HONG KONG, Mar 27, 2015 - (ACN Newswire) - Shunfeng International Clean Energy Limited ("Shunfeng" or the "Group"; stock code: 1165) today announces the audited consolidated results for the year ended 31 December 2014 ("2014").
For the year ended 31 December 2014, the Group recorded a revenue of RMB5,745.9 million, representing an increase of 275.6% from RMB1,529.7 million in 2013. Gross profit increased significantly by RMB1,120.6 million, or 741.0%, from approximately RMB151.2 million for the previous year to RMB1,271.8 million for the Year. The revenue and net profit increased primarily due to (1) a substantial increase in the sales volume of the manufacturing and trading of solar products after the acquisition of Wuxi Suntech in April 2014, with the Group's sales volume of solar products increasing 159.7% to 3,238.5 MW, of which 1,094.7 MW of inter-group solar product sales had been reconciliated in the revenue for the year; (2) the Group's solar power plants which connected to the grid in 2013 and 2014 having commenced operation and generated income from power generation in 2014, with the Group total power generation for the year reaching 607,793 MWh; (3) gain on change in amortization period of the liability component of convertible bonds of RMB992.0 million on 1 September 2014; and (4) the fair value loss on convertible bonds for the 2013 of approximately RMB1,816.0 million, which was not applicable for 2014.
The Group laid the solid foundation in 2014 The Group changed its company name from "Shunfeng Photovoltaic International Limited" to "Shunfeng International Clean Energy Limited" in November 2014. This marks the Group's business transition from being primarily based on the solar power sector to gradually becoming a leading clean energy supplier offering low-carbon energy-saving integrated solutions. Currently, the extensive business of the Group covers clean energy supply, energy development, technological innovation and application in the relevant clean energy fields such as solar power generation, wind power generation, geothermal power generation and sea water power generation, as well as development and manufacturing of energy storage technology and energy storage products, establishing the Group as one of the global major suppliers of clean energy offering low-carbon energy-saving integrated solutions with an ever-stronger leading position.
In respect of solar power generation business, the Group's total power generation from Xinjiang, Gansu, and other PRC regions amounted to 607,591 MWh for the whole year of 2014. During the period, monthly power generation grew steadily, bringing bright prospects for the Group's solar power generation business in the upcoming year. In 2014, the Group maintained its leading position in China's solar power generation sector, initiating solar power plant projects with a total installed capacity of 1,439 MW under construction, and completing grid connection with a total capacity of 644 MW. In January 2015, the Group won three awards, which are "Commercial Achievement Award for PRC PV Power Stations", "Best Performance Award for Listed PRC PV Power Stations" and "Outstanding Quality Award for PRC PV Power Stations" at the "2014 Annual Meeting of PRC PV Power Stations and the Second Annual Award Presentation Ceremony of PRC PV Stations". The Group strives to achieve a total of 6 GW on-grid designed capacity by 2017.
The acquisition and reorganization of Wuxi Suntech, a large-scale solar modules manufacturer, was successfully carried out during the year, largely enhancing our manufacturing technique and production capacity of solar products. It is of the most reliable first-class global module brands. Wuxi Suntech was included in the list of first-class PV components suppliers contained in the Global PV Market Forecast Report published by Bloomberg New Energy Finance (BNEF) in February 2015, which is a strong testament to the reliability of the products of Wuxi Suntech. Looking forward, Wuxi Suntech will carry out strategic investment and cooperation with us in terms of product, technology and services and the Group is confident that it will enjoy a brighter prospect of development in the solar energy industry. In the future, we will further increase the shipment volume of solar wafers, solar cells, solar modules and relevant solar products. At the same time, the Group plans to consolidate the upstream production capacity of solar products as and when appropriate. In respect of the research and development of polysillicon and related products, the Group plans to further develop and improve our slicing technology and slicing efficiency, so as to reduce cost and increase single unit efficiency. The Group also plan to use compound materials such as carbon nanotube to develop module frames and PV panel support structure in order to reduce cost and increase the life of the products.
