Mon Feb 13, 2006 6:00 PM ET
Suntech Power Reports Fourth Quarter and Fiscal Year 2005 Unaudited Financial
Results
Increasing Adoption of Solar Energy Initiatives Worldwide Drives Strong Demand
for Suntech's Products
WUXI, China, Feb. 13 /PRNewswire-FirstCall/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP), a leading global solar energy company, today announced
fourth quarter 2005 total net revenues of $89.0 million and net income of
$10.6 million, or $0.10 per basic share. Total net revenues for fiscal year
2005 were $226.0 million and net income was $30.6 million, or $0.31 per basic
share.
"Increasing adoption of solar energy initiatives worldwide, particularly
in China and Spain, drove strong demand for our solar cell and module products
in the fourth quarter," said Dr. Zhengrong Shi, Suntech's chairman and CEO.
"This led to our solid financial performance for the fourth quarter and the
year as we continue to be one of the fastest growing pure play PV
manufacturers in the world.
"We significantly grew our production capacity in 2005 to 150MW. The
demand for solar energy worldwide continues to exceed supply, and the market
is rapidly absorbing any increases in capacity. By the end of 2006, we expect
our capacity to reach 240MW," added Dr. Shi.
Fourth Quarter 2005 Results
Suntech's total net revenues for the fourth quarter increased
136.3 percent to $89.0 million over fourth quarter 2004 total net revenues of
$37.7 million, and 57.2 percent over third quarter 2005 total net revenues of
$56.6 million. Growth in net revenues in the fourth quarter was due to
increases in production volumes and demand, and improvements in the average
sales prices of Suntech's photovoltaic ("PV" or "solar") cell and module
products.
Suntech successfully executed its 2005 expansion plans adding a 30MW solar
cell production line that became operational at the end of the fourth quarter
of 2005. This increases Suntech's annual capacity to 150MW from 120MW as of
September 30, 2005. During the fourth quarter, Suntech derived approximately
63.7 percent of total net revenues from PV modules.
Fourth Quarter 2005 PV Net Revenues by Products
Q4 2005 % of Q4 Growth Growth
2005 Net vs. Q4 vs. Q3
Revenues 2004 2005
PV Cells $31.7 million 35.7 % +1,729.6% +126.6%
PV Modules $56.7 million 63.7 % +57.8% +34.8%
PV System Integration$ 0.6 million 0.6 % +6,301.8% +2.6%
Total $89.0 million 100.0 %
Gross profit for the fourth quarter was $23.6 million, representing an
increase of 83.7 percent over fourth quarter 2004 gross profit of $12.8
million, and an increase of 39.6 percent over third quarter 2005. Gross margin
decreased to 26.5 percent, compared with 34.1 percent in the fourth quarter
2004 and 29.8 percent in the third quarter 2005. The decrease in gross margin
in the fourth quarter 2005 as compared with the fourth quarter 2004 and the
third quarter 2005 was largely attributable to an increase in the cost of raw
materials, which constituted the largest portion of cost of revenues. The
sequential decrease in gross margin was also partly due to a $1.6 million
inventory write-off for substandard wafers as well as an increase in
share-based compensation to $1.2 million.
The Company has continued to focus on technology research and development
to achieve high performance solar cells at low cost per watt. As of December
31, 2005, the conversion efficiency rates of the Company's monocrystalline and
multicrystalline silicon PV cells reached 17.0 percent and 15.3 percent,
respectively, up from 16.5 percent and 15.0 percent, respectively, at the end
of the third quarter 2005.
Income from operations for the fourth quarter was $12.5 million, or 14.1
percent of total net revenues, compared with $11.0 million, or 29.3 percent of
total net revenues in the fourth quarter of 2004, and $10.3 million, or 18.2
percent of total net revenues in the third quarter 2005.The decrease in
operating margin compared with both prior periods was primarily due to
decrease in gross profit margins as well as increases in share based
compensation and research and development expenses.
Net income for the fourth quarter was $10.6 million, representing a 4.0
percent decrease from the same quarter in the prior year and a 21.9 percent
increase from the third quarter 2005. Basic net income per share for the
fourth quarter 2005 was $0.10.
Full Year 2005 Financial Results
For the full year 2005, Suntech's total net revenues increased 165.0
percent to $226.0 million over total net revenues in 2004 of $85.3 million.
