarter of 2008."
Third Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 300 MW for each of ingot, wafer, cell and module production as of September 30, 2008
-- Launched cell Lines 11 through 14, of which lines 11 and 12 were put into commercial production
-- Announced sales agreements with Invictus NV (Belgium), American Capital Energy (US), GreenergyCapital and Enel (Italy), and a sales and marketing collaboration agreement with Spanish Premier League Football Club Espanyol
-- Announced the product launch of an in-house developed UMG-based module product, with sales expected in the current fourth quarter
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the US, Belgium, France, South Korea, and Australia
-- Announced the Company's intentions to base its North American operations in the City of San Francisco
-- Announced the Company's intentions to establish warehouse operations in Rotterdam, a key port city in the Netherlands
Third Quarter 2008 Results
Net Revenues
Trina Solar's net revenues in the third quarter of 2008 were $290.7 million, an increase of 42.4% sequentially and 252.1% year-over-year. Total shipments in the third quarter of 2008 increased to 66.36 MW, up from 47.57 MW in the second quarter of 2008 and 21.15 MW in the third quarter of 2007. Average sales price ("ASP") was $4.09 in the third quarter of 2008, compared to $4.03 in the second quarter of 2008 and $3.75 in the third quarter of 2007.
Gross Profit and Margin
Gross profit in the third quarter of 2008 was $65.2 million, an increase of 37.6% sequentially and 292.9% year-over-year. Gross margin was 22.4% in the third quarter of 2008, a decrease from 23.2% in the second quarter of 2008 and an increase from 20.1% in the third quarter of 2007. The sequential decrease in gross margin was predominantly due to higher cost of silicon raw materials while the year-over-year increase was primarily due to higher module ASP and cost efficiencies from an increased degree of vertical integration, including in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the third quarter of 2008 were $18.4 million, or 6.3% of net revenues. This compares to 8.9% in the second quarter, reflecting the fourth straight quarterly improvement as a net revenue percentage. Operating expenses in the third quarter of 2008 included approximately $0.6 million of share-based compensation expenses.
Operating income in the third quarter of 2008 was $46.8 million, an increase of 60.6% sequentially and 575.0% year-over-year.
Operating margin was 16.1% in the third quarter of 2008, compared to 14.3% in the second quarter of 2008 and 8.4% in the third quarter of 2007. The sequential increase was primarily due to lower general and administrative expenses as a percentage of net revenues while the year-over-year increase was primarily due to both lower general and administrative expenses and selling expenses as a percentage of net revenues.
Net Interest Expense
Net Interest expense in the third quarter of 2008 was $7.2 million, compared to $5.1 million in the second quarter of 2008 and $0.6 million in the third quarter of 2007.
Foreign Currency Exchange Loss
Foreign currency exchange loss was $4.9 million in the third quarter of 2008, compared to $6.1 million sequentially. This was primarily due to the devaluation of the Euro against the U.S. Dollar, which resulted in a loss upon the remeasurement of the Company's receivables.
Net Income and EPS
Net income was $32.1 million in the third quarter of 2008, compared to $17.1 million in the second quarter of 2008 and $7.8 million in the third quarter of 2007. Net Income includes a foreign currency exchange loss of $4.9 million.
Net margin was 11.0% in the third quarter of 2008, compared to 8.4% in the second quarter of 2008 and 9.4% in the third quarter of 2007. The effect of the third quarter foreign currency exchange losses, net of tax effect, were approximately $0.17 per fully diluted ADS. Earnings per fully diluted ADS were $1.17.
Senior Convertible Notes Offering
On July 24, 2008, Trina Solar completed a public offering of $138 million of Senior Convertible Notes due 2013. The net proceeds of the offering is being used for the expansion of manufacturing lines for the production of silicon ingots, wafers, solar cells and solar modules, the purchase of raw materials, research and development and other general corporate purposes.
Financial Condition
As of September 30, 2008, the Company had $136.3 million in cash and cash equivalents, excluding the Company's restricted cash balance of $48.5 million. The restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities.
As of October 31, 2008, the Company's total approved credit facilities totaled approximately $450 million, of which includes approximately $150 million in available credit.
Fourth Quarter and Fiscal Year 2008 Guidance
For the fourth quarter of 2008, the Company expects to ship between 55 MW and 60 MW of PV modules and currently expects total net revenues to be in the range of $190 million to $210 million. The Company expects gross margin for the fourth quarter will likely be between 13% and 15% and estimates operating margin to range between 5% and 7% of total net revenues.
For the full year of 2008, the Company updates its projections as follows:
Total net revenues to be in the range of $800 million to $850 million, compared to previous guidance of $850 million to $900 million.
Total PV module shipments between 200 MW to 206 MW, compared to previous guidance of 210 MW to 220 MW.
The Company believes gross margin to be in the range of 20% and 22% for the year, compared to previous guidance of 23% and 25%, and estimates operating margin will likely be in the range of 12% to 14% of total net revenues, compared to previous guidance of 15% and 17%.
Business Outlook
Given industry concerns related to changes in the global economic and credit environments, the Company reiterates its confidence in regards to its financial strength and operational strategies for fiscal year 2009.
"We are confident in our ability to successfully navigate our operations and related capital requirements despite recent and significant market environment changes," stated Terry Wang, Chief Financial Officer. "We are fully aware of the risks and volatility of market conditions. After careful examination of various scenarios reflecting market demand, average selling price, and cost reductions of key material inputs, we reiterate expectations to preserve sufficient cash holdings and to maintain positive cashflows from operations initiated in the third quarter, which were over $20 million. These cashflows will drive the funding for future operations and capacity expansions, to be deployed prudently and effectively based on evolving market conditions."
Management Changes
The Company announces recent management changes:
Dr. Suping Chen has joined the Company as Vice President of Manufacturing, East Campus. Mr. Chen previously worked at Samsung Electronics (Suzhou) Semiconductor Co., Ltd. and at Seagate Technology International (Wuxi) Co., Ltd., where he served for over seven years in roles including Senior Product Manager and Operations Director. Dr. Chen, who formed his own management consulting company in 2006, has more than 12 years of IT manufacturing experience in China.
Dr. Qiang Huang has been appointed as Vice President of Technology. He replaces Mr. Ting Cheong Ang, the former Vice President of Technology Development. Dr. Huang served earlier as a Director of Manufacturing Engineering. Before joining our Company, he earlier served as Engineering Manager with Taiwan Semiconductor Manufacturing Co. (TSMC) and as a Senior Manager of Device Integration at ST Microelectronics in Singapore. Dr. Huang has more than eight years of commercial operations experience in semiconductor engineering development and engineering problem solving.
The Company also announces the appointment of Mr. Steven (Yu) Zhu as Vice President of International Procurement and Business Development. The position fills the vacancy created by the departure of Mr. Andrew Klump, the former Vice President of Business Development. Mr. Zhu, who joined the Company in 2005, earlier worked for IBM in the United States for four years as a global training leader and software engineer. Prior to joining the Company, Mr. Zhu also was founder and president of a wireless internet company from 2002 to 2005.
CHANGZHOU, China, Nov. 19 /PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced its financial results for the third quarter 2008.
Third Quarter 2008 Financial Highlights
-- Solar module shipments were 66.36 MW, up 213.7% from 21.15 MW in the third quarter of 2007 and 39.5% from 47.57 MW in the second quarter of 2008
-- Total net revenues increased to $290.7 million, up 252.1% year-over-year and 42.4% sequentially
-- Gross margin was 22.4%, compared to 20.1% in the third quarter of 2007 and 23.2% in the second quarter of 2008
-- Operating margin was 16.1%, compared to 8.4% in the third quarter of 2007 and 14.3% in the second quarter of 2008
-- Net income was $32.1 million, compared to $7.8 million in the third quarter of 2007 and $17.1 million in the second quarter of 2008
-- Net income includes a foreign currency exchange loss of $4.9 million
-- Earnings per fully diluted ADS were $1.17. The effect of the third quarter foreign currency exchange losses was approximately $0.17 per fully diluted ADS
"We are very pleased with our strong performance during the third quarter," said Jifan Gao, Trina Solar's Chairman and CEO. "Despite further rising silicon costs, over the last four reporting quarters we have either met or exceeded our aggressive goals for output, revenues and operating margin. In the third quarter we again demonstrated the ability to leverage on our integrated manufacturing capabilities, enhanced further by significant improvements in operating efficiencies and cost controls as measured by our operating expenses. We are also pleased by the recently announced expansion of our product portfolio via our in-house developed UMG-based module product. This timely offering is expected to address increasing customer demand for lower cost modules, with initial sales expected in fourth quarter of 2008."
Third Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 300 MW for each of ingot, wafer, cell and module production as of September 30, 2008
-- Launched cell Lines 11 through 14, of which lines 11 and 12 were put into commercial production
-- Announced sales agreements with Invictus NV (Belgium), American Capital Energy (US), GreenergyCapital and Enel (Italy), and a sales and marketing collaboration agreement with Spanish Premier League Football Club Espanyol
-- Announced the product launch of an in-house developed UMG-based module product, with sales expected in the current fourth quarter
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the US, Belgium, France, South Korea, and Australia
-- Announced the Company's intentions to base its North American operations in the City of San Francisco
-- Announced the Company's intentions to establish warehouse operations in Rotterdam, a key port city in the Netherlands
Third Quarter 2008 Results
Net Revenues
Trina Solar's net revenues in the third quarter of 2008 were $290.7 million, an increase of 42.4% sequentially and 252.1% year-over-year. Total shipments in the third quarter of 2008 increased to 66.36 MW, up from 47.57 MW in the second quarter of 2008 and 21.15 MW in the third quarter of 2007. Average sales price ("ASP") was $4.09 in the third quarter of 2008, compared to $4.03 in the second quarter of 2008 and $3.75 in the third quarter of 2007.
Gross Profit and Margin
Gross profit in the third quarter of 2008 was $65.2 million, an increase of 37.6% sequentially and 292.9% year-over-year. Gross margin was 22.4% in the third quarter of 2008, a decrease from 23.2% in the second quarter of 2008 and an increase from 20.1% in the third quarter of 2007. The sequential decrease in gross margin was predominantly due to higher cost of silicon raw materials while the year-over-year increase was primarily due to higher module ASP and cost efficiencies from an increased degree of vertical integration, including in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the third quarter of 2008 were $18.4 million, or 6.3% of net revenues. This compares to 8.9% in the second quarter, reflecting the fourth straight quarterly improvement as a net revenue percentage. Operating expenses in the third quarter of 2008 included approximately $0.6 million of share-based compensation expenses.
Operating income in the third quarter of 2008 was $46.8 million, an increase of 60.6% sequentially and 575.0% year-over-year.
Operating margin was 16.1% in the third quarter of 2008, compared to 14.3% in the second quarter of 2008 and 8.4% in the third quarter of 2007. The sequential increase was primarily due to lower general and administrative expenses as a percentage of net revenues while the year-over-year increase was primarily due to both lower general and administrative expenses and selling expenses as a percentage of net revenues.
Net Interest Expense
Net Interest expense in the third quarter of 2008 was $7.2 million, compared to $5.1 million in the second quarter of 2008 and $0.6 million in the third quarter of 2007.
Foreign Currency Exchange Loss
Foreign currency exchange loss was $4.9 million in the third quarter of 2008, compared to $6.1 million sequentially. This was primarily due to the devaluation of the Euro against the U.S. Dollar, which resulted in a loss upon the remeasurement of the Company's receivables.
Net Income and EPS
Net income was $32.1 million in the third quarter of 2008, compared to $17.1 million in the second quarter of 2008 and $7.8 million in the third quarter of 2007. Net Income includes a foreign currency exchange loss of $4.9 million.
Net margin was 11.0% in the third quarter of 2008, compared to 8.4% in the second quarter of 2008 and 9.4% in the third quarter of 2007. The effect of the third quarter foreign currency exchange losses, net of tax effect, were approximately $0.17 per fully diluted ADS. Earnings per fully diluted ADS were $1.17.
Senior Convertible Notes Offering
On July 24, 2008, Trina Solar completed a public offering of $138 million of Senior Convertible Notes due 2013. The net proceeds of the offering is being used for the expansion of manufacturing lines for the production of silicon ingots, wafers, solar cells and solar modules, the purchase of raw materials, research and development and other general corporate purposes.
Financial Condition
As of September 30, 2008, the Company had $136.3 million in cash and cash equivalents, excluding the Company's restricted cash balance of $48.5 million. The restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities.
As of October 31, 2008, the Company's total approved credit facilities totaled approximately $450 million, of which includes approximately $150 million in available credit.
Fourth Quarter and Fiscal Year 2008 Guidance
For the fourth quarter of 2008, the Company expects to ship between 55 MW and 60 MW of PV modules and currently expects total net revenues to be in the range of $190 million to $210 million. The Company expects gross margin for the fourth quarter will likely be between 13% and 15% and estimates operating margin to range between 5% and 7% of total net revenues.
For the full year of 2008, the Company updates its projections as follows:
Total net revenues to be in the range of $800 million to $850 million, compared to previous guidance of $850 million to $900 million.
Total PV module shipments between 200 MW to 206 MW, compared to previous guidance of 210 MW to 220 MW.
The Company believes gross margin to be in the range of 20% and 22% for the year, compared to previous guidance of 23% and 25%, and estimates operating margin will likely be in the range of 12% to 14% of total net revenues, compared to previous guidance of 15% and 17%.
Business Outlook
Given industry concerns related to changes in the global economic and credit environments, the Company reiterates its confidence in regards to its financial strength and operational strategies for fiscal year 2009.
"We are confident in our ability to successfully navigate our operations and related capital requirements despite recent and significant market environment changes," stated Terry Wang, Chief Financial Officer. "We are fully aware of the risks and volatility of market conditions. After careful examination of various scenarios reflecting market demand, average selling price, and cost reductions of key material inputs, we reiterate expectations to preserve sufficient cash holdings and to maintain positive cashflows from operations initiated in the third quarter, which were over $20 million. These cashflows will drive the funding for future operations and capacity expansions, to be deployed prudently and effectively based on evolving market conditions."
