DONGYING, China, April 30 /PRNewswire-Asia/ -- CNPV, a leading multi product solar company that produces ingots, wafers, cells & solar modules, and has strong presence in the solar photovoltaic space that designs, manufactures and supplies highly efficient and cost effective crystalline solar photovoltaic modules, today announced that its Annual Consolidated Financial Report for the year ended December 31, 2008 has been filed with the Alternext of Paris NYSE-Euronext on April 30, 2009. The Annual Report can be accessed via the investor relations section of the Company's website at http://www.cnpv-power.com
"We are extremely pleased with our financial results in the year 2008 to cap a full year of many important achievements. We met our full year 2008 targets for product shipment, revenue and net income," said CNPV's CEO, Mr. Zhang Shunfu. “We continue to focus efforts to lower our module manufacturing costs through constant improvements in technology development and manufacturing process innovation as we increase our production capacity and execute on our technology roadmap. These developments are central to our three core long-term strategies: developing a strong brand in the marketplace, investing continuously in our technology platform and ensuring our low cost position through our vertically integrated business model."
Full Year 2008 Results Financial and Operating Highlights
- 2008 revenue of €48.9million; increased 78% over 2007
- 2008 annual shipments of 49.81MWp; increased 325% over 2007
- The full year 2008 gross profit was €10.1million, an increase of 12.1% year-over-year.
- 2008 consolidated gross margin was 20.6% compared to 16.6% in 2007.
|
(in € millions)
|
Fiscal Year 2008
|
Fiscal Year 2007
|
Change
|
|
Revenue
|
48.9
|
27.43
|
+78.27%
|
|
Gross profit
|
10.1
|
4.56
|
+121.5%
|
|
Gross margin
|
20.65%
|
16.62%
|
+4.03 pt
|
|
Operating Income
|
7.1
|
3.7
|
+91.89%
|
|
Operating margin
|
14.5%
|
13.49%
|
+1.01 pt
|
|
Net income
|
6.4
|
3.7
|
+72.97%
|
The 2008 financial statements have been audited by Grant Thornton Lux Audit S.A., a Luxemburg audit firm and a member of the international Grant Thornton audit services network.
Fiscal Year 2008 Financial and Operational Results
- Total Net Revenues
Total net revenues for the full year 2008 were €48.9 million, which increased by 78.27% from €27.4 million in the year of 2007. The increase was primarily due to a significant rise in total shipments of PV Modules, which increased to 49.81MWp (CNPV branded PV Modules Sales: 12MWp; OEM Projects Sales: 32MWp; Domestic Project Sales: 5MWp) in 2008 from 11MWp in 2007. The increase in total shipments was primarily due to the Company's expanded market share in Europe, South Korea and mainland China, supported by the completion of an additional 100MWp of total production capacity of PV modules in December 2008.
- Gross Profit and Margin
Gross profit for the full year 2008 was €10.1million, which increased by 121.5% from €4.56million in the year of 2007. Gross margin was 20.65% for the full year 2008, compared to 16.62% in 2007. The higher than expected gross margin for the full year 2008 was primarily due to the oem and domestic project sales gross margin in the second half of 2008.
- Operating Expenses
Operating expenses for the full year 2008 were €2.75million, an increase of 195% from €0.93 million in 2007. The increase in operating expenses was primarily due to higher administrative expenses partly related to the listing expenses of the IPO and increased marketing and promotional efforts resulting from the Company's expanded scale of operations. Operating expenses as a percentage of revenue increased to 5.6% in the full year 2008 from 3.4% in the year of 2007 which is well within the expectations of 6%.
- Interest Expense
Interest expense for the full year 2008 was €0.30 million, an increase of 520% from €0.05million in 2007. The increase in interest expense was consistent with the increase in short-term borrowings from €0.93million as of December 31, 2007 to €5.82 million as of December 31, 2008. The weighted average interest rate for these borrowings in 2008 was 4.92% which is well within the expectations of 5%.
- Net Income
Net income was €6.43 million and fully diluted earnings per ordinary share were €1.262 for the full year 2008.
- Production Capacity
The annual module production capacity has increased from 60MWp to 160MWp during 2008. CNPV has also installed 20MWp of Mono Crystalline Ingot Production Capacity in December 2008 as part of value chain expansion towards vertical integration business model.
- Brand Recognition
CNPV invested adequately in marketing and sales channel building in 2008, attending PV Conference and Exhibitions worldwide. The Company established its brand recognition by delivering excellent product quality and stability, supported by its advanced manufacturing technology and stringent quality control.
