SHANGHAI, Aug. 3 /PRNewswire-FirstCall/ -- 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 quarter ended June 30,
2010.
SECOND QUARTER 2010 HIGHLIGHTS
- Total net revenues were RMB 1,752.7
million (US$258.5 million), an
increase of 18.8% from 1Q10 and an increase of 105% from 2Q09.
- PV module shipments, including module processing services,
reached 204.6 MW, an increase from 150.6 MW in 1Q10 and from 64.3
MW in 2Q09.
- Average selling price ("ASP"), excluding module processing
services, declined by 6.8% to RMB
11.19 per watt (US$1.65) from
RMB 12.01 per watt in 1Q10.
- Gross profit increased 35.4% quarter-over-quarter to
RMB 368.8 million (US$ 54.4 million) from RMB
272.5 million in 1Q10.
- Despite the decline in ASP, gross margin increased to 21.0%
from 18.5% in 1Q10, primarily due to a continued reduction in
manufacturing costs.
- Despite the continued volatility in the currency market between
Euro and RMB , the Company recorded a net currency gain of
RMB 15.1 million (US$ 2.2 million).
- Net income attributable to shareholders on a GAAP basis was
RMB 272.8 million (US$ 40.2 million), an increase of 96.4% from
RMB 138.9 million in 1Q10.
- Net income attributable to shareholders on a non-GAAP basis(1)
was RMB 231.7 million (US$ 34.2 million), an increase of 46.5% from
RMB 158.1 million in 1Q10.
- Net income per basic ADS on a GAAP basis was RMB 4.71 (US$
0.69), an increase of 96.2% from the previous quarter.
- Net income per basic ADS on a non-GAAP basis was RMB 4.00 (US$
0.59), an increase of 46.5% from the previous quarter.
- Annualized ROE on a non-GAAP basis significantly improved to
35.9% in 2Q10 from 26.6% in 1Q10 and negative 38.3% in 2Q09.
- The Company generated RMB 417.5
million (US$ 61.6 million) in
cash from operating activities during the quarter.
Peter Xie, President of Solarfun,
commented, "We are pleased to announce another quarter of
outstanding performance. For the first six months of 2010,
the Company shipped a total of 355 MW of PV modules and achieved
net income per basic ADS of US$1.05
on a GAAP basis and US$0.99 on a
non-GAAP basis. The strong results can be attributed to continued
strong end-market demand as well as consistent execution by the
management team. We expect robust demand for the rest of
2010, and are raising our 2010 full year shipment guidance from 650
MW to approximately 750 MW. Based on early demand
indications from our key customers for 2011, we are increasingly
optimistic about the Company's future performance."
SECOND QUARTER 2010 RESULTS
- Total net revenues were RMB 1,752.7
million (US$ 258.5 million),
an increase of 18.8% from 1Q10 and an increase of 105.1% from 2Q09.
The increase in net revenues in 2Q10 was primarily due to
significantly higher shipment volumes which reflect improved
industry demand as well as growth in the Company's production
capacity.
- Revenue contribution from PV module processing services as a
percentage of total net revenues was 11.9% as compared to 7.8% in
1Q10.
- PV module shipments, including module processing services,
reached 204.6 MW, an increase from 150.6 MW in 1Q09 and from 64.3
MW in 2Q09.
- The revenue breakdowns by shipment destination and by invoiced
location in 2Q10 are as follows:
(Photo:
http://photos.prnewswire.com/prnh/20100803/LA44785-a)
(Photo:
http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-a)
(Photo:
http://photos.prnewswire.com/prnh/20100803/LA44785-b)
(Photo:
http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-b)
- Starting next quarter, the Company will disclose only revenue
breakdown by shipment destination as the management team believes
this more accurately reflects the Company's geographic
diversification.
- ASP, excluding module processing services, declined by 6.8% to
RMB 11.19 (US$
1.65) per watt from RMB 12.01
per watt in 1Q10. The decline in ASP in 2Q10 was primarily due to
the depreciation of the Euro against the Renminbi.
