Welcome!

News Feed Item

Shunfeng Achieved Profit Turnaround in 2014 Interim Results



- Revenue up 6 times to approx. RMB 2.95 billion, Gross Profit surged 13.7 times
- Successfully completed various domestic and overseas acquisitions and enhanced integrated photovoltaic industry chain
- Proposing change of company name to "Shunfeng International Clean Energy Limited" to reflect its clean energy development strategy


Hong Kong, Aug 29, 2014 - (ACN Newswire) - Shunfeng Photovoltaic International Limited (stock code: 1165) announced the unaudited condensed consolidated interim results for the six months ended 30 June 2014 ("Review Period").

For the six months ended 30 June 2014, Shunfeng recorded a revenue of RMB2,946.0million, representing an increase of 608.12% from RMB416.0million for the corresponding period in 2013. Gross profit increased by RMB698.9million or 1,367.7% from RMB51.1million for the corresponding period of last year to approximately RMB750.0million for the Review Period. The increases in revenue and gross profit were primarily due to a substantial increase in the shipment volume of manufacturing and trading of solar power products after the acquisition of Wuxi Suntech. In addition, most of the solar power plants connected to grid by the Group in 2013 passed tests and commenced operation and generated revenue during the Period. The Group recorded a net profit of RMB503.9million for the Review Period, representing a significant improvement compared with a net loss of RMB672.7million for the corresponding period of last year. In consideration of reserving capital for enhancement of business development, the Board resolved not to declare an interim dividend for the six months ended 30 June 2014.

Solar Power Generation

With the successful acquisitions of solar power plants completed in 2013 and early 2014, the Group's market share in China's solar power generation market has soared to a prominent position. As at 30 June 2014, the solar power plants owned by the Group generated an aggregate of approximately 185,798 MWh, of which approximately 60% was generated by the solar generation plants located in the Xinjiang Region, whereas in July amounted to approximately 64,825 MWh, an increase of 8.5% compared with a single month solar power generation of June.

As at 30 June 2014, the expected annual designed capacity of the Group was 1,757 MW, with 876 MW were under construction.

As at the date of this announcement, the Group successfully realized a capacity of 20 MW on-grid connection with the solar power plant in Hebei Province. In addition to constructing and operating solar power generation projects, the Group proactively explores opportunities to integrate solar industry into other sectors, for example, it acquired an integrated project with a capacity of 6.6 MW in Lianyungang, Jiangsu Province, combining agriculture with photovoltaic industry, and completed connecting it to grid. Such project was designed to generate electricity above the agricultural greenhouse, introducing a new pattern of recycling economy which is land-saving, environmental friendly and resource-effective. Being conducive to achieve social, environmental and economic benefits, this new pattern also find an environmental approach for the utilization of new energy and energy saving and emission reduction work. It is considered to be the first integrated project of the Group to combine agriculture with photovoltaic industry, and also the direction for its future development.

Manufacture and Sales of Solar Products
On 7 April 2014, the restructuring plan of Wuxi Suntech Power Co., Ltd. ("Wuxi Suntech") was passed in the extraordinary general meeting by unanimous vote pursuant to which, Wuxi Suntech became a wholly-owned subsidiary of the Group, and its financial results was consolidated into the Group from April 2014. The acquisition of Wuxi Suntech enables the Group to expand its solar power generation business in domestic and overseas market. Riding on the significant rebound trend in the industry since the second half of 2013, the Group's shipment volume of solar products manufacturing business in the first half of 2014 amounted to 750.9 MW, an increase of 332.5% compared with the corresponding period of 2013. Our top 5 customers in the first half of 2014 represented approximately 44.7% of our total revenue as compared to approximately 47.1% in the corresponding period of 2013. Our largest customer accounted for approximately 13.4% of our total revenue during the Review Period as compared to approximately 15.0% in the corresponding period of 2013. These changes were mainly due to our continuing efforts to optimize the customer base. In the first half of 2014, our sales to PRC based customers represented approximately 69.3% of our total revenue, as compared to approximately 85.2% in the corresponding period of 2013.

Acquisitions and Overseas Business Development
Following the completion of acquisition of Wuxi Suntech, the Group has grown to an integrated one-stop solar enterprise with significant market share of installed solar power capacity in the PRC. By leveraging on the positive brand awareness of Shunfeng and Suntech establised over the years in the global market, the Group continues to expand the construction and operation of global solar power plant, manufacturing of solar products, solar energy storage and clean energy related businesses, thereby gaining access to clean energy sector and diversifying its businesses.

