LUXEMBOURG / DONGYING, PR China, December 16, 2011 /PRNewswire-Asia/--CNPV Solar Power SA, a public limited liability company organized under the laws of the Grand Duchy of Luxembourg and a leading integrated manufacturer of solar photovoltaic products, today announced that its Audited Consolidated Financial Report for the first half ended June 30, 2011 has been filed with the Alternext of Paris NYSE-Euronext: ALCNP. The Financial Report can be accessed via the investor relations section of the Company's website at http://www.cnpv-power.com
First Half Year 2011 Financial and Operating Highlights
• PV Module production was 76 MWp increased 10.1% over the first half 2010
• Net revenues were Euros 104.6 million, decreased 2.5% over the first half of 2010
• Gross profit was Euros 18.5 million, an increase of 12.1% over the first half of 2010
• Gross margin was 17.6% compared to 15.3% in the first half of 2010
• On a non-GAAP basis net income grew by 70.6% from €3.4 million to €5.8 million during the first half year compared to the same period in 2010. However, on a GAAP basis due to a non-cash expense for Changes In Fair Value Of Convertible Preference Shares of €34.4 million the net income dropped to €-28.6 million.
"CNPV's performance during the first half of 2011 is a reflection of our superior technology, commitment to execution, and our unique international long term strategic partnership business model, all of which have enabled us to fulfil our shareholder | stakeholder commitments during a challenging market environment without surprises," stated jointly Mr. Zhang Shunfu, CNPV's CEO and Bypina Veerraju Chaudary, CNPV's COO and Member of the Board.
"For the past two decades in the PV solar industry we have weathered similar rapid industry downturns, and feel very confident that our Company has the proper management to see us through this next cycle of evolution by continuously advancing our techno- commercial offering, and subsequently further developing our global markets. We remain committed to introducing solar photovoltaic solutions into market without the need for energy subsidies, which has led to this last market boom. This requires increasing the scope of our long term strategic partners to ensure deeper technical support and increased financing strength as we have done with the US market. This will allow us all to solve the increasingly complex energy demands which are found throughout the world.
"We prevailed despite a challenging first half year of significant price declines and tightened financing conditions, which affected some of our customers' large European projects; however we are pleased with our strong performance in the first half of 2011 to cap a period of many significant achievements. We met our first half year 2011 objectives for product shipments, revenue and net income," stated Mr. Bypina Veerraju Chaudary, CNPV's COO. "We also experienced a GAAP non-cash adjustment to our financials in this period reflecting the difference between the fair value of shares as evaluated by American Appraisals and the actual price at which these preference shares were sold to US based Barron Partners LLP."
To best position CNPV going forward, we are refining our marketing and product strategies to address larger and more diversified distribution channels, in both established and emerging solar markets.
Recent Business Highlights
During the first half of 2011, the Company
• CNPV announces private placements with US and Mainland Chinese investors.
• During the first half of 2011 the Company began shipping modules to the African continent
• CNPV announces the first China-based PV company to have triple management accreditation (ISO 9001, ISO 14001 and OHSAS 18001) from TUV Rheinland.
Subsequent Events
• The Company opened the US, Israel, and certain African markets with PV module shipments for projects up to 26+ MWp.
• Appointment of key Sales & Marketing management in new offices for North America and South Asia regions.
• CNPV offers the World’s First True Linear Warranty for PV sales increasing warranty value to customers by 7.5% over the industry standard.
• The Company passed ammonia and salt mist corrosion resistance testing (2PFG and IEC 61701) for all CNPV Modules.
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(in € millions)
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Fiscal Year H1 2011
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Fiscal Year H1 2010
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Change
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Revenue
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104.6
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107.2
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-2.50%
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Gross Profit
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18.5
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16.5
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12.10%
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Gross Margin
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17.60%
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15.40%
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14.60%
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Operating Expenses
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9
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4.2
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115.00%
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Finance Costs
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2.5
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7.8
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-67.90%
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Change in fair value of convertible preference shares
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34.4
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0
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N/A
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Operating Income
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9.4
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12.25
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-23.00%
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Operating Margin
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8.60%
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11.40%
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-24.70%
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Net Income
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-2865.00%
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340.00%
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-942.60%
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Net Income (non-GAAP)
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5.8
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3.4
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70.60%
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EPS
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-5.62
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0.66
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-951.50%
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EPS (non-GAAP)
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1.14
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0.66
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72.70%
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The 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.
