Solarfun Reports Fourth Quarter 2009 Results
SHANGHAI, March 5 /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 December 31, 2009.
FOURTH QUARTER 2009 HIGHLIGHTS
- Total net revenues were RMB 1,252.7 million (US$183.5 million) in 4Q09, an increase of 26.9% from 3Q09 and an increase of 11.6% from 4Q08.
- PV module shipments reached 110.8 MW, an increase from 102.6 MW in 3Q09 and from 47.6 MW in 4Q08.
- Average selling price, excluding module processing services, declined, as expected, to US$1.95 per watt in 4Q09.
- Gross profit was RMB 235.6 million (US$34.5 million) and the gross margin was 18.8%.
- Net income attributable to shareholders on a non-GAAP basis was RMB 95.9 million (US$14.1 million), an increase of 40.6% from 3Q09.
- Annualized ROE on a non-GAAP basis improved to 17.4% from 13.4% in 3Q09.
- As of December 31, 2009, the Company had cash and cash equivalents of RMB 645.7 million (US$94.6 million) and working capital of RMB 1,900.4 million (US$278.4 million).
- Net cash from operating activities was RMB 336.9 million (US$49.4 million).
Peter Xie, President of Solarfun, commented, "We are pleased with our 4Q results. In particular, the net income attributable to shareholders on a non-GAAP basis increased by 40.6% in 4Q as compared to the previous quarter. In addition, the annualized ROE on a non-GAAP basis improved significantly to 17.4% in 4Q as compared to 13.4% in the previous quarter, which reflects management's keen focus on optimizing its use of capital."
FOURTH QUARTER 2009 RESULTS
- Total net revenues were RMB 1,252.7 million (US$183.5 million) in 4Q09, an increase of 26.9% from RMB 986.8 million in 3Q09 and an increase of 11.6% from RMB 1,122.7 million in 4Q08. The increase in net revenue from 3Q09 was primarily due to higher shipment volumes reflecting improved industry demand as well as a change in the revenue mix.
- PV module processing services contributed 6.3% of the total net revenues in 4Q09 as compared to 17.1% of total net revenues in 3Q09. The percentage contribution from PV module processing services decreased as more production capacity during the quarter was used for the Company's own PV module shipments.
- PV module shipments reached 110.8 MW in 4Q09, an increase from 102.6 MW in 3Q09 and from 47.6 MW in 4Q08. In 4Q09, excluding module processing services, the Company recorded greater geographic diversity in its PV module sales, with German-based customers accounting for 57% of the Company's total PV module revenues, down from 60% and 83% in 3Q09 and 2Q09, respectively. Shipments to the Czech Republic continued to grow, reaching 12% of total PV module revenues. More significantly, the Company saw strong growth in shipments in China, which accounted for 11% of total PV module revenues as compared to 1% in the previous quarter. Other key markets in 4Q09 were Australia, Korea and France, which in total accounted for 17% of total PV module revenues.
- Average selling price ("ASP"), excluding module processing services, declined, as expected, to US$1.95 per watt in 4Q09 from US$2.03 per watt in 3Q09. The decline in ASP was in line with the decrease in the market prices of PV products.
- Gross profit was RMB 235.6 million (US$34.5 million) in 4Q09, compared to gross profit of RMB 204.4 million in 3Q09 and a gross loss of RMB 377.8 million in 4Q08. Gross margin was 18.8% in 4Q09 compared to 20.7% in 3Q09. The lower gross margin in 4Q09 reflects the lower average selling price.
- Operating profit was RMB 125.7 million (US$18.4 million) in 4Q09, compared to operating profit of RMB 129.4 million in 3Q09 and an operating loss of RMB 439.2 million in 4Q08. Operating margin for 4Q09 was 10.0% as compared to 13.1% in 3Q09 and negative 39.1% in 4Q08. Operating expenses as a percentage of total net revenues increased to 8.8% in 4Q09 as compared to 7.6% in the previous quarter, primarily due to higher selling expenses incurred to serve an expanding customer base as well as higher R&D expenses incurred during the quarter.
