SHANGHAI, Nov. 18 /PRNewswire-FirstCall/ -- Solarfun Power Holdings
Co., Ltd. ( "Solarfun" or the "Company") (NASDAQ:SOLF), a
vertically integrated manufacturer of silicon ingots, wafers and
photovoltaic (PV) cells and modules in China, today reported its
unaudited financial results for the quarter ended September 30,
2009. THIRD QUARTER 2009 RESULTS -- Total net revenues were RMB
986.8 million (US$144.6 million) in the third quarter of 2009,
representing a decrease of 22.6% from RMB 1,274.8 million in the
third quarter of 2008 and an increase of 15.5% from RMB 854.6
million in the second quarter of 2009. The sequential increase was
primarily related to higher shipment volumes reflecting improved
industry demand. -- PV module shipments reached 102.6 MW in the
third quarter of 2009, an increase from 41.8 MW in the third
quarter of 2008 and from 64.3 MW in the second quarter of 2009. The
increase from the second quarter of 2009 was due to increases in
both PV module shipments and PV module processing services. PV
module processing services represented approximately 40% of the
total PV module shipments in the third quarter of 2009. In the
third quarter of 2009, excluding module processing, the Company
recorded greater geographic diversity in its sales, with Germany
accounting for 60% of the Company's total PV module shipments, down
from 83% in the previous quarter. The Czech Republic, a relatively
new market for the Company, continued to grow to 9% of total
shipments, and a rebound was seen in Portugal and Spain,
representing 11% and 6% of total shipments, respectively.
Australia, Italy and Korea combined for another 14% of total
shipments. -- Average selling price, excluding module processing
services, declined, as expected, to US$2.03 per watt in the third
quarter of 2009 from US$2.66 per watt in the second quarter of
2009, primarily due to the decrease in the market prices of PV
products. -- Gross profit was RMB 204.4 million (US$29.9 million)
in the third quarter of 2009, compared to a gross profit of RMB
46.1 million in the third quarter of 2008 and a gross loss of RMB
53.0 million in the second quarter of 2009. Gross margin was 20.7%
in the third quarter of 2009, compared to negative 6.2% in the
second quarter 2009. No provision for pre-payments on supply
agreements were made in the third quarter of 2009, compared to a
provision of RMB 236.5 million in the second quarter of 2009. Gross
margin in the third quarter of 2009 reflected lower raw material
costs primarily as a result of renegotiated supply agreements and
increased spot market purchases. Vertical integration to the ingot
and wafer level also led to reduced costs from higher utilization
and continued process improvements. -- Operating profit was RMB
129.4 million (US$19.0 million) in the third quarter of 2009,
compared to an operating loss of RMB 25.9 million in the third
quarter of 2008 and an operating loss of RMB 121.9 million in the
second quarter of 2009. The operating margin for the third quarter
2009 was 13.1%. The Company continued to maintain tight discipline
on operating expenses, which as a percent of revenues should trend
lower as revenues grow. -- Interest expense was RMB 40.8 million
(US$6.0 million) in the third quarter of 2009, an increase from RMB
21.6 million in the third quarter of 2008, and an increase from RMB
36.1 million in the second quarter of 2009. -- Fair value of the
conversion feature of the Company's convertible bonds increased by
RMB 82.4 million (US$12.1 million) in the third quarter of 2009,
due to a number of factors including changes in the Company's ADS
prices during the third quarter of 2009. This line item has
fluctuated, and is expected to continue to fluctuate
quarter-to-quarter in line with standardized accounting practices,
of which the Company has no control. -- Net income attributable to
shareholders was RMB 136.6 million (US$ 20.0 million) in the third
quarter of 2009, compared to a net loss of RMB 44.3 million in the
third quarter of 2008 and a net loss of 319.9 million in the second
quarter of 2009. Net income per basic ADS was RMB 2.53 (US$0.37) in