First Half Year 2011 Financial and Operational Results
Net Revenues / Production Output
Net revenues for the first half 2011 were €104.6 million, which decreased slightly by 2.5% from €107.2 million in the first half 2010. The decrease was only due to the decline in ASP’s y-on-y despite a 10.1% rise in total shipments of PV modules, which increased to 76.0 MWp in the first half of 2011 from 69.0 MWp in the first half 2010. The increase in total shipments was primarily due to order commitments made with the Company's long term strategic partners during 2010 and new strategic partnerships established in the first quarter of 2011.
Gross Profit and Margin
Gross profit for the first half 2011 was €18.5 million, which increased by 12.1% from €16.47 million in the first half 2010. Gross margin was 17.6% for the first half 2011, compared to 15.4% in the first half 2010. The increased gross margin as a percentage of revenue for the first half 2011 was primarily due a significant one-off drop in the cost of silicon and silicon components.
Operating Expense
Operating expenses for the first half 2011 were €9.0 million, an increase of 115.0% from €4.2 million in the first half of 2010. The increase in operating expenses was primarily due to higher selling and distribution costs related to aggressive overseas market expansion, headcount and related payroll expenses, increased premiums for export insurance, one-off investment related 3rd party legal fees as well as land taxes for properties acquired during the prior period.
Financial Cost
Finance costs for the first half 2011 was €2.5 million, a decrease of 67.9% from €7.8 million in the first half of 2010. This is due mainly to significant shifts in the Euro-RMB foreign exchange gains and losses and off-set by an increase in interest on short term borrowings.
Net Income and EPS
Net income was €5.8 million on a non-GAAP basis in the first half of 2011 compared to €3.4 million for the same period in 2010, an increase of 70.6%. And, on a GAAP basis due to a non-cash expense for Changes In Fair Value Of Convertible Preference Shares of €34.4 million the net income dropped to €-28.6 million. Fully diluted EPS was €1.14 on a non-GAAP basis for the first half of 2011 compared to €0.66 for the same period in 2010. Calculated on a GAAP basis fully diluted EPS was €-5.62 due to a non-cash expense for Changes in Fair Value of Convertible Preference Shares of €34.4 million.
Capacity Expansion
To meet expected demand for its High Performance PV solar modules, the Company plans to increase PV cell and module production capacity to reach approximately 200 MWp and 600 MWp, respectively, during H2 2011.
Technology and Product Development Update
The Company is currently improving its Process Technology, including implementation of enhanced anti reflection coated glass, high conductivity ribbon materials, passivation and metallization techniques involved in the photovoltaic manufacturing process value chain technology, with targeted year end cell efficiency goals of up to 18.5% and 17.5% respectively for it’s Monocrystalline and Multicrystalline product lines. The Company also plans to further enhance its Transparent and Roof Tile Module product development. The Company intends to develop and offer high density power range premium series modules with the same footprint of industry average power modules to our entire customer base to differentiate from our competitors which will enable us to meet and exceed our customer expectations.
The consolidated financial statements, as well as the H1 2011 auditor’s report are available on the company's website: http://www.cnpv- power.com. ISIN Code: LU0379220212-Alternext stock code: ALCNP.
About CNPV
CNPV Solar Power SA (NYSE Euronext: ALCNP), through its wholly- owned subsidiary, CNPV Dongying Solar Power Company Limited, is a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules. CNPV designs, manufactures and supplies highly efficient and cost effective 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. For further information, please visit CNPV's website at http://www.cnpv-power.com
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, CNPV's ability to raise additional capital to finance its activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Euronext in Paris. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
CNPV Solar Power SA
Bypina Veerraju Chaudary, COO and Member of the Board
Phone: +86-13656-473355,
Email: chaudary@cnpv- power.com
James Qi, CFO
Scott Zhang, Manager-IR
Phone: +86-546-779-5555
E-mail: ir@cnpv-power.com
SOURCE: CNPV Solar Power SA
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