Shunfeng narrows 2017 loss after 21% jump in revenue

Solar modules in China. Featured Image: zhu difeng/Shutterstock.com

China’s Shunfeng International Clean Energy Ltd (HKG:1165) cut its net loss to CNY 834.1 million (USD 132.8m/EUR 107.7m) in 2017 from CNY 2.4 billion a year before after revenues rose by 21%.

The company last week reported 16.5% higher earnings before interest, tax, depreciation and amortisation (EBITDA), at CNY 1.96 billion.

Revenues grew mainly thanks to the solar photovoltaic (PV) products manufacturing division and increased solar power generation revenue. Despite a 17.2% decrease in the average selling price of solar modules, that business accounted for 59% of total revenue in 2017. There was a 43.2% jump in revenue to CNY 5.92 billion as Shunfeng sold 2,475 MW of modules, up by 72.7% from 2016.

Details on the revenue contribution of different businesses are available in the table.

All in CNY million	2017	2016	Y/Y change
Total revenue	10,017	8,276.5	+21%
of which solar products manufacturing and sales	8,249	6,812	+21.1%
of which solar power generation	1,321	1,075	+22.9%
of which solar plant operation and services	127.5	110	+15.8%
of which LED products	320	280	+14.3%

“The next 5 years will be a turning point for the solar PV industry, and we expect to see record amount of additional annual installation for solar PV power, well above wind and hydro power,” said chairman Zhang Fubo, adding that in China the market is driven by continuous technology advancement in cost reduction and “unprecedented market dynamics” as result of policy changes.

As of end-2017, Shunfeng had realised solar projects with a total installed capacity of some 1.5 GW. It produced 1.56 TWh of power.

(CNY 10 = USD 1.59/EUR 1.29)

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