For the full year 2005, Suntech derived approximately 24.2 percent of total
net revenues from PV cells driven mainly by the strong demand from China's
domestic market.
Fiscal Year 2005 PV Net Revenues by Products
2005 % of Growth 2004 % of
2005 vs. 2004
Net 2004 Net
Revenues Revenues
PV Cells $54.7 million 24.2% 645.5% $7.3 million 8.6%
PV Modules $170.1 million 75.3% 118.4%$77.9 million 91.4%
PV System
Integration $1.2 million 0.5%2,012.6% $0.1 million 0.0%
Total $226.0 million 100.0% $85.3 million100.0%
Gross profit for the full year 2005 was $68.6 million, representing an
increase of 173.0 percent from the prior year's gross profit of $25.1 million.
Gross margin increased slightly to 30.3 percent, compared with 29.4 percent in
the previous year. Income from operations for the full year 2005 was $42.7
million, or 18.9 percent of total net revenues, and a 113.2 percent increase
over 2004 income from operations of $20.0 million, or 23.5 percent of total
net revenues. The decline in operating margin in 2005 is primarily due to the
increase in general and administrative expenses related to Suntech's business
expansion, restructuring and share based compensation charges.
Net income for the full year 2005 was $30.6 million, representing a 55.0
percent increase from the previous year. Basic net income per share was $0.31
in 2005 compared to $0.22 in 2004.
Balance Sheet and Cash Flow
As of December 31, 2005, Suntech had cash and cash equivalents of $359.3
million.Net operating cash flow for the full year 2005 was $22.6 million,
compared with $2.6 million for 2004. Suntech had capital expenditures of $29.7
million in 2005, compared with $9.4 million for 2004.
Business Outlook
Suntech expects its total net revenues in the first quarter 2006 to be in
the range of $75 million to $80 million, representing year-over-year growth in
the range of 95 percent and 108 percent.
Fourth Quarter and Year End 2005 Conference Call
Suntech's earnings announcement conference call will take place on
February 13, 2006 at 7:00 p.m., Eastern Time, which corresponds to February
14, 2006 at 8:00 a.m., Beijing/Hong Kong time.To access the conference call,
please dial +1 617 213 8858 (in the U.S.) or +852 3002 1672 (in Hong Kong) and
ask to be connected to the Suntech earnings call.
A live webcast of the conference call will be available on the investor
relations section of Suntech Power's website at http://www.suntech-power.com.
A replay of the conference call will be available for two weeks on the
investor relations section of Suntech Power's website or by dialing
+1 617 801 6888 (passcode: 12676998).
About Suntech Power Holdings Ltd.
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the
world as measured by production output in 2004. Suntech provides solar
solutions for a green future.Suntech designs, develops, manufactures and
markets a variety of high quality, cost effective and environmentally friendly
PV cells and modules for electric power applications in the residential,
commercial, industrial and public utility sectors. Suntech's customers are
located in various markets worldwide, including Germany, Spain, China and the
United States. For more information, please visit
http://www.suntech-power.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among
other things, the business outlook and quotations from management in this
announcement, as well as Suntech's strategic and operational plans, contain
forward-looking statements. Suntech may also make written or oral
forward-looking statements in its periodic reports to the U.S. Securities and
Exchange Commission on forms 20-F and 6-K, etc., in its annual report to
shareholders, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about Suntech's
beliefs and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following:
expectations regarding the worldwide demand for electricity and the market for
solar energy; the company's beliefs regarding the effects of environmental
regulation, the lack of infrastructure reliability and long-term fossil fuel
supply constraints; the importance of environmentally friendly power
generation; expectations regarding governmental support for the deployment of
solar energy; expectations regarding the scaling of the company's
manufacturing capacity; expectations with respect to the company's ability to
secure raw materials in the future; future business development, results of
operations and financial condition; and competition from other manufacturers
of PV products and conventional energy suppliers.Further information
regarding these and other risks is included in Suntech's registration
statement on Form F-1, as amended, filed with the U.S. Securities and Exchange
Commission. Suntech does not undertake any obligation to update any
forward-looking statement, except as required under applicable law.
SUNTECH POWER HOLDINGS CO., LTD.