(a) Energy storage business
(i) Shanghai Everpower Technology Co., Ltd. ("Everpower")
The Group has acquired 28% equity interests in Everpower, a company engaging in hydrogen energy storage and hydrogen power generation with core hydrogen power technology, in a consideration of RMB48.5 million. Due to its uniqueness, hydrogen power can replace energy storage battery and diesel generator in many power generation fields and is widely used in such sectors as communication and power. The energy storage technology is complementary to solar power generation to resolve the interval generation problem of solar power and thus enhance its utilization rate.

(ii) Powin Energy Corporation ("Powin Energy")
The Group acquired 30% equity interests in Powin Energy in August 2014, a company specially engaging in energy storage battery management technology, in a consideration of US$25.0 million (approximately RMB153.8 million). Powin Energy owns advanced lithium-ion battery energy storage technology. The load shifting technology of Powin Energy is an application which utilizes advanced storage technology and advanced power management system, and specializes in tuning power generators to achieve the purposes of load shifting and stabilizing power supply. In addition, Powin Energy provides high speed, high efficiency and cost effective fast charging devices, which can be extensively used in car parks and for the charging of electric vehicles.

(b) Photovoltaic inverter business
The Group successfully acquired the inverter and building integrated photovoltaic business of Sunways AG and its brand in the first half of the year in a consideration of EURO2.2 million (approximately RMB19.1 million). The Group expects to establish and improve its research and development ability in internal inverter, storage and monitoring techniques through the acquisition, enabling the Group to have its own inverter production line. The Group also expects to expand into the distributed photovoltaic power generation system market through the acquisition, enabling it to provide integrated solutions of modules and photovoltaic inverters in the global photovoltaic market.

(c) Overseas business development
The year of 2014 marked an important milestone for the Group's investment in solar power generation business in overseas market.

(i) European business
The Group collaborated with Greenfield Solar International GmbH & Co. KG ("Greenfield") to jointly develop solar power plant project in the United Kingdom in 2014 and 2015. Wuxi Suntech became the exclusive supplier of solar modules of the project. The project is expected to provide consolidated capacity of 400 MW in 2014 and 500 MW in 2015. The Group will provide photovoltaic inverters, and Greenfield will provide construction project contracting services.

(ii) Japanese business
In July 2014, the Group announced to make a maximum investment of JPY7.5 billion
(approximately equivalent to RMB458.3 million) in a private equity fund, with the purpose to invest primarily in solar power plant projects with an accumulated capacity of 100 MW in Japan.

(d) Seawater power generation business
The Group and Taiwan Carbon Nanotube Technology Corporation ("Taiwan Nanotube") entered into a licence agreement, pursuant to which Taiwan Nanotube granted to the Group the licence to use its developing seawater power generation battery technology. Seawater power generation would be most suitable for coastal and maritime countries as a new form of energy solution since available natural resources could be effectively utilised. Hence, it is anticipated that the seawater power generation technology would be widely used, develop into a huge market, and would be of great commercial value.

Prospect
Mr. Zhang Yi, the Chairman of Shunfeng commented, "We were delighted our 2014 interim results recorded a profit turnaround which further affirmed our foothold in the global photovoltaic industry and realize fruitful results from acquisitions.

Looking ahead, upon completion of acquisition of Wuxi Suntech, the Group has been poised to become an integrated solar enterprise focusing on solar power generation business and, in the long run, to be a leading one-stop clean energy provider in China and in the Asia region. Looking forward to the second half of 2014, the Group believes that through a series of acquisition plans of solar power plants and strengthening its management and operation team, it is determined to strengthen its position as a forefront ranking high performance solar cells and solar modules manufacturer in China. With the recovery of Wuxi Suntech's operation, the Group expects to achieve a total manufacturing capacity of 2.2GW of solar cell and 2.4GW of solar modules in 2014.

And given the Group has transformed from an upstream solar products manufacturer into an integrated solar enterprise owning downstream solar power generation assets. The Group has a future plan in place to diversify its business to energy storage and other forms of renewable or clean energy. The Group has the ambition to become a leading renewable and clean energy enterprise. To fully reflect the Group's fully integrated photovoltaic business model and the future development strategy to become a leading and distinctive renewable and clean energy enterprise, the Company is proposing to change the name of the Company from "Shunfeng Photovoltaic International Limited" to "Shunfeng International Clean Energy Limited".

These important achievements in the first half of 2014 lay a solid foundation for the business of the Group and further consolidate its leading position in China's solar power market. The Group will target to become a leading renewable and clean energy provider, manufacturer and operator, focusing on the improvement of the future energy supply structure in China and the world. The Group will develop itself into a new energy enterprise mainly engaging in solar power plant business with an integrated photovoltaic industry chain and will strive to become a leading enterprise in global photovoltaic industry."


Source: Shunfeng Photovoltaic International Limited

Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.