- Interest expense was RMB 39.7 million (US$5.8 million) in 4Q09, representing a slight decrease from RMB 40.8 million in 3Q09, and an increase from RMB 26.8 million in 4Q08.
- The loss from the change in the fair value of the conversion feature of the Company's convertible bonds was RMB 71.3 million (US$10.4 million) in 4Q09 as compared to a gain of RMB 82.4 million in 3Q09. The change, arising from the adoption of ASC 815-40, was due to a number of factors, including changes in the Company's ADS price during the quarter. This line item, over which the Company has no control, has fluctuated, and is expected to continue to fluctuate quarter-to-quarter.
- On a non-GAAP basis, excluding the accounting impact of the adoption of ASC 815-40, net income attributable to shareholders was RMB 95.9 million (US$14.1 million) in 4Q09, compared to net income attributable to shareholders of RMB 68.2 million in 3Q09 and a net loss attributable to shareholders of RMB 418.8 million in 4Q08. Net income per basic ADS, on a non-GAAP basis, was RMB 1.66 (US$0.25) in 4Q09, compared to net income per basic ADS of RMB 1.26 in 3Q09 and a net loss per basic ADS of RMB 7.79 in 4Q08.
- On a GAAP basis, net income attributable to shareholders was RMB 10.6 million (US$1.6 million) in 4Q09, compared to net income attributable to shareholders of RMB 136.6 million in 3Q09 and a net loss attributable to shareholders of RMB 418.8 million in 4Q08. Net income per basic ADS was RMB 0.18 (US$0.03) in 4Q09, compared to a net income per basic ADS of RMB 2.53 in 3Q09 and a net loss per basic ADS of RMB 7.79 in 4Q08.
- On a non-GAAP basis, excluding the accounting impact of the adoption of ASC 815-40, the Company had an annualized return on equity of 17.4% in 4Q09 as compared to an annualized return on equity of 13.4% in 3Q09 and negative 72.1% in 4Q08. On a GAAP basis, the Company had an annualized return on equity of 1.5% in 4Q09 as compared to an annualized return on equity of 21.0% in 3Q09 and negative 72.1% in 4Q08.
FINANCIAL POSITION
As of December 31, 2009, the Company had cash and cash equivalents of RMB 645.7 million (US$94.6 million) and working capital of RMB 1,900.4 million (US$278.4 million). Total short-term bank borrowings were RMB 404.8 million (US$59.3 million), a decrease from RMB 1,013.7 million as of September 30, 2009. Solarfun believes that the stable level of cash on hand and steady payback of a substantial amount of short-term bank borrowings indicates a strengthening in the Company's financial position.
As of December 31, 2009, the Company had total long-term debt of RMB 1,128.7 million (US$165.3 million), comprising both bank loans and convertible notes payable. The Company's bank loans 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 4Q09 was RMB 336.9 million (US$49.4 million), an increase from RMB 160.3 million in 3Q09 and RMB 124.2 million in 4Q08.
The Company believes that cash on hand, cash flow from operations and undrawn bank credit lines collectively represent adequate funds to finance the Company's near-term growth.
As of December 31, 2009, accounts receivable decreased to RMB 587.5 million (US$86.1 million) from RMB 707.2 million as of September 30, 2009. Days sales outstanding improved from 56 days in 3Q09 to 47 days in 4Q09.
Inventories decreased to RMB 784.0 million (US$114.9 million) from RMB 808.4 million as of September 30, 2009. Days inventory outstanding improved from 88 days in 3Q09 to 71 days in 4Q09.
Capital expenditures were RMB 23.7 million (US$3.5 million) in 4Q09. For the full year of 2009, the total capital expenditures were RMB 242.9 million.