the third quarter of 2009, compared to a net loss per basic ADS of
RMB 0.86 in the third quarter of 2008 and a net loss per basic ADS
of RMB 5.95 in the second quarter of 2009. Peter Xie, President of
Solarfun, commented, "We are extremely pleased with the continued
progress achieved in the third quarter of 2009. Of particular note
were quarterly shipment volumes exceeding 100 MW for the first time
in the Company's history, gross margins reaching 20%, and a return
to profitability. We also improved our capital structure by
reducing short-term bank borrowings and raising additional equity
capital." FINANCIAL POSITION As of September 30, 2009, the Company
had cash and cash equivalents of RMB 793.2 million (US$116.2
million) and working capital of RMB 1,738.0 million (US$254.6
million). Total short-term bank borrowings as of September 30, 2009
were RMB 1,013.7 million (US$148.5 million), a decrease from RMB
1,394.0 million as of June 30, 2009. The Company believes that cash
on hand and additional undrawn bank credit lines provide adequate
funds for near-term future growth. Accounts receivable increased to
RMB 707.2 million (US$103.6 million) as of September 30, 2009 from
RMB 514.3 million as of June 30, 2009. This increase was primarily
due to an increase in shipments as well as a large percentage of
shipments occurring in the latter part of the third quarter of
2009. Days sales outstanding increased from 38 days in the second
quarter of 2009 to 56 days in the third quarter of 2009, primarily
reflecting the prevailing credit terms for the current market
environment. Inventories increased to RMB 808.4 million (US$118.4
million) as of September 30, 2009 from RMB 695.7 million as of June
30, 2009, primarily because the Company anticipated a growth in PV
module sales in the fourth quarter of 2009 and the first quarter of
2010. Capital expenditures were RMB 28.7 million (US$4.2 million)
in the third quarter of 2009. The Company expanded its module
capacity by 50 MW during the third quarter of 2009 to over 500 MW,
and remains on track to further increase its module capacity to 700
MW in 2010. EQUITY DISTRIBUTION AGREEMENT Under the equity
distribution agreement entered into with Morgan Stanley & Co.
Incorporated on September 17, 2009, at the end of the third quarter
of 2009, the Company sold 1,955,310 ADSs, raising US$12.5 million
in gross proceeds, of which US$0.3 million was paid to Morgan
Stanley & Co. Incorporated as manager for the sale. As of
November 18, 2009, the Company has raised a total of US$23.1
million in gross proceeds from the sale of 3,888,399 ADSs, of which
US$0.6 million was paid to Morgan Stanley & Co. Incorporated as
manager for the sale. The Company has the option to recommence
sales, subject to market conditions, after this earnings release
under this existing agreement. BUSINESS OUTLOOK The Company
provides the following guidance based on current operating trends
and market conditions. The Company expects for the fourth quarter
of 2009: -- Shipments to be approximately 110 MW, with module
processing services accounting for about 20% of the total
shipments. -- Average selling prices to decline by approximately 5%
from the previous quarter, in constant currency. For the first
quarter of 2010, the Company expects to see continuing good demand,
with prices declining slightly from levels in the fourth quarter of
2009. Peter Xie concluded by noting, "We expect to see a healthy
demand environment in 2010. The preliminary shipment target for
2010 is 500 MW. We expect strong demand from Germany as project
development is accelerated in response to expected feed-in-tariff
reductions, from new markets like China and the United States, and
as the general availability of funding for solar projects improves.
We have made some important additions to our senior management team
this past quarter and will continue to recruit critical talent in
the near future. We will continue to drive product and process
innovation, and reduce processing costs through increased scale,
manufacturing efficiencies and technological advancements."
