Shunfeng posts slight increase in shipments, sales, but ballooning net loss


Chinese solar PV manufacturer and clean energy company, Shunfeng International Clean Energy (SFCE) saw its revenue and shipments increase only slightly in the first half of this year, while net loss for the period has almost quadrupled.

Total turnover for the six months of this year was CNY 5,010.4 million (around US$746 million), up only 0.7% from CNY 4,976.9 million a year earlier. Gross profit, meanwhile, dropped 14.9% from CNY 808.0 million to CNY 687.5 million.

Representing a massive decline, net loss for the period was CNY 1,153.9 million ($171.6 million), down 252.3% from 327.5 million in the first half of 2017. EBIDTA also fell 90.9%, from CNY 958.2 million to CNY 87.6 million.

Shunfeng explained that the increase in net loss was primarily due to an impairment loss on property, plant and equipment in the amount of CNY 674.4 million.

Shipments of solar products, which accounted for 77.5% of total sales, increased by just 0.7%, from 1,960.1 MW in the first half of 2017, to 1969.2 MW in the same period of this year. Of this, module shipments comprised 1,389.5 MW, followed by solar cells and wafers with 558.2 MW and 12.5 MW, respectively.

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The group’s solar power generation, comprised of around 1.5 GW of operational PV plants mostly located in China, increased 19.7% year-on-year, from 816,610 MWh to 844,338 MWh. Solar power generation, however, is currently limited in several Chinese provinces, the company said, thus resulting in a loss of around CNY 160 million. Shunfeng is now trying to off-set this loss by participating in various cross-province selling schemes.

The company has also been able to enlarge its international customer base in the first half of this year. While, in the first six months of 2017, Chinese customers represented 83.2% of turnover, in the same period of this year, this fell to 58.2%.

“Our strong track record of product quality, advanced proprietary technology and effective cost control measures have contributed to our strong reputation and thus our success in optimizing our customer base,” Shunfeng said.

“Looking forward to the second half of 2018, we believe the relevant stakeholders will be more devoted to develop and utilize renewable energy,”, it added in its outlook for this year, without providing additional figures.

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