Details on the Company's production capacity:
As of As of As of As of
Annualized December 31, September 30, December 31, December 31,
Capacity (MW) 2008 2009 2009 2010E
------------------------------------------------------------------------
Ingots 280 300 300 300
------------------------------------------------------------------------
Wiresaw 150 300 300 300
------------------------------------------------------------------------
Cells 360 360 360 480
------------------------------------------------------------------------
Modules 400 500 550 700
------------------------------------------------------------------------
BUSINESS OUTLOOK
The Company provides the following guidance based on current operating trends and market conditions.
For 1Q10, the Company expects:
- Total module shipments to be 130MW to 140MW, of which approximately 30% will be for PV module processing services.
- Average selling prices for PV module shipments to decline by approximately 10% from 4Q09 on the assumption that the Euro/US dollar exchange rate stays at approximately 1.35 for the rest of the quarter.
For the full 2010 fiscal year, the Company expects:
- Shipment volumes to total approximately 600MW, including PV module processing that would account for approximately 20-30% of the total shipments.
- Capital expenditures to be approximately RMB 650 million (US$95 million), which would be routinely re-evaluated based on prevailing market conditions.
Peter Xie concluded, "In a year of significant quarter-to-quarter changes in the global solar industry, we achieved significant shipment growth as we crossed the 300MW shipment threshold in 2009, which represented over 80% growth from 2008. After a transition year for Solarfun in 2009, we expect 2010 to be a year of renewed focus on manufacturing cost, product quality and differentiation as well as investment in customer service as we strive to maintain high growth and gain market share. "
CONFERENCE CALL
Management will discuss the results and take questions following the prepared remarks.
The dial-in details for the live conference call are as follows:
US Toll Free |
1.866.271.5140 |
|
International Toll Free |
1.617.213.8893 |
|
South China Toll Free North China Toll Free |
10 800 130 0399 10 800 852 1490 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.
A telephone replay of the call will be available until March 12, 2010. The dial-in details for the replay are as follows:
US Toll Free |
1.888.286.8010 |
|
International Toll |
1.617.801.6888 |
|
Passcode |
22776555 |
|
FINANCIAL STATEMENTS
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 December 31, 2009, which was RMB 6.8259 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 December 31, 2009, 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 1Q and full-year 2010 estimates for net revenues, PV product shipments, and PV cell production capacity. 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 both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules. Solarfun sells its products both 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
Solarfun Investor Contact: |
|
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: [email protected] |
|
Christensen |
|
Kathy Li |
|
Tel: +1 480 614 3036 |
|
E-mail: [email protected] |
|
Roger Hu |
|
Tel: 852 2117 0861 |
|
E-mail: [email protected] |
|
SOLARFUN POWER HOLDINGS CO., LTD.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD")
December 31 September 30 December 31 December 31
2008 2009 2009 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
RMB RMB RMB USD
ASSETS
Current assets
Cash and cash