CONFERENCE CALL Management will discuss the results and take
questions following the prepared remarks. The dial-in details for
the live conference call are as follows: US Toll Free
1.866.700.6067 International Toll Free 1.617.213.8834 South China
Toll Free 10 800 130 0399 10 800 852 1490 North China Toll Free 10
800 152 1490 Participant Code SOLF A live webcast of the conference
call will be available on the investor relations section of the
Company's website at: http://www.solarfun.com.cn/. A replay of the
webcast will be available for one month. A telephone replay of the
call will be available until November 26, 2009. The dial-in details
for the replay are as follows: US Toll Free 1.888.286.8010
International Toll 1.617.801.6888 Passcode 35962587 SOLARFUN POWER
HOLDINGS CO., LTD. CONSOLIDATED BALANCE SHEETS (Amounts in
thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for
number of shares and per share data) June 30 September 30 September
30 2009 2009 2009 (Unaudited) (Unaudited) (Unaudited) RMB RMB US$
ASSETS Current assets Cash and cash equivalents 494,740 793,186
116,197 Restricted cash 260,749 131,537 19,269 Financial assets
5,062 - - Accounts receivable, net 514,328 707,235 103,606
Inventories, net 695,743 808,415 118,428 Advance to suppliers, net
877,909 827,880 121,281 Other current assets 376,277 283,043 41,464
Deferred tax assets 65,453 67,860 9,941 Amount due from related
parties 24,435 42,590 6,239 Total current assets 3,314,696
3,661,746 536,425 Non-current assets Fixed assets - net 1,616,596
1,604,885 235,107 Intangible assets - net 210,512 210,003 30,764
Goodwill 134,735 134,735 19,738 Deferred tax assets 6,920 7,660
1,122 Long-term deferred expenses 37,908 33,718 4,939 Total
non-current assets 2,006,671 1,991,001 291,670 TOTAL ASSETS
5,321,367 5,652,747 828,095 LIABILITIES Current liabilities
Financial liabilities 18,584 41,489 6,078 Short-term bank
borrowings 1,394,014 1,013,738 148,507 Long-term bank borrowings,
current portion 60,000 75,000 10,987 Accounts payable 268,971
392,625 57,517 Notes payable 107,610 159,195 23,321 Accrued
expenses and other liabilities 136,131 178,340 26,126 Customer
deposits 3,346 21,346 3,127 Deferred tax liability 709 - -
Unrecognized tax benefit 28,199 28,467 4,170 Amount due to related
parties 8,103 13,564 1,987 Total current liabilities 2,025,667
1,923,764 281,820 Non-current liabilities Long-term bank
borrowings, non-current portion 125,000 402,500 58,964 Convertible
notes payable 642,925 573,441 84,006 Deferred tax liability 26,861
26,713 3,913 Total non-current liabilities 794,786 1,002,654
146,883 TOTAL LIABILITIES 2,820,453 2,926,418 428,703 Redeemable
ordinary shares 32 32 5 EQUITY Shareholders' equity Ordinary shares
214 220 32 Additional paid-in capital 2,164,186 2,252,642 329,999
Statutory reserves 49,589 57,163 8,374 Retained earnings 282,797
411,845 60,333 Total shareholders' equity 2,496,786 2,721,870
398,738 Noncontrolling interest 4,096 4,427 649 TOTAL EQUITY
2,500,882 2,726,297 399,387 TOTAL LIABILITIES, MEZZAINNE EQUITY AND
SHAREHOLDERS' EQUITY 5,321,367 5,625,747 828,095 SOLARFUN POWER
HOLDINGS CO., LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts
in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except
for number of shares and per share data) For the three months ended
September 30 June 30 September 30 September 30 2008 2009 2009 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB RMB RMB US$ Net
revenue Photovoltaic modules 1,146,900 742,004 802,314 117,534
Photovoltaic cells 90,923 5,538 14,248 2,087 Others 37,025 107,068
170,236 24,939 Total net revenue 1,274,848 854,610 986,798 144,560
Cost of revenue Photovoltaic modules (1,015,456) (741,664)
(579,927) (84,956) Photovoltaic cells (83,053) (18,529) (12,386)
(1,814) Others (42,077) (83,038) (118,115) (17,303) Write down of
inventories (88,156) (64,414) (71,971) (10,543) Total cost of
revenue (1,228,742) (907,645) (782,399) (114,616) Gross profit /
(losses) 46,106 (53,035) 204,399 29,944 Operating expenses Selling
expenses (20,174) (18,206) (24,806) (3,633) G&A expenses
(46,057) (47,002) (42,888) (6,283) R&D expenses (5,765) (3,673)
(7,324) (1,073) Total operating expenses (71,996) (68,881) (75,018)
