SHANGHAI, May 26 /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 March 31,
2010.
FIRST QUARTER 2010 HIGHLIGHTS
- Total net revenues were RMB 1,475.8
million (US$216.2 million) in
1Q10, an increase of 17.8% from 4Q09 and an increase of 115.7% from
1Q09.
- PV module shipments, including module processing services,
reached 150.6 MW, an increase from 110.8 MW in 4Q09 and from 35.7
MW in 1Q09.
- Average selling price, excluding module processing services,
declined, as expected, to US$1.76 per
watt in 1Q10.
- Gross profit was RMB 272.5
million (US$39.9 million) and
gross margin was 18.5%.
- Net income attributable to shareholders on a non-GAAP basis(1)
was RMB 158.1 million (US$23.2 million), an increase of 64.9% from 4Q09
and a substantial increase from RMB 12.4
million in 1Q09.
- Net income per diluted ADS on a non-GAAP basis was RMB 2.72 (US$
0.40), an increase of 63.9% from RMB
1.66 in 4Q09, and a substantial increase from RMB 0.23 in 1Q09.
- Annualized ROE on a non-GAAP basis significantly improved to
26.6 % in 1Q10 from 17.4% in 4Q09 and 2.3% in 1Q09.
- As of March 31, 2010, the Company
had cash and cash equivalents of RMB 936.3
million (US$137.2 million) and
working capital of RMB 1,978.1
million (US$289.8
million).
Peter Xie, President of Solarfun,
commented, "We are very pleased with our strong performance in the
first quarter of 2010. Quarterly revenues for the first time
in the Company's history exceeded $200
million, and net income per diluted ADS on a non-GAAP basis
reached US$0.40, a substantial
increase of over 63.9% compared to the fourth quarter of 2009.
The strong performance was attributable to our ability to
take advantage of favorable industry demand while keeping a keen
focus on cost control and risk management.
To keep up our momentum, we plan to ramp up our internal cell
capacity to 500MW by July, and our module capacity to 900MW by
August of this year. This progress, along with our ongoing
efforts to reduce our manufacturing costs and increase our cell
efficiencies while expanding our R&D efforts, makes us
optimistic about our future."
FIRST QUARTER 2010 RESULTS
- Total net revenues were RMB 1,475.8
million (US$216.2 million) in
1Q10, an increase of 17.8% from RMB 1,252.7
million in 4Q09 and an increase of 115.7% from RMB 684.2 million in 1Q09. The increase in
net revenues in 1Q10 was primarily due to higher shipment volumes
reflecting improved industry demand.
- Revenue contribution from PV module processing services as a
percentage of total net revenues remained relatively flat at 7.8%
in 1Q10 as compared to 6.3% in 4Q09.
- PV module shipments reached 150.6 MW in 1Q10, an increase from
110.8 MW in 4Q09 and from 35.7 MW in 1Q09. In 1Q10,
German-based customers accounted for 81% of the Company's total net
PV module revenues, excluding module processing services, up from
57% in 4Q09. The increase in revenue contribution from
German-based customers reflected the pull-in demand from the German
market ahead of the anticipated reduction in feed-in tariff by the
end of June 2010. Other key markets
in 1Q10 were Australia,
Italy, Portugal and Spain, which collectively accounted for 14.7%
of total net revenues. The Company anticipates that
revenue contribution from non-German customers will increase in the
second half of 2010 as most of the shipments to customers outside
of Germany, including important
new growth markets such as the U.S., Italy and China, are currently being pushed out to 3Q
and 4Q of 2010.
- Average selling price ("ASP"), excluding module processing
services, declined, as expected, by 9.7% to US$1.76 per watt in 1Q10 from US$1.95 per watt in 4Q09. The decline in
ASP was due to a combination of the decrease in the market price of
PV products as well as the depreciation of the Euro against the
U.S. dollar.
- Gross profit was RMB 272.5
million (US$39.9 million) in
1Q10, compared to gross profit of RMB 235.6
million in 4Q09 and gross profit of RMB 49.4 million in 1Q09. Gross margin,
despite lower ASP, in 1Q10 was 18.5%, which was in-line with 18.8%
in 4Q09 and a substantial increase from 7.2% in 1Q09.
