Press release from PR Newswire
Solarfun Reports First Quarter 2010 Results
Wednesday, May 26, 2010
Solarfun Reports First Quarter 2010 Results05:35 EDT Wednesday, May 26, 2010SHANGHAI, May 26 /PRNewswire-FirstCall/ -- Solarfun Power Holdings Co., Ltd. ( "Solarfun" or the "Company") (Nasdaq: SOLF), a vertically integrated manufacturer of silicon ingots, wafers and photovoltaic (PV) cells and modules in China, today reported its unaudited financial results for the quarter ended March 31, 2010.FIRST QUARTER 2010 HIGHLIGHTSTotal net revenues were RMB 1,475.8 million (US$216.2 million) in 1Q10, an increase of 17.8% from 4Q09 and an increase of 115.7% from 1Q09. �PV module shipments, including module processing services, reached 150.6 MW, an increase from 110.8 MW in 4Q09 and from 35.7 MW in 1Q09. � Average selling price, excluding module processing services, declined, as expected, to US$1.76 per watt in 1Q10. Gross profit was RMB 272.5 million (US$39.9 million) and gross margin was 18.5%.Net income attributable to shareholders on a non-GAAP basis(1) was RMB 158.1 million (US$23.2 million), an increase of 64.9% from 4Q09 and a substantial increase from RMB 12.4 million in 1Q09. Net income per diluted ADS on a non-GAAP basis was RMB 2.72 (US$ 0.40), an increase of 63.9% from RMB 1.66 in 4Q09, and a substantial increase from RMB 0.23 in 1Q09. � Annualized ROE on a non-GAAP basis significantly improved to 26.6 % in 1Q10 from 17.4% in 4Q09 and 2.3% in 1Q09.As of March 31, 2010, the Company had cash and cash equivalents of RMB 936.3 million (US$137.2 million) and working capital of RMB 1,978.1 million (US$289.8 million). Peter Xie, President of Solarfun, commented, "We are very pleased with our strong performance in the first quarter of 2010. � Quarterly revenues for the first time in the Company's history exceeded $200 million, and net income per diluted ADS on a non-GAAP basis reached US$0.40, a substantial increase of over 63.9% compared to the fourth quarter of 2009. �The strong performance was attributable to our ability to take advantage of favorable industry demand while keeping a keen focus on cost control and risk management. �To keep up our momentum, we plan to ramp up our internal cell capacity to 500MW by July, and our module capacity to 900MW by August of this year. �This progress, along with our ongoing efforts to reduce our manufacturing costs and increase our cell efficiencies while expanding our R&D efforts, makes us optimistic about our future."FIRST QUARTER 2010 RESULTSTotal net revenues were RMB 1,475.8 million (US$216.2 million) in 1Q10, an increase of 17.8% from RMB 1,252.7 million in 4Q09 and an increase of 115.7% from RMB 684.2 million in 1Q09. �The increase in net revenues in 1Q10 was primarily due to higher shipment volumes reflecting improved industry demand. �Revenue contribution from PV module processing services as a percentage of total net revenues remained relatively flat at 7.8% in 1Q10 as compared to 6.3% in 4Q09. � PV module shipments reached 150.6 MW in 1Q10, an increase from 110.8 MW in 4Q09 and from 35.7 MW in 1Q09. � In 1Q10, German-based customers accounted for 81% of the Company's total net PV module revenues, excluding module processing services, up from 57% in 4Q09. �The increase in revenue contribution from German-based customers reflected the pull-in demand from the German market ahead of the anticipated reduction in feed-in tariff by the end of June 2010. Other key markets in 1Q10 were Australia, Italy, Portugal and Spain, which collectively accounted for 14.7% of total net revenues. � �The Company anticipates that revenue contribution from non-German customers will increase in the second half of 2010 as most of the shipments to customers outside of Germany, including important new growth markets such as the U.S., Italy and China, are currently being pushed out to 3Q and 4Q of 2010. Average selling price ("ASP"), excluding module processing services, declined, as expected, by 9.7% to US$1.76 per watt in 1Q10 from US$1.95 per watt in 4Q09. �The decline in ASP was due to a combination of the decrease in the market price of PV products as well as the depreciation of the Euro against the U.S. dollar.Gross profit was RMB 272.5 million (US$39.9 million) in 1Q10, compared to