(10,989) Operating profit / (losses) (25,890) (121,916) 129,381
18,955 Interest expenses (21,559) (36,091) (40,757) (5,971)
Interest income 4,280 1,060 2,150 315 Exchange gain / (losses)
(30,001) 15,590 8,139 1,192 Gain / (losses) on change in fair value
of derivative 32,782 (49,423) (27,466) (4,024) Gain / (losses) on
change in conversion feature fair value of convertible bond
(113,423) 82,357 12,065 Other income 3,996 276 1,212 178 Other
expenses (3,896) (4,302) (1,903) (279) Government grant 221 1,797
1,957 287 Net income / (losses) before income tax (40,067)
(306,432) 155,070 22,718 Income tax benefit / (expenses) 1,224
(13,475) (18,117) (2,654) Net income / (losses) (38,843) (319,907)
136,953 20,064 Net income / (losses) attributable to noncontrolling
interest 5,463 (2) 331 48 Net income / (losses) attributable to
shareholders (44,306) (319,905) 136,622 20,016 Net income /
(losses) per share Basic (0.17) (1.19) 0.51 0.07 Diluted (0.17)
(1.19) 0.51 0.07 Shares used in computation Basic 258,503,644
268,981,409 270,304,495 270,304,495 Diluted 258,503,644 268,981,409
270,503,158 270,503,158 Net income / (losses) per ADS Basic (0.86)
(5.95) 2.53 0.37 Diluted (0.86) (5.95) 2.53 0.37 ADSs used in
computation Basic 51,700,729 53,796,282 54,060,899 54,060,899
Diluted 51,700,729 53,796,282 54,100,632 54,100,632 This report on
Form 6-K is hereby incorporated by reference into the Company's
Registration Statement on From F-3 (Registration No. 333-152005)
filed on July 14, 2008. FOREIGN CURRENCY CONVERSION The conversion
in this release of Renminbi into U.S. dollars is made solely for
the convenience of the reader, and is based on the exchange rates
as set forth in the H.10 statistical release of the Federal Reserve
Board as of September 30, 2009, which was RMB 6.8262 to US$1.00. No
representation is intended to imply that the Renminbi amounts could
have been, or could be, converted, realized or settled into U.S.
dollars at that rate on September 30, 2009, or at any other date.
The percentages stated in this press release are calculated based
on Renminbi amounts. SAFE HARBOR STATEMENT This press release
contains forward-looking statements. These statements constitute
"forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the
U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements include fourth quarter and full-year
2009 and first quarter and full-year 2010 estimates for net
revenue, PV product shipments, raw materials and product prices, PV
cell production capacity and gross margins. Forward-looking
statements involve inherent risks and uncertainties and actual
results may differ materially from such estimates depending on
future events and other changes in business climate and market
conditions. Solarfun disclaims any obligation to update or correct
any forward-looking statements. About Solarfun Solarfun Power
Holdings Co., Ltd. manufactures ingots, PV cells and PV modules,
and provides PV module processing services to convert PV cells into
PV modules. Solarfun produces both monocrystalline and
multicrystalline silicon cells and modules. Solarfun sells its
products both through third-party distributors, OEM manufacturers
and directly to system integrators. Solarfun was founded in 2004
and its products have been certified to meet TUV and UL safety and
quality standards. SOLF-G For further information, contact:
Solarfun Power Holdings Co., Ltd. Paul Combs V.P. Strategic
Planning 26F BM Tower 218 Wusong Road Shanghai, 200080 P. R. China
Tel: 86-21-26022833 / Mobile: 86 138 1612 2768 E-mail: Christensen
Kathy Li Tel: 480 614 3036 E-mail: Roger Hu Tel: 852 2117 0861
E-mail: DATASOURCE: Solarfun Power Holdings Co., Ltd. CONTACT: Paul
Combs, V.P. Strategic Planning of Solarfun Power Holdings Co.,
Ltd., 86-21-26022833, Mobile, 86 138 1612 2768, ; or Kathy Li, 480
614 3036, , or Roger Hu, 852 2117 0861, , both of Christensen, for
Solarfun Power Holdings Co. Web Site: http://www.solarfun.com.cn/
Copyright
Solarfun Power Holdings CO., Ltd. ADS, Each Representing Five Ordinary Shares (MM) (NASDAQ:SOLF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Solarfun Power Holdings CO., Ltd. ADS, Each Representing Five Ordinary Shares (MM) (NASDAQ:SOLF)
Historical Stock Chart
From Jul 2023 to Jul 2024