China Singyes Solar financial results reveals changing dynamics
China Singyes Solar Technologies Holdings has announced its audited annual results for the year ending December 31, 2013. The Group continued its focus on consolidating and developing solar energy related businesses, including solar EPC and sale of new energy and new material goods, with the total revenue increasing 34% to RMB4,151 million; and net profit surging by 49.3% to RMB491 million.
The Board of Directors proposes a final dividend of HK$0.09 per share. (FY2012: HK$0.07 per share) Solar energy and related businesses The Group strengthened its solar energy business and sale of new energy / new materials. The solar business accounted for 61.4% of the Group's total revenue. During the year, the revenue of solar EPC business increased 76.2% to RMB1,889 million; while the gross profit margin was 29.5%.
The Group completed a total of 340MW solar EPC project in FY2013. In January 2014, the Group signed a Memorandum of Understanding with Gansu Wuwei municipal government to develop approximately 1.1GW of solar power station in Wuwei City over the next 5 years. The Group will take part in developing the EPC for the solar power station, as well as sourcing and liaising with suitable investors and helping them to get relevant permits.
As of the end of last year, the Group has completed approximately 195MW of self-developed solar projects, while approximately 115MW projects were under the Golden Sun Program. The Group also sold approximately 15MW of solar projects in Guangdong to a third party. The net gain on selling these 15MW projects was RMB19.62 million. In recent years, the Group has launched a number of new energy and new material goods, including solar photovoltaic materials, air-source heat pump, solar heat collectors and solar heating system as well as Indium Tin Oxide (ITO) film and ITO embedded glass.
The revenue and gross profit margin of sale of new materials have increased due to improvement in technology. Solar EPC project's order on hand As announced in mid-January 2014, the Group had approximately 320MW of solar EPC projects on hand, which is close to the total solar EPC delivery in 2013. Conventional curtain wall business In view of the Group's shifted focus towards the solar business, the revenue contribution from the curtain wall engineering projects and sales of curtain wall materials to the total revenue has dropped to 38%. During the year, the Group's focus on the high-end commercial area has helped increase the revenue of conventional business by 8% to RMB1,592 million. The gross profit margin of curtain wall engineering projects improved mildly to 16.1%.
Mr. Liu Hongwei, Chairman of China Singyes, said, "Following the Group's expansion into the solar application market in China in 2007, we have recorded a significant growth in the solar EPC business over the past few years, because of the strong support provided by government policies. We believe the Mainland China will soon become the largest solar user in the world and a number of various supporting program on green buildings have already been implemented. Leveraging our strong track record and extensive experiences in the industry, we are confident to maintain our leading position in solar EPC area. We have strategically shifted our focus from the conventional curtain wall business to green building area to explore new business opportunities, which will stand us in great stead for achieving success in this growing marketplace."
