Shunfeng bullish despite 2013 loss

Shunfeng plans to expand Wuxi Suntech

Shunfeng plans to expand Wuxi Suntech

Shunfeng remains confident in its ability to raise enough money to acquire and build more than 3GW of completed PV capacity in China this year, despite reporting 2013 losses in excess of its revenues.

Hong Kong-listed Shunfeng saw its revenues rise 44% to 1.53bn yuan ($250m) last year, all of it coming from the company’s relatively modest-sized solar manufacturing business, with a heavy focus on cells and wafers.

The company’s full-year loss, however, stretched to 1.8bn yuan, the result of a heavy fair value loss on convertible bonds it issued. Absent those losses, Shunfeng would have turned a small profit for the year.

2013 was a transformational year for Shunfeng, during which the company successfully bid to acquire the bankrupted Wuxi Suntech, and definitively staked its future on a new business model tied heavily to PV project development and operation.

Having started the year with no PV generation capacity on its books, Shunfeng closed out 2013 with 890MW of operational capacity.

Shunfeng recently acknowledged that it faces a nearly 8bn yuan capital shortfall if it is to meet its 4GW target for the end of 2014.

The company intends to borrow a significant sum from various banks, and it is also in “confidential discussions” with investment banks with an eye towards potentially raising more money on the debt and equity markets.

Shunfeng’s expansion plans – including to swell Wuxi Suntech’s manufacturing capacity, as Recharge recently reported – will catapult it to the “helm of [China’s] solar power industry”, claims chairman Zhang Yi.

Shunfeng’s plan to acquire Wuxi Suntech is contingent on the approval of its shareholders at a meeting scheduled for 7 April.

The company will be “relentless” in “further consolidating our solar power generation capacity, enhancing our upstream production capabilities and technological innovation, and improving our conversion efficiency and cost-control measure”, Yi says.

Shunfeng recently acquired a minority stake in fuel-cells business Shanghai Everpower.

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