HONG KONG, Oct. 12 /PRNewswire-Asia/ -- -- Net profit surged to RMB80.0 million while turnover reached RMB280.4 million -- Profit Margin further improve by 6.1% quarter-on-quarter to 33.8% -- Strong financial position with net cash position of RMB299.5 million Comtec Solar Systems Group Limited ("Comtec" or the "Company", together with its subsidiaries the "Group", HKEx stock code: 712) a PRC-based leading manufacturer of monocrystalline solar wafers, is pleased to announce its unaudited financial performance for the three months ended 30 September 2010 ("3Q2010"). Financial Highlights RMB$'000 3Q2010 1H2010 Achieved % of Year to Date 1H201 (30 Sept., 2010) Turnover 280,383 429,062 65.3% 709,445 Gross Profit 94,787 98,014 96.7% 192,801 Gross Profit 1100 basis point Margin 33.8% 22.8% improvement 27.2% Net Profit 80,760 68,559 117.8% 149,320 Net Profit 1280 basis point Margin 28.8% 16.0% improvement 21.0%
Based on the preliminary review on the unaudited management accounts, the Company has recorded a turnover of RMB 280.4 million with the gross profit margin of 33.8% for 3Q2010. As a result, the profit attributable to the owners of the company was RMB80.8 million. The strong financial performance was mainly due to strong demand on high quality wafers, increase in shipment volume, increase in prices of wafers, and effective control on cost of production.
The Group continues to maintain a healthy balance sheet with net cash position of RMB299.5 million, which included cash and cash equivalent of RMB468.8 million and short-term bank loans of RMB169.3 million in 3Q2010.
According to UBS reports, most suppliers are expecting robust solar module demand through 2011 and indicated firm pricing through mid-2011 despite upcoming subsidies cuts in Germany and Italy. They also estimated that 2011 solar demand will be 19GW, up 17% year-on-year. This spells promising prospects for Comtec Solar ahead.
Mr. John Zhang, Chairman and CEO of Comtec Solar commented: "The outstanding 3Q2010 result highlighted that demand on quality wafers remain robust. Customers are still requesting us to offer them more allocation from our 2011 supply. We believe the wafers' demand remains healthy due to faster module and cell suppliers' capacities expansion recently. Our sales momentum is likely to remain strong in 2H2010 and we can look forward to another excellent performance in FY2010.
"We also have confidence in the solar business in the coming years. The FiT Policy cuts in European countries will not harm the overall health of the solar industry but will rather help it mature. We will maintain our expansion plan for 1GW and beyond and continue striving to make Comtec Solar a world leader in the monocrystalline solar wafer industry."
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, it focuses on the design, development, manufacture 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 experience 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 the 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 aims to broaden its customer base internationally. For more information please visit: http://www.comtecsolar.com .
Contacts: 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@example.com Comtec Solar Systems Group Limited Mr. Keith Chau CFO Tel: +86-21-6804-3001 Email: firstname.lastname@example.org Website: http://www.comtecsolar.com
SOURCE Comtec Solar Systems Group Limited