gross profit of RMB 235.6 million in 4Q09 and gross profit of RMB 49.4 million in 1Q09. �Gross margin, despite lower ASP, in 1Q10 was 18.5%, which was in-line with 18.8% in 4Q09 and a substantial increase from 7.2% in 1Q09.The blended COGS per watt (excluding module processing services) was $1.42 in 1Q10, representing a decrease from $1.57 in 4Q09 and $2.57 in 1Q09. � The blended COGS takes into account the processing cost (silicon and non-silicon) using internal wafers, purchase cost and additional processing cost of the externally-sourced wafers and cells, as well as freight costs. �Operating profit was RMB 189.1 million (US$27.7 million) in 1Q10, representing an increase of 50.4% from RMB 125.7 million in 4Q09. �The Company had an operating loss of RMB 15.3 million in 1Q09. � Operating margin for 1Q10 was 12.8%, which compares to 10.0% in 4Q09 and negative 2.2% in 1Q09. �The improvement in operating margin was primarily due to tight control over operating expenses. �Operating expenses as a percentage of total net revenues decreased to 5.7% in 1Q10 as compared to 8.8% in 4Q09. �Interest expense remained relatively flat at RMB 40.9 million (US$6.0 million) in 1Q10, as compared to RMB 39.7 million in 4Q09 and RMB 41.4 million in 1Q09.Although Solarfun is not immune to currency fluctuations, especially the depreciation of the Euro against the US dollar, its active hedging program reduces the Company's exposure. �For the first quarter of 2010, the Company recorded a net gain of RMB 3.7 million (US$0.5 million), representing foreign exchange losses that were offset by a gain on the change in fair value of foreign currency derivatives. � The Company recorded a net foreign exchange gain of RMB 0.7 million in 4Q09.Loss from the change in fair value of the conversion feature of the Company's convertible bonds was RMB 2.5 million (US$0.4 million) in 1Q10 as compared to a loss of RMB 71.3 million in 4Q09. �This compares to a gain of RMB 28.5 million in 1Q09. �The fluctuations, from the adoption of ASC 815-40, were primarily due to changes in the Company's share price during the quarter. This line item has fluctuated, and is expected to continue to fluctuate quarter-to-quarter. �The Company has no direct control over the fluctuations.On a non-GAAP basis, net income attributable to shareholders was RMB 158.1 million (US$23.2 million) in 1Q10, representing an increase of 64.9% from RMB 95.9 million in 4Q09 and a substantial increase from RMB 12.4 million in 1Q09. � Net income per diluted ADS, on a non-GAAP basis, was RMB 2.72 (US$0.4) in 1Q10, representing an increase of 63.9% from RMB 1.66 in 4Q09 and a substantial increase from RMB 0.23 in 1Q09.On a GAAP basis, net income attributable to shareholders was RMB 138.9 million (US$20.4 million) in 1Q10, compared to net income attributable to shareholders of RMB 10.6 million in 4Q09 and RMB 27.4 million in 1Q09. �Net income per diluted ADS was RMB 2.39 (US$0.35) in 1Q10, compared to RMB 0.18 in 4Q09 and RMB 0.51 in 1Q09.On a non-GAAP basis, the Company had an annualized return on equity of 26.6% in 1Q10 as compared to 17.4% in 4Q09 and 2.3% in 1Q09. � On a GAAP basis, the Company had an annualized return on equity of 19.2% in 1Q10 as compared to 1.5% in 4Q09 and 4.0% in 1Q09.In October 2009, the FASB issued ASU No. 2009-15, "Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance or Other Financing" ("ASU 2009-15"). �ASU 2009-15 amends ASC 470-20, "Debt: Debt with Conversion and Other Options", to include the accounting for own-share lending arrangements in contemplation of convertible debt issuance or other financing. �ASU 2009-15 is effective for fiscal years beginning on or after December 15, 2009 and shall be applied retrospectively for all arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009 and for arrangements entered into on or after the beginning of the first reporting period that begins on or after June 15, 2009. �Early adoption is not permitted. �The Company has determined that upon the adoption of ASU 2009-15 on January 1, 2010, the redeemable ordinary shares issued in January 2008 concurrent with its convertible bond issuance is regarded as an own-share lending arrangement. As such, the share-lending arrangement is measured at fair value, and recognized as an issuance cost with an offset to equity. �The Company has evaluated the adoption of ASU 2009-15 and determined that the fair value of share-lending arrangement is immaterial to its consolidated financial statement.FINANCIAL POSITIONAs of March 31, 2010, the Company had cash and cash equivalents of RMB 936.3 million (US$137.2 million) and net working capital of RMB 1,978.1 million (US$289.8 million). Total short-term bank borrowings (including the current portion of long-term bank borrowings) were RMB 930.6 million (US$136.3 million), compared to RMB 494.8 million as of December 31, 2009.