Neo Solar Power (NSP, 3576 TT) (“NSP”, “the Company”) a leading producer of high quality PV cells in Hsinchu, Taiwan, today announced the material resolutions reached by its Board of Directors (BOD). The BOD approved the financial statements of 2009 and financial results of 1Q10.
Supported by the strong market rebound in the solar industry, NSP continually delivered the great performance in terms of revenue and shipment volume. Totaled revenue in 1Q10 was NT$3.10 billion, representing a 74% increase y-o-y; Net income was NT$272 millions and Earnings per share (EPS) was NT$1.28. Benefiting from the favorable energy saving policies and global expectation on greenhouse emission reduction, the overall outlook of solar industry is quite positive. Total shipment for 1Q10 still maintained at the peak level as 4Q09, representing a stable operation growth of NSP. In 2010, NSP plans to upgrade its annual production capacity from 240MW to 800MW. The first phase expansion of 180MW has been gradually realized and contributed to the revenue. Supported by the new installed capacity along with its flexible sales strategy and high quality products, the company is likely to have record-breaking revenue and profit, whilst helping to establish its long-term competitiveness.
Total revenue in 2009 was NT$10.301 billion, representing a 1.23% increase y-o-y. Total shipment in 2009 was over 200MW, increasing 100% compared to 2008. Under the financial tsunami in 2009, NSP held sound business strategies to maintain the strong financial structure and ample cash position. Its cash and cash equivalents reached NT$4 billion until end of 2009 and the accumulated cash flow from operating activities was over NT$1.8 billion. However, the overall industry selling price correction triggered by the financial tsunami in 2009 resulting to approximately a 60% decrease of average selling price (ASP) of solar cell. Although NSP was the first company to deliver sales rebound among peers while making the profit since 3Q09, NSP still needed to recognize loss on inventory valuation in 1H09 which was hardly to be totally offset by its profit.
According to the amendment of Taiwan’s Statement of Financial Accounting Standards No. 34 (SFAS No. 34), NSP had to recognize the loss on valuation of Euro Convertible Bond (ECB) and interest amortization of approximately NT$661 million due to the surge of its stock price in 4Q09. This non-operation expense did not cause any cash outflow and impact on the company’s business operation. Net loss was approximately NT$1.139 billion, or NT$5.99 per share (including valuation loss of ECB and interest amortization of approximately NT$661 million which resulted to NT$3.48 per share). Excluding the non operating expense, NSP’s 2009 Net loss was NT$478 million, or NT$2.51 per share.
About Neo Solar Power Corporation (3576 TT) (NSP)
Founded in 2005 by Dr. Quincy Lin (former Senior VP of TSMC) and Dr. Sam Hong (former Director of ITRI Research Division), Neo Solar Power Corporation (NSP) is a leading manufacturer of high performance and high quality solar cells and modules. With core competitive advantages in quality, technology and customer service, NSP became the world’s largest merchant solar cell manufacturer by volume in 2013. After selling DelSolar to NSP, Delta Electronics (2308, TT) became the biggest shareholder of NSP with a 19% holding. Leveraging current leading position in solar cell technology, NSP will further expand into the global solar systems businesses, aiming to become the leading solar system integrator in the world. For more information, please visit the company’s website at www.nsp.com
For further information, please contact:
Ms. Samantha Lu, Section Manager Investor Relations Department