- The blended COGS per watt (excluding module processing
services) was $1.42 in 1Q10,
representing a decrease from $1.57 in
4Q09 and $2.57 in 1Q09. The
blended COGS takes into account the processing cost (silicon and
non-silicon) using internal wafers, purchase cost and additional
processing cost of the externally-sourced wafers and cells, as well
as freight costs.
- Operating profit was RMB 189.1
million (US$27.7 million) in
1Q10, representing an increase of 50.4% from RMB 125.7 million in 4Q09. The Company had
an operating loss of RMB 15.3 million
in 1Q09. Operating margin for 1Q10 was 12.8%, which compares
to 10.0% in 4Q09 and negative 2.2% in 1Q09. The improvement
in operating margin was primarily due to tight control over
operating expenses. Operating expenses as a percentage of
total net revenues decreased to 5.7% in 1Q10 as compared to 8.8% in
4Q09.
- Interest expense remained relatively flat at RMB 40.9 million (US$6.0
million) in 1Q10, as compared to RMB
39.7 million in 4Q09 and RMB 41.4
million in 1Q09.
- 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
the first quarter of 2010, the Company recorded a net gain of
RMB 3.7 million (US$0.5 million), representing foreign exchange
losses that were offset by a gain on the change in fair value of
foreign currency derivatives. The Company recorded a net
foreign exchange gain of RMB 0.7
million in 4Q09.
- Loss from the change in fair value of the conversion feature of
the Company's convertible bonds was RMB 2.5
million (US$0.4 million) in
1Q10 as compared to a loss of RMB 71.3
million in 4Q09. This compares to a gain of
RMB 28.5 million in 1Q09. The
fluctuations, from the adoption of ASC 815-40, 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 non-GAAP basis, net income attributable to shareholders
was RMB 158.1 million (US$23.2 million) in 1Q10, representing an
increase of 64.9% from RMB 95.9
million in 4Q09 and a substantial increase from RMB 12.4 million in 1Q09. Net income per
diluted ADS, on a non-GAAP basis, was RMB
2.72 (US$0.4) in 1Q10,
representing an increase of 63.9% from RMB
1.66 in 4Q09 and a substantial increase from RMB 0.23 in 1Q09.
- On a GAAP basis, net income attributable to shareholders was
RMB 138.9 million (US$20.4 million) in 1Q10, compared to net income
attributable to shareholders of RMB 10.6
million in 4Q09 and RMB 27.4
million in 1Q09. Net income per diluted ADS was
RMB 2.39 (US$0.35) in 1Q10, compared to RMB 0.18 in 4Q09 and RMB
0.51 in 1Q09.
- On a non-GAAP basis, the Company had an annualized return on
equity of 26.6% in 1Q10 as compared to 17.4% in 4Q09 and 2.3% in
1Q09. On a GAAP basis, the Company had an annualized return
on equity of 19.2% in 1Q10 as compared to 1.5% in 4Q09 and 4.0% in
1Q09.
- In October 2009, the FASB issued
ASU No. 2009-15, "Accounting for Own-Share Lending Arrangements in
Contemplation of Convertible Debt Issuance or Other Financing"
("ASU 2009-15"). ASU 2009-15 amends ASC 470-20, "Debt: Debt
with Conversion and Other Options", to include the accounting for
own-share lending arrangements in contemplation of convertible debt
issuance or other financing. ASU 2009-15 is effective for
fiscal years beginning on or after December
15, 2009 and shall be applied retrospectively for all
arrangements outstanding as of the beginning of fiscal years
beginning on or after December 15,
2009 and for arrangements entered into on or after the
beginning of the first reporting period that begins on or after
June 15, 2009. Early adoption
is not permitted. The Company has determined that upon the
adoption of ASU 2009-15 on January 1,
2010, the redeemable ordinary shares issued in January 2008 concurrent with its convertible bond
issuance is regarded as an own-share lending arrangement. As such,
the share-lending arrangement is measured at fair value, and
recognized as an issuance cost with an offset to equity. The
Company has evaluated the adoption of ASU 2009-15 and determined
that the fair value of share-lending arrangement is immaterial to
its consolidated financial statement.
FINANCIAL POSITION
As of March 31, 2010, the Company
had cash and cash equivalents of RMB 936.3
million (US$137.2 million) and
net working capital of RMB 1,978.1
million (US$289.8 million).