- Gross profit grew 35.4% quarter-on-quarter to RMB 368.8 million (US$
54.4 million) from RMB 272.5
million in 1Q10. Despite the decline in ASP, gross
margin increased to 21.0% from 18.5% in 1Q10, primarily due to a
continued reduction in manufacturing costs.
- The blended COGS per watt, excluding module processing
services, was US$ 1.31, representing
a 7.7% decrease from US$ 1.42 per
watt in 1Q10. The blended COGS takes into account the processing
cost (silicon and non-silicon) using internally-sourced wafers,
purchase cost and additional processing cost of externally-sourced
wafers and cells, as well as freight costs.
- The production cost (including both silicon and non-silicon
costs) using internal wafers was US$
1.12 per watt, representing a 5.9% decrease from
US$ 1.19 per watt in 1Q10.
(Photo:
http://photos.prnewswire.com/prnh/20100803/LA44785-c)
(Photo:
http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-c)
(Photo:
http://photos.prnewswire.com/prnh/20100803/LA44785-d)
(Photo:
http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-d)
- Operating profit was RMB 269.2
million (US$ 39.7 million),
representing an increase of 42.4% from RMB
189.1 million in 1Q10. The Company had an operating loss of
RMB 121.9 million in 2Q09. Operating
margin for 2Q10 was 15.4% which compares to 12.8% in 1Q10 and
negative 14.3% in 2Q09. Operating expenses as a percentage of
total net revenues stayed flat at 5.7% in 2Q10 as compared to the
previous quarter.
- Interest expense of 2Q10 was RMB 40.2
million (US$ 5.9 million) and
has not fluctuated significant compared to 1Q10 of RMB 40.9 million.
- Although Solarfun is not immune to currency fluctuations,
especially the depreciation of the Euro against the US dollar, its
active hedging program reduces the Company's exposure. For 2Q10,
the Company recorded a net foreign exchange gain of
RMB 15.1 million (US$ 2.2 million), representing foreign exchange
losses that were more than offset by a gain from the change
in fair value of foreign currency derivatives. The Company recorded
a net foreign exchange gain of RMB 3.7
million in 1Q10.
- Gain from the change in fair value of the conversion feature of
the Company's convertible bonds was RMB 57.8
million (US$8.5 million), as
compared to a loss of RMB 2.5 million
in 1Q10 and a loss of RMB 113.4
million in 2Q09. The fluctuations, from the adoption of ASC
815-40 since January 1, 2010 were
primarily due to changes in the Company's share price during the
quarter. This line item has fluctuated, and is expected to continue
to fluctuate quarter-to-quarter. The Company has no direct control
over the fluctuations.
- On a GAAP basis, net income attributable to shareholders was
RMB 272.8 million (US$40.2 million), compared to net income
attributable to shareholders of RMB 138.9
million in 1Q10 and net loss attributable to shareholders of
RMB 319.9 million in 2Q09. Net income
per basic ADS was RMB 4.71
(US$0.69) in 2Q10, compared to
RMB 2.40 in 1Q10 and net loss per
basic ADS of RMB 5.95 in 2Q09.
- On a non-GAAP basis, net income attributable to shareholders
was RMB 231.7 million (US$34.2 million), as compared to RMB 158.1 million in 1Q10 and net loss
attributable to shareholders of RMB 196.6
million in 2Q09. Net income per basic ADS, on a non-GAAP
basis, was RMB 4.00 (US$0.59) in 2Q10, as compared to RMB 2.73 in 1Q10 and net loss per basic ADS of
RMB 3.66 in 2Q09.
- On a GAAP basis, the Company had an annualized return on equity
of 35.2% in 2Q10, as compared to 19.2% in 1Q10 and negative 48.3%
in 2Q09.