Management Changes
The Company announces recent management changes:
Dr. Suping Chen has joined the Company as Vice President of Manufacturing, East Campus. Mr. Chen previously worked at Samsung Electronics (Suzhou) Semiconductor Co., Ltd. and at Seagate Technology International (Wuxi) Co., Ltd., where he served for over seven years in roles including Senior Product Manager and Operations Director. Dr. Chen, who formed his own management consulting company in 2006, has more than 12 years of IT manufacturing experience in China.
Dr. Qiang Huang has been appointed as Vice President of Technology. He replaces Mr. Ting Cheong Ang, the former Vice President of Technology Development. Dr. Huang served earlier as a Director of Manufacturing Engineering. Before joining our Company, he earlier served as Engineering Manager with Taiwan Semiconductor Manufacturing Co. (TSMC) and as a Senior Manager of Device Integration at ST Microelectronics in Singapore. Dr. Huang has more than eight years of commercial operations experience in semiconductor engineering development and engineering problem solving.
The Company also announces the appointment of Mr. Steven (Yu) Zhu as Vice President of International Procurement and Business Development. The position fills the vacancy created by the departure of Mr. Andrew Klump, the former Vice President of Business Development. Mr. Zhu, who joined the Company in 2005, earlier worked for IBM in the United States for four years as a global training leader and software engineer. Prior to joining the Company, Mr. Zhu also was founder and president of a wireless internet company from 2002 to 2005.
Saturday, October 4, 2008
Trina Solar Ranked Top 3 in TUV Energy Rating Tests
CHANGZHOU, China, Oct. 3 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL; ''Trina Solar'' or the ''Company''), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that its monocrystalline PV modules were ranked among the top three PV modules tested based on yield from TUV Energy Rating Comparison Measurementtests in 2008.
Test results from the Cologne-based TUV Rheinland Group's "Energy Yield 2008" project, released in September 2008, were conducted on a total of 14 international brands of PV modules from European, American and Asian manufacturers. The tests measured the specific energy yield as a percentage of maximum power output over a test period from April 1 to April 30, 2008.
"We are very pleased with our recent TUV test results, which validate our focus to improve manufacturing standards and process efficiencies to yield superior operating performance and stability," said Anthony Chia, Trina Solar's Vice President of Quality. "We look forward to working closely with TUV and other international testing organizations as we continue to enhance our technology research and development efforts for both new and existing products."
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL) is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. Trina Solar's products provide reliable and environmentally-friendly electric power for a growing variety of end-user applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com
Test results from the Cologne-based TUV Rheinland Group's "Energy Yield 2008" project, released in September 2008, were conducted on a total of 14 international brands of PV modules from European, American and Asian manufacturers. The tests measured the specific energy yield as a percentage of maximum power output over a test period from April 1 to April 30, 2008.
"We are very pleased with our recent TUV test results, which validate our focus to improve manufacturing standards and process efficiencies to yield superior operating performance and stability," said Anthony Chia, Trina Solar's Vice President of Quality. "We look forward to working closely with TUV and other international testing organizations as we continue to enhance our technology research and development efforts for both new and existing products."
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL) is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. Trina Solar's products provide reliable and environmentally-friendly electric power for a growing variety of end-user applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com
Canadian Solar Announces Completion of Ingot & Wafer Plant and Reiterates 2008 Guidance
TORONTO, Oct. 2 /Xinhua-PRNewswire/ -- Canadian Solar Inc. ("the Company","CSI" or "we") (Nasdaq: CSIQ) today announced it has completed and commissioned the Phase I of its ingot and wafer plant on schedule, giving the Company an annualized ingot and wafer capacity of 60 MW. Phase II of the ingot plant is expected to be completed by year-end, ahead of the original schedule. This will bring the Company's ingot and wafer capacity to 150 - 200 MW.
In further developments, Canadian Solar's 250 MW Phase II cell plant will also be completed in October, with the next stage to begin immediately thereafter. As of October, CSI's current annualized capacity is 220 MW and is expected to reach the target of 400 MW by the end of December, also ahead of schedule.
Both new plants are fully financed and fully supplied with both wafer and feedstock for Q4. This will enable the Company to produce 45-50 MW of polysilicon cells and UMG e-Cells internally in Q4. This will be supplemented by solar cells supplied from our long-term solar cell suppliers at competitive prices. In light of these recent developments, the Company is reiterating its top-line revenue and gross margin guidance for 2008 of $850-$970 million and13%-15%, respectively.
For 2009 the Company believes that it has secured approximately 4,000 Metric tons of UMG, enabling it to produce between 250 and 300 MW of UMG e-cells and e-Module in 2009. We are reiterating our shipment and gross margin guidance for 2009 of 500 - 550 MW and 13 - 15%, respectively.
Chairman and CEO Shawn Qu commented: "Demand remains high for both of our regular high-efficiency modules and our proprietary e-Module products. ASP's are expected to remain stable for the balance of the year and the raw material prices have begun to ease. The increased internal production capacity in Q4 will contribute meaningfully to our gross margins and will help us to reach our revenue and margin targets in spite of volatility in the Euro. Our highly flexible vertical integration model is robust; and has allowed us to quickly adopt to the market dynamics. We expect to be able to continue to meet our objectives for 2009 and are cautiously optimistic that there is upside potential in our '09 estimates."
About Canadian Solar Inc. (NASDAQ: CSIQ)
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and custom-designed solar application products serving customers worldwide. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
In further developments, Canadian Solar's 250 MW Phase II cell plant will also be completed in October, with the next stage to begin immediately thereafter. As of October, CSI's current annualized capacity is 220 MW and is expected to reach the target of 400 MW by the end of December, also ahead of schedule.
Both new plants are fully financed and fully supplied with both wafer and feedstock for Q4. This will enable the Company to produce 45-50 MW of polysilicon cells and UMG e-Cells internally in Q4. This will be supplemented by solar cells supplied from our long-term solar cell suppliers at competitive prices. In light of these recent developments, the Company is reiterating its top-line revenue and gross margin guidance for 2008 of $850-$970 million and13%-15%, respectively.
For 2009 the Company believes that it has secured approximately 4,000 Metric tons of UMG, enabling it to produce between 250 and 300 MW of UMG e-cells and e-Module in 2009. We are reiterating our shipment and gross margin guidance for 2009 of 500 - 550 MW and 13 - 15%, respectively.
Chairman and CEO Shawn Qu commented: "Demand remains high for both of our regular high-efficiency modules and our proprietary e-Module products. ASP's are expected to remain stable for the balance of the year and the raw material prices have begun to ease. The increased internal production capacity in Q4 will contribute meaningfully to our gross margins and will help us to reach our revenue and margin targets in spite of volatility in the Euro. Our highly flexible vertical integration model is robust; and has allowed us to quickly adopt to the market dynamics. We expect to be able to continue to meet our objectives for 2009 and are cautiously optimistic that there is upside potential in our '09 estimates."
About Canadian Solar Inc. (NASDAQ: CSIQ)
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and custom-designed solar application products serving customers worldwide. CSI is incorporated in Canada and conducts all of its manufacturing operations in China. Backed by years of experience and knowledge in the solar power market and the silicon industry, CSI has become a major global provider of solar power products for a wide range of applications. For more information, please visit http://www.csisolar.com .
Tuesday, June 10, 2008
Trina Solar Announces First Quarter 2008 Results
CHANGZHOU, China, June 6 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL) (''Trina Solar'' or the ''Company''), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced its financial results for the first quarter 2008.
First Quarter 2008 Financial and Operations Highlights
-- Solar module shipments were 29.49 MW, up 180.3% from 10.52 MW in the first quarter of 2007 and 23.3% from 23.91 MW in the fourth quarter of 2007
-- Total net revenues increased to $120.7 million, up 183.6% year-over- year and 19.0% sequentially
-- Gross profit was $31.1 million, an increase of 226.8% year-over-year and 12.6% sequentially
-- Gross margin was 25.8%, compared to 22.3% in the first quarter of 2007 and 27.2% in the fourth quarter of 2007
-- Operating margin was 16.7%, compared to 10.5% in the first quarter of 2007 and 16.0% in the fourth quarter of 2007
-- Net income was $12.9 million, compared to $4.8 million in the first quarter of 2007 and $15.7 million in the fourth quarter of 2007
-- Net income of $12.9 million includes a foreign currency exchange loss of $4.0 million, primarily associated with the remeasurement of the non-US dollar denominated obligations in the US dollar functional currency
-- Earnings per fully-diluted ADS was $0.51
''We are pleased with our first quarter performance, as we benefited from our integrated manufacturing capabilities to offset higher silicon feedstock costs,'' said Trina Solar's Chairman and CEO, Jifan Gao. "We also made solid progress on our technology roadmap, including reducing wafer thickness and other process improvements, all of which contributed to lower our module manufacturing costs. These developments, combined with our new automated wafer and cell line manufacturing workshops, are central to our strategy of continuously improving our technology platform, ensuring our low cost position through a vertically integrated business model, and developing a strong brand globally.''
First Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 200 MW for each of ingot, wafer, cell and module production as of March 31, 2008
-- Introduced automation and in-line processing to new cell production lines 7 and 8
-- Achieved 100% in-house cell processing, an increase from approximately 75% in the fourth quarter of 2007
-- Reduced monocrystalline and multicrystalline wafer thicknesses from 200 to 180 microns and from 220 to 200 microns, respectively
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including Belgium, France, Korea, Australia and the Netherlands
-- Received Underwriters Laboratory (UL) certifications to initiate sales in the United States, with initial contracts secured for the second half of 2008 and throughout 2009
-- Contracted 100% and 90% of first and second half of 2008 targeted module production, respectively, or approximately 95% of 2008 targeted module production of 200 MW to 210 MW
-- Announced long-term polysilicon supply contracts with GCL Silicon Technologies, Silfab S.p.A. and Qingdao DTK
-- Initiated deliveries to customers on a long-term contract basis to increase visibility on 2009 business such as Phoenix (Germany), Proinso (Spain), Pirelli (Italy) and Clipsol (France)
First Quarter 2008 Results
Net Revenue
Trina Solar's net revenues in the first quarter of 2008 were $120.7 million, an increase of 19.0% sequentially and 183.6% year-over-year. Total shipments in the first quarter of 2008 increased to 29.49 MW, up from 23.91 MW in the fourth quarter of 2007 and 10.52 MW in the first quarter of 2007. Average sales price ("ASP") was $3.95 in the first quarter of 2008, compared to $3.94 in the fourth quarter of 2007 and $3.80 in the firstquarter of 2007.
Gross Profit and Margin
Gross profit in the first quarter of 2008 was $31.1 million, an increase of 12.6% sequentially and 226.8% year-over-year. Gross margin was 25.8% in the first quarter of 2008, a decrease from 27.2% in the fourth quarter of 2007 and an increase from 22.3% in the first quarter of 2007. The sequential decrease was predominantly due to higher cost of silicon raw materials. The year-over-year increase in gross margin was primarily due to higher module ASP and cost efficiencies from in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the first quarter of 2008 were $10.9 million, representing 9.0% of first quarter net revenues, a decrease of 11.2% from the fourth quarter of 2007 and 11.8% from the first quarter of 2007. The sequential and year-over-year decreases were primarily due to lower general and administrative (''G&A'') expenses and sales and marketing expenses as a proportion of total net revenues. Operating expenses in the first quarterof 2008 included approximately $1.3 million of share-based compensation expenses. Operating income in the first quarter of 2008 was $20.2 million, an increase of 24.5% sequentially and 352.2% year-over-year.
Operating margin was 16.7% in the first quarter of 2008, compared to 16.0% in the fourth quarter of 2007 and 10.5% in the first quarter of 2007. The sequential and year-over-year increases in operating margin were due to increased manufacturing benefits from vertical integration.
Change of Functional Currency
Effective January 1, 2008, the Company changed the functional currency of its operating subsidiary, Changzhou Trina Solar Energy Co., Ltd.(''Trina China''), from RMB to US dollars. This change is in accordance with FASB Statement No. 52, "Foreign Currency Translation", and was basedon Trina China's significant and sustained shift in conducting a majority of its business activities in US dollars. During the first quarter of 2008, the Company recorded an exchange loss of $4.0 million, which was primarily associated with Trina China's non-US-denominated obligations that are now required to be remeasured in the US dollar functional currency. Such remeasurements are and will continue to be, to the extent we continue to have such non-US denominated obligations, recorded as transaction gains or losses in the consolidated statement of operations.
Interest Expense and Income
Interest expense in the first quarter of 2008 was $3.5 million, compared to $2.6 million in the fourth quarter of 2007 and $1.2 million in the first quarter of 2007. The sequential and year-over-year increases were due to additional bank borrowings and an increase in interest rates. Interest Income was $1.2 million in the first quarter of 2008, compared to $2.4 million in the fourth quarter of 2007 and $0.4 million in the first quarter of 2007.
Net Income and EPS
Net income was $12.9 million in the first quarter of 2008, compared to $15.7 million in the fourth quarter of 2007 and $4.8 million in the first quarter of 2007. Net Income of $12.9 million includes a foreign currency exchange loss of $4.0 million, primarily associated with the remeasurement of Trina China's non-US dollar denominated obligations in the US dollar functional currency. Net margin was 10.7% in the first quarter of 2008, compared to 15.5% in the fourth quarter of 2007 and 11.2% in the first quarter of 2007. Earnings per fully diluted ADS in the quarter were $0.51.
Embedded Derivative
The Company's quarterly and yearly 2007 financial statements are subject to change based on the Company completing its computation of the fair value of a foreign exchange derivative embedded in a material long-term silicon supply contract. Such contract provides that the purchase price of the silicon to be acquired be denominated in US dollars, which is not the functional currency of either of the contracting parties at the time the contract was entered into. Given the continued strengthening of the RMB against the US dollar, the Company believes that the ultimate impact will be an increase in earnings for the year 2007. The impact, if material, will be recorded as ''change in fair value of derivative'' a non-cash and non-operating item in the consolidated statement of operations.
