Solarfun turns to GAAP loss in Q3 2010

(ADPnews) - Nov 10, 2010 - Chinese photovoltaic (PV) equipment maker Solarfun Power Holdings Co Ltd (NASDAQ:SOLF) swung to a GAAP net loss of CNY 25.2 million (USD 3.8m/EUR 2.8m) in the third quarter of 2010, from a CNY-136.6-million net profit a year earlier, but still lifted its shipment forecast for the year.

Adjusted net earnings stood at CNY 273.7 million, up from CNY 68.2 million.

Operating profit for the quarter rose by 202.8% year-on-year to CNY 391.8 million.

In the three months through September, Solarfun shipped 223.9 MW of PV modules, up from 102.6 MW a year back. The company raised its shipment projections for the full year to 785 MW from 750 MW in an earlier forecast.

Average selling prices for the period declined by 15.5% in annual terms to CNY 11.72 per watt, but were up 4.6% quarter-on-quarter.

Third-quarter revenues jumped by 121.5% on the year to CNY 2.19 billion. The figure was up 24.7% on the previous quarter, driven by increased shipments and improved average selling prices.

Average selling prices for the fourth quarter are seen to climb in quarter-on-quarter terms if the EUR/USD exchange rate remains around 1.35. Solarfun said it expects shipments in the closing quarter of the year to be slightly down to 205-215 MW, due to scaled down internal cell capacity, a result of the company's plan to convert certain existing cell lines into high-efficiency cell capacity. In addition, its decision to reduce the buying of externally sourced cells will impact the result.

(CNY 1.0 = USD 0.150/EUR 0.109)

Choose your newsletter by Renewables Now. Join for free!