- On a non-GAAP basis, the Company had an annualized return on
equity of 35.9% in 2Q10, as compared to 26.6% in 1Q10 and negative
38.3% in 2Q09.
FINANCIAL POSITION
As of June 30, 2010, the Company
had cash and cash equivalents of RMB 885.4
million (US$130.6 million) and
net working capital of RMB 2,002.4
million (US$295.3 million).
Total short-term bank borrowings (including the current portion of
long-term bank borrowings) were RMB 706.0
million (US$104.1 million), as
compared to RMB 930.6 million as of
March 31, 2010. The reduction in
short-term borrowings was because the Company used additional cash
generated from operations to reduce short-term bank borrowings.
As of June 30, 2010, the Company
had total long-term debt of RMB 884.7
million (US$130.5 million),
which comprised both long-term bank borrowings and convertible
notes payable. The Company's long-term bank borrowings are to be
repaid in installments until their maturity in 2011 and 2012.
Holders of the convertible notes may require the Company to
purchase the notes on January 15,
2015.
Net cash from operating activities in 2Q10 was RMB 417.5 million (US$61.6
million), compared to negative RMB
5.4 million in 1Q10 and RMB140.8
million in 2Q09. The net cash inflow from operating
activities was primarily due to the increase in net income and the
reductions in accounts receivables and inventories.
As of June 30, 2010, accounts
receivable declined to RMB 828.9
million (US$122.2 million)
from RMB 849.0 million as of
March 31, 2010. Days sales
outstanding stayed relatively flat at 48 days in 2Q10, as compared
to 47 days in 1Q10.
As of June 30, 2010, inventories
decreased to RMB 591.6 million
(US$87.2 million) from RMB 720.9 million as of March 31, 2010. Days inventory outstanding
improved to 43 days in 2Q10 from 57 days in 1Q10 and from 71 days
in 4Q09, primarily because of continued improvements in the
Company's supply chain management.
Capital expenditures were RMB 204.5
million (US$ 30.2 million) in
2Q10. In the first 6 months of 2010, the total capital expenditures
were 265.4 million (US$ 39.1
million).
CAPACITY EXPANSION
The Company recently announced the next phase of its cell line
expansion. It plans to add another 50 MW to cell capacity from
manufacturing process improvements and debottlenecking, to reach
550MW of cell capacity by early first quarter of 2011. The
Company is on track to expand its module capacity to 900 MW by
August 30, 2010.
In addition, the Company recently announced that it plans to
convert 160 MW of its cell capacity to high efficiency cell
capacity through the introduction of selective emitter
technologies. The high efficiency cell capacity is expected
to realize efficiency targets exceeding 18.5% and 17.0 % for
monocrystalline and multicrystalline cells, respectively.
Details on the Company's production capacities and expected
production capacities as follows:
Capacity
ramp-up
plan
|
|
|
|
|
|
|
Jun 30, 2009
|
Mar 31, 2010
|
Jun 30, 2010
|
Dec 31, 2010
(Estimated)
|
|
Ingot
|
MW
|
300
|
300
|
360
|
360
|
|
Wire saw
|
MW
|
300
|
300
|
400
|
400
|
|
Cell
|
MW
|
360
|
360
|
400
|
500
|
|
Module
|
MW
|
550
|
600
|
700
|
900
|
|
|
|
|
|
|
|
BUSINESS OUTLOOK
The Company provides the following guidance based on current
operating trends and market conditions.
For 3Q10, the Company expects:
- Total module shipments to be 210 MW to 220 MW, of which
approximately 30% will be for PV module processing services.
- ASP excluding PV module processing services to increase by
approximately 3% from 2Q10 on the assumption that the Euro/US
dollar exchange rate stays at approximately 1.28 during the third
quarter of 2011.
In view of the continued robust demand from the Company's
customers for the remainder of 2010, the Company is raising its
full-year 2010 shipment guidance from 650MW to approximately 750MW.
Module processing services are expected to represent approximately
30% of the total shipments.
