Shunfeng photoelectric giant loss does not change the photovoltaic ambition

Despite continuous doubts, Shunfeng Optoelectronics never hides its ambitions in the photovoltaic industry chain. In the newly disclosed annual report, the company admitted that it will focus on the photovoltaic power generation business. Correspondingly, Shunfeng Optoelectronics continues to lift huge debts to accelerate expansion. As of now, the financing scale has exceeded 7 billion yuan.

Last year, Shunfeng Optoelectronics announced that it will take over Wuxi Suntech at a cost of 3 billion yuan. This acquisition, considered to be a "snaking elephant," has caused Shunfeng Optoelectronics to turn into a star company in the industry from a starry night. Behind the amazing move, the annual report data of Shunfeng Optoelectronics cannot help but worry.

The annual report released yesterday showed that as of December 31, 2013, the company’s revenue was 1.529 billion yuan, and gross profit was nearly 153 million yuan, which was significantly better than the 2012 PV product shipments. However, due to the fair value loss of convertible bonds of RMB 1.816 billion, the company’s annual loss was RMB 1.817 billion. The net loss rate increased from -25.6% in 2012 to -118.8%.

The above data does not prevent Shunfeng Optoelectronics from continuing to build ambitions for the photovoltaic empire. The annual report repeatedly emphasized that under the support of the Chinese government's photovoltaic support policy, the domestic solar photovoltaic market has been started, and in order to grasp this huge market. The Group will continue to accelerate the integration of photovoltaic power generation in recent years. The Group plans to achieve a grid-connected annual design capacity of 10 GW by the end of 2016, of which 4 GW will be planned for grid-connected this year.

“Solar energy is an indispensable part of China’s clean energy development.” According to the report of Shunfeng Optoelectronics, in addition to large-scale ground-based photovoltaic power plants, the development of distributed solar energy products will be cut into the future to further consolidate the Group’s leading position in the Chinese solar energy market.