Due to the change of Trina China's functional currency to US dollars, effective January 1, 2008, this contract-related embedded derivative will no longer be required to be measured at fair value with changes in fair value recorded in the consolidated statement of operations. However,''Retained earnings,'' ''Total shareholders' equity'' and ''Totalliabilities and shareholders' equity'' items in the balance sheet of our financial statements as of March 31, 2008 may be subject to change upon completion of the computation of the embedded derivative due to its existence as of and for the year ended December 31, 2007.
Financial Condition
As of March 31, 2008, the Company had $38.2 million in cash and cash equivalents, which excludes the Company's restricted cash balance of $126.0million. Restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities. The Company's working capital balance was $84.8 million. Total bank borrowings stood at $259.7 million, of which $14.2 million were long-term borrowings. Shareholders' equity as of March 31, 2008 was $380.9 million.
Business Operations Outlook
2008 Silicon Feedstock
The Company has now secured approximately 95% of its estimated silicon feedstock requirements for 2008.
Sales Markets
The Company continues to expand its geographic sales distribution outside of the primary European PV markets, including contracts with Enfinity (Belgium), Giordano and Solargie (France), Pirelli-SolarUtility (Italy), and Worldwide Energy (United States). Approximately 95% of the Company's targeted 2008 module production of 200 MW to 210 MW has now been contracted.
Discontinuance of Polysilicon Project
On April 14, 2008, the Company announced its decision to discontinue the development of its previously announced 10,000 MT polysilicon production facility. The Company made this strategic decision after careful assessment of its raw material requirements in conjunction with recent and favorable developments in the long-term polysilicon supply environment. The Company now believes it has greater access to polysilicon feedstock to support its growth objectives, particularly that the Company has signed long-term contracts covering large amounts of polysilicon feedstock, while achieving the necessary cost reductions to maintain its competitive advantage. To address its future polysilicon requirements, the Company will continue to negotiate and sign long-term contracts to meet its strategic supply needs. Additionally, the Company will consider strategic investment options in future polysilicon projects which offer attractive economics and involve smaller investment requirements, although no projects are currently under consideration. The Company's decision to discontinue the project will not affect the amount of polysilicon feedstock it expects to receive in 2008 and 2009.
Second Quarter and Fiscal Year 2008 Guidance
For the second quarter of 2008, the Company expects to ship between 43 MW and 45 MW of PV modules and has expectations of total net revenues in the range of $169 million to $177 million. The Company believes gross margin for the second quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues.
For the full year of 2008 the Company expects total net revenues to be in the range of $770 million to $808 million, with PV module shipments between 200 MW to 210 MW. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.
First Quarter 2008 Financial and Operations Highlights
-- Solar module shipments were 29.49 MW, up 180.3% from 10.52 MW in the first quarter of 2007 and 23.3% from 23.91 MW in the fourth quarter of 2007
-- Total net revenues increased to $120.7 million, up 183.6% year-over- year and 19.0% sequentially
-- Gross profit was $31.1 million, an increase of 226.8% year-over-year and 12.6% sequentially
-- Gross margin was 25.8%, compared to 22.3% in the first quarter of 2007 and 27.2% in the fourth quarter of 2007
-- Operating margin was 16.7%, compared to 10.5% in the first quarter of 2007 and 16.0% in the fourth quarter of 2007
-- Net income was $12.9 million, compared to $4.8 million in the first quarter of 2007 and $15.7 million in the fourth quarter of 2007
-- Net income of $12.9 million includes a foreign currency exchange loss of $4.0 million, primarily associated with the remeasurement of the non-US dollar denominated obligations in the US dollar functional currency
-- Earnings per fully-diluted ADS was $0.51
''We are pleased with our first quarter performance, as we benefited from our integrated manufacturing capabilities to offset higher silicon feedstock costs,'' said Trina Solar's Chairman and CEO, Jifan Gao. "We also made solid progress on our technology roadmap, including reducing wafer thickness and other process improvements, all of which contributed to lower our module manufacturing costs. These developments, combined with our new automated wafer and cell line manufacturing workshops, are central to our strategy of continuously improving our technology platform, ensuring our low cost position through a vertically integrated business model, and developing a strong brand globally.''
First Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 200 MW for each of ingot, wafer, cell and module production as of March 31, 2008
-- Introduced automation and in-line processing to new cell production lines 7 and 8
-- Achieved 100% in-house cell processing, an increase from approximately 75% in the fourth quarter of 2007
-- Reduced monocrystalline and multicrystalline wafer thicknesses from 200 to 180 microns and from 220 to 200 microns, respectively
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including Belgium, France, Korea, Australia and the Netherlands
-- Received Underwriters Laboratory (UL) certifications to initiate sales in the United States, with initial contracts secured for the second half of 2008 and throughout 2009
-- Contracted 100% and 90% of first and second half of 2008 targeted module production, respectively, or approximately 95% of 2008 targeted module production of 200 MW to 210 MW
-- Announced long-term polysilicon supply contracts with GCL Silicon Technologies, Silfab S.p.A. and Qingdao DTK
-- Initiated deliveries to customers on a long-term contract basis to increase visibility on 2009 business such as Phoenix (Germany), Proinso (Spain), Pirelli (Italy) and Clipsol (France)
First Quarter 2008 Results
Net Revenue
Trina Solar's net revenues in the first quarter of 2008 were $120.7 million, an increase of 19.0% sequentially and 183.6% year-over-year. Total shipments in the first quarter of 2008 increased to 29.49 MW, up from 23.91 MW in the fourth quarter of 2007 and 10.52 MW in the first quarter of 2007. Average sales price ("ASP") was $3.95 in the first quarter of 2008, compared to $3.94 in the fourth quarter of 2007 and $3.80 in the firstquarter of 2007.
Gross Profit and Margin
Gross profit in the first quarter of 2008 was $31.1 million, an increase of 12.6% sequentially and 226.8% year-over-year. Gross margin was 25.8% in the first quarter of 2008, a decrease from 27.2% in the fourth quarter of 2007 and an increase from 22.3% in the first quarter of 2007. The sequential decrease was predominantly due to higher cost of silicon raw materials. The year-over-year increase in gross margin was primarily due to higher module ASP and cost efficiencies from in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the first quarter of 2008 were $10.9 million, representing 9.0% of first quarter net revenues, a decrease of 11.2% from the fourth quarter of 2007 and 11.8% from the first quarter of 2007. The sequential and year-over-year decreases were primarily due to lower general and administrative (''G&A'') expenses and sales and marketing expenses as a proportion of total net revenues. Operating expenses in the first quarterof 2008 included approximately $1.3 million of share-based compensation expenses. Operating income in the first quarter of 2008 was $20.2 million, an increase of 24.5% sequentially and 352.2% year-over-year.
Operating margin was 16.7% in the first quarter of 2008, compared to 16.0% in the fourth quarter of 2007 and 10.5% in the first quarter of 2007. The sequential and year-over-year increases in operating margin were due to increased manufacturing benefits from vertical integration.
Change of Functional Currency
Effective January 1, 2008, the Company changed the functional currency of its operating subsidiary, Changzhou Trina Solar Energy Co., Ltd.(''Trina China''), from RMB to US dollars. This change is in accordance with FASB Statement No. 52, "Foreign Currency Translation", and was basedon Trina China's significant and sustained shift in conducting a majority of its business activities in US dollars. During the first quarter of 2008, the Company recorded an exchange loss of $4.0 million, which was primarily associated with Trina China's non-US-denominated obligations that are now required to be remeasured in the US dollar functional currency. Such remeasurements are and will continue to be, to the extent we continue to have such non-US denominated obligations, recorded as transaction gains or losses in the consolidated statement of operations.
Interest Expense and Income
Interest expense in the first quarter of 2008 was $3.5 million, compared to $2.6 million in the fourth quarter of 2007 and $1.2 million in the first quarter of 2007. The sequential and year-over-year increases were due to additional bank borrowings and an increase in interest rates. Interest Income was $1.2 million in the first quarter of 2008, compared to $2.4 million in the fourth quarter of 2007 and $0.4 million in the first quarter of 2007.
Net Income and EPS
Net income was $12.9 million in the first quarter of 2008, compared to $15.7 million in the fourth quarter of 2007 and $4.8 million in the first quarter of 2007. Net Income of $12.9 million includes a foreign currency exchange loss of $4.0 million, primarily associated with the remeasurement of Trina China's non-US dollar denominated obligations in the US dollar functional currency. Net margin was 10.7% in the first quarter of 2008, compared to 15.5% in the fourth quarter of 2007 and 11.2% in the first quarter of 2007. Earnings per fully diluted ADS in the quarter were $0.51.
Embedded Derivative
The Company's quarterly and yearly 2007 financial statements are subject to change based on the Company completing its computation of the fair value of a foreign exchange derivative embedded in a material long-term silicon supply contract. Such contract provides that the purchase price of the silicon to be acquired be denominated in US dollars, which is not the functional currency of either of the contracting parties at the time the contract was entered into. Given the continued strengthening of the RMB against the US dollar, the Company believes that the ultimate impact will be an increase in earnings for the year 2007. The impact, if material, will be recorded as ''change in fair value of derivative'' a non-cash and non-operating item in the consolidated statement of operations.
Due to the change of Trina China's functional currency to US dollars, effective January 1, 2008, this contract-related embedded derivative will no longer be required to be measured at fair value with changes in fair value recorded in the consolidated statement of operations. However,''Retained earnings,'' ''Total shareholders' equity'' and ''Totalliabilities and shareholders' equity'' items in the balance sheet of our financial statements as of March 31, 2008 may be subject to change upon completion of the computation of the embedded derivative due to its existence as of and for the year ended December 31, 2007.
Financial Condition
As of March 31, 2008, the Company had $38.2 million in cash and cash equivalents, which excludes the Company's restricted cash balance of $126.0million. Restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities. The Company's working capital balance was $84.8 million. Total bank borrowings stood at $259.7 million, of which $14.2 million were long-term borrowings. Shareholders' equity as of March 31, 2008 was $380.9 million.
Business Operations Outlook
2008 Silicon Feedstock
The Company has now secured approximately 95% of its estimated silicon feedstock requirements for 2008.
Sales Markets
The Company continues to expand its geographic sales distribution outside of the primary European PV markets, including contracts with Enfinity (Belgium), Giordano and Solargie (France), Pirelli-SolarUtility (Italy), and Worldwide Energy (United States). Approximately 95% of the Company's targeted 2008 module production of 200 MW to 210 MW has now been contracted.
Discontinuance of Polysilicon Project
On April 14, 2008, the Company announced its decision to discontinue the development of its previously announced 10,000 MT polysilicon production facility. The Company made this strategic decision after careful assessment of its raw material requirements in conjunction with recent and favorable developments in the long-term polysilicon supply environment. The Company now believes it has greater access to polysilicon feedstock to support its growth objectives, particularly that the Company has signed long-term contracts covering large amounts of polysilicon feedstock, while achieving the necessary cost reductions to maintain its competitive advantage. To address its future polysilicon requirements, the Company will continue to negotiate and sign long-term contracts to meet its strategic supply needs. Additionally, the Company will consider strategic investment options in future polysilicon projects which offer attractive economics and involve smaller investment requirements, although no projects are currently under consideration. The Company's decision to discontinue the project will not affect the amount of polysilicon feedstock it expects to receive in 2008 and 2009.
Second Quarter and Fiscal Year 2008 Guidance
For the second quarter of 2008, the Company expects to ship between 43 MW and 45 MW of PV modules and has expectations of total net revenues in the range of $169 million to $177 million. The Company believes gross margin for the second quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues.
For the full year of 2008 the Company expects total net revenues to be in the range of $770 million to $808 million, with PV module shipments between 200 MW to 210 MW. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.
Wednesday, May 21, 2008
ET Solar Group Announces Establishment of Korean Subsidiary in Seoul, Korea
NANJING, China, May 19 /Xinhua-PRNewswire/ -- ET Solar Group Corp. ("ETSolar"), a Nanjing-based vertically integrated manufacturer of photovoltaic products including ingots, wafers, modules, and state-of-the-art dual-axis tracking systems with manufacturing facilities located in Taizhou, China, announced today that it has established a wholly owned subsidiary in Seoul, Korea.
Following the establishment of an Italian office in Rome this March, ET Solar now opens a subsidiary in Seoul to handle sales and procurement efforts in Korea.
"We see Korea as the second largest PV market in the near future in Asia ex-Japan, and the establishment of our presence will further strengthen our global brand name and enable us to better understand and address the fast increasing demand of PV equipment and turn key solutions in this market," commented Dennis She, Chief Sales Officer of ET Solar. "In particular, Korea is an ideal market for dual-axis tracking systems and ET Solar is one of the very few companies that is offering both modules and state-of-the-art tracking systems to our customers in the region."
Following the establishment of an Italian office in Rome this March, ET Solar now opens a subsidiary in Seoul to handle sales and procurement efforts in Korea.
"We see Korea as the second largest PV market in the near future in Asia ex-Japan, and the establishment of our presence will further strengthen our global brand name and enable us to better understand and address the fast increasing demand of PV equipment and turn key solutions in this market," commented Dennis She, Chief Sales Officer of ET Solar. "In particular, Korea is an ideal market for dual-axis tracking systems and ET Solar is one of the very few companies that is offering both modules and state-of-the-art tracking systems to our customers in the region."
Tuesday, April 22, 2008
Trina Solar's Key Suppliers Sign Investment Agreements with
CHANGZHOU, China, April 22 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL; "Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that five of its key suppliers have signed investment agreements to establish production facilities in the Changzhou Trina Photovoltaic Industrial Park. With the help of Trina Solar, these suppliers signed agreements today with the Changzhou National High Tech District in conjunction with Trina Solar's 10th Anniversary celebration. "We welcome these suppliers to Changzhou and are very happy to assist Trina Solar in reaching its aggressive expansion goals," said Vincent Dai, Vice-Director of the Administrative Committee.
The suppliers, which include Guangzhou ChienSong Grind Material Co., Ltd., Hubei Feilihua Quartz Glass Co., Ltd., Suzhou Good-Ark Electronics Co., Ltd., and a European manufacturer of PV glass, produce products such as reclaimed slurry, crucibles, junction boxes, and low iron glass used in the production of solar PV modules. These companies are targeting total investments of over $275 million in Changzhou. "We are very excited by the advancement of the Changzhou Trina Photovoltaic Industrial Park and the opportunity to form strong partnerships with each of these key suppliers," said Jifan Gao, Trina Solar's Chairman and CEO.