CONFERENCE CALL
Management will host a conference call to discuss Solarfun's
2010 second quarter results on Aug 3,
2010 at 8:00 am Eastern Daylight
Time ( 8:00 pm Shanghai time ) and take questions following
the prepared remarks.
The dial-in details for the live conference call are as
follows:
- U.S. Toll Free Number:
+1 800 510 0219
|
|
- International dial-in number:
+1 617 614 3451
|
|
- 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-power.com. A replay of the webcast will be
available for one month.
Telephone replay of the call will be available for seven days
after the conclusion of the 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:
88957192
|
|
|
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
exchange rate as set forth in the H.10 statistical release of the
Federal Reserve Board as of June 30,
2010, which was RMB 6.7815 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 June 30, 2010 or at any other date. The
percentages stated in this press release are calculated based on
Renminbi amounts.
USE OF NON-GAAP FINANCIAL MEASURES
The Company has included in this press release certain non-GAAP
financial measures, including certain line items presented on the
basis that the accounting impact of the adoption of ASC 815-40 had
not been recorded. The Company believes that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing the performance of the Company and when
planning and forecasting future periods. Readers are cautioned not
to view non-GAAP financial measures on a stand-alone basis or as a
substitute for GAAP measures, or as being comparable to results
reported or forecasted by other companies, and should refer to the
reconciliation of GAAP measures with non-GAAP measures also
included herein.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements include 3Q and full-year
2010 estimates for PV product shipments, ASPs, production
capacities and other results of operations. 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
any forward-looking statements.
About Solarfun
Solarfun Power Holdings Ltd. (NASDAQ: SOLF) is a leading
manufacturer of solar PV cells and modules in China, focusing on delivering high quality and
reliable products at competitive prices. Solarfun produces its
monocrystalline and polycrystalline products at its internationally
certified, vertically-integrated manufacturing facilities. Solarfun
partners with third-party distributors, OEM manufacturers, and
system integrators to sell its modules into large-scale utility,
commercial and governmental, and residential/small commercial
markets. Solarfun maintains a strong global presence with local
staff throughout Europe,
North America, and Asia. Solarfun embraces environmental
responsibility and sustainability by taking an active role in the
photovoltaic cycle voluntary recycling program. For more
information, visit: www.solarfun-power.com.
SOLF-G
(1) All non-GAAP numbers used in this press release exclude the
accounting impact from the adoption of ASC 815-40, which relates to
the accounting treatment for the convertible bonds. Please
refer to the attached financial statements for the reconciliation
between the GAAP and non-GAAP financial results.
For further information, please
contact:
|
|
|
|
Solarfun Power
Holdings Co., Ltd.