Total short-term bank borrowings (including the current portion of
long-term bank borrowings) were RMB 930.6
million (US$136.3 million),
compared to RMB 494.8 million as of
December 31, 2009. The
increase in short-term borrowings was because the Company drew down
some additional short-term bank borrowings in anticipation of
financing needs as the Company expands its manufacturing capacity
and R&D capabilities to meet robust demand.
As of March 31, 2010, the Company
had total long-term debt of RMB 977.7
million (US$143.2 million),
which comprises 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.
The first maturity of the convertible notes payable is in
2015.
Net cash from operating activities in 1Q10 was negative
RMB 85.2 million (US$12.5 million), compared to RMB 336.9 million in 4Q09 and RMB 82.5 million in 1Q09. The net cash
outflow to operating activities was primarily due to the increase
in account receivables which resulted from the increase in the
total net revenues.
As of March 31, 2010, accounts
receivable increased to RMB 849.0
million (US$124.4 million)
from RMB 587.5 million as of
December 31, 2009. Days sales
outstanding was 47 days in 1Q10, which was consistent with
4Q09.
As of March 31, 2010, inventories
decreased to RMB 720.9 million
(US$105.6 million) from RMB 784.0 million as of December 31, 2009. Days inventory
outstanding improved to 57 days in 1Q10 from 71 days in 4Q09 and
106 days in 1Q09 as the Company continues to improve its supply
chain management.
Capital expenditures were RMB 65.0
million (US$9.5 million) in
1Q10.
CAPACITY EXPANSION
The Company has already reached its previously announced module
capacity target of 700 MW. Due to anticipated demand from
customers for the second half of 2010, the Company plans to further
expand module capacity to 900 MW by August
30, 2010.
The Company recently acquired a cell production line with an
annual capacity of 25MW from a wholly owned subsidiary of
Semiconductor Manufacturing International Corporation and began
operations in May 2010.
Including the previously announced cell capacity expansion
plan of 120 MW, the Company is expected to have a total cell
capacity of 500 MW by July 1,
2010.
The Company also plans to expand its annual ingot production
capacity from 300 MW to 360 MW and annual wire saw capacity from
300 MW to 400 MW by May 31, 2010.
This is to be achieved primarily through improvements in
production technique without incurring any significant capital
expenditures.
Details on the Company's production capacities and expected
production capacities:
|
|
Capacity (MW)
|
March 31,
2009
|
December 31,
2009
|
March 31,
2010
|
December 31,
2010E
|
|
Ingots
|
300
|
300
|
300
|
360
|
|
Wiresaw
|
300
|
300
|
300
|
400
|
|
Cells
|
360
|
360
|
360
|
500
|
|
Modules
|
450
|
550
|
600
|
900
|
|
|
|
|
|
|
|
|
BUSINESS OUTLOOK
The Company provides the following guidance based on current
operating trends and market conditions.
For 2Q10, the Company expects:
- Total module shipments to be 160MW to 170MW, of which
approximately 35% will be for PV module processing services.
- ASP for PV module shipments to stay flat in constant currency
but decline by approximately 6.5% from 1Q10 on the assumption that
the Euro/US dollar exchange rate stays at approximately 1.25 for
the rest of the quarter.
For 2010 full year shipment, the Company is raising its guidance
from 600MW to 650MW based on strong demand from customers
for 2010. Module processing services is expected to represent
approximately 20-30% of the total shipments.