The five suppliers plan to build production facilities in Changzhou and enter into long-term supply agreements with Trina Solar. Their presence in the Changzhou Trina Photovoltaic Industrial Park will help to advance Trina Solar's goal of ensuring a steady supply of its key supply chain components, while providing the company with lower material costs, among other logistical advantages.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
The suppliers, which include Guangzhou ChienSong Grind Material Co., Ltd., Hubei Feilihua Quartz Glass Co., Ltd., Suzhou Good-Ark Electronics Co., Ltd., and a European manufacturer of PV glass, produce products such as reclaimed slurry, crucibles, junction boxes, and low iron glass used in the production of solar PV modules. These companies are targeting total investments of over $275 million in Changzhou. "We are very excited by the advancement of the Changzhou Trina Photovoltaic Industrial Park and the opportunity to form strong partnerships with each of these key suppliers," said Jifan Gao, Trina Solar's Chairman and CEO.
The five suppliers plan to build production facilities in Changzhou and enter into long-term supply agreements with Trina Solar. Their presence in the Changzhou Trina Photovoltaic Industrial Park will help to advance Trina Solar's goal of ensuring a steady supply of its key supply chain components, while providing the company with lower material costs, among other logistical advantages.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
Monday, April 7, 2008
ET Solar Group Announces Closing of a US$19 Million Series A Redeemable, Convertible Preferred Share Placement
NANJING, China, April 4, 2008 /Xinhua-PRNewswire/ -- ET Solar Group Corp. ("ET Solar"), a Nanjing-based integrated manufacturer of photovoltaic products including ingot, wafer, module, and state-of-the-art dual-axis tracking systems with manufacturing facilities located in Taizhou, China, announced today the completion of a US$19 million private equity placement transaction.
The Series A redeemable convertible preferred share placement was led by Tsing Capital / China Environment Fund, a highly experienced institutional investor dedicated to cleantech investment in China, and joined by another prominent institutional investor.
Commenting on the news, Xinghua Wang, chairman of ET Solar, said, "As a vertically integrated solar company that focuses on downstream part of the value chain, ET Solar is well positioned to capture the exponential growth of the solar industry and represents a very attractive investment opportunity to the investors."
Fischer Chen, CFO of ET Solar, added "The clear differentiation in our business model and product portfolio, strong procurement and sales backlog, robust earnings visibility and new product commercialization roadmap ensured a successful completion of a sizeable fund raising in a challenging capital market environment."
About ET Solar
ET Solar is an integrated solar component manufacturer. Headquartered in Nanjing, China, ET Solar has two manufacturing facilities in Taizhou, China. The Company's diversified products range from mono crystalline ingot, mono and multi crystalline silicon wafer, module, dual-axis tracker systems and BIVP products. ET Solar has been implementing sales through a combination of extensive direct sales and global distribution. Marketing and after-sales services throughout the United States, Germany, Italy and Spain ensure our products are readily accessible in world's major solar markets. With a genuine effort to supply our customers with tailor-made modules for specific customer requirements, ET Solar provides pro-active solutions for everyone's solar energy needs.
About Tsing Capital / China Environment Fund
Managed by Tsing Capital, China Environment Fund is the first and most prominent VC fund in China that is fully dedicated to cleantech investment. With three funds (CEF I 2002, CEF II 2004, and CEF III) under management, Tsing Capital and China Environment Fund strive to pioneer the advent of clean investment with combined environmental benefits and financial returns.
The Series A redeemable convertible preferred share placement was led by Tsing Capital / China Environment Fund, a highly experienced institutional investor dedicated to cleantech investment in China, and joined by another prominent institutional investor.
Commenting on the news, Xinghua Wang, chairman of ET Solar, said, "As a vertically integrated solar company that focuses on downstream part of the value chain, ET Solar is well positioned to capture the exponential growth of the solar industry and represents a very attractive investment opportunity to the investors."
Fischer Chen, CFO of ET Solar, added "The clear differentiation in our business model and product portfolio, strong procurement and sales backlog, robust earnings visibility and new product commercialization roadmap ensured a successful completion of a sizeable fund raising in a challenging capital market environment."
About ET Solar
ET Solar is an integrated solar component manufacturer. Headquartered in Nanjing, China, ET Solar has two manufacturing facilities in Taizhou, China. The Company's diversified products range from mono crystalline ingot, mono and multi crystalline silicon wafer, module, dual-axis tracker systems and BIVP products. ET Solar has been implementing sales through a combination of extensive direct sales and global distribution. Marketing and after-sales services throughout the United States, Germany, Italy and Spain ensure our products are readily accessible in world's major solar markets. With a genuine effort to supply our customers with tailor-made modules for specific customer requirements, ET Solar provides pro-active solutions for everyone's solar energy needs.
About Tsing Capital / China Environment Fund
Managed by Tsing Capital, China Environment Fund is the first and most prominent VC fund in China that is fully dedicated to cleantech investment. With three funds (CEF I 2002, CEF II 2004, and CEF III) under management, Tsing Capital and China Environment Fund strive to pioneer the advent of clean investment with combined environmental benefits and financial returns.
Thursday, April 3, 2008
Trina Solar Signs Long Term Supply Agreement with GCL Silicon Technology
CHANGZHOU, China, April 2, 2008, 2008 /Xinhua-PRNewswire-FirstCall via COMTEX/ -- Trina Solar Limited (''Trina Solar'' or the ''Company''), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that the Company has signed a long-term polysilicon supply agreement with a subsidiary of GCL Silicon Technology Holdings Ltd. (collectively, ''GCL Silicon Technology'').
Under this agreement, GCL Silicon Technology will supply Trina Solar with virgin polysilicon sufficient to produce approximately 2,600 MW of solar modules in aggregate over eight years. Delivery of polysilicon at predetermined prices will start in April of 2008.
''This agreement represents a key component of our strategy to secure sufficient feedstock to support our sales growth. Combined with our other long-term agreements, planned in-house polysilicon production, and integrated manufacturing cost efficiencies, we believe we are in a strong position to expand our margins in the long term as the cost of solar energy approaches grid parity," said Jifan Gao, Trina Solar's Chairman and Chief Executive Officer. "This eight-year agreement will provide Trina Solar with a large quantity of polysilicon at favorable terms with delivery scheduled to commence this month."
"We are pleased to become a polysilicon supplier to Trina Solar and look forward to developing a close relationship with them," said Hunter Jiang, President of GCL Silicon Technology. "GCL Silicon Technology intends to expand its polysilicon production capacity to meet the growing demands of customers like Trina Solar.''
This long-term polysilicon supply agreement will enhance the Company's raw material supplies and increase its cost structure visibility to strengthen its position as a leading global PV manufacturer. After signing this agreement and together with other polysilicon supply agreements, the Company has now secured approximately 95% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 195 MW based on a production target of 200 to 210 MW of module output.
About Trina Solar Limited
Trina Solar Limited, through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About GCL Silicon Technology
GCL Silicon Technology Holdings Limited, through its subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., sells polysilicon and wafers to the solar industry. The company operates a polysilicon production facility in Xuzhou, Jiangsu Province in China.
Under this agreement, GCL Silicon Technology will supply Trina Solar with virgin polysilicon sufficient to produce approximately 2,600 MW of solar modules in aggregate over eight years. Delivery of polysilicon at predetermined prices will start in April of 2008.
''This agreement represents a key component of our strategy to secure sufficient feedstock to support our sales growth. Combined with our other long-term agreements, planned in-house polysilicon production, and integrated manufacturing cost efficiencies, we believe we are in a strong position to expand our margins in the long term as the cost of solar energy approaches grid parity," said Jifan Gao, Trina Solar's Chairman and Chief Executive Officer. "This eight-year agreement will provide Trina Solar with a large quantity of polysilicon at favorable terms with delivery scheduled to commence this month."
"We are pleased to become a polysilicon supplier to Trina Solar and look forward to developing a close relationship with them," said Hunter Jiang, President of GCL Silicon Technology. "GCL Silicon Technology intends to expand its polysilicon production capacity to meet the growing demands of customers like Trina Solar.''
This long-term polysilicon supply agreement will enhance the Company's raw material supplies and increase its cost structure visibility to strengthen its position as a leading global PV manufacturer. After signing this agreement and together with other polysilicon supply agreements, the Company has now secured approximately 95% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 195 MW based on a production target of 200 to 210 MW of module output.
About Trina Solar Limited
Trina Solar Limited, through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About GCL Silicon Technology
GCL Silicon Technology Holdings Limited, through its subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., sells polysilicon and wafers to the solar industry. The company operates a polysilicon production facility in Xuzhou, Jiangsu Province in China.
Wednesday, March 19, 2008
ReneSola Ltd Announces Fourth Quarter and Full Year 2007 Results
JIASHAN, China, March 19 /Xinhua-PRNewswire-FirstCall/ -- ReneSola Ltd ("ReneSola" or the "Company"), a leading Chinese manufacturer of solar wafers, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2007.
Financial Highlights
-- Fourth quarter 2007 net revenues were US$96.0 million, an increase of 197.6% from US$32.3 million in the fourth quarter of 2006, and an increase of 32.4% from US$72.5 million in the third quarter of 2007. Full year 2007 net revenues were US$249.0 million, an increase of 195.1% from US$84.4 million in the full year 2006.
-- Fourth quarter 2007 net income was US$17.5 million, an increase of 87.8% from US$9.3 million in the fourth quarter of 2006, and an increase of 36.8% from US$12.8 million in the third quarter of 2007. Full year 2007 net income was US$42.9 million, an increase of 69.7% from US$25.3 million in the full year 2006.
-- Fourth quarter 2007 basic and diluted earnings per share were US$0.17 and US$0.17, respectively, and basic and diluted earnings per ADS were US$0.34 and US$0.34, respectively. Full year 2007 basic and diluted earnings per share were US$0.43 and US$0.43, respectively, and basic and diluted earnings per ADS were US$0.86 and US$0.86, respectively. Each ADS represents two shares.
Business Highlights
-- Fourth quarter production output was 51.3 MW, an increase of 42.5% from 36.0 MW in the third quarter. Full year production output was 125.6 MW, an increase of 223% from 38.9 MW in the full year 2006, exceeding the top end of guidance.
-- Successfully executed 2007 capacity expansion target with additional 40 monocrystalline furnaces and 17 multicrystalline furnaces installed during the fourth quarter of 2007, bringing total ingot manufacturing capacity to 378 MW and wafer manufacturing capacity to 305 MW, compared with 80 MW of ingot manufacturing capacity as of the end of 2006.
-- Over 90% of raw materials required for 2008 planned production output of 300 MW have been secured through a combination of long-term and short-term procurement contracts, toll arrangements, and expected output from our polysilicon joint venture in Henan Province, China. -- Joint venture in Henan Province, China successfully commenced trial production of polysilicon, and development of wholly-owned green field polysilicon plant in Sichuan Province, China is on track with trial production of this facility expected to begin during the first half of 2009.
Six Three Twelve Six Three Three Twelve
months months months months months months months
ended ended ended ended ended ended ended
6/30 12/31 12/31 6/30 9/30 12/31 12/31
2006 2006 2006 2007 2007 2007 2007
Net revenue
(US$000) 24,042 32,272 84,371 80,387 72,540 96,046 248,973 Gross profit
(US$000) 7,171 8,878 24,725 18,102 15,775 19,619 53,496 Gross margin (%) 29.8% 27.5% 29.3% 22.5% 21.7% 20.4% 21.5%
Operating profit
(US$000) 6,394 8,029 22,235 15,001 13,432 15,000 43,433
Foreign exchange
gain (loss) (US$000) (9) 141 364 (2,304) (569) (1,174) (4,047)
Profit for the
period (US$000) 7,039 9,303 25,301 12,690 12,775 17,471 42,936
Production output (MW) 10.0 15.7 38.9 38.3 36.0 51.3 125.6
"During 2007 ReneSola grew into a leading producer of solar wafers and our business expanded through upstream integration within the solar value chain into polysilicon manufacturing," said Mr. Xianshou Li, ReneSola's Chief Executive Officer. "As one of the fastest growing solar companies in the world, ReneSola achieved substantial top line growth without sacrificing profitability in spite of a significant increase in raw material costs, as demand for wafers, as well as average wafer selling prices, continued to increase. We also successfully executed our growth plan by expanding our raw material procurement and customer network and increasing our total production capacity from 80 MW as of the end of 2006, to 378 MW as of the end of 2007."
"During the year we also took strategic steps to integrate upstream into polysilicon manufacturing. Our joint venture in Henan Province, China commenced polysilicon trial production in mid-January 2008, and the development of our state-of-the-art green field polysilicon project in Sichuan Province, China is on track. In line with ReneSola's strong commitment to maintaining environmentally responsible business practices, the joint venture in Henan Province has met the environmental protection standards set by the government and is equipped to recycle silicon tetrachloride. The polysilicon project in Sichuan Province will utilize proven, high-end equipment with fully closed loop systems to recycle and convert waste into products that can be reused in the production process."
"In 2008, we will maintain our focus on efficient cost production and innovation as we look to build on ReneSola's strong brand name. New equipment using our proprietary technologies and state-of-the-art facilities will include some of the most advanced furnaces and wire saws in the market. We are confident that our expansion efforts and upstream transition into polysilicon manufacturing, paired with a strong feedstock supply pipeline and a customer base of leading industry players, put ReneSola in a unique position to capitalize on the opportunities presented by a rapidly growing solar industry in 2008 and beyond."