|
|
|
|
Paul
Combs
|
|
V.P. Strategic
Planning
|
|
26F BM
Tower
|
|
218 Wusong
Road
|
|
Shanghai,
200080
|
|
P. R.
China
|
|
Tel:
86-21-26022833 / Mobile: 86 138 1612 2768
|
|
E-mail:
IR@solarfun-power.com
|
|
|
|
Christensen
|
|
|
|
Kathy Li
|
|
Tel: +1 480
614 3036
|
|
E-mail:
kli@ChristensenIR.com
|
|
|
|
Roger Hu
|
|
Tel: +86 158
1049 5326
|
|
E-mail:
rhu@ChristensenIR.com
|
|
|
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
|
June 30
|
June 30
|
|
|
|
2009
|
2010
|
2010
|
2010
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
645,720
|
936,313
|
885,442
|
130,567
|
|
Restricted cash
|
|
60,539
|
83,440
|
100,462
|
14,814
|
|
Derivative contracts
|
|
7,360
|
47,275
|
66,527
|
9,810
|
|
Accounts receivable,
net
|
|
587,488
|
848,959
|
828,939
|
122,236
|
|
Inventories, net
|
|
783,973
|
720,860
|
591,585
|
87,235
|
|
Advance to suppliers,
net
|
|
979,762
|
995,542
|
954,220
|
140,709
|
|
Other current assets
|
|
180,315
|
224,419
|
225,340
|
33,230
|
|
Deferred tax assets
|
|
63,115
|
69,460
|
60,402
|
8,907
|
|
Amount due from related
parties
|
|
12,458
|
86,730
|
96,220
|
14,189
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
3,320,730
|
4,012,998
|
3,809,137
|
561,697
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Fixed assets – net
|
|
1,586,283
|
1,599,247
|
1,764,560
|
260,202
|
|
Intangible assets –
net
|
|
208,563
|
209,042
|
207,949
|
30,664
|
|
Goodwill
|
|
134,735
|
134,735
|
134,735
|
19,868
|
|
Deferred tax assets
|
|
13,789
|
14,417
|
15,013
|
2,214
|
|
Long-term deferred
expenses
|
|
33,158
|
31,527
|
30,289
|
4,466
|
|
|
|
|
|
|
|
|
Total non-current
assets
|
|
1,976,528
|
1,988,968
|
2,152,546
|
317,414
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
5,297,258
|
6,001,966
|
5,961,683
|
879,111
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Derivative contracts
|
|
1,148
|
1,131
|
739
|
109
|
|
Short-term bank
borrowings
|
|
404,764
|
783,132
|
530,985
|
78,299
|
|
Long-term bank borrowings,
current portion
|
|
90,000
|
147,500
|
175,000
|
25,806
|
|
Accounts payable
|
|
441,768
|
416,885
|
410,061
|
60,468
|
|
Notes payable
|
|
186,921
|
266,650
|
209,590
|
30,906
|
|
Accrued expenses and other
liabilities
|
|
191,895
|
212,716
|
270,674
|
39,914
|
|
Customer deposits
|
|
59,685
|
141,426
|
122,743
|
18,100
|
|
Deferred tax
liability
|
|
-
|
-
|
-
|
-
|
|
Unrecognized tax
benefit
|
|
27,385
|
27,385
|
27,385
|
4,038
|
|
Amount due to related
parties
|
|
16,765
|
38,074
|
59,578
|
8,785
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
1,420,331
|
2,034,899
|
1,806,755
|
266,425
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Long-term bank borrowings,
non-current portion
|
|
380,000
|
300,000
|
250,000
|
36,865
|
|
Convertible notes
payable
|
|
658,653
|
677,738
|
634,666
|
93,588
|
|
Long term payable
|
|
|
|
|
|
|
Deferred tax
liability
|
|
26,566
|
26,419
|
26,271
|
3,874
|
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
1,065,219
|
1,004,157
|
910,937
|
134,327
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
2,485,550
|
3,039,056
|
2,717,692
|
400,752
|
|
|
|
|
|
|
|
|
Redeemable ordinary
shares
|
|
55
|
55
|
55
|
8
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders’
