Date
21 July 2017
Shunfeng International chairman Zhang Yi (center) and other senior group officials pose for a picture following the firm's 2014 results announcement on Tuesday. Photo: HKEJ.
Shunfeng International chairman Zhang Yi (center) and other senior group officials pose for a picture following the firm's 2014 results announcement on Tuesday. Photo: HKEJ.

Shunfeng Int’l may launch geothermal power business in 2015

Shunfeng International Clean Energy Ltd. (SICE, 01165.HK) plans to foray into geothermal power generation this year as part of efforts to transform itself from a photovoltaic company into an integrated clean-energy solutions provider.

Chairman Zhang Yi said at a post-results news conference in Hong Kong Tuesday that his firm has been developing geothermal power and sea water power generation related technologies.

It is possible that geothermal power generation could be launched this year, he said.

As for harnessing the power of sea water, it may take many years before mass-scale production can begin, Zhang said.

Shunfeng International swung to profit in 2014, achieving a net profit of 1.3 billion yuan for the year after a loss of 1.82 billion yuan in 2013.

Revenue came in at 5.75 billion yuan, up 275.6 percent from a year ago, according to a regulatory filing. Basic earnings per share stood at 56.98 fen, compared with loss per share of 1.1 yuan in 2013.

The turnaround came mainly due to increased manufacturing and trading of solar products following the acquisition of Wuxi Suntech in April last year.

Some gains related to convertible bonds also helped boost the bottom line.

Talking about Shunfeng’s core solar power business, Zhang said the accumulated on-grid designed capacity of the firm’s overseas projects has reached 50 megawatts, and that 450 MW new capacity will be put into use in this year.

Meanwhile, in its domestic solar plants, the company plans to add 1.5 gigawatts (GW) on-grid designed capacity as part of the efforts to achieve a total of 6 GW capacity by 2017.

Sales volume of solar products increased about 218 percent last year to 1.53 GW. Revenue from solar product manufacturing and trading increased 242 percent to 5.23 billion yuan. The company reported total power generation of 607.79 GWh for the year.

Shi Jianmin, vice chairman of Shunfeng International and the chairman of Wuxi Suntech, said the group doesn’t plan any large-scale capital expenditure to boost solar production capacity, given the spare capacity in the industry following over-expansion in previous years.

The group’s businesses now cover clean-energy supply, energy development, technological innovation and applications in relevant fields such as solar power generation and wind power generation, apart from the new initiatives in geothermal and sea water power generation.

Shunfeng is also involved in the development and manufacturing of energy-storage technology and energy-storage products.

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MY/JP/RC

EJ Insight reporter

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