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SFCE Media Scan for April 2, 2015
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China solar firm Shunfeng says to double revenue, profits in 2015
Apr 2, 2015 | Reuters Africa
By Charlie Zhu
China's Shunfeng International Clean Energy expects to double its revenue and profits this year, due largely to an acquisition it made a year ago and the connection of more of its solar power plants to the grid, its chief executive said.
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China solar firm Shunfeng says to double revenue, profits in 2015
Apr 2, 2015 | Reuters Africa
By Charlie Zhu
China's Shunfeng International Clean Energy expects to double its revenue and profit this year, due largely to an acquisition it made a year ago and the connection of more of its solar power plants to the grid, its chief executive said.
"This year our revenue will double, so will our profits," Eric Luo told Reuters in a telephone interview on Thursday.
"It's mainly because we are going to have full contribution from Wuxi Suntech this year," he said, referring to a major domestic solar panel maker it acquired in April last year.
Crushed by a global glut of solar panels following the global debt crisis, Wuxi Suntech filed for bankruptcy protection in 2013 and went through a debt restructuring after a default by its parent company - once high-flying solar manufacturer Suntech Power.
Shunfeng, with a market value of $2.2 billion, posted a net profit of 1.3 billion yuan ($210 million) for 2014 on revenue of 5.7 billion, including 5 billion from panel manufacturing.
Luo said an expected sharp increase in Shunfeng's solar generating capacity connected to the grid this year should also boost its income.
Shunfeng expects to connect 1.5 gigawatts (GWs) of solar plants in China this year, versus 644 megawatts (MWs) in 2014 and 890 MWs in 2013, he said.
The company will also build 400-450 MWs of solar generating capacity this year abroad, up from the current 50 MWs, Luo said. Shunfeng aimed to increase its overseas solar generating capacity to 1.5-2 GWs by 2017.
Shunfeng is among a large number of Chinese companies benefiting from Beijing's drive to boost the use of solar energy, which accounts for under 2 percent of its total installed capacity.
China has set a higher-than-expected solar installation target of 17.8 GWs for 2015. Beijing has indicated it would boost solar capacity to 100 GWs by 2020.
Lured by attractive subsidies and easy loans, Shunfeng, whose biggest shareholder is well-connected businessman Cheng Kin Ming, has been aggressively pursuing solar expansion.
A sharp expansion of the capital-intensive business has saddled it with debts. Its current liabilities reached 7.7 billion yuan at end-2014, with a gearing ratio of about 60 percent.
Shunfeng is entering into wind power production and light emitting diode supply. It has also been diversifying into solar plant management and maintenance services, and energy saving solutions.
"We need some diversification. We need some light-asset businesses," Luo said, adding that Shunfeng may generate revenue of 300 million yuan from solar plant management and maintenance this year versus 13 million yuan in 2014
Reuters UK: http://uk.reuters.com/article/2015/04/02/sfce-forecast-idUKL3N0WZ34420150402
Reuters Africa: http://af.reuters.com/article/energyOilNews/idAFL3N0WZ31L20150402
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