CONFERENCE CALL
Management will host a conference call to discuss Solarfun's
2010 first quarter results on May 26,
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:
|
|
US Toll Free
|
1.800.659.2037
|
|
International Toll Free
|
1.617.614.2713
|
|
South China Toll Free
North China Toll Free
|
10 800 130 0399
10 800 152 1490
|
|
Participant
Code 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:
|
|
US Toll Free
|
1.888.286.8010
|
|
International Toll
|
1.617.801.6888
|
|
Passcode
|
16751627
|
|
|
|
|
|
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 March 31,
2010, which was RMB 6.8258 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, 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 2Q 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 manufactures silicon ingots, wafers, PV cells and PV
modules and provides PV module processing services to convert PV
cells into PV modules. Solarfun produces both monocrystalline and
multicrystalline silicon cells and modules. Solarfun sells its
products 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
(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)
|
|
|
|
|
|
|
|
|
|
|
March
31
|
December
31
|
March
31
|
March
31
|
|
|
|
2009
|
2009
|
2010
|
2010
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
466,276
|
645,720
|
936,313
|
137,173
|
|
Restricted cash
|
|
270,398
|
60,539
|
83,440
|
12,224
|
|
Derivative contracts
|
|
63,079
|
7,360
|
47,275
|
6,926
|
|
Accounts receivable, net
|
|
202,096
|
587,488
|
848,959
|
124,375
|
|
Inventories, net
|
|
747,587
|
783,973
|
720,860
|
105,608
|
|
Advance to suppliers, net
|
|
1,154,252
|
979,762
|
995,542
|
145,850
|
|
Other current assets
|
|
425,131
|
180,315
|
224,420
|
32,878
|
|
Deferred tax assets
|
|
68,872
|
63,115
|
69,460
|
10,176
|
|
Amount due from related
parties
|
|
19
|
12,458
|
86,730
|
12,706
|
|
Total current
assets
|
|
3,397,710
|
3,320,730
|
4,012,999
|
587,916
|
|
Non-current assets
|
|
|
|
|
|
|
Fixed assets – net
|
|
1,629,544
|
1,586,283
|
1,599,247
|
234,294
|
|
Intangible assets – net
|
|
211,559
|
208,563
|
209,042
|
30,625
|
|
Goodwill
|
|
134,735
|
134,735
|
134,735
|
19,739
|
|
Deferred tax assets
|
|
13,653
|
13,789
|
14,417
|
2,112
|
|
Long-term deferred expenses
|
|
37,097
|
33,157
|
31,527
|
4,619
|
|
Total non-current
assets
|
|
2,026,588
|
1,976,527
|
1,988,968
|
291,389
|
|
TOTAL ASSETS
|
|
5,424,298
|
5,297,257
|
6,001,967
|
879,305
|
|
LIABILITIES
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Derivative contracts
|
|
5,273
|
1,148
|
1,131
|
166
|
|
Short-term bank borrowings
|
|
1,435,000
|
404,764
|
783,132
|
114,731
|
|
Long-term bank borrowings, current
portion
|
|
45,000
|
90,000
|
147,500
|
21,609
|
|
Accounts payable
|
|
187,987
|
441,768
|
416,885
|
61,075
|
|
Notes payable
|
|
76,377
|
186,921
|
266,650
|
39,065
|
|
Accrued expenses and other
liabilities
|
|
129,392
|
191,895
|
212,716
|
31,163
|
|
Customer deposits
|
|
2,956
|
59,685
|
141,426
|
20,719
|
|
Deferred tax liability
|
|
3,263
|
-
|
-
|
-
|
|
Unrecognized tax benefit
|
|
27,385
|
27,385
|
27,385
|
4,012
|
|
Amount due to related
parties
|
|
10,109
|
16,765
|
38,074
|
5,578
|
|
Total current
liabilities
|
|
1,922,742
|
1,420,331
|
2,034,899
|
298,118
|
|
Non-current liabilities
|
|
|
|
|
|
|
Long-term bank borrowings, non-current
portion
|
|
147,500
|
380,000
|
300,000
|
43,951
|
|
Convertible notes payable
|
|
519,365
|
658,653
|
677,738
|
99,291
|
|
