Tuesday, Solarfun Power Holdings Co., Ltd. (SOLF), a manufacturer of silicon ingots and solar cells, posted a loss for the first quarter, reflecting lower shipment volumes and sales and continued restrictive funding availability for solar projects. In addition, the company announced the resignation of chief executive officer Harold Hoskens, effective June 30. Solarfun Power shares climbed almost 11% in the morning hours of trading on the Nasdaq.
The Qidong, China-based company reported a first quarter net loss attributable to shareholders of RMB 7 million, or US$1.03 million, compared to a net profit attributable to shareholders of RMB 104.6 million in the year-ago quarter. Net loss per share for the quarter was RMB 0.03, compared to a net income per share of RMB 0.41 in the comparable period a year ago. Net loss per American Depository Share, or ADS, was RMB 0.13, or US$0.02, compared to a net profit per ADS of RMB 2.06 in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to earn US$0.17 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
Total net revenue for the quarter decreased 43% to RMB 684.2 million, or US$100.1 million from RMB 1.2 billion in the same quarter of last year.Analysts had a consensus estimate of US$100.12 million for the quarter.
Photovoltaic module shipments for the quarter reached 35.7 MW, representing a decrease of 11.4% from the year-ago quarter. Average selling prices for the quarter declined to US$2.78 from the previous-year quarter.
Operating loss for the quarter was RMB 19.5 million or US$2.9 million, compared to operating profit of RMB 141.7 million in the corresponding quarter of last year.
Peter Xie, president, Solarfun said, "The first quarter of this year saw mixed results from our perspective. On the one hand, shipments and sales continue to be pressured by excess channel inventories, industry-wide module production overcapacity, declining prices, and the continued tight lending environment for solar projects."
Looking ahead to the second quarter of fiscal year 2009, Solarfun expects shipment volumes to improve, but anticipates average selling prices to decline further. For the remainder of 2009 and beyond, the company continues to remain optimistic and expects imminent volume growth with both module and raw material prices declining.
Additionally, the company said CEO Harold Hoskens would resign and management committee, including John Breckenridge, managing director of Good Energies, and Peter Xie, Solarfun President, will actively oversee all day-to-day business activities and the Company's strategic direction.
SOLF is currently trading at US$5.62, up $0.55 or 10.85%, on a volume of 1.27 million shares on the Nasdaq.
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