�� The increase in short-term borrowings was because the Company drew down some additional short-term bank borrowings in anticipation of financing needs as the Company expands its manufacturing capacity and R&D capabilities to meet robust demand.As of March 31, 2010, the Company had total long-term debt of RMB 977.7 million (US$143.2 million), which comprises both long-term bank borrowings and convertible notes payable. � The Company's long-term bank borrowings are to be repaid in installments until their maturity in 2011 and 2012. �The first maturity of the convertible notes payable is in 2015.Net cash from operating activities in 1Q10 was negative RMB 85.2 million (US$12.5 million), compared to RMB 336.9 million in 4Q09 and RMB 82.5 million in 1Q09. � The net cash outflow to operating activities was primarily due to the increase in account receivables which resulted from the increase in the total net revenues. As of March 31, 2010, accounts receivable increased to RMB 849.0 million (US$124.4 million) from RMB 587.5 million as of December 31, 2009.� Days sales outstanding was 47 days in 1Q10, which was consistent with 4Q09.� As of March 31, 2010, inventories decreased to RMB 720.9 million (US$105.6 million) from RMB 784.0 million as of December 31, 2009. �Days inventory outstanding improved to 57 days in 1Q10 from 71 days in 4Q09 and 106 days in 1Q09 as the Company continues to improve its supply chain management. Capital expenditures were RMB 65.0 million (US$9.5 million) in 1Q10. CAPACITY EXPANSIONThe Company has already reached its previously announced module capacity target of 700 MW. �Due to anticipated demand from customers for the second half of 2010, the Company plans to further expand module capacity to 900 MW by August 30, 2010.The Company recently acquired a cell production line with an annual capacity of 25MW from a wholly owned subsidiary of Semiconductor Manufacturing International Corporation and began operations in May 2010. �Including the previously announced cell capacity expansion plan of 120 MW, the Company is expected to have a total cell capacity of 500 MW by July 1, 2010.The Company also plans to expand its annual ingot production capacity from 300 MW to 360 MW and annual wire saw capacity from 300 MW to 400 MW by May 31, 2010. �This is to be achieved primarily through improvements in production technique without incurring any significant capital expenditures.Details on the Company's production capacities and expected production capacities:Capacity (MW)March 31, 2009December 31, 2009March 31, 2010December 31, 2010EIngots300300300360Wiresaw300300300400Cells360360360500Modules450550600900BUSINESS OUTLOOKThe Company provides the following guidance based on current operating trends and market conditions.For 2Q10, the Company expects:Total module shipments to be 160MW to 170MW, of which approximately 35% will be for PV module processing services.ASP for PV module shipments to stay flat in constant currency but decline by approximately 6.5% from 1Q10 on the assumption that the Euro/US dollar exchange rate stays at approximately 1.25 for the rest of the quarter.For 2010 full year shipment, the Company is raising its guidance from 600MW to 650MW � based on strong demand from customers for 2010. �Module processing services is expected to represent approximately 20-30% of the total shipments.CONFERENCE CALLManagement will host a conference call to discuss Solarfun's 2010 first quarter results on May 26, 2010 at 8:00 am Eastern Daylight Time ( 8:00 pm Shanghai time ) �and take questions following the prepared remarks.The dial-in details for the live conference call are as follows:US Toll