equity
|
|
|
|
|
|
|
Ordinary shares
|
|
227
|
227
|
227
|
33
|
|
Additional paid-in
capital
|
|
2,331,797
|
2,344,050
|
2,352,293
|
346,869
|
|
Statutory reserves
|
|
69,564
|
83,281
|
104,467
|
15,405
|
|
Retained earnings
|
|
410,065
|
535,297
|
786,949
|
116,044
|
|
|
|
|
|
|
|
|
Total shareholders’
equity
|
|
2,811,653
|
2,962,855
|
3,243,936
|
478,351
|
|
Noncontrolling
interest
|
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
|
2,811,653
|
2,962,855
|
3,243,936
|
478,351
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES, MEZZANINE
EQUITY AND SHAREHOLDERS’ EQUITY
|
|
5,297,258
|
6,001,966
|
5,961,683
|
879,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
|
June 30
|
March 31
|
June 30
|
June 30
|
|
|
|
2009
|
2010
|
2010
|
2010
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
Net revenues
|
|
854,610
|
1,475,832
|
1,752,708
|
258,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
(907,645)
|
(1,203,334)
|
(1,383,868)
|
(204,065)
|
|
|
|
-
|
-
|
-
|
-
|
|
Gross profit /
(loss)
|
|
(53,035)
|
272,498
|
368,840
|
54,390
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling expenses
|
|
(18,206)
|
(29,481)
|
(39,238)
|
(5,786)
|
|
G&A expenses
|
|
(47,002)
|
(38,027)
|
(42,092)
|
(6,207)
|
|
R&D expenses
|
|
(3,673)
|
(15,916)
|
(18,290)
|
(2,697)
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
(68,881)
|
(83,424)
|
(99,620)
|
(14,690)
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
(121,916)
|
189,074
|
269,220
|
39,700
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
(36,091)
|
(40,919)
|
(40,230)
|
(5,932)
|
|
Interest income
|
|
1,060
|
544
|
1,285
|
189
|
|
Exchange gain (loss)
|
|
15,590
|
(47,011)
|
(82,258)
|
(12,130)
|
|
Gain (loss) on change in fair
value of derivative
|
|
(49,423)
|
50,756
|
97,312
|
14,350
|
|
Gain (loss) on change in
conversion feature fair value of convertible bond
|
|
(113,423)
|
(2,505)
|
57,765
|
8,518
|
|
Other income
|
|
276
|
3,008
|
9,196
|
1,356
|
|
Other expenses
|
|
(4,302)
|
(1,996)
|
(484)
|
(71)
|
|
Government grant
|
|
1,797
|
9,365
|
13,195
|
1,946
|
|
|
|
|
|
|
|
|
Net income (loss) before income
tax
|
|
(306,432)
|
160,316
|
325,001
|
47,926
|
|
|
|
-
|
-
|
-
|
-
|
|
Income tax expenses
|
|
(13,475)
|
(21,367)
|
(52,163)
|
(7,692)
|
|
|
|
-
|
-
|
-
|
-
|
|
Net income (loss)
|
|
(319,907)
|
138,949
|
272,838
|
40,234
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable
|
|
|
|
|
|
|
to shareholders
|
|
(319,905)
|
138,949
|
272,838
|
40,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
Basic
|
|
(1.19)
|
0.48
|
0.94
|
0.14
|
|
Diluted
|
|
(1.19)
|
0.48
|
0.73
|
0.11
|
|
|
|
|
|
|
|
|
Shares used in
computation
|
|
|
|
|
|
|
Basic
|
|
268,981,409
|
289,674,891
|
289,851,889
|
289,851,889
|
|
Diluted
|
|
268,981,409
|
290,187,034
|
335,514,967
|
335,514,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
ADS
|
|
|
|
|
|
|
Basic
|
|
(5.95)
|
2.40
|
4.71
|
0.69
|
|
Diluted
|
|
(5.95)
|
2.39
|
3.63
|
0.53
|
|
|
|
|
|
|
|
|
ADSs used in
computation
|
|
|
|
|
|
|
Basic
|
|
53,796,282
|
57,934,978
|
57,970,378
|
57,970,378
|
|
Diluted
|
|
53,796,282
|
58,037,407
|
67,102,993
|
67,102,993
|
|
|
|
|
|
|
|
SOLARFUN POWER HOLDINGS CO.,
LTD.
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
(Amounts in thousands of
Renminbi ("RMB") and U.S. dollars ("US$"),
|
|
except for number of shares and
per share data)
|
|
|
|
|
For the three months
ended
|
|
|
|
|
June 30, 2009
|
March 31, 2010
|
June 30, 2010
|
June 30, 2010
|
|
|
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
Cash flow from operating
activities
|
|
|
|
|
|
|
Net income (loss)
|
(319,905)
|
138,949
|
272,838
|
40,233
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net
income (loss) to net cash
|
|
|
|
|
|
|
|
provided (used) in operating
activities:
|
|
|
|
|
|
|
|
Unrealised financial
derivative
|
71,328
|
(39,932)
|
(19,644)
|
(2,897)
|
|
|
|
Amortization of convertible
bonds discount
|
10,243
|
16,580
|
14,693
|
2,167
|
|
|
|
Fair value change of convertion
feature
|
113,423
|
2,505
|
(57,765)
|
(8,518)
|
|
|
|
Loss from disposal of fixed
assets
|
36
|
580
|
105
|
15
|
|
|
|
Depreciation and
amortization
|
38,526
|
43,134
|
44,900
|
6,621
|
|
|
|
Amortization of long-term
deferred expense
|
1,762
|
1,780
|
1,796
|
265
|
|
|
|
Provision for doubtful debt of
advance to suppliers
|
236,515
|
163
|
|
0
|
|
|
|
Reversal of doubtful debt for
accounts receivable
|
(115)
|
(278)
|
|
0
|
|
|
|
Provision for doubtful debt of
accounts receivable
|
|
1,005
|
|
0
|
|
|
|
Write down of
inventory
|
66,144
|
37,844
|
19,881
|
2,932
|
|
|
|
Stock compensation
expense
|
11,905
|
7,149
|
7,492
|
1,105
|
|
|
|
Warranty provision
|
6,869
|
13,562
|
13,038
|
1,923
|
|
|
|
Deferred tax benefit
|
7,574
|
(7,120)
|
8,314
|
1,226
|
|
|
|
Unrecognized tax
benefit
|
814
|
0
|
0
|
0
|
|
|
Changes in operating assets and
liabilities
|
|
|
|
|
|
|
|
Restricted cash
|
45,516
|
(17,761)
|
(16,022)
|
(2,363)
|
|
|
|
Inventory
|
(14,300)
|
25,269
|
109,394
|
16,131
|
|
|
|
Account receivables
|
(312,117)
|
(262,198)
|
20,019
|
2,952
|
|
|
|
Advances to suppliers
|
39,827
|
(15,943)
|
41,322
|
6,093
|
|
|
|
Prepaid expense
|
31,401
|
12,865
|
(6,819)
|
(1,006)
|
|
|
|
Other current assets
|
17,451
|
(56,967)
|
5,898
|
868
|
|
|
|
Amount due from related
parties
|
(24,416)
|
(74,272)
|
(9,489)
|
(1,399)
|
|
|
|
Accounts payable
|
114,088
|
57,354
|
(80,216)
|
(11,828)
|
|
|
|
Accrued expenses and other
liabilities
|
(130)
|
7,259
|
44,919
|
6,624
|
|
|
|
Customer deposits
|
390
|
81,741
|
(18,683)
|
(2,755)
|
|
|
|
Amount due to related
parties
|
(2,006)
|
21,309
|
21,504
|
3,171
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) in
operating activities
|
140,823
|
(5,423)
|
417,475
|
61,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
Acquisition of fixed
assets
|
(29,086)
|
(63,418)
|
(188,170)
|
(27,748)
|
|
|
|
Change of restricted
cash
|
(35,867)
|
0
|
(6,140)
|
(905)
|
|
|
|
Acquisition of intangible
assets
|
|
(1,538)
|
(140)
|
(21)
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) in
investing activities
|
(64,953)
|
(64,956)
|
(194,450)
|
(28,674)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
Proceeds from exercise of stock
option
|
1,080
|
5,104
|
751
|
111
|
|
|
|
Proceeds from short-term bank
borrowings
|
587,014
|
508,368
|
97,143
|
14,325
|
|
|
|
Payment of short term bank
borrowings
|
(628,000)
|
(130,000)
|
(349,290)
|
(51,506)
|
|
|
|
Proceeds from long term bank
borrowings
|
(7,500)
|
|
0
|
0
|
|
|
|
Payment for long term bank
borrowings
|
|
(22,500)
|
(22,500)
|
(3,318)
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) by
financing activities
|
(47,406)
|
360,972
|
(273,896)
|
(40,388)
|
|