In order to expand the scope and overseas business, seizing the opportunities brought forth by the consolidation of global solar power industry, the Group bravely explored new businesses and through large-scale acquisition-based expansion and industry consolidation, the Group has managed to expand its business from the solar power generation and product manufacturing sector into the power storage devise sector. In addition, the Group also made progress regarding the integrated PV business and other related clean energy businesses and fully put into action the synergy between vertically-integrated products and solar power plants, in an attempt to achieve the Group's objective of becoming the largest global clean energy and low-carbon energy-saving integrated solution provider. During the year, the Group has successfully completed a number of substantial overseas and domestic acquisitions and overseas expansion plans, including the acquisition of 30% equity interests in Powin Energy Corporation in August 2014, involving advanced technology in the research and development of energy storage, load shifting and fast charging techniques. The Group also acquired S.A.G. Solarstrom AG.i.l. (S.A.G.), a German solar energy enterprise, with a view to enhancing our capability in developing solar energy projects, EPC (engineering, procurement and construction) and monitoring PV stations as well as the strength in operating and maintaining our businesses in Europe and the United States. S.A.G. provides comprehensive services in the solar industry while meteocontrol GmbH ("meteocontrol"), its subsidiary, is one of the largest independent PV stations monitoring services providers in the world. meteocontrol has extensive experience in monitoring, operating and maintaining PV stations in the civil, commercial and public fields and its monitoring capacity has reached 9.8 GW. In order to strengthen the advantage of the Group's low-carbon energy-saving integrated solutions at the beginning of 2015, the Group declared the acquisition of 8 wind power generation projects with rich wind resources primarily located in Jilin, Hebei, etc, projects further enriching the Group's development scope of clean energy with a total designed capacity of 723.5 MW and a projected annual power generation volume of 1,615,213 MWh. In the future, the Group will pursue further development and merger of mature wind power projects as and when appropriate.
Ground source heat pump technology is the important component of the Group's 3 major solutions in respect of overall low-carbon cities, low-carbon communities and low-carbon families. The Group's mission is to provide clean, efficient and energy-saving integrated energy solutions. Therefore, the Group and Nobao Renewable Energy Holdings Limited ("Nobao Renewable Energy") has signed the agreement on strategic cooperation and formation of joint venture. Nobao Renewable Energy is the leader in the sector of China's clean energy by means of the ground source heat pump technology, with the long-term commitment to the research and development of the large-area centralized heat supply and refrigeration technology. As the global leader in that sector, it has possessed various advanced core-technology patents related to heat supply and refrigeration. The joint venture shall take charge of providing green, low-carbon and energy-saving solutions integrated for cities, communities, families, commercial facilities, schools, hospitals, airports and similar public facilities. Such solutions aim at saving 50%-70% of overall energy for cities, communities, families, commercial facilities, schools, hospitals, airports and similar public facilities, to achieve the cost reduction for end user. Based on the consensus in the business development prospects of global clean energy solutions, the Company and Nobao Renewable Energy have established the relationship of strategic cooperation partners for sufficient utilization of their respective strongholds, enhancement of the sharing level of information resources, and optimization of product mix under both parties, so as to create much better stronghold for competitiveness and fulfill the improvement and enhancement of both parties in terms of cost, management, services, users' satisfaction level and results.
LED lighting is an important link in the solutions for low-carbon cities, low-carbon communities, and low-carbon families, in compliance with the development strategies of the Group as a provider for comprehensive low-carbon and energy-saving solutions. In order to develop LED project, the Group entered into a memorandum of understanding with Lattice Power Corporation in relation to proposed acquisition by the Group of 51% of the issued share capital of Lattice Power Corporation from existing shareholders of Lattice Power Corporation. Lattice Power Corporation owns the disruptive 6-inch and 8-inch GaN-on-Silicon LED technology, with over 200 global patents awarded. Its successful commercial mass production have resulted in the supply general lighting, smart phone and automobile lighting. LED lighting. which save 50%-80% energy comparison to the ordinary lighting, will definitely replace the traditional lighting in every aspect. The revolutionary GaN-on-Silicon LED technology of Lattice Power Corporation leads to the drastic reduction in production cost when compared to the traditional GaN-on-Sapphire LED, which will result in the tremendous contribution to the profit of the Company.
In 2015, the Group had entered into an exclusive agency right of collaboration with GreenWheel EV in manufacturing and sales of the sole electrical vehicle made of GreenWheel EV's core technique around the world except for Mainland China. GreenWheel EV is the earliest state High and New Technology Enterprise to specialize and engage in research and development and manufacturing of sole electrical motor core technology in PRC, which had nearly 15 years of experience in the field of research and development and manufacturing of sole electrical vehicle. GreenWheel EV has all of the self-developed intellectual rights, including electric control and motor technique, cell management technique and more, as well as its core technique including the "Big Three Electronic, Small Three Electronic", all of which possess a global leading advantage. The Group collaborates with GreenWheel EV to achieve the dream of "returning the Earth a blue sky", and through electrical vehicle, expecting to bring China a greater environmental effectiveness in energy conservation and pollutant reduction as well as increasing the Group's contribution to a green life.