Comtec Solar Reports Positive Profit Alert Interim Profit Increased by No Less than 1200%

USA - English

• USA - English

    HONG KONG, July 26 /PRNewswire-Asia/ --

    -- Will achieve 600MW production capacity by the third quarter of 2010
    -- Target to expand production capacity to 1000MW by 2011
    -- China may invest RMB 5 trillion on clean energy projects

Comtec Solar Systems Group Limited ("Comtec" or the "Company", together with its subsidiaries the "Group", stock code: 712), a PRC-based leading manufacturer of monocrystalline solar wafers, announced the Group expected the unaudited consolidated profit (the "Net Profit") attributable to owners of the Group for the half year to increase significantly compared to the previous corresponding period ("1H2009").

The management of Comtec Solar believes that the Group will continue to benefit from the high demand on monocrystalline wafers from module and cell manufacturers. The Group is expected to complete its installation of 600MW production capacity by 3Q2010. In addition, the Group is planning to relaunch its expansion plan as the purchasing cost of equipment has declined over the past months, partially due to the depreciating euro, where Comtec bought its equipment. The Group is targeting 1000MW production capacity by 2011.

Improving Industry Outlook

According to the European Photovoltaic Industry Association (EPIA), global PV power installed reached 22.9GW in 2009, representing a CAGR of 36% between 2000 and 2009. In terms of new PV installed, the CAGR reached 20% in the same period. Europe has been a key contributor in world solar energy development, contributing 70% of the world's cumulative PV power in 2009. In 2009, newly installed PV power reached 7.2GW, of which 5.6GW was in Europe. With 3.8GW of power installed, Germany was the largest market in the world. It is worth noting that Spain, the largest market in 2008, went down from 2.6GW to only 69MW in 2009 due to the impact of the global financial crisis and the introduction of the 500MW installation cap by the government in 2008. It is worthwhile noticing that European governments remain supportive of solar and are doing what they can to insure an orderly transition to a lower incentive environment. In addition, more established markets including the U.S., Japan, China, Canada, France and U.K. are picking up on the growth of solar installation.

Bloomberg New Energy Finance also reported that China might spend about RMB 5 trillion in the next decade developing cleaner sources of energy to reduce emissions from burning oil and coal. Mr Jiang Bing (Head of the National Energy Administration's planning and development department) said in Beijing that the PRC government would submit plans to develop cleaner energy (including nuclear power and gas from unconventional sources) in 2011 to 2020 to the State Council, or Cabinet, for approval. He also mentioned that China needs between RMB 500 billion to RMB 600 billion annually to develop energy- conservation and low carbon technologies, according to the government's 2050 China Energy and CO2 Emissions Report published last year. The country attracted $11.5bn of asset financing in clean-energy technology in the second quarter, more than Europe and the U.S. combined.

According to a recent research report, the development of solar energy in China has been lagging behind its development of wind power. Its solar energy production only takes up 1.3% of the world's total. By contrast, its wind energy was the second largest market in the world in 2009, taking up 16% of the world's total in terms of cumulative installed capacity. The report stated that the passing of the revised version of the Renewable Energy Law in late 2009 reflects that the Chinese government has strong determination in boosting the development of renewable energy.

This positive profit alert announcement is only based on the unaudited consolidated management accounts of the Group for the half year, which are under the review of the group's auditor and maybe subject to adjustments. Shareholders of the company and potential investors are advised to read the half year results announcement for the reporting year of the group, which is expected to be published by August 2010.

About Comtec Solar Systems Group Limited

Comtec Solar is a leading monocrystalline solar ingots and wafers manufacturer in the PRC. With its production base in Shanghai, the PRC, it focuses on the design, development, manufacturing and marketing of high- quality solar wafers. Comtec Solar, founded in 1999, is one of the first manufacturers in China to be able to mass produce 156mm x 156mm monocrystalline solar wafers with a thickness of approximately 170 microns. It has accumulated strong industry background from the manufacture of semiconductor ingots and wafers since 1999. Comtec Solar currently supplies most of its solar products to the leading solar cell/module manufacturers. Listed on Main Board of The SEHK on Oct.30, 2009, it is committed to enhancing product quality as well as developing new and innovative solar wafers. As it is well positioned to benefit from the growth of the solar PV industry, the Company aimed to broaden its customer base internationally. For more information please visit http://www.comtecsolar.com .

    Contact Information

     Aries Consulting Ltd.
     Mr Kent Lo/ Mr Terence Wong/ Mr Mark Lee
     Investor Relations Consultant
     Tel:   +852-2610-0846
     Fax:   +852-2610-0842
     Email: [email protected]

     Comtec Solar Systems Group Limited
     Mr. Keith Chau
     CFO
     Tel :    +86-21-6804-3001
     Email:   [email protected]
     Website: http://www.comtecsolar.com

SOURCE Comtec Solar Systems Group Limited