Solarfun Power Holdings has released its third quarter results, for the period that ended September 30, 2010. The company produced total net revenue of US$325.7 million, a 24.7% increase over the results reported for the second quarter. Solarfun attributes the revenue growth to more shipments, which reached 223.9MW, and a higher average selling price. Gross profit also saw a positive 34.6% fluctuation quarter-over quarter to post at US$74.2 million from the second quarters US$55.5 million.
Solarfun did report a 3.2% increase in the COGS per watt, lending the rise, to US$1.35, to the cost of silicon materials, including polysilicon and externally sourced wafers and cells. Production cost with internal wafer for the quarter came in, for both silicon and non-silicon costs, at US$1.16 per watt, up from the second quarter’s US$1.12 per watt. Again the company lent the price expansion to the cost of polysilicon.
When speculating on its outlook, Solarfun referred to its plan to expand cell capacity from 550MW to 820MW by the third quarter of 2011 and for ingot capacity to rise from 360MW to 510MW. Additionally, for the fourth quarter of 2010, Solarfun anticipates total module shipments to range between 205MW and 215MW. It has raised its shipment guidance from 750MW to around 785MW, but does expect its module shipments to wane somewhat from the previous quarter because of its conversion of cell lines into high-efficiency cell capacity, lending to a short-term loss of internal cell capacity in the fourth quarter. Also, Solarfun will diminish its purchase of externally sourced cells during the fourth quarter in order to better focus on its customers’ needs and corporate profitability.