equivalents 410,901 793,186 645,720 94,599
Restricted cash 88,137 131,537 60,539 8,869
Financial assets 39,665 - 7,360 1,078
Accounts receivable,
net 319,537 707,235 587,488 86,066
Inventories, net 731,708 808,415 783,973 114,853
Advance to suppliers,
net 1,145,614 827,880 979,762 143,536
Other current assets 481,749 283,043 180,315 26,416
Deferred tax assets 57,992 67,860 63,115 9,246
Amount due from
related parties 19 42,590 12,458 1,825
--------- --------- --------- ---------
Total current
assets 3,275,322 3,661,746 3,320,730 486,488
--------- --------- --------- ---------
Non-current assets
Fixed assets – net 1,492,575 1,604,885 1,586,283 232,392
Intangible assets –
net 212,736 210,003 208,563 30,555
Goodwill 134,735 134,735 134,735 19,739
Deferred tax assets 4,489 7,660 13,789 2,020
Long-term deferred
expenses 37,444 33,718 33,135 4,854
--------- --------- --------- ---------
Total non-current
assets 1,881,979 1,991,001 1,976,505 289,560
--------- --------- --------- ---------
TOTAL ASSETS 5,157,301 5,652,747 5,297,235 776,048
========= ========= ========= =========
LIABILITIES
Current liabilities
Financial liabilities 5,792 41,489 1,148 168
Short-term bank
borrowings 1,098,832 1,013,738 404,764 59,298
Long-term bank
borrowings, current
portion 30,000 75,000 90,000 13,185
Accounts payable 217,026 392,625 441,768 64,719
Notes payable 39,341 159,195 186,921 27,384
Accrued expenses and
other liabilities 189,028 178,340 191,895 28,113
Customer deposits 9,494 21,346 59,685 8,744
Deferred tax liability 1,416 - - -
Unrecognized tax
benefit 27,385 28,467 27,385 4,012
Amount due to related
parties 39,766 13,564 16,765 2,456
--------- --------- --------- ---------
Total current
liabilities 1,658,080 1,923,764 1,420,331 208,079
--------- --------- --------- ---------
Non-current liabilities
Long-term bank
borrowings, non-
current portion 170,000 402,500 380,000 55,670
Convertible notes
payable 1,178,969 573,441 658,653 96,493
Deferred tax liability 27,155 26,713 26,566 3,892
--------- --------- --------- ---------
Total non-current
liabilities 1,376,124 1,002,654 1,065,219 156,055
--------- --------- --------- ---------
TOTAL LIABILITIES 3,034,204 2,926,418 2,485,550 364,134
Redeemable ordinary
shares 32 32 32 5
EQUITY
Shareholders’ equity
Ordinary shares 214 220 227 33
Additional paid-in
capital 2,138,624 2,252,642 2,331,797 341,610
Statutory reserves 47,638 57,163 69,564 10,191
Retained earnings
(deficit) (67,594) 411,845 410,065 60,075
--------- --------- --------- ---------
Total shareholders’
equity 2,118,882 2,721,870 2,811,653 411,909
Noncontrolling
interest 4,183 4,427 - -
--------- --------- --------- ---------
TOTAL EQUITY 2,123,065 2,726,297 2,811,653 411,909
--------- --------- --------- ---------
TOTAL LIABILITIES,
MEZZANINE EQUITY AND
SHAREHOLDERS’ EQUITY 5,157,301 5,652,747 5,297,235 776,048
========= ========= ========= =========
SOLARFUN POWER HOLDINGS CO., LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi ("RMB") and
U.S. dollars ("USD"),
except for number of shares and per share data)
December 31 September 30 December 31 December 31
2008 2009 2009 2009
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
RMB RMB RMB USD
Net revenues 1,122,697 986,798 1,252,711 183,522
---------- ---------- ---------- ----------
Cost of revenues (1,500,497) (782,399) (1,017,141) (149,012)
---------- ---------- ---------- ----------
Gross profit /
(losses) (377,800) 204,399 235,570 34,510
Operating expenses
Selling expenses (20,202) (24,806) (46,114) (6,756)
G&A expenses (39,811) (42,888) (50,866) (7,452)
R&D expenses (1,433) (7,324) (12,843) (1,882)
---------- ---------- ---------- ----------