Financial Results for the Fourth Quarter and Full Year 2007
Net revenues
Net revenues for the fourth quarter of 2007 were US$96.0 million, an increase of 32.4% sequentially and 197.6% year-over-year. For the full year 2007, ReneSola reported net revenues of US$249.0 million representing a 195.1% increase year-over-year from US$84.4 million in 2006. The rise in fourth quarter and full year 2007 revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
Fourth quarter gross profit was US$19.6 million, a 24.4% increase sequentially and 121.0% year-over-year. The gross margin for the fourth quarter was 20.4% compared to 21.7% in the third quarter of 2007. Full year 2007 gross profit was US$53.5 million, a 116.4% increase year-over-year from US$24.7 million in 2006. The gross margin for full year 2007 was 21.5% compared to 29.3% for the full year 2006. The change in gross margin was primarily attributable to increases in average feedstock costs of 13.7% sequentially and 42.1% year-over-year. Increasing feedstock costs were mitigated by a reduction in silicon consumption through a combination of in- house closed-loop scrap recycling, productivity gains from improvements in wafer slicing, a reduction in non-raw material related production costs and increases in wafer ASPs.
Operating profit
Operating profit in the fourth quarter of 2007 was US$15.0 million, an increase of 11.7% sequentially and 86.8% year-over-year. Operating margin was 15.6% in the fourth quarter compared to 18.5% in the third quarter of 2007. Total operating expenses in the fourth quarter of 2007 were US$4.6 million, up from US$2.3 million in the third quarter of 2007. Of the total operating expenses in the fourth quarter US$0.7 million was attributable to share-based compensation expenses.
Operating profit for the full year 2007 was US$43.4 million, a 95.3% increase year-over-year from US$22.2 million in 2006. Operating margin was 17.4% for the full year 2007 compared to 26.4% in the previous year due to the lower gross margin attributable to the significant increase in raw material costs. Total operating expenses increased to US$10.l million for the full year 2007 from US$2.5 million for the full year 2006. This was primarily due to increased general and administrative expenses and R&D costs reflecting higher salary and benefit payments as a result of the need for a greater number of employees to meet our fast growing business, as well as an increase in professional fees and compliance expenses.
Profit before tax
Profit before tax in the fourth quarter was US$12.4 million, a 3.6% increase sequentially and 49.3% increase year-over-year. Finance costs increased by 13.9% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 2.0% in the third quarter of 2007 to 1.8% in the fourth quarter of 2007. The fourth quarter foreign exchange loss increased to US$1.2 million from US$0.6 million in the third quarter as a result of appreciation of RMB against the US dollar during the quarter.
Profit before tax for the full year 2007 was US$36.8 million, an increase of 63.0% year-over-year from US$22.6 million in 2006. Finance costs in 2007 increased to US$4.5 million from US$0.3 million in 2006, reflecting increased bank borrowings and the convertible bonds issued in March 2007. The full year 2007 foreign exchange loss was US$4.0 million from a gain of US$0.4 million in the previous year due to appreciation of RMB against the US dollar.
Taxation
ReneSola's subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd, ("Zhejiang Yuhui") recognized a tax benefit of US$5.2 million in the fourth quarter of 2007, significantly up from US$0.8 million in the third quarter of 2007. For the full year 2007, Zhejiang Yuhui recognized a tax benefit of US$6.2 million, up from US$2.7 million in 2006, due to an increase in domestic equipment purchases. In accordance with PRC tax regulations, Zhejiang Yuhui received 40% of the amount arising from the purchase of domestic made equipment as an investment tax credit. The tax credit can be carried forward for 7 years to offset future corporate income taxes.
Net profit
Fourth quarter 2007 net profit increased 36.8% sequentially and 87.8% year-over-year to US$17.5 million. Full year 2007 net profit increased 69.7% year-over-year to US$42.9 million due to an increase in production output and improved productivity.
2008 Guidance
In the first quarter of 2008 we expect our gross margin to remain stable and expected production output to be 62 MW, as compared to 51.3 MW in the fourth quarter of 2007 and 15.3 MW in the first quarter of 2007. We maintain our annualized ingot production capacity target of 645 MW by the end of 2008. We anticipate production output of a minimum of 300 MW in 2008 with minimum annual net revenues of US$480 million. This represents year-over-year revenue growth of at least 93%.
Financial Highlights
-- Fourth quarter 2007 net revenues were US$96.0 million, an increase of 197.6% from US$32.3 million in the fourth quarter of 2006, and an increase of 32.4% from US$72.5 million in the third quarter of 2007. Full year 2007 net revenues were US$249.0 million, an increase of 195.1% from US$84.4 million in the full year 2006.
-- Fourth quarter 2007 net income was US$17.5 million, an increase of 87.8% from US$9.3 million in the fourth quarter of 2006, and an increase of 36.8% from US$12.8 million in the third quarter of 2007. Full year 2007 net income was US$42.9 million, an increase of 69.7% from US$25.3 million in the full year 2006.
-- Fourth quarter 2007 basic and diluted earnings per share were US$0.17 and US$0.17, respectively, and basic and diluted earnings per ADS were US$0.34 and US$0.34, respectively. Full year 2007 basic and diluted earnings per share were US$0.43 and US$0.43, respectively, and basic and diluted earnings per ADS were US$0.86 and US$0.86, respectively. Each ADS represents two shares.
Business Highlights
-- Fourth quarter production output was 51.3 MW, an increase of 42.5% from 36.0 MW in the third quarter. Full year production output was 125.6 MW, an increase of 223% from 38.9 MW in the full year 2006, exceeding the top end of guidance.
-- Successfully executed 2007 capacity expansion target with additional 40 monocrystalline furnaces and 17 multicrystalline furnaces installed during the fourth quarter of 2007, bringing total ingot manufacturing capacity to 378 MW and wafer manufacturing capacity to 305 MW, compared with 80 MW of ingot manufacturing capacity as of the end of 2006.
-- Over 90% of raw materials required for 2008 planned production output of 300 MW have been secured through a combination of long-term and short-term procurement contracts, toll arrangements, and expected output from our polysilicon joint venture in Henan Province, China. -- Joint venture in Henan Province, China successfully commenced trial production of polysilicon, and development of wholly-owned green field polysilicon plant in Sichuan Province, China is on track with trial production of this facility expected to begin during the first half of 2009.
Six Three Twelve Six Three Three Twelve
months months months months months months months
ended ended ended ended ended ended ended
6/30 12/31 12/31 6/30 9/30 12/31 12/31
2006 2006 2006 2007 2007 2007 2007
Net revenue
(US$000) 24,042 32,272 84,371 80,387 72,540 96,046 248,973 Gross profit
(US$000) 7,171 8,878 24,725 18,102 15,775 19,619 53,496 Gross margin (%) 29.8% 27.5% 29.3% 22.5% 21.7% 20.4% 21.5%
Operating profit
(US$000) 6,394 8,029 22,235 15,001 13,432 15,000 43,433
Foreign exchange
gain (loss) (US$000) (9) 141 364 (2,304) (569) (1,174) (4,047)
Profit for the
period (US$000) 7,039 9,303 25,301 12,690 12,775 17,471 42,936
Production output (MW) 10.0 15.7 38.9 38.3 36.0 51.3 125.6
"During 2007 ReneSola grew into a leading producer of solar wafers and our business expanded through upstream integration within the solar value chain into polysilicon manufacturing," said Mr. Xianshou Li, ReneSola's Chief Executive Officer. "As one of the fastest growing solar companies in the world, ReneSola achieved substantial top line growth without sacrificing profitability in spite of a significant increase in raw material costs, as demand for wafers, as well as average wafer selling prices, continued to increase. We also successfully executed our growth plan by expanding our raw material procurement and customer network and increasing our total production capacity from 80 MW as of the end of 2006, to 378 MW as of the end of 2007."
"During the year we also took strategic steps to integrate upstream into polysilicon manufacturing. Our joint venture in Henan Province, China commenced polysilicon trial production in mid-January 2008, and the development of our state-of-the-art green field polysilicon project in Sichuan Province, China is on track. In line with ReneSola's strong commitment to maintaining environmentally responsible business practices, the joint venture in Henan Province has met the environmental protection standards set by the government and is equipped to recycle silicon tetrachloride. The polysilicon project in Sichuan Province will utilize proven, high-end equipment with fully closed loop systems to recycle and convert waste into products that can be reused in the production process."
"In 2008, we will maintain our focus on efficient cost production and innovation as we look to build on ReneSola's strong brand name. New equipment using our proprietary technologies and state-of-the-art facilities will include some of the most advanced furnaces and wire saws in the market. We are confident that our expansion efforts and upstream transition into polysilicon manufacturing, paired with a strong feedstock supply pipeline and a customer base of leading industry players, put ReneSola in a unique position to capitalize on the opportunities presented by a rapidly growing solar industry in 2008 and beyond."
Financial Results for the Fourth Quarter and Full Year 2007
Net revenues
Net revenues for the fourth quarter of 2007 were US$96.0 million, an increase of 32.4% sequentially and 197.6% year-over-year. For the full year 2007, ReneSola reported net revenues of US$249.0 million representing a 195.1% increase year-over-year from US$84.4 million in 2006. The rise in fourth quarter and full year 2007 revenues was primarily attributable to an increase in output from the expanded production capacity and increasing wafer ASPs.
Gross profit
Fourth quarter gross profit was US$19.6 million, a 24.4% increase sequentially and 121.0% year-over-year. The gross margin for the fourth quarter was 20.4% compared to 21.7% in the third quarter of 2007. Full year 2007 gross profit was US$53.5 million, a 116.4% increase year-over-year from US$24.7 million in 2006. The gross margin for full year 2007 was 21.5% compared to 29.3% for the full year 2006. The change in gross margin was primarily attributable to increases in average feedstock costs of 13.7% sequentially and 42.1% year-over-year. Increasing feedstock costs were mitigated by a reduction in silicon consumption through a combination of in- house closed-loop scrap recycling, productivity gains from improvements in wafer slicing, a reduction in non-raw material related production costs and increases in wafer ASPs.
Operating profit
Operating profit in the fourth quarter of 2007 was US$15.0 million, an increase of 11.7% sequentially and 86.8% year-over-year. Operating margin was 15.6% in the fourth quarter compared to 18.5% in the third quarter of 2007. Total operating expenses in the fourth quarter of 2007 were US$4.6 million, up from US$2.3 million in the third quarter of 2007. Of the total operating expenses in the fourth quarter US$0.7 million was attributable to share-based compensation expenses.
Operating profit for the full year 2007 was US$43.4 million, a 95.3% increase year-over-year from US$22.2 million in 2006. Operating margin was 17.4% for the full year 2007 compared to 26.4% in the previous year due to the lower gross margin attributable to the significant increase in raw material costs. Total operating expenses increased to US$10.l million for the full year 2007 from US$2.5 million for the full year 2006. This was primarily due to increased general and administrative expenses and R&D costs reflecting higher salary and benefit payments as a result of the need for a greater number of employees to meet our fast growing business, as well as an increase in professional fees and compliance expenses.
Profit before tax
Profit before tax in the fourth quarter was US$12.4 million, a 3.6% increase sequentially and 49.3% increase year-over-year. Finance costs increased by 13.9% sequentially, reflecting increased bank borrowings and interest rates. Finance costs as a percentage of net revenue decreased from 2.0% in the third quarter of 2007 to 1.8% in the fourth quarter of 2007. The fourth quarter foreign exchange loss increased to US$1.2 million from US$0.6 million in the third quarter as a result of appreciation of RMB against the US dollar during the quarter.
Profit before tax for the full year 2007 was US$36.8 million, an increase of 63.0% year-over-year from US$22.6 million in 2006. Finance costs in 2007 increased to US$4.5 million from US$0.3 million in 2006, reflecting increased bank borrowings and the convertible bonds issued in March 2007. The full year 2007 foreign exchange loss was US$4.0 million from a gain of US$0.4 million in the previous year due to appreciation of RMB against the US dollar.
Taxation
ReneSola's subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd, ("Zhejiang Yuhui") recognized a tax benefit of US$5.2 million in the fourth quarter of 2007, significantly up from US$0.8 million in the third quarter of 2007. For the full year 2007, Zhejiang Yuhui recognized a tax benefit of US$6.2 million, up from US$2.7 million in 2006, due to an increase in domestic equipment purchases. In accordance with PRC tax regulations, Zhejiang Yuhui received 40% of the amount arising from the purchase of domestic made equipment as an investment tax credit. The tax credit can be carried forward for 7 years to offset future corporate income taxes.
Net profit
Fourth quarter 2007 net profit increased 36.8% sequentially and 87.8% year-over-year to US$17.5 million. Full year 2007 net profit increased 69.7% year-over-year to US$42.9 million due to an increase in production output and improved productivity.
2008 Guidance
In the first quarter of 2008 we expect our gross margin to remain stable and expected production output to be 62 MW, as compared to 51.3 MW in the fourth quarter of 2007 and 15.3 MW in the first quarter of 2007. We maintain our annualized ingot production capacity target of 645 MW by the end of 2008. We anticipate production output of a minimum of 300 MW in 2008 with minimum annual net revenues of US$480 million. This represents year-over-year revenue growth of at least 93%.
ET Solar Group Announces a 3MW Dual-Axis Tracker and Module Sales
NANJING, China, March 19 /Xinhua-PRNewswire/ -- ET Solar Group Corp. ("ET Solar"), a Nanjing-based integrated manufacturer of photovoltaic products including ingot, wafer, module, and state-of-the-art dual-axis tracking systems with manufacturing facilities located in Taizhou, China, announced today a 3MW dual-axis tracking system and module sales contract for a new solar farm project in Oregon, the United States.
Under the contract, ET Solar will ship a total of 273 dual-axis trackers in the first half of 2008 with the first shipment expected to be effected in April. Each tracker has a peak output of 11 kilowatts and can produce, depending on geography, a range of 20,000 to 28,000 kilowatt hours a year. Annual power output of ET Solar dual-axis trackers is up to 40% higher than a fixed array. All dual-axis trackers are jointly developed between Meca Solar and ET Solar and will be operating on the high efficiency solar modules manufactured by ET Solar. ET Solar trackers are able to be fully integrated with the modules manufactured by other solar companies as well.
Commenting on the news, Xinghua Wang, chairman of ET Solar said, "The 3MW tracker transaction is the first sizeable tracking system sales that a China based integrated solar company ever made into world's major solar markets. This is truly a milestone event for the entire Chinese solar industry and demonstrates ET Solar's determination and leadership in downstream system integration product development and commercialization."