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS DATA
(In $'000, Except Per Share Data)
2005 2004 2005
Q4 Q4 Q3
(Note) (Note) (Note)
Net revenues 88,989 37,651 56,624
Cost of revenues 65,407 24,810 39,728
Gross profit 23,582 12,841 16,896
Operating expenses
Selling expenses 946 803 1,017
General and administrative expenses 8,008 825 4,720
Research and development expenses 2,084 180 826
Income from operations 12,544 11,033 10,333
Interest expenses (773) (408) (570)
Interest income 174 26 25
Other (expenses) income (105) 35 (161)
Income before income taxes 11,840 10,686 9,627
Tax (expenses) benefit (1,500) 335 (859)
Net income after tax before
minority interests and equity
in gain of affiliates 10,340 11,021 8,768
Minority interest 29 0 5
Equity in gain (loss) of an
affiliate 244 (24) (103)
Net income 10,555 10,997 8,660
Deemed dividend on Series
A redeemable convertible
preferred shares 784 0 972
Net income attributable to holders
of ordinary shares 9,771 10,997 7,688
Net income per share and per ADS
- Basic 0.10 0.12 0.09
- Diluted 0.09 0.12 0.07
Shares used in computation
- Basic 98,123,263 90,000,000 90,000,000
- Diluted 103,104,352 90,000,000127,898,426
Note:The quarterly summary statement of operations data are unaudited.
The summary consolidated balance sheet data as of December 31, 2005 and
summary consolidated statement of operations data for the year ended December
31, 2005 are derived from Suntech's unaudited consolidated financial
statements.The summary consolidated balance sheet data as of December 31,
2004 and summary consolidated statement of operations data for the year ended
December 31, 2004 are derived from Suntech's audited consolidated financial
statements.
SUNTECH POWER HOLDINGS CO., LTD.
SUMMARY CONSOLIDATED BALANCE SHEET DATA
(In $'000)
As of December 31,
2005 2004
(Note) (Note)
ASSETS
Current assets:
Cash and cash equivalents 359,324 19,122
Inventories 40,428 17,472
Advances to suppliers 24,001 2,195
Total current assets 436,479 51,913
Property, plant and equipment, net 39,717 13,211
TOTAL ASSETS 481,664 68,468
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings, including current
portion of long-term bank borrowings 52,193 34,442
Total current liabilities 71,976 40,225
Long-term bank borrowing 3,717 0
Total liabilities 78,312 41,072
Total shareholders' equity 401,923 27,396
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 481,664 68,468
Per Share Data: Ordinary share of par value $0.01; 90,000,000 shares
issued and outstanding, as of December 31, 2004; 147,487,707 shares issued and
outstanding as of December 31, 2005
SUNTECH POWER HOLDINGS CO., LTD.
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS DATA
(In $'000, Except Per Share Data)
For the Year Ended December 31,
2005 2004
(Note) (Note)
Net revenues:
PV cells 54,653 7,331
PV modules 170,129 77,898
PV System integration 1,218 58
Total net revenues 226,000 85,287
Cost of revenues:
PV cells 35,441 5,269
PV modules 121,183 54,862
PV system integration 814 43
Total cost of revenues 157,438 60,174
Gross profit 68,562 25,113
Operating expenses
Selling expenses 3,667 1,750
General and administrative expenses 18,874 2,889
Research and development expenses 3,358 465
Total operating expenses 25,899 5,104
Income from operations 42,663 20,009
Interest expenses (including share
based compensation of $5,652,952
for 2005) (7,907) (1,036)
Interest income 296 57
Other (expense) income (758) 167
Income before income taxes 34,294 19,197
Tax (expenses) benefit (3,753) 611
Net income after taxes before minority
interest and equity in gain of affiliates 30,541 19,808
Minority interest 34 0
Equity in gain (loss) of an affiliate 121 (51)
Net income 30,628 19,757
Deemed dividend on Series A
redeemable convertible preferred shares 2,406 0
Net income attributable to holders
of ordinary shares 28,222 19,757
Net income per share and per ADS
- Basic 0.31 0.22
- Diluted 0.30 0.22
Shares used in computation
- Basic 92,047,507 90,000,000
- Diluted 95,360,059 90,000,000
SOURCESuntech Power Holdings Co.