Total operating
expenses (61,446) (75,018) (109,823) (16,090)
---------- ---------- ---------- ----------
Operating profit /
(losses) (439,246) 129,381 125,747 18,420
Interest expenses (26,769) (40,757) (39,662) (5,811)
Interest income 1,974 2,150 1,298 190
Exchange gain /
(losses) (28,794) 8,139 (14,694) (2,153)
Investment income (384) - - -
Gain / (losses) on
change in fair value
of derivative 50,307 (27,466) 15,397 2,256
Gain / (losses) on
change in conversion
feature fair value
of convertible bond - 82,357 (71,279) (10,442)
Other income 4,629 1,212 1,265 185
Other expenses (2,860) (1,903) (2,046) (300)
Government grant 3,020 1,957 2,000 293
---------- ---------- ---------- ----------
Net income /
(losses) before
income tax (438,123) 155,070 18,026 2,638
---------- ---------- ---------- ----------
Income tax benefit /
(expenses) 19,270 (18,117) (7,338) (1,075)
---------- ---------- ---------- ----------
Net income / (losses) (418,853) 136,953 10,688 1,563
---------- ---------- ---------- ----------
Net income /
(losses)
attributable to
noncontrolling
interest (16) 331 67 10
---------- ---------- ---------- ----------
Net income / (losses)
attributable
to shareholders (418,837) 136,622 10,621 1,553
========== ========== ========== ==========
Net income / (losses)
per share
Basic (1.56) 0.51 0.04 0.01
Diluted (1.56) 0.51 0.04 0.01
Shares used in
computation
Basic 268,717,524 270,304,495 287,982,207 287,982,207
Diluted 268,717,524 270,503,158 288,210,311 288,210,311
Net income / (losses)
per ADS
Basic (7.79) 2.53 0.18 0.03
Diluted (7.79) 2.53 0.18 0.03
ADSs used in
computation
Basic 53,743,505 54,060,899 57,596,441 57,596,441
Diluted 53,743,505 54,100,632 57,642,062 57,642,062
December 31 December 31 December 31
2008 2009 2009
(Unaudited) (Unaudited) (Unaudited)
RMB RMB USD
Net revenues 4,949,068 3,778,316 553,527
---------- ---------- ----------
Cost of revenues (4,905,147) (3,341,936) (489,596)
---------- ---------- ----------
Gross profit /
(losses) 43,921 436,380 63,931
Operating expenses
Selling expenses (87,913) (105,454) (15,449)
G&A expenses (143,340) (180,989) (26,515)
R&D expenses (19,679) (32,025) (4,692)
---------- ---------- ----------
Total operating
expenses (250,932) (318,468) (46,656)
---------- ---------- ----------
Operating profit /
(losses) (207,011) 117,912 17,275
Interest expenses (103,146) (157,907) (23,134)
Interest income 10,004 5,002 733
Exchange gain /
(losses) (35,230) (23,814) (3,489)
Investment income - - -
Gain / (losses) on
change in fair value
of derivative 83,090 9,594 1,406
Gain / (losses) on
change in conversion
feature fair value
of convertible bond - (73,887) (10,825)
Other income 15,018 6,286 921
Other expenses (25,604) (11,835) (1,734)
Government grant 3,480 7,661 1,122
---------- ---------- ----------
Net income /
(losses) before
income tax (259,399) (120,988) (17,725)
---------- ---------- ----------
Income tax benefit /
(expenses) (6,519) (23,928) (3,505)
---------- ---------- ----------
Net income / (losses) (265,918) (144,916) (21,230)
---------- ---------- ----------
Net income /
(losses)
attributable to
noncontrolling
interest 14,573 311 46
---------- ---------- ----------
Net income / (losses)
attributable
to shareholders (280,491) (145,227) (21,276)
========== ========== ==========
Net income / (losses)
per share
Basic (1.11) (0.53) (0.08)
Diluted (1.11) (0.53) (0.08)
Shares used in
computation
Basic 252,659,614 274,067,760 274,067,760
Diluted 252,659,614 274,067,760 274,067,760
Net income / (losses)
per ADS
Basic (5.55) (2.65) (0.39)
Diluted (5.55) (2.65) (0.39)
ADSs used in
computation
