Shunfeng International Clean Energy Limited Announces 2015 Interim Results

HONG KONG, Aug. 30, 2015 /PRNewswire/ -- Shunfeng International Clean Energy Limited ("SFCE" or the "Company"; Stock Code: 1165.HK), a leading integrated clean energy solutions provider; today announced its interim results for the six months ended 30 June 2015.

In the first half of 2015, revenue increased 19.5% year-on-year to RMB3,520.4 million, reflecting a significant increase in power generated from solar power plants in operation. Net profit was RMB172.5 million in the first half of 2015 compared to RMB503.9 million in the corresponding period in 2014. The decline in net profit was primarily due to a reduction in the average selling price of solar modules and an increase in operating expenses as the Company executed its strategy to expand into international markets.

Financial Highlights

"We are pleased to report revenue growth of 19.5% year-on-year in the first half as we generated an increasing amount of power generation from our portfolio of solar power plants," said Eric Luo, SFCE Executive Director and CEO.

"During the first half of the year, we took concrete steps to expand our platform as a global provider of clean energy solutions. Through our joint venture with Nobao, a leader in ground source heat pump technology, and acquisition of Lattice Power, an LED lighting specialist, we formed the full complement of technologies to replace traditional energy with cost-competitive, integrated low carbon solutions."

Zhang Yi, Chairman of SFCE, commented, "Looking forward, we are excited about the opportunities to bring cost-competitive clean energy solutions to an even broader, global customer base. We have a strong pipeline of projects where we will integrate multiple clean energy technologies – such as solar, LED, ground source heat pumps, storage and monitoring – to help our customers reduce energy consumption by 50% to 70%. We are also gaining international traction in our end-to-end solar solution business and we have received positive feedback from our customers in Europe and America, as well as key regions along China's strategic "One belt, One road" route. With governments across the world introducing sustainable development initiatives, SFCE is uniquely positioned to benefit from the growing demand for clean energy alternatives to fossil fuel."

Business Highlights

• Integrated Low Carbon Solutions Business: In March 2015, the Company established a joint venture Shunfeng Nobao Group Company Limited with strategic partner Nobao, a leader in ground source heat pump technology. SFCE holds 51% of the JV, which is focused on delivering integrated clean energy solutions to help global customers reduce energy consumption by 50% to 70% while shifting to renewable generation.
• In April 2015, the Company formed a joint venture with AVIC Capital, a subsidiary of Aviation Industry Corporation of China, to promote the integrated clean energy business model and provide integrated low carbon solutions to AVIC, as well as other international clients.
• LED Business: In August 2015, the Company acquired a 59% equity interest in Lattice Power Corporation, a leader in GaN-on Silicon LED technology, to expand into the LED business and further implement its strategy of developing one-stop clean energy solutions for customers.
• Acquisition of US Solar Manufacturer: On 12 August 2015, the Company announced it will acquire a 63.13% equity stake in Suniva, a leading American manufacturer of high-efficiency, cost competitive PV cells and modules.  The acquisition will enable SFCE to serve customers in the premium and more profitable US market and facilitate the expansion of Suniva's manufacturing capacity to over 400MW within the next 12 months.

Solar Product Manufacturing Business

The Group manufactures and sells solar wafers, cells and modules to customers both in China and international markets. For the six months ended 30 June 2015, the sales volume of solar products amounted to 1,193.4MW, representing a 19.6% increase from 997.5MW for the corresponding period in 2014.

SFCE continued to diversify its sales of solar products in the first half of 2015. Top 5 customers in the first half of 2015 represented approximately 26.6% of total revenue as compared to approximately 44.7% in the corresponding period in 2014. In addition, sales to international customers increased to 42.2% of the Group's total revenue in the first half of 2015 from 30.7% in the corresponding period in 2014.

Solar Power Generation Business

The Group develops and operates solar power plants, primarily in China. For the six months ended 30 June 2015, solar power generation increased by 176% year-on-year to 512,751 MWh. The growth was primarily due to an increase in the number of grid-connected solar projects in operation, which increased from 890MW as of 30 June 2014 to 1,622MW as of 30 June 2015.

Solar Power Plant Operation and Service Business

The Company acquired S.A.G. Solarstrom AG (S.A.G.) in the second half of 2014 to enhance capabilities in solar project development, EPC (engineering, procurement, construction), and solar power plant monitoring, operation and maintenance. S.A.G. continued to gain traction with customers in international markets and provided EPC services for 36MW projects in the first half of 2015.

In addition, S.A.G.'s wholly owned subsidiary meteocontrol GmbH (meteocontrol), one of the world's largest solar plant monitoring service providers, started providing monitoring services for an additional 800MW of solar plants in the first half of 2015. As of 30 June 2015, meteocontrol provided monitoring services for an aggregate of 10.8GW of solar plants globally.

About SFCE

Shunfeng International Clean Energy Limited (SFCE) is committed to becoming the world's largest low-carbon, integrated, clean energy generation provider. As a result of strategic acquisitions and integration, SFCE owns a number of well-known product and technology brands across the industry. SFCE fosters continuous improvement in energy generation including solar, sea water power, and ground source heat pumps, combined with energy management and storage capabilities. SFCE aims to provide clean energy solutions to large scale public facilities and commercial users including shopping malls, data centers, hotels, public buildings, manufacturing facilities, office buildings, schools, hospitals, sports complexes and households. SFCE's energy solutions can achieve energy cost reductions of 50% to 70%, creating energy generation choices for its customers that reduce both carbon emissions and energy costs.

SOURCE Shunfeng International Clean Energy Limited