|
|
|
|
|
|
|
|
Unrealised foreign exchange
gain/loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
28,464
|
290,593
|
(50,871)
|
(7,502)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the
beginning of period
|
466,276
|
645,720
|
936,313
|
138,069
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the
end of period
|
494,740
|
936,313
|
885,442
|
130,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash
flow information:
|
|
|
|
|
|
|
Interest paid
|
16,699
|
33,066
|
13,731
|
2,025
|
|
|
Income tax paid
|
5,035
|
8,404
|
31,542
|
4,651
|
|
|
Realized gain from derivative
contracts
|
(2,029)
|
10,823
|
77,668
|
11,453
|
|
Supplemental schedule of
non-cash activities:
|
|
|
|
|
|
|
Acquisition of fixed assets
included in accounts payable, accrued expenses and other
liabilities
|
(2,055)
|
(2,509)
|
16,332
|
2,408
|
|
|
Conversion of CB into ordinary
shares
|
179
|
|
|
|
|
|
Transfer of unamortized debt
issurance costs to equity
|
|
|
|
|
|
|
|
upon conversion of CB into
ordinary shares
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the three months
ended
|
|
|
|
June 30, 2009
|
|
March 31, 2010
|
|
June 30, 2010
|
|
June 30, 2010
|
|
|
|
(RMB million)
|
|
(RMB million)
|
|
(RMB million)
|
|
(US$ million)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income/(loss)
|
(196.6)
|
|
158.1
|
|
231.7
|
|
34.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of the
conversion features of the Convertible bonds
|
(113.4)
|
|
(2.5)
|
|
57.8
|
|
8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest of the
Convertible bonds
|
(9.9)
|
|
(16.7)
|
|
(16.7)
|
|
(2.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss)
|
(319.9)
|
|
138.9
|
|
272.8
|
|
40.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the three months
ended
|
|
|
|
June 30, 2009
|
|
March 31, 2010
|
|
June 30, 2010
|
|
June 30, 2010
|
|
|
|
(RMB)
|
|
(RMB)
|
|
(RMB)
|
|
(USD)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP net income per ADS -
Basic
|
(3.66)
|
|
2.73
|
|
4.00
|
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of the
conversion features of the Convertible bonds
|
(2.11)
|
|
(0.04)
|
|
1.00
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest of the
Convertible bonds
|
(0.18)
|
|
(0.29)
|
|
(0.29)
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit contributed to
Solarfun Power Holdings Co., Ltd shareholders per ADS -
Basic
|
(5.95)
|
|
2.40
|
|
4.71
|
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS (Basic)
|
53,796,282
|
|
57,934,978
|
|
57,970,378
|
|
57,970,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
Annualised for the 2nd quarter
of 2009
|
|
Annualised for the 1st quarter
of 2010
|
|
Annualised for the 2nd quarter
of 2010
|
|
|
|
June 30, 2009
|
|
March 31, 2010
|
|
June 30, 2010
|
|
June 30, 2009
|
|
March 31, 2010
|
|
June 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Return on
Equity
|
-9.58%
|
|
6.65%
|
|
8.97%
|
|
-38.32%
|
|
26.60%
|
|
35.88%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of the
coversion features of the Convertible bonds
|
-2.12%
|
|
-1.26%
|
|
0.36%
|
|
-8.47%
|
|
-5.04%
|
|
1.44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest of the
Convertible bonds
|
-0.37%
|
|
-0.58%
|
|
-0.54%
|
|
-1.49%
|
|
-2.32%
|
|
-2.16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Return on equity
|
-12.07%
|
|
4.81%
|
|
8.79%
|
|
-48.28%
|
|
19.24%
|
|
35.16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Solarfun Power Holdings Co., Ltd.
Copyright g. 3 PR Newswire