Basic 50,531,923 54,813,552 54,813,552
Diluted 50,531,923 54,813,552 54,813,552
SOLARFUN POWER HOLDINGS CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD"),
For the three months ended
December September December December
31, 2008 30, 2009 31, 2009 31, 2009
RMB RMB RMB USD
Cash flow from operating
activities
Net (loss) income (418,837) 136,622 10,621 1,553
Minority income (16) 331 67 10
Adjustments to reconcile net
(loss) income to net cash used in
operating activities:
Change in fair value of
financial derivative (4,250) 27,967 (47,701) (6,988)
Loss from disposal of a
subsidiary 384 - - -
Amortization of
convertible bonds
discount - 12,946 13,933 2,041
Changes in fair value of
conversion feature of
Convertible Bonds - (82,357) 71,279 10,442
Loss from disposal of
fixed assets - 20 96 14
Gain from disposal of
intangible asset (3,403) - - -
Depreciation and
amortization 23,034 41,403 43,072 6,310
Amortization of long-
term deferred expense 958 1,636 1,570 230
Provision for doubtful
debt of advance to
suppliers 761 (1,954) 163 24
Reversal of doubtful debt for
accounts receivable 115 3,723 545
Write down of inventory 326,449 71,971 40,341 5,910
Stock compensation
expense 9,497 9,855 8,509 1,247
Warranty provision 9,105 8,259 2,744 402
Deferred tax benefit (33,484) (4,421) (854) (125)
Unrecognized tax benefit 27,385 268 (1,082) (159)
Others 2 - - -
Changes in operating assets
and liabilities
Restricted cash 259,958 (13,096) 5,166 757
Inventory (306,417) (184,643) (15,899) (2,329)
Account receivables 28,419 (193,022) 116,024 16,998
Subsidy receivables 209,076 - - -
Advances to suppliers - 51,984 (152,045) (22,275)
Prepaid expense (50,000) 34,770 18,663 2,734
Other current assets (2,947) 58,464 84,065 12,320
Amount due from related
parties 9,325 (18,155) 30,132 4,414
Accounts payable 69,650 143,970 51,946 7,610
Accrued expenses and
other liabilities (1,166) 33,950 10,811 1,584
Deferred revenue (6,185) - - -
Customer deposits (23,118) 18,000 38,339 5,617
Amount due to related
parties - - 3,201 469
Convertible bonus - 5,461 - -
-------- -------- -------- --------
Net cash provided by (used
in) operating activities 124,180 160,344 336,884 49,355
-------- -------- -------- --------
Cash flows from investing
activities
Acquisition of fixed
assets (209,157) (49,104) (27,468) (4,024)
Change of restricted cash 42,565 142,308 65,832 9,644
Acquisition of
intangible assets (48,034) - (125) (18)
Acquisition of
subsidiaries (88,968) - (850) (125)
Proceeds from disposal
of intangible asset 6,958 - - -
Disposal of (investment
in) affiliate - - - -
Proceeds from disposal
of a subsidiary (9,394) - - -
-------- -------- -------- --------
Net cash provided by (used
in) investing activities (306,030) 93,204 37,389 5,477
-------- -------- -------- --------
Cash flows from financing
activities
Capital contributed by
minority interest
shareholder - - - -
Net proceeds from
issuance of redeemable
ordinary shares - - - -
Net proceeds from
issuance of ordinary
shares - - - -
Net proceeds from
issuance of ordinary
shares - - - -
Proceeds from exercise
of stock option - - 22 3
Proceeds from issuance
of ordinary shares - 78,607 70,387 10,312
Proceeds from short-term
bank borrowings 1,073,667 631,564 65,097 9,537
Payment of short term
bank borrowings (985,309) (1,011,840) (674,071) (98,752)
Proceeds from long term
bank borrowings (7,000) 300,000 - -
Payment for long term
bank borrowings - (7,500) (7,500) (1,099)
Payment for long term
deferred assets - 2,481 - -
Issuance of notes
payables - 51,586 27,726 4,062
Profit distribution - - (3,400) (498)
Repayment of advances
from related parties - - - -