Dennis She, Chief Sales Officer of ET Solar, further commented,"The fact that our customer is purchasing both state-of-the-art tracking systems and modules from ET Solar is a show case of total customer satisfaction which we are now achieving and reflects our broad product portfolio that we are able to offer to our downstream system integration customers. Being a supplier of both tracker and module products, ET Solar is well positioned to be a substantial contributor to the exponential growth of the large solar farm market segment of the PV industry."
Linhui Sui, Chief Technology Officer of ET Solar, said, "With our optimal structure design, high quality product component, stringent quality control and the battle tested technologies, we are now able to meet the U.S. compliance, qualification and certification requirement and standards."
Under the contract, ET Solar will ship a total of 273 dual-axis trackers in the first half of 2008 with the first shipment expected to be effected in April. Each tracker has a peak output of 11 kilowatts and can produce, depending on geography, a range of 20,000 to 28,000 kilowatt hours a year. Annual power output of ET Solar dual-axis trackers is up to 40% higher than a fixed array. All dual-axis trackers are jointly developed between Meca Solar and ET Solar and will be operating on the high efficiency solar modules manufactured by ET Solar. ET Solar trackers are able to be fully integrated with the modules manufactured by other solar companies as well.
Commenting on the news, Xinghua Wang, chairman of ET Solar said, "The 3MW tracker transaction is the first sizeable tracking system sales that a China based integrated solar company ever made into world's major solar markets. This is truly a milestone event for the entire Chinese solar industry and demonstrates ET Solar's determination and leadership in downstream system integration product development and commercialization."
Dennis She, Chief Sales Officer of ET Solar, further commented,"The fact that our customer is purchasing both state-of-the-art tracking systems and modules from ET Solar is a show case of total customer satisfaction which we are now achieving and reflects our broad product portfolio that we are able to offer to our downstream system integration customers. Being a supplier of both tracker and module products, ET Solar is well positioned to be a substantial contributor to the exponential growth of the large solar farm market segment of the PV industry."
Linhui Sui, Chief Technology Officer of ET Solar, said, "With our optimal structure design, high quality product component, stringent quality control and the battle tested technologies, we are now able to meet the U.S. compliance, qualification and certification requirement and standards."
Tuesday, March 11, 2008
Trina Solar Signs Equipment Supply Contract with GT Solar
CHANGZHOU, China, March 9 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that it has signed an agreement with GT Solar Incorporated ("GT Solar") to purchase primary converter and reactor systems for its planned polysilicon production project for a total consideration of approximately US$49 million, with purchase price to be paid in installments over an approximate period of 12 to 18 months. The execution of this agreement is subject to final approval by the Boards of both companies.
"We are very excited to further our partnership with GT Solar, who will provide us a world class platform which is expected to extend our technology, brand and cost advantages to include silicon feedstock under our vertically integrated manufacturing model," said Jifan Gao, Trina Solar's Chairman and CEO. "We believe GT Solar's advanced technology will help Trina Solar to reduce cost in the long run in connection with our polysilicon production."
Tom Zarrella, GT Solar's CEO, stated "Trina Solar's order for our advanced polysilicon manufacturing equipment and technologies to support their upstream expansion plan is a strong indication of GT Solar's continued expansion in the Asia market. We value our relationship with Trina Solar and appreciate its continued confidence in our products."
The agreement was signed through Trina Solar (Lianyungang) Co. Ltd., a subsidiary of Trina Solar, at the Washington International Renewable Energy Conference (WIREC). Senior governmental officials from both the United States State Department and China's National Development Reform Commission attended this conference and expressed strong support for greater cooperation between companies of both countries. This agreement is a part of the governments' cooperation framework in renewable energy. The signing ceremony was co-hosted by ACORE (American Council on Renewable Energy) and CREIA (China Renewable Energy Industries Association).
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd., is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com.
About GT Solar
GT Solar Incorporated, a wholly-owned subsidiary of GT Solar International, is a key global provider of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com.
"We are very excited to further our partnership with GT Solar, who will provide us a world class platform which is expected to extend our technology, brand and cost advantages to include silicon feedstock under our vertically integrated manufacturing model," said Jifan Gao, Trina Solar's Chairman and CEO. "We believe GT Solar's advanced technology will help Trina Solar to reduce cost in the long run in connection with our polysilicon production."
Tom Zarrella, GT Solar's CEO, stated "Trina Solar's order for our advanced polysilicon manufacturing equipment and technologies to support their upstream expansion plan is a strong indication of GT Solar's continued expansion in the Asia market. We value our relationship with Trina Solar and appreciate its continued confidence in our products."
The agreement was signed through Trina Solar (Lianyungang) Co. Ltd., a subsidiary of Trina Solar, at the Washington International Renewable Energy Conference (WIREC). Senior governmental officials from both the United States State Department and China's National Development Reform Commission attended this conference and expressed strong support for greater cooperation between companies of both countries. This agreement is a part of the governments' cooperation framework in renewable energy. The signing ceremony was co-hosted by ACORE (American Council on Renewable Energy) and CREIA (China Renewable Energy Industries Association).
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd., is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com.
About GT Solar
GT Solar Incorporated, a wholly-owned subsidiary of GT Solar International, is a key global provider of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com.
Wednesday, March 5, 2008
Trina Solar Announces Fourth Quarter and Fiscal Year 2007 Results
04 Mar 2008
CHANGZHOU, China, March 4 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced its financial results for the fourth quarter and fiscal year 2007.
Fourth Quarter 2007 Highlights
-- Total net revenues increased 22.8% sequentially and 161.6% year-over- year to $101.4 million
-- Gross profit increased 66.3% sequentially and 205.7% year-over-year to $27.6 million
-- Net income increased 116.8% sequentially and 242.2% year-over-year to $15.7 million
-- Solar module shipments increased 13.0% to 23.91 MW from 21.15 MW in the third quarter of 2007 and 166.3% from 8.98 MW in the fourth quarter of 2006
"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao. "During the quarter we have tripled our in-house cell production to meet our integrated capacity expansion targets and reached historical highs in our in-house cell and module efficiencies, which combined drove significant margin expansion. In 2008, we continue to focus efforts to lower our module manufacturing costs through constant improvements in cell efficiencies, wafer thickness reduction, and manufacturing process innovation as we increase our production capacity and execute on our technology roadmap. These developments are central to our three core long-term strategies: developing a strong brand in the marketplace, investing continuously in our technology platform and ensuring our low cost position through our vertically integrated model."
During the quarter, the Company achieved the following milestones:
-- Expanded capacity to 150MW for each of ingot, wafer, cell and module production
-- Successfully ramped four new cell production lines (No. 3, 4, 5, and 6)
-- Increased in-house cell processing proportion from 25% to over 75%
-- Launched commercial production of multicrystalline ingots of up to 420 kg in size
-- Commenced commercial production of 220-watt multicrystalline modules, based on self-produced 156mm-sized cells
-- Realized in-house cell efficiency rates of up to 17.0% for monocrystalline-based cells and up to 15.6% for multicrystalline-based cells
-- Furthered the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the Netherlands, Belgium, France, Greece, and Korea.
The geographic breakdown of the Company's sales for the fourth quarter was approximately 56% Spain, 7% Germany, and 16% Italy, thus bringing our full year 2007 geographic breakdown to approximately 34% Germany, 41% Spain, and 19% Italy.
Fourth quarter 2007 Results
Trina Solar's net revenues in the fourth quarter of 2007 were $101.4 million, an increase of 22.8% sequentially and 161.6% year-over-year. Total shipments increased to 23.91 MW, up from 21.15 MW in the third quarter of 2007 and 8.98 MW in the fourth quarter of 2006.
Cost of revenues in the fourth quarter of 2007 was $73.8 million, an increase of 11.8% sequentially and 148.1% year-over-year due to growth of Trina Solar's solar module business.
Gross profit in the fourth quarter of 2007 was $27.6 million, an increase of 66.3% sequentially and 205.7% year-over-year. Gross margin was 27.2% in the fourth quarter of 2007, an increase from 20.1% in the third quarter of 2007 and 23.3% in the fourth quarter of 2006. The sequential and year-over- year increases in gross margin were primarily due to higher module ASP and manufacturing benefits from increased vertical integration.
Operating expenses in the fourth quarter of 2007 were $11.4 million, an increase of 15.8% sequentially and 259.0% year-over-year. The Company's operating expenses were 11.2% of its fourth quarter net revenues, a decrease from 11.9% in the third quarter of 2007 and an increase from 8.2% in the fourth quarter of 2006. The year-over-year increase was primarily due to higher general and administrative ("G&A") expenses and sales and marketing expenses to support the rapid growth of the Company's business. The G&A expense was 6.4% of its fourth quarter revenues, a sequential decrease from 7.2% and an increase from 5.3% in the fourth quarter of 2006. The sequential decrease was due to measures taken by the Company for expense-control while the year-over-year increase was to support the rapid growth of the Company's business. Operating expenses in the fourth quarter of 2007 included approximately $736,000 of share-based compensation expenses.
Operating income in the fourth quarter of 2007 was $16.2 million, an increase of 139.5% sequentially and 177.0% year-over-year. Operating margin was 16.0% in the fourth quarter of 2007, compared to 8.2% in the third quarter of 2007 and 15.1% in the fourth quarter of 2006. The sequential and year- over-year increases in operating margin were due to higher module ASP and manufacturing benefits from increased vertical integration.
Interest expense in the fourth quarter of 2007 was $2.6 million, compared to $2.1 million in the third quarter of 2007 and $1.1 million in the fourth quarter of 2006. The sequential and year-over-year increase were due to additional bank borrowings compared to the third quarter of 2007 and the fourth quarter of 2006 to secure additional silicon materials. Interest Income was $2.4 million in the fourth quarter, compared to $1.5 million in the third quarter and $0.1 million in the fourth quarter of 2006.
The Company recorded an income tax benefit mainly due to tax refund received in the fourth quarter of 2007 relating to the purchase of domestically manufactured equipment.
Net income from continuing operations was $15.5 million in the fourth quarter of 2007, an increase of 119.7% sequentially and 253.8% year-over-year.
Net income was $15.7 million in the fourth quarter of 2007, an increase of 116.8% sequentially and 242.2% year-over-year. Net margin was 15.5% in the fourth quarter of 2007, compared to 8.8% in the third quarter of 2007 and 11.8% in the fourth quarter of 2006. Earnings per ADS in the quarter were $0.62 per fully diluted ADS, up 116.2% sequentially and 124.3% over the fourth quarter of 2006.
Full Year 2007 Results
For the full year 2007, net revenues were $301.8 million, up 163.6% from $114.5 million in 2006. Gross profit for the full year 2007 was $67.9 million, an increase of 126.0% from $30.0 million in 2006. Gross margin was 22.5% in 2007, compared to 26.2% in 2006. Operating income for the full year 2007 was $36.3 million, up 114.4% from $16.9 million in 2006. Operating margin was 12.0% in 2007, compared to 14.8% in 2006. The decline in operating margin in 2007 was primarily due to the lower gross margin in 2007 as a result of lower ASP and higher polysilicon prices. Net income from continuing operations for the full year 2007 was $34.5 million, an increase of 161.9% from 2006, and was due primarily to the growth in sales of the Company's solar module products. Net income for the full year 2007 was $34.9 million, an increase of 180.8% from 2006. Net margin was 11.6% in 2007, compared to 10.8% in 2006. Earnings per ADS for the full year 2007 were $1.47 per fully diluted ADS.
The Company's 4Q and 2007 financial statements are subject to change based on the Company completing its computation of the fair value of foreign exchange derivatives embedded in two of its material long-term silicon supply contracts. Such contracts provide that the purchase price of the silicon to be acquired is denominated in U.S. Dollars, which is not the functional currency of either of the contracting parties. Given the continued strengthening of the RMB against the USD, the Company believes that the ultimate impact would increase the earnings for both 4Q and fiscal 2007. The impact, if material, will be recorded as "Exchange Gain", a non-operating item, in the consolidated income statement.
Financial Condition
As of December 31, 2007, the Company had $59.7 million in cash and cash equivalents, which excludes the Company's restricted cash balance of $103.4 million. The Company's working capital balance was $121.9 million. Total bank borrowings stood at $171.8 million, of which $8.2 million were long term borrowings. Shareholders' equity was $366.6 million, up from $345.5 million at the end of the third quarter 2007.
Operations Outlook for 2008 Presales and Production
As of this date, the Company has contracted 100% and 85% of its first and second half 2008 targeted module production, respectively, representing approximately 90% of its targeted module production from 200MW to 210MW for 2008. The Company also plans to initiate sales in the United States this year, and is in the final process stage to receive its UL certifications. The Company anticipates its geographic breakdown of 2008 sales in its main markets to be approximately 34% Germany, 26% Spain, 18% Italy, 10% Benelux and 5% in the United States.
Silicon Feedstock
The Company has now secured over 80% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 170MW based on a module production target of 200-210MW of module output.
Capacity Expansion and Technology Roadmap
Trina Solar continues to be on target to meet its fully integrated capacity goal of 350 MW at end of 2008, and will add approximately 50MW of capacity in each quarter in ingot, wafer, cell, and module production value areas.
In the first quarter of 2008 the Company initiated commercial production of 180 micron monocrystalline wafers and cells from a current thickness of 200 microns and multicrystalline-based wafers of 200 microns from a current thickness of 220 microns. The Company expects to produce monocrystalline wafers of 160 microns and multicrystalline wafers of 180 microns by year end.
In 2008 the Company is developing second generation cell technologies to raise its monocrystalline and multicrystalline conversion efficiencies up to 17.5% and 16.0%, respectively. These improvements will result in our module products reaching output power up to 245 watts for monocrystalline and 230 watts for multicrystalline during 2008.
Module Cost Reduction
In the fourth quarter of 2007 the Company's manufacturing cost per watt excluding polysilicon was approximately $1.28 for combined ingot, wafer, cell, and module production. By fourth quarter 2008, we are targeting cost reduction of approximately 18% to reduce these costs to approximately $1.05 per watt. Driven by our technology development, transfer, and manufacturing process improvements, anticipated cost reductions will result from cell conversion improvements, wafer and cell breakage reduction, and production scale advantages.
