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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Solarfun Power Holdings CO., Ltd. ADS, Each Representing Five Ordinary Shares (MM) | NASDAQ:SOLF | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 9.14 | 0 | 01:00:00 |
From Jul 2019 to Jul 2024
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 first quarter ended March 31, 2009.
FIRST QUARTER 2009 RESULTS
Peter Xie, President of Solarfun, commented, “The first quarter of this year saw mixed results from our perspective. On the one hand, shipments and sales continue to be pressured by excess channel inventories, industry-wide module production overcapacity, declining prices, and the continued tight lending environment for solar projects. However, we do believe that the first quarter will prove to be the low point for industry demand and for our company during this cycle. We are cautiously optimistic for a more meaningful rebound, particularly during the second half of this year and heading into 2010. That being said, the timing and magnitude of this turn is quite unpredictable and as a result, we will continue to refrain from making specific quarterly and full year projections.
On a more positive note, we achieved a gross profit in the first quarter and we expect this trend to improve throughout the year. Our average wafer cost per watt declined almost 25% as a result of greater purchasing flexibility and as our vertical integration at the wafer level grows in scale. We see continued and further progress ahead. We are still aggressively negotiating with our suppliers regarding our existing multi-year contracts to bring raw material costs and pre-payment terms more in line with current market conditions. This is a process and is not always successful. We are working closely with our partners to achieve a mutually beneficial outcome on a case-by-case basis.
FINANCIAL POSITION
As of March 31, 2009, the Company had cash and cash equivalents of RMB 466.3 million (US$ 68.2 million) and working capital of RMB 1.5 billion (US$ 213.5 million). Total bank borrowings as of March 31, 2009 were RMB 1.6 billion (US$ 238.2 million), which was up RMB 328.7 million (US$ 48.1 million) from the previous quarter. This is reflective of the supportive lending environment in China as well as Solarfun’s long-standing and strong relationships with lenders.
Working Capital
The Company continued to focus on working capital management and reduced accounts receivable by RMB 117.4 million (US$17.2 million) from the prior quarter. Days sales outstanding increased from 27 days in the fourth quarter of 2008 to 35 days and were well below levels for the same period last year and many industry peers.
Inventories remained relatively constant at RMB 747.6 million (US$ 109.4 million), but importantly, raw materials with rapidly declining market prices were cut in half.
Capital Expenditures
The Company spent RMB 217.3 million (US$ 31.8 million) in capital expenditures, including the final payment for Linyang Yangguang (LYG), the Company’s ingot manufacturing subsidiary. No large capital projects are scheduled for the remainder of the year.
ORGANIZATIONAL CHANGES
The Board of Directors has accepted the resignation of Harold Hoskens, Chief Executive Officer, effective June 30, 2009. The Company’s Management Committee, including John Breckenridge, Managing Director of Good Energies, and Peter Xie, Solarfun President, will actively oversee all day-to-day business activities and the Company’s strategic direction. Solarfun would like to extend its gratitude to Harold for his many contributions, particularly in the face of such a difficult operating environment. The Company hopes to build on the foundation he helped establish and believe it now has the necessary leadership in place to accomplish its goals.
BUSINESS OUTLOOK
The Company recognizes that the current operating environment is evolving rapidly and is less predictable than in previous periods. In light of these uncertainties and based on current operating trends and market conditions, the Company provides the following outlook:
For the second quarter of 2009, management expects:
For the full year of 2009:
The Company previously announced signed contracts with key customers totaling 200 MW and is actively negotiating others. Excluding the aforementioned manufacturing services agreement with Q-Cells, Solarfun has an ongoing dialogue with other customers to ensure that both partners find a sustainable way forward on these contracts. We note, however, that this is a very fluid business environment and our ability to predict is less certain. The Company continues to expect full-year demand to exceed these levels as markets rebound and begin to build momentum, particularly in the latter half of 2009.
Management expects:
Peter Xie outlined the primary goals for the Company for the remainder of 2009. “Our top priority, as always, is to meet the needs of our customers. We intend to strengthen our brand and expand our geographic footprint in an increasingly competitive environment. We are prudently managing our organizational costs and production flow in order to maintain liquidity, maintaining and growing our commercial lending partnerships in order to fund future growth, actively pursuing all angles to further reduce our raw material costs for both existing and new contracts, reducing inventories, and executing our vertical integration strategy.”