-------- -------- -------- --------
Net cash provided by (used
in) financing activities 81,358 44,898 (521,739) (76,435)
-------- -------- -------- --------
Net increase in cash and
cash equivalents (100,492) 298,446 (147,466) (21,603)
Cash and cash equivalents at
the beginning of period 511,393 494,740 793,186 116,202
-------- -------- -------- --------
Cash and cash equivalents at
the end of period 410,901 793,186 645,720 94,599
======== ======== ======== ========
Supplemental disclosure of
cash flow information:
Interest paid 22,815 100,412 21,268 3,116
Income tax paid 10,244 30,978 4,538
Realized gain from
derivative contracts 46,057 503 (32,305) (4,733)
Supplemental schedule of
non-cash activities:
Acquisition of fixed
assets included in
Accounts Payable 6,871 33,702 (2,803) (411)
Conversion of convertible
bonds into ordinary shares - - - -
Transfer of unamortized debt
issuance costs to equity
upon conversion of
Convertible Bonds into
ordinary shares - - - -
For the years ended
December 31, December 31, December 31,
2008 2009 2009
RMB RMB USD
Cash flow from operating
activities
Net (loss) income (280,491) (145,227) (21,276)
Minority income 14,573 311 46
Adjustments to reconcile net
(loss) income to net cash used in
operating activities:
Change in fair value of
financial derivative (33,873) 27,661 4,052
Loss from disposal of a
subsidiary 384 - -
Amortization of
convertible bonds
discount - 50,788 7,440
Changes in fair value of
conversion feature of
Convertible Bonds - 73,887 10,825
Loss from disposal of
fixed assets - 719 105
Gain from disposal of
intangible asset (3,403) - -
Depreciation and
amortization 67,170 153,174 22,440
Amortization of long-
term deferred expense 5,145 6,670 977
Provision for doubtful
debt of advance to
suppliers 41,962 234,724 34,387
Reversal of doubtful debt for
accounts receivable 3,723 545
Write down of inventory 413,789 282,574 41,397
Stock compensation
expense 34,826 42,671 6,251
Warranty provision 27,678 24,824 3,637
Deferred tax benefit (50,068) (15,792) (2,314)
Unrecognized tax benefit 27,385 - -
Others 2 - -
Changes in operating assets
and liabilities
Restricted cash (44,602) 2,011 295
Inventory (417,016) (334,839) (49,054)
Account receivables 111,157 (271,674) (39,800)
Subsidy receivables - - -
Advances to suppliers (547,458) (68,872) (10,090)
Prepaid expense (50,000) 86,375 12,654
Other current assets (47,271) 215,059 31,508
Amount due from related
parties 901 (12,439) (1,822)
Accounts payable 103,199 238,804 34,985
Accrued expenses and
other liabilities (27,857) 33,648 4,929
Deferred revenue - - -
Customer deposits (18,134) 50,191 7,353
Amount due to related
parties (2,038) 10,362 1,518
Convertible bonus - - -
---------- ---------- ----------
Net cash provided by (used
in) operating activities (674,040) 689,333 100,988
---------- ---------- ----------
Cash flows from investing
activities
Acquisition of fixed
assets (849,544) (260,054) (38,098)
Change of restricted cash (1,282) 25,587 3,749
Acquisition of
intangible assets (48,517) (438) (64)
Acquisition of
subsidiaries (267,566) (89,818) (13,159)
Proceeds from disposal
of intangible asset 6,958 - -
Disposal of (investment
in) affiliate 300 - -
Proceeds from disposal
of a subsidiary (9,394) - -
---------- ---------- ----------
Net cash provided by (used
in) investing activities (1,169,045) (324,723) (47,572)
---------- ---------- ----------
Cash flows from financing activities
Capital contributed by
minority interest
shareholder 65,560 - -
Net proceeds from
issuance of redeemable
ordinary shares 32 - -
Net proceeds from
issuance of ordinary
shares 1,178,969 - -
Net proceeds from
issuance of ordinary