Polysilicon Project Update
With goals to secure visibility on supply, price, and quality of up to 50% of its long-term polysilicon requirements, the Company is advancing project planning and financing to build and operate a multi-phased polysilicon production facility announced in the fourth quarter of 2007. We are highly confident that the construction of a polysilicon facility is the appropriate strategic direction to enable our vertically integrated platform to drive the necessary cost reductions to secure a sustainable competitive advantage in the global PV module market space.
We have made good progress in several areas in regard to our silicon production project announced in the fourth quarter. In December we announced our strategic development agreement with the Lianyungang Municipality in China's Jiangsu Province, which includes attractive government support in respect of land and electric power. We have also advanced negotiations for long lead time equipment and engineering procurement contractor (EPC) services. Additionally, we have well-progressed our technical and commercial due diligence work for a long term syndicate debt facility associated with the project.
First Quarter and Fiscal Year 2008 Guidance
For the first quarter of 2008, the Company expects to ship between 29 MW to 31 MW of PV modules and has expectations of total net revenues in the range of $112 million to $120 million. The Company believes gross margin for the first quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues.
For the full year of 2008 the Company expects total net revenues in the range of $770 million to $808 million, with PV module shipments between 200 MW to 210 MW. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.
CHANGZHOU, China, March 4 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced its financial results for the fourth quarter and fiscal year 2007.
Fourth Quarter 2007 Highlights
-- Total net revenues increased 22.8% sequentially and 161.6% year-over- year to $101.4 million
-- Gross profit increased 66.3% sequentially and 205.7% year-over-year to $27.6 million
-- Net income increased 116.8% sequentially and 242.2% year-over-year to $15.7 million
-- Solar module shipments increased 13.0% to 23.91 MW from 21.15 MW in the third quarter of 2007 and 166.3% from 8.98 MW in the fourth quarter of 2006
"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao. "During the quarter we have tripled our in-house cell production to meet our integrated capacity expansion targets and reached historical highs in our in-house cell and module efficiencies, which combined drove significant margin expansion. In 2008, we continue to focus efforts to lower our module manufacturing costs through constant improvements in cell efficiencies, wafer thickness reduction, and manufacturing process innovation as we increase our production capacity and execute on our technology roadmap. These developments are central to our three core long-term strategies: developing a strong brand in the marketplace, investing continuously in our technology platform and ensuring our low cost position through our vertically integrated model."
During the quarter, the Company achieved the following milestones:
-- Expanded capacity to 150MW for each of ingot, wafer, cell and module production
-- Successfully ramped four new cell production lines (No. 3, 4, 5, and 6)
-- Increased in-house cell processing proportion from 25% to over 75%
-- Launched commercial production of multicrystalline ingots of up to 420 kg in size
-- Commenced commercial production of 220-watt multicrystalline modules, based on self-produced 156mm-sized cells
-- Realized in-house cell efficiency rates of up to 17.0% for monocrystalline-based cells and up to 15.6% for multicrystalline-based cells
-- Furthered the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the Netherlands, Belgium, France, Greece, and Korea.
The geographic breakdown of the Company's sales for the fourth quarter was approximately 56% Spain, 7% Germany, and 16% Italy, thus bringing our full year 2007 geographic breakdown to approximately 34% Germany, 41% Spain, and 19% Italy.
Fourth quarter 2007 Results
Trina Solar's net revenues in the fourth quarter of 2007 were $101.4 million, an increase of 22.8% sequentially and 161.6% year-over-year. Total shipments increased to 23.91 MW, up from 21.15 MW in the third quarter of 2007 and 8.98 MW in the fourth quarter of 2006.
Cost of revenues in the fourth quarter of 2007 was $73.8 million, an increase of 11.8% sequentially and 148.1% year-over-year due to growth of Trina Solar's solar module business.
Gross profit in the fourth quarter of 2007 was $27.6 million, an increase of 66.3% sequentially and 205.7% year-over-year. Gross margin was 27.2% in the fourth quarter of 2007, an increase from 20.1% in the third quarter of 2007 and 23.3% in the fourth quarter of 2006. The sequential and year-over- year increases in gross margin were primarily due to higher module ASP and manufacturing benefits from increased vertical integration.
Operating expenses in the fourth quarter of 2007 were $11.4 million, an increase of 15.8% sequentially and 259.0% year-over-year. The Company's operating expenses were 11.2% of its fourth quarter net revenues, a decrease from 11.9% in the third quarter of 2007 and an increase from 8.2% in the fourth quarter of 2006. The year-over-year increase was primarily due to higher general and administrative ("G&A") expenses and sales and marketing expenses to support the rapid growth of the Company's business. The G&A expense was 6.4% of its fourth quarter revenues, a sequential decrease from 7.2% and an increase from 5.3% in the fourth quarter of 2006. The sequential decrease was due to measures taken by the Company for expense-control while the year-over-year increase was to support the rapid growth of the Company's business. Operating expenses in the fourth quarter of 2007 included approximately $736,000 of share-based compensation expenses.
Operating income in the fourth quarter of 2007 was $16.2 million, an increase of 139.5% sequentially and 177.0% year-over-year. Operating margin was 16.0% in the fourth quarter of 2007, compared to 8.2% in the third quarter of 2007 and 15.1% in the fourth quarter of 2006. The sequential and year- over-year increases in operating margin were due to higher module ASP and manufacturing benefits from increased vertical integration.
Interest expense in the fourth quarter of 2007 was $2.6 million, compared to $2.1 million in the third quarter of 2007 and $1.1 million in the fourth quarter of 2006. The sequential and year-over-year increase were due to additional bank borrowings compared to the third quarter of 2007 and the fourth quarter of 2006 to secure additional silicon materials. Interest Income was $2.4 million in the fourth quarter, compared to $1.5 million in the third quarter and $0.1 million in the fourth quarter of 2006.
The Company recorded an income tax benefit mainly due to tax refund received in the fourth quarter of 2007 relating to the purchase of domestically manufactured equipment.
Net income from continuing operations was $15.5 million in the fourth quarter of 2007, an increase of 119.7% sequentially and 253.8% year-over-year.
Net income was $15.7 million in the fourth quarter of 2007, an increase of 116.8% sequentially and 242.2% year-over-year. Net margin was 15.5% in the fourth quarter of 2007, compared to 8.8% in the third quarter of 2007 and 11.8% in the fourth quarter of 2006. Earnings per ADS in the quarter were $0.62 per fully diluted ADS, up 116.2% sequentially and 124.3% over the fourth quarter of 2006.
Full Year 2007 Results
For the full year 2007, net revenues were $301.8 million, up 163.6% from $114.5 million in 2006. Gross profit for the full year 2007 was $67.9 million, an increase of 126.0% from $30.0 million in 2006. Gross margin was 22.5% in 2007, compared to 26.2% in 2006. Operating income for the full year 2007 was $36.3 million, up 114.4% from $16.9 million in 2006. Operating margin was 12.0% in 2007, compared to 14.8% in 2006. The decline in operating margin in 2007 was primarily due to the lower gross margin in 2007 as a result of lower ASP and higher polysilicon prices. Net income from continuing operations for the full year 2007 was $34.5 million, an increase of 161.9% from 2006, and was due primarily to the growth in sales of the Company's solar module products. Net income for the full year 2007 was $34.9 million, an increase of 180.8% from 2006. Net margin was 11.6% in 2007, compared to 10.8% in 2006. Earnings per ADS for the full year 2007 were $1.47 per fully diluted ADS.
The Company's 4Q and 2007 financial statements are subject to change based on the Company completing its computation of the fair value of foreign exchange derivatives embedded in two of its material long-term silicon supply contracts. Such contracts provide that the purchase price of the silicon to be acquired is denominated in U.S. Dollars, which is not the functional currency of either of the contracting parties. Given the continued strengthening of the RMB against the USD, the Company believes that the ultimate impact would increase the earnings for both 4Q and fiscal 2007. The impact, if material, will be recorded as "Exchange Gain", a non-operating item, in the consolidated income statement.
Financial Condition
As of December 31, 2007, the Company had $59.7 million in cash and cash equivalents, which excludes the Company's restricted cash balance of $103.4 million. The Company's working capital balance was $121.9 million. Total bank borrowings stood at $171.8 million, of which $8.2 million were long term borrowings. Shareholders' equity was $366.6 million, up from $345.5 million at the end of the third quarter 2007.
Operations Outlook for 2008 Presales and Production
As of this date, the Company has contracted 100% and 85% of its first and second half 2008 targeted module production, respectively, representing approximately 90% of its targeted module production from 200MW to 210MW for 2008. The Company also plans to initiate sales in the United States this year, and is in the final process stage to receive its UL certifications. The Company anticipates its geographic breakdown of 2008 sales in its main markets to be approximately 34% Germany, 26% Spain, 18% Italy, 10% Benelux and 5% in the United States.
Silicon Feedstock
The Company has now secured over 80% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 170MW based on a module production target of 200-210MW of module output.
Capacity Expansion and Technology Roadmap
Trina Solar continues to be on target to meet its fully integrated capacity goal of 350 MW at end of 2008, and will add approximately 50MW of capacity in each quarter in ingot, wafer, cell, and module production value areas.
In the first quarter of 2008 the Company initiated commercial production of 180 micron monocrystalline wafers and cells from a current thickness of 200 microns and multicrystalline-based wafers of 200 microns from a current thickness of 220 microns. The Company expects to produce monocrystalline wafers of 160 microns and multicrystalline wafers of 180 microns by year end.
In 2008 the Company is developing second generation cell technologies to raise its monocrystalline and multicrystalline conversion efficiencies up to 17.5% and 16.0%, respectively. These improvements will result in our module products reaching output power up to 245 watts for monocrystalline and 230 watts for multicrystalline during 2008.
Module Cost Reduction
In the fourth quarter of 2007 the Company's manufacturing cost per watt excluding polysilicon was approximately $1.28 for combined ingot, wafer, cell, and module production. By fourth quarter 2008, we are targeting cost reduction of approximately 18% to reduce these costs to approximately $1.05 per watt. Driven by our technology development, transfer, and manufacturing process improvements, anticipated cost reductions will result from cell conversion improvements, wafer and cell breakage reduction, and production scale advantages.
Polysilicon Project Update
With goals to secure visibility on supply, price, and quality of up to 50% of its long-term polysilicon requirements, the Company is advancing project planning and financing to build and operate a multi-phased polysilicon production facility announced in the fourth quarter of 2007. We are highly confident that the construction of a polysilicon facility is the appropriate strategic direction to enable our vertically integrated platform to drive the necessary cost reductions to secure a sustainable competitive advantage in the global PV module market space.
We have made good progress in several areas in regard to our silicon production project announced in the fourth quarter. In December we announced our strategic development agreement with the Lianyungang Municipality in China's Jiangsu Province, which includes attractive government support in respect of land and electric power. We have also advanced negotiations for long lead time equipment and engineering procurement contractor (EPC) services. Additionally, we have well-progressed our technical and commercial due diligence work for a long term syndicate debt facility associated with the project.
First Quarter and Fiscal Year 2008 Guidance
For the first quarter of 2008, the Company expects to ship between 29 MW to 31 MW of PV modules and has expectations of total net revenues in the range of $112 million to $120 million. The Company believes gross margin for the first quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues.
For the full year of 2008 the Company expects total net revenues in the range of $770 million to $808 million, with PV module shipments between 200 MW to 210 MW. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.
Wednesday, January 16, 2008
Solarfun Announces Completion of Good Energies' Investment and Related Update of Share Transfer Restrictions
SHANGHAI, China--(BUSINESS WIRE)--Solarfun Power Holdings Co. , Ltd. ("Solarfun"; NASDAQ: SOLF), an established manufacturer of photovoltaic (PV) cells, modules and ingots in China, today announced the completion of Good Energies' investment and a related waiver of share transfer restrictions.
As previously disclosed on December 4, 2007, Good Energies Investments (Jersey) Limited ("Good Energies") entered into an agreement to purchase 66,745,638 ordinary shares and 281,011 ADSs of Solarfun from certain of Solarfun's current shareholders, including, among others, 38,634,750 ordinary shares from Yonghua Solar Power Investment Holding Ltd, 6,271,875 ordinary shares from WHF Investment Co., Ltd, 12,574,660 ordinary shares from Citigroup Venture Capital International Growth Partnership, L.P., 686,191 ordinary shares from Citigroup Venture Capital International Co-Investment, L.P., 281,011 ADSs from Brilliant Orient International Limited, and 1,051,912 ordinary shares from LC Fund III, L.P.
Yonghua Solar Power Investment Holding Ltd is owned by Mr. Yonghua Lu, Solarfun's founder, Chairman and Chief Executive Officer. WHF Investment Co., Ltd is owned by Mr. Hanfei Wang, Solarfun's Director and Chief Operating Officer. In connection with the share purchase by Good Energies, all the individuals who were parties to the lock-up agreement dated June 20, 2006 agreed to waive the share transfer restrictions on Yonghua Solar Power Investment Holding Ltd and WHF Investment Co., Ltd with respect to any share transfer made to Good Energies or its affiliates. Yonghua Solar Power Investment Holding Ltd's restricted period had also been reduced to one year and WHF Investment Co., Ltd's had been reduced to two years, both measured from the date of the Solarfun's initial public offering in December 2006. In addition, pursuant to a shareholders agreement entered into in connection with the share purchase by Good Energies on December 4, 2007, Yonghua Solar Power Investment Holding Ltd., may not, subject to certain limited exceptions, transfer any of Solarfun's shares beneficially owned by it during the one year period immediately following the date of such agreement, or transfer more than 50% of the number of Solarfun shares it held on December 27, 2007 during the second one year period following the date of such agreement.
The share transfer was completed at the end of December, 2007. Good Energies and/or its affiliates owned an approximate 34.34% interest, and Yonghua Solar Power Investment Holding Ltd. owned an approximate 15.95% interest in Solarfun as of December 31, 2007.
"I am pleased to see the completion of Good Energies' investment in our Company," commented Yonghua Lu. "With the solar industry becoming increasingly competitive on global basis, I look forward to leveraging the experience, knowledge and contacts of the Good Energies team as we seek to improve our competitive position and reach new levels of growth."
