LUXEMBOURG and DONGYING, China, April 30, 2010 /PRNewswire-Asia/-- CNPV Solar Power SA, a leading integrated manufacturer of solar photovoltaic products, today announced that its Annual Consolidated Financial Report for the year ended December 31, 2009 has been filed with the Alternext of Paris NYSE-Euronext on April 30, 2010. 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 strong performance in the year 2009 to cap a full year of many important significant achievements. We met our full year 2009 objectives for product shipment, revenue and net income," stated jointly Mr. Zhang Shunfu, CNPV's CEO and B. Veerraju Chaudary, CNPV's COO, CTO & Member of the Board.
"Our increased brand recognition and ongoing commitment to improving customer support in key areas resulted in the near doubled of our CNPV branded shipment volumes and a year-on-year revenue increase in 2009. Although significant ASP declines were felt across the industry, due to effective management and our strong execution capability, we achieved consistently healthy and expanding margins by streamlining our manufacturing processes, enhancing our supply chain, and implementing innovative technologies that improved our manufacturing efficiency."
"We continue to focus efforts to lower our product 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 balanced vertically and horizontally integrated business model."
Full Year 2009 Financial and Operating Results Highlights
- 2009 annual shipments of 50MWp; increased 0.38% over 2008
- The full year 2009 gross profit was €17.4million, an increase of 72.68% year-over-year
- 2009 consolidated gross margin was 24.02% compared to 20.66% in 2008
- 2009 revenue of €72.6million; increased 48.49% over 2008
||Fiscal Year 2009
||Fiscal Year 2008
The 2009 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 2009 Financial and Operational Results
Total Net Revenues
Total net revenues for the full year 2009 were €72.6 million, which increased by 48.49% from €48.9 million in the year of 2008. The increase was primarily due to a significant rise in total shipments of PV Modules, which increased to 50MWp (CNPV branded PV Modules Sales: 40MWp; Domestic Project Sales: 10MWp) in 2008 from 49.81MWp in 2008. 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 200MWp of total production capacity of PV modules in December 2009.
- Production Capacity
Gross profit for the full year 2009 was €17.4million, which increased by 72.68% from €10.1million in the year of 2008. Gross margin was 24.02% for the full year 2009, compared to 20.65% in 2008. The higher than expected gross margin for the full year 2009 was primarily due to the oversea sales and domestic project sales gross margin in the second half of 2009.
- Operating Expenses
Operating expenses for the full year 2009 were €3.67 million, an increase of 33.58% from €2.75 million in 2008. 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 decreased to 5.05% in the full year 2009 from 5.62% in the year of 2008 which is well within the expectations of 6%.
- Interest Expense
Interest expense for the full year 2009 was €0.91 million, an increase of approximate 219% from €0.29 million in 2008. The increase in interest expense was consistent with the increase in short-term borrowings from €5.82 million as of December 31, 2008 to €21.21 million as of December 31, 2009 and the long-term borrowings from €0 million as of December 31, 2008 to €5.12 million as of December 31, 2009. The weighted average interest rate for these borrowings in 2009 was 3.47% which is well within the expectations of 4%.
- Net Income
Net income was €11.06 million and fully diluted earnings per ordinary share were €2.172 for the full year 2009.
- Gross Profit and Margin
The annual production capacity has increased from 160MWp to 200MWp during 2009.
- Brand Recognition
CNPV invested adequately in marketing and sales channel building in 2009, 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 2009" 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 yearly revenue guidance, despite sector-wide declines in the average sales price of modules during first half of 2009.
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 2010 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 2009. 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.
Operations and Business Outlook for 2010
The company currently expects 2010 revenue to be in the range of €175-200 million. CNPV’s target for total production for 2010 output is 125MWp to 150MWp representing an increase of 150% to 200% from 2009. To meet expected demand for its PV modules, the Company expects to expand its annualized module production capacity to 300MWp and Cell production capacity to 100MWp by the end of 2010 at its new West Campus manufacturing facility.
The company is under the process of building a 7MWp on-grid PV Power Plant in Dongying City, Shandong Province, China under Golden Sun project, where CNPV headquarters locates. The company plans to complete building of this Power Plant during fourth quarter 2010 with an estimated investment of $24mn.
- Cost Reduction
By year end 2010 the Company expects further reduction of 10% to 15% 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 125MWp to 150MWp for 2010. The Company has entered into contracts expected to generate approximately 150MWp in 2010 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 2010, 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 enhanced 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 18.0% and 17.0% respectively for its Monocrystalline and Multicrystalline product lines. The Company also plans to further enhance its BIPV and Roof Tile Module product development. The company intends to develop and offer high density power range premium series 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 FY2010 auditor’s report, are available on the company's website:http://www.cnpv-power.com.
ISIN Code: LU0379220212-Alternext stock code: ALCNP
CNPV Solar Power SA (NYSE Euronext: ALCNP), through its wholly-owned subsidiary, CNPV Dongying Photovoltaic 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, 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:
COO, CTO & Member of the Board
Direct Land Line: +86-546-7795053,
Jane Liu, Director- Investor Relations & Financing
Direct Land Line: +86-546-7795078
SOURCE: CNPV Solar Power SA