In China - Cindy Shao, Suntech Power Holdings Ltd., +86-510-8534-5000,
ir@suntech-power.com; Christina Splinder, Ogilvy Public Relations Worldwide,
+86-10-8520-6550, Mobile: +86-1350-1096-802, christina.splinder@ogilvy.com; In
the United States - Thomas Smith, Ogilvy Public Relations Worldwide,
+1-212-880-5269, thomas.smith@ogilvypr.com 盘整中 STP 公布4Q 業绩報告, 和未经审計的2005 年報
Gross profit for the fourth quarter was $23.6 million, representing an
increase of 83.7 percent over fourth quarter 2004 gross profit of $12.8
million, and an increase of 39.6 percent over third quarter 2005. Gross margin
decreased to 26.5 percent, compared with 34.1 percent in the fourth quarter
2004 and 29.8 percent in the third quarter 2005. The decrease in gross margin
in the fourth quarter 2005 as compared with the fourth quarter 2004 and the
third quarter 2005 was largely attributable to an increase in the cost of raw
materials, which constituted the largest portion of cost of revenues. The
sequential decrease in gross margin was also partly due to a $1.6 million
inventory write-off for substandard wafers as well as an increase in
share-based compensation to $1.2 million.
此節交代了4Q 的MARGIN 有显著的减少 ....... 所以SHINE 會說 ..............................
但SHINE , 你再好好看看, 也許很多要点出乎你的预料的 STP 的现金足够充裕, 還有持续拡张能力 看样子原材料涨价是它利润率降低的主要原因 是不是英利也有同样问题？ 尚德的报告全文我早上全文已经看了，谢谢，不要太累了：）
2月8号我有个帖子分析今明两年利润在太阳能电池产业链中的重分布问题，尚德的数据不过是一次证实而已。
至于各个企业以后的努力，包括尚德可能的介入上游，包括新光硅业，动态跟踪就是了，这是我对PV的一贯立场。
国际上PV今年肯定要分化，占优势的是solarworld、rec、sunway等。
[ 本帖最后由 shine2008 于 2006-2-14 23:48 编辑 ] 纳斯达克比我们厉害多了，就好像过山车，没点胆量不敢玩！中国股市要和国际接轨，我们要有充分的思想准备！ 原帖由 shine2008 于 2006-2-14 23:45 发表
尚德的报告全文我早上全文已经看了，谢谢，不要太累了：）
2月8号我有个帖子分析今明两年利润在太阳能电池产业链中的重分布问题，尚德的数据不过是一次证实而已。
至于各个企业以后的努力，包括尚德可能的介 ...
我现在說也是有目的的, 早上就想贴出來,怕影响各位看盘的情绪
SHINE , 有些DETAIL 并不是你想象的, 你不要否認 牛魔王身上的虱子要回归基本面，真正的龙头将再展雄风 原帖由 white-3 于 2006-2-14 23:45 发表
纳斯达克比我们厉害多了，就好像过山车，没点胆量不敢玩！中国股市要和国际接轨，我们要有充分的思想准备！
稍作修正---STP是NYSE , 是纽约証交所, 不是在" N(二)奶"-- NASTAQ 我相信0550 的 2005 年 真實的REPORT 没有公開的那樣完美
真就是真, 假就是假
总會在某一刻有答案的
[ 本帖最后由 the_top 于 2006-2-15 00:08 编辑 ] TOP:即使利润l率低点，但规模不断扩大（市场也有那么大），不是同样增长吗？
你可以相信
原帖由 the_top 于 2006-2-15 00:00 发表我相信0550 的 2005 年 真實的REPORT 没有公開的那樣完美
真就是真, 假就是假
总會在某一刻有答案的
关于这点你可以相信你自己，但是我相信可能你刚好相信反了！ 如果你真的有能力的话，英利的一月报应该出来了，能不能说给大家听听 原帖由 white-3 于 2006-2-14 23:03 发表
STP现在跌了９％多，为啥？
无锡尚德公布05年业绩每股0.3美圆
与市场预期相差甚远股价开盘暴跌10%以上,现在33.05跌14% 0550 不拿出 YINGLI 真實的数据, 就無法取得投资人的信任
拜托不要我說的太明 看过你的帖子，感觉你对光付对英利很了解，而且说话隐含知道很多内幕，英利的月报应该不是难事，这点才是真正证明你的观点的关键，我相信你有能力证明一下！
既然洗脑就彻底一点！