Free1.800.659.2037International Toll Free1.617.614.2713South China Toll FreeNorth China Toll Free10 800 130 039910 800 152 1490Participant Code����������������������������������SOLFA live webcast of the conference call will be available on the investor relations section of the Company's website at: http://www.solarfun-power.com. A replay of the webcast will be available for one month.Telephone replay of the call will be available for seven days after the conclusion of the call. The dial-in details for the replay are as follows:US Toll Free1.888.286.8010International Toll1.617.801.6888Passcode16751627FOREIGN CURRENCY CONVERSIONThe conversion in this release of Renminbi into U.S. dollars is made solely for the convenience of the reader, and is based on the exchange rate as set forth in the H.10 statistical release of the Federal Reserve Board as of March 31, 2010, which was RMB 6.8258 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on March 31, 2010 or at any other date. The percentages stated in this press release are calculated based on Renminbi amounts.USE OF NON-GAAP FINANCIAL MEASURES The Company has included in this press release certain non-GAAP financial measures, including certain line items presented on the basis that the accounting impact of the adoption of ASC 815-40 had not been recorded. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of the Company and when planning and forecasting future periods. Readers are cautioned not to view non-GAAP financial measures on a stand-alone basis or as a substitute for GAAP measures, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP measures with non-GAAP measures also included herein.SAFE HARBOR STATEMENT �This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section�27A of the Securities Act of 1933, as amended, and Section�21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include 2Q and full-year 2010 estimates for PV product shipments, ASPs, production capacities and other results of operations. �Forward-looking statements involve inherent risks and uncertainties and actual results may differ materially from such estimates depending on future events and other changes in business climate and market conditions. �Solarfun disclaims any obligation to update or correct any forward-looking statements.About Solarfun Solarfun manufactures silicon ingots, wafers, PV cells and PV modules and provides PV module processing services to convert PV cells into PV modules. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules. Solarfun sells its products through third-party distributors, OEM manufacturers and directly to system integrators. Solarfun was founded in 2004 and its products have been certified to TUV and UL safety and quality standards.SOLF-G (1) All non-GAAP numbers used in this press release exclude the accounting impact from the adoption of ASC 815-40, which relates to the accounting treatment for the convertible bonds. � Please refer to the attached financial statements for the reconciliation between the GAAP and non-GAAP financial results. �For further information, please contact:Solarfun Power Holdings Co., Ltd.Paul CombsV.P. Strategic Planning26F BM Tower218 Wusong RoadShanghai, 200080P. R. ChinaTel: �86-21-26022833 / Mobile: �86 138 1612 2768E-mail: IR@solarfun-power.comChristensenKathy LiTel: �+1 480 614 3036E-mail: �kli@ChristensenIR.comRoger HuTel: �+86 158 1049 5326E-mail: �rhu@ChristensenIR.comSOLARFUN POWER HOLDINGS CO., LTD. CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),except for number of shares and per share data)March 31December 31March 31March 312009200920102010(Unaudited)(Unaudited)(Unaudited)(Unaudited)RMBRMBRMBUSDASSETSCurrent assetsCash and cash equivalents466,276645,720936,313137,173Restricted cash270,39860,53983,44012,224Derivative contracts63,0797,36047,2756,926Accounts receivable, net202,096587,488848,959124,375Inventories, net747,587783,973720,860105,608Advance to suppliers, net1,154,252979,762995,542145,850Other current assets425,131180,315224,42032,878Deferred tax assets68,87263,11569,46010,176Amount due from related parties1912,45886,73012,706 � �Total current assets3,397,7103,320,7304,012,999587,916Non-current assetsFixed assets ? net1,629,5441,586,2831,599,247234,294Intangible assets ? net211,559208,563209,04230,625Goodwill134,735134,735134,73519,739Deferred tax assets13,65313,78914,4172,112Long-term deferred expenses37,09733,15731,5274,619 � �Total non-current assets2,026,5881,976,5271,988,968291,389TOTAL ASSETS5,424,2985,297,2576,001,967879,305LIABILITIESCurrent liabilitiesDerivative contracts5,2731,1481,131166Short-term bank borrowings1,435,000404,764783,132114,731Long-term bank borrowings, current portion45,00090,000147,50021,609Accounts payable187,987441,768416,88561,075Notes payable76,377186,921266,65039,065Accrued expenses and other liabilities129,392191,895212,71631,163Customer deposits2,95659,685141,42620,719Deferred tax liability3,263---Unrecognized tax benefit27,38527,38527,3854,012Amount due to related parties10,10916,76538,0745,578 � �Total current liabilities1,922,7421,420,3312,034,899298,118Non-current liabilitiesLong-term bank borrowings, non-current portion147,500380,000300,00043,951Convertible notes payable519,365658,653677,73899,291Deferred tax liability27,00826,56626,4193,870 � �Total non-current liabilities693,8731,065,2191,004,157147,112TOTAL LIABILITIES2,616,6152,485,5503,039,056445,230Redeemable ordinary shares5454558EQUITYShareholders' equityOrdinary shares21422722733Additional paid-in capital2,151,0262,331,7972,344,050343,410Statutory reserves47,63869,56483,28112,201Retained earnings604,653410,065535,29878,423 � �Total shareholders' equity2,803,5312,811,6532,962,856434,067Noncontrolling interest4,098---TOTAL EQUITY2,807,6292,811,6532,962,856434,067TOTAL LIABILITIES, MEZZAINNE EQUITY AND SHAREHOLDERS' EQUITY5,424,2985,297,2576,001,967879,305SOLARFUN POWER HOLDINGS CO., LTD.CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),except for number of shares and per share data)For the three months endedMarch 31December 31March 31,March 31,2009200920102010(Unaudited)(Unaudited)(Unaudited)(Unaudited)RMBRMBRMBUSDNet revenues684,1971,252,7111,475,832216,214Cost of revenues(634,751)(1,017,141)(1,203,334)(176,292)Gross profit49,446235,570272,49839,922Operating expensesSelling expenses(16,328)(46,114)(29,481)(4,319)G&A expenses(40,233)(50,866)(38,027)(5,571)R&D expenses(8,185)(12,843)(15,916)(2,332) � �Total operating expenses(64,746)(109,823)(83,424)(12,222)Operating profit / (losses)(15,300)125,747189,07427,700Interest expenses(41,397)(39,662)(40,919)(5,995)Interest income4941,29854480Exchange losses(32,849)(14,694)(47,011)(6,887)Investment income--Gain on change in fair value of derivative71,08615,39750,7567,436Gain / (losses) on change in conversion feature fair value of convertible bond28,458(71,279)(2,505)(367)Other income3,5331,2653,008441Other expenses(3,584)(2,046)(1,996)(292)Government grant1,9072,0009,3651,372Net income before income tax12,34818,026160,31623,488Income tax benefit / (expenses)15,002(7,338)(21,367)(3,130)Net income27,35010,688138,94920,358Net income / (losses) attributable to noncontrolling interest(85)67--Net income attributableto shareholders27,43510,621138,94920,358Net income per shareBasic0.100.040.480.07Diluted0.100.040.480.07Shares used in computationBasic268,848,771287,982,207289,674,891289,674,891Diluted268,848,771288,210,311290,187,034290,187,034Net income per ADSBasic0.510.182.400.35Diluted0.510.182.390.35ADSs used in computationBasic53,769,75457,596,44157,934,97857,934,978Diluted53,769,75457,642,06258,037,40758,037,407SOLARFUN POWER HOLDINGS CO., LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),except for number of shares and per share data)For the three months endedMarch 31, 2009December 31, 2009March 31, 2010March 31, 2010 RMB RMB RMB USD Cash flow from operating activitiesNet (loss) income27,35010,688138,94920,356Adjustments to reconcile net (loss) income to net cash used in operating activities:Unrealised financial derivative(23,933)(47,701)(39,932)(5,850)Amortization of convertible bonds discount13,66613,93316,5802,429Fair value change of conversion feature(28,458)71,2792,505367Loss from disposal of fixed assets5679658085Depreciation and amortization30,17343,07243,1346,319Amortization of long-term deferred expense1,7021,5701,780261Provision for doubtful debt of advance to suppliers-16316324Reversal of doubtful debt for accounts receivable124023,723(278)(41)Provision for doubtful debt of accounts receivable--1,005147Write down of