The World's #1 Renewable Energy Network for News, Information, and Companies.

Chinese Solar Manufacturer Wants To Become Solar Power Plant Developer, Too

Chinese Solar Manufacturer Wants To Become Solar Power Plant Developer, Too

Shunfeng Photovoltaic International Ltd., the new owner of what was once the world’s biggest solar manufacturer, is seeking to issue HK$6 billion ($774 million) of shares to buildsolar-power plants.

Shunfeng plans to sell as many as 600 million new shares at not less than HK$10 apiece, according to a statement to the Hong Kong stock exchange. The company is also planning to change its name to Sunfu International Ltd.

The new name and the share offering reflect the company’s expansion from a manufacturer to a power producer. It acquired Wuxi Suntech Power in April for 3 billion yuan ($480 million), the biggest panel maker in 2012, and this month agreed to buy an inverter company. A sister company owns a stake in the wafer supplier LDK Solar Co. Shunfeng Chairman Zhang Yi said in January that the company would install 3 gigawatts of solar systems this year.

“The expansion has successfully transformed the group from, previously, an upstream solar products manufacturer into a fully integrated solar company with downstream solar-power generation assets,” according to a filing yesterday. “The group has future plans to expand into the business of integration of solar energy storage and photovoltaics, and other forms of renewable or clean energy.”

‘Largest’ Supplier

The goal is to “become the world’s largest integrated clean-energy supplier,” Chief Executive Officer Eric Luo said in a video on Shunfeng’s website. The company is controlled by real estate tycoon Zheng Jianming, who took a 30 percent stake in 2012.

The proposed share offering represents 28 percent of the company’s existing share capital, and the HK$10 price is an 8.9 percent discount to the stock’s close yesterday. Shunfeng’s shares were down 4.9 percent at HK$10.44 as of 2:04 p.m. local time today.

Chairman Zhang said Shunfeng expects to install 10 gigawatts of solar power in the three years through 2016. That would require investing 25 billion yuan this year.

That strategy may be difficult to pull off, Stephen Simko, analyst for Morningstar Investment Services Inc. in Chicago said in an interview. “Their idea of throwing more money in their operations doesn’t seem particularly intelligent.”

LDK is “structurally uncompetitive compared with their best peers,” said Simko, who dropped coverage of the wafer producer because it “effectively bankrupted operations of the company.”

Shunfeng needs additional financing to expand, it said on May 7 after the China Business News reported that the company would seek to obtain 100 billion yuan in credit lines from China Development Bank Corp.

China had almost 20 gigawatts of installed solar capacity in 2013, according to Bloomberg New Energy Finance.

The National Development and Reform Commission earlier this month said China plans to speed up solar power development, targeting a more than tripling of installed capacity to 70 gigawatts by 2017 to cut reliance on coal.

Copyright 2014 Bloomberg.

Lead image: Solar Panels in the Sunset via Shutterstock

RELATED ARTICLES

Regional News from the July/August 2015 Digital Edition of Renewable Energy World

Renewable Energy World Editors EcoFasten Solar announced that it launched a new mounting "Rock-It System" that it would be displaying during Intersolar. Product compliance was determined through testing per UL Subject 2703, which reviews integ...

SkyPower Inks $2.2 Billion Deal for Massive Solar Power Plant in Kenya

Eric Ombok, Bloomberg Kenya’s Energy Ministry and SkyPower Global Ltd. will sign a $2.2 billion agreement on Sunday that paves the way for the Canadian company to develop a 1-gigawatt solar project in East Africa’s biggest economy. The solar pr...

Making a Match: How Solar Companies and Banks Hook Up

Jennifer Runyon The announcements are fairly frequent: SunPower Partners with Admirals Bank for $200 Million Solar Loan Program, Deutsche Bank to Lend $1 Billion for Japanese Solar Projects, Financing Partnerships Drive North Carolina's S...

SunEdison Signs 180-MW Solar Deal in India With Tata Power

Alex Longley, Bloomberg SunEdison Inc., the biggest clean-energy developer, will provide 180 megawatts of solar power to Tata Power Delhi Distribution Ltd., India’s largest utility. The 20-year power-purchase agreement is the biggest SunEdison ha...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

Utility Scale Solar Summit 2015

Oct. 21, 2015 4:30-5:15pm Albie Fong, National Director, Solar Frontier ...

SPG Europe

Global Solar Markets presents our pan-European event, created in collabo...

Renewable Energy 2015

Renewable Energy 2015 (RE 2015) is Vermont’s annual convention bri...

COMPANY BLOGS

Think Systems, Not Pieces

One of the challenges we have in this industry is a lot of inexperienced...

Look and Listen

Yesterday, we talked about why you should talk less and listen more in t...

7 Seconds, Max

Most buyers are put off by the “pushy salesman” –...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS