Wuxi Suntech’s business recovery since being acquired by Shunfeng Photovoltaic International has been short and dramatic according to Shunfeng’s first half year financial results.
Although Shunfeng Photovoltaic, soon to rebranded Shunfeng International Clean Energy had little revenue before the acquisition and its downstream PV power plant business only started operations late last year, Wuxi Suntech’s revenue contribution has been significant.
The company reported that its Group shipment volume of solar products (wafers, cells, modules) in the first half of 2014 amounted to 750.9MW, an increase of 332.5% compared with the corresponding period of 2013.
Wuxi Suntech shipped 348.2MW of modules in the period, compared to zero in the same period of 2013. The majority (69.3%) of product shipments were to a select number of customers in China.
Module sales in the period amounted to RMB1,480.3 million (US$240.9 million).
The Shunfeng Group reported revenue of RMB2,946.0 million (US$479.5 million), an increase of 608.12% from US$ 67.7 million for the corresponding period in 2013.
Gross profit increased by RMB698.9 million (US$113.7 million) or 1,367.7% from RMB51.1million (US$ 8.3 million) for the corresponding period of last year.
The Group recorded a net profit of RMB503.9 million (US$82 million), compared to a net loss of RMB672.7 million (US$ 109.5 million) for the same period of 2013.
Zhang Yi, the Chairman of Shunfeng said, “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.”
The turnaround in Wuxi Suntech’s business was also echoed recently when it received an independent technical review of its operations by engineering consultancy firm, OST Energy, based in the UK.
The PV manufacturer received validation that its production facilities were “in line with international (IFC and World Bank) lender requirements for a primary supply chain.”
The company noted that the OST Energy review signalled that its multicrystalline modules ranked above generally accepted industry standards, which were also backed by the company receiving the VDE Quality-Tested certification.
“With the backing of Shunfeng, we are in an even better financial position to continue to provide our customers with the highest quality products,” said Wuxi Suntech CEO Eric Luo. “We value the relationship we have with our customers. More than 30 million Suntech panels can be found in more than 80 countries, all of which will continue to enjoy the warranties documented in Suntech's original sales agreement. That's a commitment we publicly made shortly after our restructuring.”