inventory(27,200)40,34137,8445,544Stock compensation expense(18,091)8,5097,1491,047Warranty provision2,74413,5621,987Deferred tax benefit6,952(854)(7,120)(1,043)Unrecognized tax benefit-(1,082)--Changes in operating assets and liabilitiesRestricted cash(35,575)5,166(17,761)(2,602)Inventory11,321(15,899)25,2693,702Account receivables117,441116,024(262,198)(38,413)Advances to suppliers(8,638)(152,045)(15,943)(2,336)Prepaid expense1,54118,66312,8651,885Other current assets55,07784,065(56,967)(8,346)Amount due from related parties30,132(74,272)(10,881)Accounts payable(39,967)51,946(22,375)(3,278)Accrued expenses and other liabilities(10,983)10,8117,2591,063Customer deposits(6,538)38,33981,74111,975Amount due to related parties3,7063,20121,3093,122Net cash provided (used) in operating activities82,515336,884(85,152)(12,477)Cash flows from investing activitiesAcquisition of fixed assets(156,771)(27,468)(63,418)(9,291)Change of restricted cash(146,686)65,832--Acquisition of intangible assets(419)(125)(1,538)(225)Acquisition of subsidiaries(88,968)(850)--Net cash provided (used) in investing activities(392,844)37,389(64,956)(9,516)Cash flows from financing activitiesProceeds from exercise of stock option-225,104748Proceeds from issuance of ordinary shares-70,387--Proceeds from short-term bank borrowings617,00065,097508,36874,477Payment of short term bank borrowings(280,832)(674,071)(130,000)(19,045)Proceeds from long term bank borrowings(7,500)---Payment for long term bank borrowings-(7,500)(22,500)(3,296)Utilization of notes payables37,03627,726266,65039,065Payment of notes payables--(186,921)(27,384)Profit distribution-(3,400)--Net cash provided (used) by financing activities365,704(521,739)440,70164,565Unrealised foreign exchange gain/loss----Net increase in cash and cash equivalents55,375(147,466)290,59342,573Cash and cash equivalents at the beginning of period410,901793,186645,72094,600Cash and cash equivalents at the end of period466,276645,720936,313137,173Supplemental disclosure of cash flow information:Interest paid17,76421,26839,4385,778Income tax paid3,14630,9788,4041,231Realized gain from derivative contracts71,086(32,305)10,8231,586Supplemental schedule of non-cash activities:Acquisition of fixed assets included in accounts payable, accrued expenses and other liabilities(10,928)(2,803)19,3332,832Conversion of CB into ordinary shares----Transfer of unamortized debt issurance costs to equity upon conversion of CB into ordinary shares----For the three months ended For the three months ended March 31, 2009December 31, 2009March 31, 2010March 31, 2010(RMB million)(RMB million)(RMB million)(US$ million)Non-GAAP net income/(loss)12.495.9158.123.2Fair value changes of the conversion features of the Convertible bonds28.5(71.3)(2.5)(0.4)Accretion of interest of the Convertible bonds(13.5)(14.0)(16.7)(2.4)GAAP net income/(loss)27.410.6138.920.4For the three months ended For the three months ended March 31, 2009December 31, 2009March 31, 2010March 31, 2010(RMB)(RMB)(RMB)(USD)Non GAAP net income per ADS - diluted0.231.662.720.40Fair value changes of the conversion features of the Convertible bonds0.53(1.24)(0.04)(0.01)Accretion of interest of the Convertible bonds(0.25)(0.24)(0.29)(0.04)Net profit contributed to Solarfun Power Holdings Co., Ltd shareholders per diluted ADS0.510.182.390.35ADS (Diluted)53,769,75457,642,06258,037,40758,037,407For the three months ended Annualised for the firstquarter of 2009Annualised for the fourth quarter 2009Annualised for the first quarter of 2010March 31, 2009December 31, 2009March 31, 2010March 31, 2009December 31, 2009March 31, 2010Non-GAAP Return on Equity 0.58%4.35%6.65%2.32%17.40%26.60%Fair value changes of the conversion features of the Convertible bonds-0.48%-0.51%-0.58%-1.94%-2.02%-2.31%Accretion of interest of the Convertible bonds0.89%-3.46%-1.26%3.58%-13.86%-5.05%GAAP Return on equity0.99%0.38%4.81%3.96%1.52%19.24%SOURCE Solarfun Power Holdings Co., Ltd.For further information: Paul Combs, V.P. Strategic Planning of Solarfun Power Holdings Co., Ltd., 86-21-26022833, Mobile, 86 138 1612 2768, IR@solarfun-power.com; or Kathy Li, +1-480-614-3036, kli@ChristensenIR.com, or Roger Hu, +86 158 1049 5326, rhu@ChristensenIR.com, both of Christensen, for Solarfun Power Holdings Co., Ltd.