"Despite the challenging global economic and financial climate, we are pleased with our strong performance in the second half of 2008" said Mr. B.Veerraju Chaudary, COO,CTO & Member of the Board of CNPV. "The value of and loyalty towards our brand helped us to exceed our quarterly revenue guidance, despite sector-wide declines in the average sales price of modules during 4th quarter of 2008.
By accelerating our non-silicon manufacturing cost reduction, we produced positive operating cash flows which preserved our cash balances as we reduced our short-term debt balances. We will continue to focus on generating positive operating cash flows to support our 2009 growth plan and strategic initiatives, which will focus on enhancements to our technology, cost reduction and brand recognition.
Addressing cost reduction, we achieved significant progress in our crystalline production, which we ramped up steeply in 2008. Our technology and supply chain enhancements include increased adoption of higher efficiency materials, in addition to innovative manufacturing processes currently in advanced testing stage to increase our yields and efficiencies to further reduce unit costs.
Although economic concerns continue to affect negatively the overall PV market, we have benefited from our strong sales capabilities and brand recognition in part due to our abilities to expand our wholesale and project related distribution channels in an increasing number of markets.
Operations and Business Outlook for 2009
The company currently expects 2009 revenue to be in the range of €100-110million. CNPV’s target for total production for 2009 output is 60MWp to 80MWp. The planned production capacity by year-end 2009 is expected to reach 200-250MWp. Meanwhile, CNPV plans to install 60MWp cell production lines in third & fourth quarter 2009 respectively.
The company is under the process of building a 10MWp on-grid PV Power Plant in Dongying City, Shandong Province, China, where CNPV locates. The company plans to build this Power Plant during 2009 and 2010. Now the company has had the ratified documents for land use and on line to State Grid. The final approval is expected to be obtained during Q32009. This Power Plant would be completed during 2010.
Cost Reduction
By year end 2009 the Company expects further reduction of 15% to 20% through a combination of technology and manufacturing process improvements, including supply chain and logistics management initiatives currently under testing or development.
Order Backlog
The Company is currently targeting module production of between 60MWp to 80MWp for 2009. The Company has entered into contracts expected to generate approximately 60MWp to 80MWp in 2009 shipments.
Materials Procurement
Through the Company's diversified range of short, medium, and long-term supply contracts, which include agreements entered into in the first quarter of 2009, the Company will continue to maintain competitive materials costs relative to the current market price.
Technology and Product Development Update
The Company is currently improving its Process Technology, including implementation of Anti Reflection coated Glass, larger dia meter of cells, high conductivity ribbon materials, passivation and metallization techniques involved in the photovoltaic manufacturing process value chain technology, with target year end cell efficiency goals of up to 17.50% and 16.50% respectively for its Monocrystalline and Multicrystalline product lines. The Company also plans to further enhance its BIPV module product development. The company intends to develop and offer high power range modules with same foot print of industry average power module to our entire customers to differentiate from our competitors which will enable us to make our customer delight.
The consolidated financial statements, as well as the FY 2008 auditor’s report, are available on the company's website: http://en.cnpv-power.com. ISIN Code: LU 0379220212 – Alternext stock code: ALCNP
About CNPV
China Solar Photovoltaic SA (NYSE Euronext: ALCNP), through its wholly-owned subsidiary, CNPV Dongying Photovoltaic Power Company Limited, is a leading multi product solar company that produces ingots, wafers, cells & solar modules, and has strong presence in the solar photovoltaic space that designs, manufactures and supplies highly efficient and cost effective terrestrial crystalline solar photovoltaic modules. Reliability & longevity are built into our world-class crystalline solar photovoltaic modules, which undergo rigorous internal tests and external certifications (IEC61215, IEC61730, UL, and CE) to ensure peak performance and safety. CNPV uses state-of-the-art technology to offer high quality, innovative crystalline solar photovoltaic solutions that cater to the needs of individual customers, large institutions as well as entire communities' worldwide. For further information, please visit CNPV's website at http://www.cnpv-power.com
For more information, please contact:
B.Veerraju Chaudary,
COO, CTO & Member of the Board
Direct Land Line: +86-546-7795053,
Mobile: +86-13656-473355,
Email: chaudary@cnpv-power.com
Jane Liu, Senior Manager- Investor Relations & Financing
Direct Land Line: +86-546-7795078
Mobile: +86-15318-358353,
Email: jane.liu@cnpv-power.com
SOURCE: CNPV Dongying Photovoltaic Power Company Limited
|