“We continue to remain optimistic for the remainder of 2009 and beyond. With both module and raw material prices declining, we think volume growth is imminent. Incentives already in place, and new ones from the United States and China in particular, bode well for a resumption of healthy growth in the long term.”
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:
- U.S. Toll Free Number: +1 866 713 8562
- International dial-in number: +1 617 597 5310
- China Toll Free Number (North): +10 800 152 1490
- China Toll Free Number (South): +10 800 130 0399
Passcode: 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 for seven days after the conclusion of the conference call. The dial-in details for the replay are as follows:
- U.S. Toll Free Number: +1 888 286 8010
- International dial-in number: +1 617 801 6888
Passcode: 24572746
CONVERTIBLE SECURITIES
In the first quarter the Company adopted Emerging Issues Task Force ("EITF") No. 07-5, which requires the Company to re-assess whether the conversion feature embedded in the convertible bonds that the Company has issued is indexed to its own stock from 2009. The Company concludes that the embedded conversion feature is no longer indexed to its own stock and thus should be bifurcated from the host contract and with the change in fair value to be recognized at each period end from 2009 onwards. As a result, the embedded conversion feature has been accounted for as an embedded derivative and measured at fair value. The cumulative effect as a result of the adoption of EITF 07-5 will be recognized as an adjustment to the opening balance of retained earnings as of January 1, 2009.
From time to time the Company may seek to retire, repurchase, or exchange its convertible securities in open market purchases or privately negotiated transactions depending on market conditions, liquidity, and contractual obligations and other factors.
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 noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve as of March 31, 2009, which was RMB6.8329 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on March 31, 2009, or at any other date. The percentages stated in this press release are calculated based on Renminbi amounts.
SAFE HARBOR STATEMENT
This news release contains forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995, such as the Company’s business outlook for 2009, including second quarter and full year 2009 estimates for net revenue, PV product shipments, raw materials and product prices, PV cell production capacity and gross margins. Forward-looking statements involve inherent risks and uncertainties and actual results may differ materially from such estimates depending on future events and other changes in business climate and market conditions. Solarfun disclaims any obligation to update or correct this information.
ABOUT SOLARFUN
Solarfun Power Holdings Co, Ltd. manufactures both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules, and manufactures 100% of its modules with in-house produced PV cells. Solarfun sells its products both through third-party distributors, OEM manufacturers and directly to system integrators. Solarfun was founded in 2004 and its products have been certified to TUV and UL safety and quality standards. SOLF-G
http://www.solarfun.com.cn
SOLARFUN POWER HOLDINGS CO., LTD. CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"), except for number of shares and per share data)December 31 March 31 March 31 2008 2009 2009 (Unaudited) (Unaudited) (Unaudited) RMB RMB USD ASSETS Current assets Cash and cash equivalents 410,901 466,276 68,240 Restricted cash 88,137 270,398 39,573 Financial assets 39,665 63,079 9,232 Accounts receivable, net 319,537 202,096 29,576 Inventories, net 731,708 747,587 109,410 Advance to suppliers, net 1,355,597 1,382,648 202,352 Other current assets 256,108 196,735 28,792 Deferred tax assets 51,035 49,790 7,287 Amount due from related parties 19 19 3
Total current assets 3,252,707 3,378,628 494,465
Non-current assets Fixed assets – net 1,492,575 1,629,544 238,485 Intangible assets – net 212,736 211,559 30,962 Goodwill 134,735 134,735 19,719 Deferred tax assets 10,029 11,025 1,614 Long-term deferred expenses 37,444 37,075 5,426 Long-term investment
-
-
-
Total non-current assets 1,887,519 2,023,938 296,206
TOTAL ASSETS 5,140,226 5,402,566 790,671
LIABILITIES Current liabilities Financial liabilities 5,792 5,273 772 Short-term bank borrowings 1,098,832 1,435,000 210,013 Long-term bank borrowings, current portion 30,000 45,000 6,586 Accounts payable 217,025 225,023 32,932 Notes payable 39,341 39,341 5,758 Accrued expenses and other liabilities 173,370 129,392 18,937 Customer deposits 9,494 2,956 433 Deferred tax liability - - - Unrecognized tax benefit 27,385 27,385 4,008 Amount due to related parties 39,766 10,109 1,479
Total current liabilities 1,641,005 1,919,479 280,918
Non-current liabilities Long-term bank borrowings, non-current portion 170,000 147,500 21,587 Convertible notes payable 1,178,969 787,399 115,236 Long term payable - - - Deferred tax liability 27,155 27,008 3,953
Total non-current liabilities 1,376,124 961,907 140,776
TOTAL LIABILITIES 3,017,129 2,881,386 421,694 Redeemable ordinary shares 32 32 5 EQUITY Shareholders’ equity Ordinary shares 214 214 31 Additional paid-in capital 2,138,624 2,155,241 315,421 Statutory reserves 47,638 47,638 6,972 Retained earnings (deficit) (67,594 ) 313,956 45,948
Total shareholders’ equity 2,118,882 2,517,049 368,372 Noncontrolling interest 4,183 4,099 600
TOTAL EQUITY 2,123,065 2,521,148 368,972
TOTAL LIABILITIES, MEZZAINNE EQUITY AND SHAREHOLDERS’ EQUITY 5,140,226 5,402,566 790,671
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) March 31 December 31 March 31 March 31 2008 2008 2009 2009 (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB RMB RMB USD Net revenue Photovoltaic modules 1,151,507 1,094,498 678,136 99,246 Photovoltaic cells 29,734 28,199 6,043 884 PV cells processing - PV modules processing 0 - 0 0 Raw materials 18,088 - 18 3
Total net revenue 1,199,329 1,122,697 684,197 100,133
Cost of revenue Photovoltaic modules (965,589 ) (1,466,831 ) (627,186 ) (91,789 ) Photovoltaic cells (27,918 ) (33,666 ) (7,284 ) (1,066 ) PV cells processing - PV modules processing 0 - 0 0 Raw materials (15,762 ) - (281 ) (41 )
Total cost of revenue (1,009,269 ) (1,500,497 ) (634,751 ) (92,896 )
Gross profit / (losses) 190,060 (377,800 ) 49,446 7,237
Operating expenses Selling expenses (21,055 ) (20,202 ) (16,328 ) (2,390 ) G&A expenses (22,518 ) (39,811 ) (44,449 ) (6,505 ) R&D expenses (4,784 ) (1,433 ) (8,185 ) (1,198 )
Total operating expenses (48,357 ) (61,446 ) (68,962 ) (10,093 )
Operating profit / (losses) 141,703 (439,246 ) (19,516 ) (2,856 ) Interest expenses (26,669 ) (26,769 ) (39,508 ) (5,782 ) Interest income 2,381 1,974 494 72 Exchange gain / (losses) 19,430 (28,794 ) (32,849 ) (4,807 ) Investment income (384 ) Gain on change in fair value of derivative 0 50,307 85,906 12,572 Other income 2,011 4,629 3,533 517 Other expenses (12,323 ) (2,860 ) (3,584 ) (524 ) Government grant 124 3,020 1,907 279
Net income / (losses) before income tax 126,657 (438,123 ) (3,617 ) (529 )
Income tax benefit / (expenses) (18,730 ) 19,270 (3,445 ) (504 )
Net income / (losses) 107,927 (418,853 ) (7,062 ) (1,033 )
Net income / (losses) attributable to noncontrolling interest 3,363 (16 ) (85 ) (12 )
Net income / (losses) attributable to shareholders 104,564 (418,837 ) (6,977 ) (1,021 )
Net income / (losses) per share Basic 0.43 (1.56 ) (0.03 ) (0.00 ) Diluted 0.41 (1.56 ) (0.03 ) (0.00 ) Shares used in computation Basic 241,181,882 268,717,524 268,848,771 268,848,771 Diluted 271,563,142 268,717,524 268,848,771 268,848,771 Net income / (losses) per ADS Basic 2.17 (7.79 ) (0.13 ) (0.02 ) Diluted 2.06 (7.79 ) (0.13 ) (0.02 ) ADSs used in computation Basic 48,236,376 53,743,505 53,769,754 53,769,754 Diluted 54,312,628 53,743,505 53,769,754 53,769,754
1 Year Solarfun Power Holdings CO., Ltd. ADS, Each Representing Five Ordinary Shares (MM) Chart |
1 Month Solarfun Power Holdings CO., Ltd. ADS, Each Representing Five Ordinary Shares (MM) Chart |
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