As previously disclosed on December 4, 2007, Good Energies Investments (Jersey) Limited ("Good Energies") entered into an agreement to purchase 66,745,638 ordinary shares and 281,011 ADSs of Solarfun from certain of Solarfun's current shareholders, including, among others, 38,634,750 ordinary shares from Yonghua Solar Power Investment Holding Ltd, 6,271,875 ordinary shares from WHF Investment Co., Ltd, 12,574,660 ordinary shares from Citigroup Venture Capital International Growth Partnership, L.P., 686,191 ordinary shares from Citigroup Venture Capital International Co-Investment, L.P., 281,011 ADSs from Brilliant Orient International Limited, and 1,051,912 ordinary shares from LC Fund III, L.P.
Yonghua Solar Power Investment Holding Ltd is owned by Mr. Yonghua Lu, Solarfun's founder, Chairman and Chief Executive Officer. WHF Investment Co., Ltd is owned by Mr. Hanfei Wang, Solarfun's Director and Chief Operating Officer. In connection with the share purchase by Good Energies, all the individuals who were parties to the lock-up agreement dated June 20, 2006 agreed to waive the share transfer restrictions on Yonghua Solar Power Investment Holding Ltd and WHF Investment Co., Ltd with respect to any share transfer made to Good Energies or its affiliates. Yonghua Solar Power Investment Holding Ltd's restricted period had also been reduced to one year and WHF Investment Co., Ltd's had been reduced to two years, both measured from the date of the Solarfun's initial public offering in December 2006. In addition, pursuant to a shareholders agreement entered into in connection with the share purchase by Good Energies on December 4, 2007, Yonghua Solar Power Investment Holding Ltd., may not, subject to certain limited exceptions, transfer any of Solarfun's shares beneficially owned by it during the one year period immediately following the date of such agreement, or transfer more than 50% of the number of Solarfun shares it held on December 27, 2007 during the second one year period following the date of such agreement.
The share transfer was completed at the end of December, 2007. Good Energies and/or its affiliates owned an approximate 34.34% interest, and Yonghua Solar Power Investment Holding Ltd. owned an approximate 15.95% interest in Solarfun as of December 31, 2007.
"I am pleased to see the completion of Good Energies' investment in our Company," commented Yonghua Lu. "With the solar industry becoming increasingly competitive on global basis, I look forward to leveraging the experience, knowledge and contacts of the Good Energies team as we seek to improve our competitive position and reach new levels of growth."
Thursday, November 22, 2007
China Solar Grade Wafer Or Ingot Industry Research Report 2007
(PRLog.Org) – Nov 20, 2007 – According 2007 China solar grade wafer or ingot industry research report data, 2006 China Solar Silicon Wafer Shipment was 399.4 MW，Increased 177.6% than 143.9MW in 2005, and hopefully reach 927.6 MW in 2007, increase 132.2% than 2006.
Though It was a rapid growth of Solar Wafer Shipment. It was less than its downstream solar cell Increasing. Thus cute the continue shortage of Solar wafer, what is more, due to the increasing price of Polysilicon and shortage of wafer, wafer selling price increase to 2.25 USD/W in 2006 from 2.15USD/W in 2005. and 2.38 USD/W in 2007H1，we estimate the trend will continue in 2007H2 and the ASP of 2007 will reach 2.40USD/W.
About the supply and demand, the shortage of wafer is 16MW in 2005, 140 MW in 2006, and will expand to 180MW in 2007，according 《2007 China solar grade wafer or ingot industry research report forecast》, 2008 and the coming years will continue short of wafer. However, Solar cell module price will continue decrease in the coming years, so that will bring some price Decrease (not large) of wafer.
As the continue shortage of wafer and great increase of downstream demand, more and more investor enter wafer industry and the wafer manufacture also expand their capacity rapidly. Though capacity expanding is easy, wafer shipment increase is not easy as the continue shortage of polysilicon.
2006 solar multi crystal silicon wafer shipment was 110MW，while single crystal silicon wafer shipment was more than 280MW, single crystal silicon wafer is a lot more than multi crystal silicon wafer shipment, it is great different than then the international situation as multi crystal silicon wafer shipment almost twice of single crystal silicon wafer shipment. China local single crystal silicon wafer was 2.7 times of multi crystal silicon wafer shipment. The most important reason of this situation is single crystal silicon wafer is easy manufacture than multi crystal silicon wafer as the key equipment pulling machine is easy bought in China with a low cost while multi crystal DSS furnace only can buy from oversea market with a high cost, but this situation will change in 2012, according 2007 China solar grade wafer or ingot industry research report forecast，2012 China local multi crystal silicon wafer shipment will be 1.5 times of single crystal silicon wafer shipment, the change mainly due to some very large multi crystal wafer projects and downstream clients demand as multi crystal silicon wafer is cheap and good enough.
2006 China wafer revenue was 899 million USD, increased 191% from 309 million USD in 2005. while 2007 revenue will increase 148% reach 2226 million than 2006, and it will keep a high increasing rate in the coming years. About utilization, Due to the polysilicon shortage, total utilization of China wafer less than 50% though the downstream demand is large. The Utilization will increase step by step in the coming years and will reach 60% or so according the forecast from 2007 China solar grade wafer or ingot industry research report.
China as the biggest solar cell manufacture base, Most of wafer were sold to the local clients, but also has about 20% sells to the oversea market, Taiwan is the biggest sells region in the oversea market, Europe Union,USA,Kore,Japan also have some demand. about Rae materials, as polysilicon shortage and most polysilicon manufacturer order are full till the end of 2008, so, almost all the raw materials were from renewable material or high price spot market polysilicon. Some large and famous manufacturers (such as Jinglong LDK Yingli Solar Trina Solar etc) signed some long term polysilicon supply contracts, but most of the contract can not supply polysilicon before 2009. so revewable material and high price spot market polisilicon will be the major raw material in China local wafer industry. By the way, almost all Wafer manufacturers net income rate is higher than cell suppliers, some companies’net income rate is more than 30%; this bring a lot of new enter as most equipment vendors can offer one stop sales of wafer factory solution. Investors who have capital, downstream clients, and also have relationship with some upstream raw material vendors will enter this industry, in fact, almost all large and big wafer project were occurred during 2005-Aug,2007. and will also some new enter in the coming years. thus the competition of China wafer industry will be serious. Research Team suggest that new enter who owned raw material will own great advantage in the competition.
2007 China solar grade wafer or ingot industry research report is a report mainly introduce China solar wafer industry chain, the report included wafer upstream industry contents as : polysilicon raw material sources. Furance (ingot pulling machine DSS furnace）,wire saw equipments (squarers wire saws) sources and quantity. Ingot wafer industry contents as : ingot wafer supply shipments sales demand price revenue net income capacity and capacity expanding information, equipment information of manufacturers etc : downstream clients contents as: market demand of wafer, downstream clients by manufacturer, regional revenue and market share etc. Through the detail survey and research of the whole wafer industry chain, the report can show a deep and excellent introduction about China wafer industry and will fit for investor marketing and strategy planning of the company.
Though It was a rapid growth of Solar Wafer Shipment. It was less than its downstream solar cell Increasing. Thus cute the continue shortage of Solar wafer, what is more, due to the increasing price of Polysilicon and shortage of wafer, wafer selling price increase to 2.25 USD/W in 2006 from 2.15USD/W in 2005. and 2.38 USD/W in 2007H1，we estimate the trend will continue in 2007H2 and the ASP of 2007 will reach 2.40USD/W.
About the supply and demand, the shortage of wafer is 16MW in 2005, 140 MW in 2006, and will expand to 180MW in 2007，according 《2007 China solar grade wafer or ingot industry research report forecast》, 2008 and the coming years will continue short of wafer. However, Solar cell module price will continue decrease in the coming years, so that will bring some price Decrease (not large) of wafer.
As the continue shortage of wafer and great increase of downstream demand, more and more investor enter wafer industry and the wafer manufacture also expand their capacity rapidly. Though capacity expanding is easy, wafer shipment increase is not easy as the continue shortage of polysilicon.
2006 solar multi crystal silicon wafer shipment was 110MW，while single crystal silicon wafer shipment was more than 280MW, single crystal silicon wafer is a lot more than multi crystal silicon wafer shipment, it is great different than then the international situation as multi crystal silicon wafer shipment almost twice of single crystal silicon wafer shipment. China local single crystal silicon wafer was 2.7 times of multi crystal silicon wafer shipment. The most important reason of this situation is single crystal silicon wafer is easy manufacture than multi crystal silicon wafer as the key equipment pulling machine is easy bought in China with a low cost while multi crystal DSS furnace only can buy from oversea market with a high cost, but this situation will change in 2012, according 2007 China solar grade wafer or ingot industry research report forecast，2012 China local multi crystal silicon wafer shipment will be 1.5 times of single crystal silicon wafer shipment, the change mainly due to some very large multi crystal wafer projects and downstream clients demand as multi crystal silicon wafer is cheap and good enough.
2006 China wafer revenue was 899 million USD, increased 191% from 309 million USD in 2005. while 2007 revenue will increase 148% reach 2226 million than 2006, and it will keep a high increasing rate in the coming years. About utilization, Due to the polysilicon shortage, total utilization of China wafer less than 50% though the downstream demand is large. The Utilization will increase step by step in the coming years and will reach 60% or so according the forecast from 2007 China solar grade wafer or ingot industry research report.
China as the biggest solar cell manufacture base, Most of wafer were sold to the local clients, but also has about 20% sells to the oversea market, Taiwan is the biggest sells region in the oversea market, Europe Union,USA,Kore,Japan also have some demand. about Rae materials, as polysilicon shortage and most polysilicon manufacturer order are full till the end of 2008, so, almost all the raw materials were from renewable material or high price spot market polysilicon. Some large and famous manufacturers (such as Jinglong LDK Yingli Solar Trina Solar etc) signed some long term polysilicon supply contracts, but most of the contract can not supply polysilicon before 2009. so revewable material and high price spot market polisilicon will be the major raw material in China local wafer industry. By the way, almost all Wafer manufacturers net income rate is higher than cell suppliers, some companies’net income rate is more than 30%; this bring a lot of new enter as most equipment vendors can offer one stop sales of wafer factory solution. Investors who have capital, downstream clients, and also have relationship with some upstream raw material vendors will enter this industry, in fact, almost all large and big wafer project were occurred during 2005-Aug,2007. and will also some new enter in the coming years. thus the competition of China wafer industry will be serious. Research Team suggest that new enter who owned raw material will own great advantage in the competition.
2007 China solar grade wafer or ingot industry research report is a report mainly introduce China solar wafer industry chain, the report included wafer upstream industry contents as : polysilicon raw material sources. Furance (ingot pulling machine DSS furnace）,wire saw equipments (squarers wire saws) sources and quantity. Ingot wafer industry contents as : ingot wafer supply shipments sales demand price revenue net income capacity and capacity expanding information, equipment information of manufacturers etc : downstream clients contents as: market demand of wafer, downstream clients by manufacturer, regional revenue and market share etc. Through the detail survey and research of the whole wafer industry chain, the report can show a deep and excellent introduction about China wafer industry and will fit for investor marketing and strategy planning of the company.
Friday, November 2, 2007
Trina Solar Casts Jumbo Multicrystalline Ingot
October 31, 2007: 11:27 AM EST
CHANGZHOU, China, Oct. 31 /Xinhua-PRNewswire-FirstCall/ Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules founded in 1997, announced today that Trina Solar became the first global solar PV module manufacturer to cast a multicrystalline ingot using GT Solar's advanced DSS 450 furnace. This was achieved in connection with the commercial launch of Trina Solar's new multicrystalline module line.
The "jumbo" ingot is the result of Trina Solar's contract with GT Solar Incorporated, which supplies Trina Solar with DSS 450 furnaces that grow multicrystalline ingots up to 450 kg. This is Trina Solar's third order from GT Solar, representing approximately 300 MW of ingot growing capacity.
Jifan Gao, Trina Solar's Chairman and CEO, said: "We are very proud to have achieved this important milestone, which represents a key step in our efforts to expand capacity while lowering production costs and reflects the successful cooperation between our two companies. We look forward to opportunities to work with GT Solar as we continue to expand our capacity and strengthen Trina Solar's position as one of the leading PV module suppliers in the world."
Tom Zarrella, GT Solar's CEO, said: "Trina Solar's order for our advanced DSS 450 furnace to support its aggressive expansion plan is a strong indication of GT Solar's continued expansion in the Asia market. We value this customer and appreciate its confidence in our product."
About Trina Solar
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well-recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally- friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com.
About GT Solar
GT Solar Incorporated, a wholly-owned subsidiary of GT Solar International, is one of the largest providers of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com.
CHANGZHOU, China, Oct. 31 /Xinhua-PRNewswire-FirstCall/ Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules founded in 1997, announced today that Trina Solar became the first global solar PV module manufacturer to cast a multicrystalline ingot using GT Solar's advanced DSS 450 furnace. This was achieved in connection with the commercial launch of Trina Solar's new multicrystalline module line.
The "jumbo" ingot is the result of Trina Solar's contract with GT Solar Incorporated, which supplies Trina Solar with DSS 450 furnaces that grow multicrystalline ingots up to 450 kg. This is Trina Solar's third order from GT Solar, representing approximately 300 MW of ingot growing capacity.
Jifan Gao, Trina Solar's Chairman and CEO, said: "We are very proud to have achieved this important milestone, which represents a key step in our efforts to expand capacity while lowering production costs and reflects the successful cooperation between our two companies. We look forward to opportunities to work with GT Solar as we continue to expand our capacity and strengthen Trina Solar's position as one of the leading PV module suppliers in the world."
Tom Zarrella, GT Solar's CEO, said: "Trina Solar's order for our advanced DSS 450 furnace to support its aggressive expansion plan is a strong indication of GT Solar's continued expansion in the Asia market. We value this customer and appreciate its confidence in our product."
About Trina Solar
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well-recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally- friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com.
About GT Solar
GT Solar Incorporated, a wholly-owned subsidiary of GT Solar International, is one of the largest providers of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com.
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