Deferred tax liability
|
|
27,008
|
26,566
|
26,419
|
3,870
|
|
Total non-current
liabilities
|
|
693,873
|
1,065,219
|
1,004,157
|
147,112
|
|
TOTAL LIABILITIES
|
|
2,616,615
|
2,485,550
|
3,039,056
|
445,230
|
|
|
|
|
|
|
|
|
Redeemable ordinary
shares
|
|
54
|
54
|
55
|
8
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Ordinary shares
|
|
214
|
227
|
227
|
33
|
|
Additional paid-in capital
|
|
2,151,026
|
2,331,797
|
2,344,050
|
343,410
|
|
Statutory reserves
|
|
47,638
|
69,564
|
83,281
|
12,201
|
|
Retained earnings
|
|
604,653
|
410,065
|
535,298
|
78,423
|
|
Total shareholders'
equity
|
|
2,803,531
|
2,811,653
|
2,962,856
|
434,067
|
|
Noncontrolling interest
|
|
4,098
|
-
|
-
|
-
|
|
TOTAL EQUITY
|
|
2,807,629
|
2,811,653
|
2,962,856
|
434,067
|
|
TOTAL LIABILITIES, MEZZAINNE EQUITY
AND SHAREHOLDERS' EQUITY
|
|
5,424,298
|
5,297,257
|
6,001,967
|
879,305
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
March
31
|
December
31
|
March
31,
|
March
31,
|
|
|
|
2009
|
2009
|
2010
|
2010
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
Net revenues
|
|
684,197
|
1,252,711
|
1,475,832
|
216,214
|
|
Cost of revenues
|
|
(634,751)
|
(1,017,141)
|
(1,203,334)
|
(176,292)
|
|
Gross profit
|
|
49,446
|
235,570
|
272,498
|
39,922
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
Selling expenses
|
|
(16,328)
|
(46,114)
|
(29,481)
|
(4,319)
|
|
G&A expenses
|
|
(40,233)
|
(50,866)
|
(38,027)
|
(5,571)
|
|
R&D expenses
|
|
(8,185)
|
(12,843)
|
(15,916)
|
(2,332)
|
|
Total operating
expenses
|
|
(64,746)
|
(109,823)
|
(83,424)
|
(12,222)
|
|
Operating profit /
(losses)
|
|
(15,300)
|
125,747
|
189,074
|
27,700
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
(41,397)
|
(39,662)
|
(40,919)
|
(5,995)
|
|
Interest income
|
|
494
|
1,298
|
544
|
80
|
|
Exchange losses
|
|
(32,849)
|
(14,694)
|
(47,011)
|
(6,887)
|
|
Investment income
|
|
|
|
-
|
-
|
|
Gain on change in fair value of
derivative
|
|
71,086
|
15,397
|
50,756
|
7,436
|
|
Gain / (losses) on change in
conversion feature fair value of convertible bond
|
|
28,458
|
(71,279)
|
(2,505)
|
(367)
|
|
Other income
|
|
3,533
|
1,265
|
3,008
|
441
|
|
Other expenses
|
|
(3,584)
|
(2,046)
|
(1,996)
|
(292)
|
|
Government grant
|
|
1,907
|
2,000
|
9,365
|
1,372
|
|
Net income before income
tax
|
|
12,348
|
18,026
|
160,316
|
23,488
|
|
Income tax benefit /
(expenses)
|
|
15,002
|
(7,338)
|
(21,367)
|
(3,130)
|
|
Net income
|
|
27,350
|
10,688
|
138,949
|
20,358
|
|
Net income / (losses) attributable to
noncontrolling interest
|
|
(85)
|
67
|
-
|
-
|
|
Net income attributable
|
|
|
|
|
|
|
to shareholders
|
|
27,435
|
10,621
|
138,949
|
20,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
|
|
|
|
|
|
|
Basic
|
|
0.10
|
0.04
|
0.48
|
0.07
|
|
Diluted
|
|
0.10
|
0.04
|
0.48
|
0.07
|
|
|
|
|
|
|
|
|
Shares used in
computation
|
|
|
|
|
|
|
Basic
|
|
268,848,771
|
287,982,207
|
289,674,891
|
289,674,891
|
|
Diluted
|
|
268,848,771
|
288,210,311
|
290,187,034
|
290,187,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS
|
|
|
|
|
|
|
Basic
|
|
0.51
|
0.18
|
2.40
|
0.35
|
|
Diluted
|
|
0.51
|
0.18
|
2.39
|
0.35
|
|
|
|
|
|
|
|
|
ADSs used in
computation
|
|
|
|
|
|
|
Basic
|
|
53,769,754
|
57,596,441
|
57,934,978
|
57,934,978
|
|
Diluted
|
|
53,769,754
|
57,642,062
|
58,037,407
|
58,037,407
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
March 31,
2009
|
December 31,
2009
|
March 31,
2010
|
March 31,
2010
|
|
|
|
|
RMB
|
RMB