shares 489,875 - -
Proceeds from exercise
of stock option 12,091 1,103 162
Proceeds from issuance
of ordinary shares - 148,994 21,828
Proceeds from short-term
bank borrowings 3,119,682 1,900,675 278,450
Payment of short term
bank borrowings (2,985,852) (2,594,743) (380,132)
Proceeds from long term
bank borrowings 200,000 300,000 43,950
Payment for long term
bank borrowings (15,000) (30,000) (4,395)
Payment for long term
deferred assets - - -
Issuance of notes
payables - 147,580 21,621
Profit distribution - (3,400) (498)
Repayment of advances
from related parties (84,299) - -
---------- ---------- ----------
Net cash provided by (used
in) financing activities 1,981,058 (129,791) (19,014)
---------- ---------- ----------
Net increase in cash and
cash equivalents 137,973 234,819 34,402
Cash and cash equivalents at
the beginning of period 272,928 410,901 60,197
---------- ---------- ----------
Cash and cash equivalents at
the end of period 410,901 645,720 94,599
========== ========== ==========
Supplemental disclosure of cash
flow information:
Interest paid 102,440 156,143 22,875
Income tax paid 51,273 39,159 5,737
Realized gain from
derivative contracts 49,216 37,255 5,458
Supplemental schedule of non-cash
activities:
Acquisition of fixed
assets included in
Accounts Payable 35,904 21,842 3,200
Conversion of convertible
bonds into ordinary shares - 179 26
Transfer of unamortized debt
issuance costs to equity
upon conversion of
Convertible Bonds into
ordinary shares - (5) (1)
For the three months ended For the three months ended
--------------------------- ---------------------------
December September December December
31, 2008 30, 2009 31, 2009 31, 2009
(RMB million) (RMB million) (RMB million) (US$ million)
Non-GAAP net
income/
(losses)
attributable
to
shareholders (418.8) 68.2 95.9 14.1
Fair value
changes of
the
conversion
features of
the
Convertible
bonds - 82.4 (71.3) (10.4)
Accretion of
interest of
the
Convertible
bonds - (14.0) (14.0) (2.1)
------ ----- ---- ---
GAAP net
income/
(losses)
attributable
to
shareholders (418.8) 136.6 10.6 1.6
------ ----- ---- ---
For the three months For the three months
ended ended
-------------------- --------------------
December September December December
31, 2008 30, 2009 31, 2009 31, 2009
(RMB) (RMB) (RMB) (USD)
Non-GAAP
net income/
(losses)
per ADS (7.79) 1.26 1.66 0.25
Fair value
changes of
the
conversion
features of
the
Convertible
bonds - 1.52 (1.24) (0.18)
Accretion
of interest
of the
Convertible
bonds - (0.25) (0.24) (0.04)
----- ---- ---- ----
GAAP net
income/
(losses)
per ADS (7.79) 2.53 0.18 0.03
----- ---- ---- ----
ADSs used in
computation
(Diluted) 53,743,505 54,100,632 57,642,062 57,642,062
For the three months ended
---------------------------
December September December
31, 2008 30, 2009 31, 2009
Non-GAAP Return
on Equity -18.03% 3.35% 4.35%
Fair value
changes of the
conversion
features of the
Convertible
bonds - 2.28% -3.32%
Accretion of
interest of the
Convertible
bonds - -0.39% -0.65%
------ ---- ----
GAAP Return on
equity -18.03% 5.24% 0.38%
------ ---- ----
Annualised for Annualised for Annualised for
the fourth the third the fourth
quarter of 2008 quarter of 2009 quarter of 2009
---------------- ---------------- ----------------
Non-GAAP Return
on Equity -72.12% 13.40% 17.40%
Fair value
changes of the
conversion
features of the
Convertible
bonds - 9.11% -13.27%
Accretion of
interest of the
Convertible
bonds - -1.55% -2.61%
------ ----- ----
GAAP Return on
equity -72.12% 20.96% 1.52%
------ ----- ----
SOURCE Solarfun Power Holdings Co., Ltd.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article