|
RMB
|
USD
|
|
Cash flow from operating
activities
|
|
|
|
|
|
|
Net (loss) income
|
27,350
|
10,688
|
138,949
|
20,356
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net (loss)
income to net cash used in operating activities:
|
|
|
|
|
|
|
|
Unrealised financial
derivative
|
(23,933)
|
(47,701)
|
(39,932)
|
(5,850)
|
|
|
|
Amortization of convertible bonds
discount
|
13,666
|
13,933
|
16,580
|
2,429
|
|
|
|
Fair value change of conversion
feature
|
(28,458)
|
71,279
|
2,505
|
367
|
|
|
|
Loss from disposal of fixed
assets
|
567
|
96
|
580
|
85
|
|
|
|
Depreciation and
amortization
|
30,173
|
43,072
|
43,134
|
6,319
|
|
|
|
Amortization of long-term deferred
expense
|
1,702
|
1,570
|
1,780
|
261
|
|
|
|
Provision for doubtful debt of advance
to suppliers
|
-
|
163
|
163
|
24
|
|
|
|
Reversal of doubtful debt for accounts
receivable
|
12402
|
3,723
|
(278)
|
(41)
|
|
|
|
Provision for doubtful debt of
accounts receivable
|
-
|
-
|
1,005
|
147
|
|
|
|
Write down of inventory
|
(27,200)
|
40,341
|
37,844
|
5,544
|
|
|
|
Stock compensation expense
|
(18,091)
|
8,509
|
7,149
|
1,047
|
|
|
|
Warranty provision
|
|
2,744
|
13,562
|
1,987
|
|
|
|
Deferred tax benefit
|
6,952
|
(854)
|
(7,120)
|
(1,043)
|
|
|
|
Unrecognized tax benefit
|
-
|
(1,082)
|
-
|
-
|
|
|
Changes in operating assets and
liabilities
|
|
|
|
|
|
|
|
Restricted cash
|
(35,575)
|
5,166
|
(17,761)
|
(2,602)
|
|
|
|
Inventory
|
11,321
|
(15,899)
|
25,269
|
3,702
|
|
|
|
Account receivables
|
117,441
|
116,024
|
(262,198)
|
(38,413)
|
|
|
|
Advances to suppliers
|
(8,638)
|
(152,045)
|
(15,943)
|
(2,336)
|
|
|
|
Prepaid expense
|
1,541
|
18,663
|
12,865
|
1,885
|
|
|
|
Other current assets
|
55,077
|
84,065
|
(56,967)
|
(8,346)
|
|
|
|
Amount due from related
parties
|
|
30,132
|
(74,272)
|
(10,881)
|
|
|
|
Accounts payable
|
(39,967)
|
51,946
|
(22,375)
|
(3,278)
|
|
|
|
Accrued expenses and other
liabilities
|
(10,983)
|
10,811
|
7,259
|
1,063
|
|
|
|
Customer deposits
|
(6,538)
|
38,339
|
81,741
|
11,975
|
|
|
|
Amount due to related
parties
|
3,706
|
3,201
|
21,309
|
3,122
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) in operating
activities
|
82,515
|
336,884
|
(85,152)
|
(12,477)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
Acquisition of fixed assets
|
(156,771)
|
(27,468)
|
(63,418)
|
(9,291)
|
|
|
|
Change of restricted cash
|
(146,686)
|
65,832
|
-
|
-
|
|
|
|
Acquisition of intangible
assets
|
(419)
|
(125)
|
(1,538)
|
(225)
|
|
|
|
Acquisition of subsidiaries
|
(88,968)
|
(850)
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) in investing
activities
|
(392,844)
|
37,389
|
(64,956)
|
(9,516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
Proceeds from exercise of stock
option
|
-
|
22
|
5,104
|
748
|
|
|
|
Proceeds from issuance of ordinary
shares
|
-
|
70,387
|
-
|
-
|
|
|
|
Proceeds from short-term bank
borrowings
|
617,000
|
65,097
|
508,368
|
74,477
|
|
|
|
Payment of short term bank
borrowings
|
(280,832)
|
(674,071)
|
(130,000)
|
(19,045)
|
|
|
|
Proceeds from long term bank
borrowings
|
(7,500)
|
-
|
-
|
-
|
|
|
|
Payment for long term bank
borrowings
|
-
|
(7,500)
|
(22,500)
|
(3,296)
|
|
|
|
Utilization of notes
payables
|
37,036
|
27,726
|
266,650
|
39,065
|
|
|
|
Payment of notes payables
|
-
|
-
|
(186,921)
|
(27,384)
|
|
|
|
Profit distribution
|
-
|
(3,400)
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) by financing
activities
|
365,704
|
(521,739)
|
440,701
|
64,565
|
|
|
|
|
|
|
|
|
|
Unrealised foreign exchange
gain/loss
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
55,375
|
(147,466)
|
290,593
|
42,573
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the
beginning of period
|
410,901
|
793,186
|
645,720
|
94,600
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end
of period
|
466,276
|
645,720
|
936,313
|
137,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow
information:
|
|
|
|
|
|
|
Interest paid
|
17,764
|
21,268
|
39,438
|
5,778
|
|
|
Income tax paid
|
3,146
|
30,978
|
8,404
|
1,231
|
|
|
Realized gain from derivative
contracts
|
71,086
|
(32,305)
|
10,823
|
1,586
|
|
Supplemental schedule of non-cash
activities:
|
|
|
|
|
|
|
Acquisition of fixed assets included
in accounts payable, accrued expenses and other
liabilities
|
(10,928)
|
(2,803)
|
19,333
|
2,832
|
|
|
Conversion of CB into ordinary
shares
|
-
|
-
|
-
|
-
|
|
|
Transfer of unamortized debt issurance
costs to equity upon conversion of CB into ordinary
shares
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the three months
ended
|
|
|
March 31, 2009
|
|
December 31,
2009
|
|
March 31, 2010
|
|
March 31, 2010
|
|
|
(RMB million)
|
|
(RMB million)
|
|
(RMB million)
|
|
(US$ million)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income/(loss)
|
12.4
|
|
95.9
|
|
158.1
|
|
23.2
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of the conversion features of
the Convertible bonds
|
28.5
|
|
(71.3)
|
|
(2.5)
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest of the Convertible
bonds
|
(13.5)
|
|
(14.0)
|
|
(16.7)
|
|
(2.4)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income/(loss)
|
27.4
|
|
10.6
|
|
138.9
|
|
20.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the three months
ended
|
|
|
March 31, 2009
|
|
December 31,
2009
|
|
March 31, 2010
|
|
March 31, 2010
|
|
|
(RMB)
|
|
(RMB)
|
|
(RMB)
|
|
(USD)
|
|
|
|
|
|
|
|
|
|
|
Non GAAP net income per ADS - diluted
|
0.23
|
|
1.66
|
|
2.72
|
|
0.40
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of the conversion features of
the Convertible bonds
|
0.53
|
|
(1.24)
|
|
(0.04)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest of the Convertible
bonds
|
(0.25)
|
|
(0.24)
|
|
(0.29)
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
Net profit contributed to Solarfun Power Holdings
Co., Ltd shareholders per diluted ADS
|
0.51
|
|
0.18
|
|
2.39
|
|
0.35
|
|
|
|
|
|
|
|
|
|
|
ADS (Diluted)
|
53,769,754
|
|
57,642,062
|
|
58,037,407
|
|
58,037,407
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
Annualised for the
first
quarter of
2009
|
|
Annualised for the
fourth
quarter 2009
|
|
Annualised for the
first
quarter of 2010
|
|
|
March 31, 2009
|
|
December 31,
2009
|
|
March 31, 2010
|
|
March 31, 2009
|
|
December 31,
2009
|
|
March 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Return on Equity
|
0.58%
|
|
4.35%
|
|
6.65%
|
|
2.32%
|
|
17.40%
|
|
26.60%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of the conversion features of
the Convertible bonds
|
-0.48%
|
|
-0.51%
|
|
-0.58%
|
|
-1.94%
|
|
-2.02%
|
|
-2.31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest of the Convertible
bonds
|
0.89%
|
|
-3.46%
|
|
-1.26%
|
|
3.58%
|
|
-13.86%
|
|
-5.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Return on equity
|
0.99%
|
|
0.38%
|
|
4.81%
|
|
3.96%
|
|
1.52%
|
|
19.24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Solarfun Power Holdings Co., Ltd.