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Press release from PR Newswire

Solarfun Reports Second Quarter 2010 Results

Tuesday, August 03, 2010

Solarfun Reports Second Quarter 2010 Results05:10 EDT Tuesday, August 03, 2010SHANGHAI, Aug. 3 /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 June 30, 2010. SECOND QUARTER 2010 HIGHLIGHTSTotal net revenues were RMB 1,752.7 million (US$258.5 million), an increase of 18.8% from 1Q10 and an increase of 105% from 2Q09. PV module shipments, including module processing services, reached 204.6 MW, an increase from 150.6 MW in 1Q10 and from 64.3 MW in 2Q09. Average selling price ("ASP"), excluding module processing services, declined by 6.8% to RMB 11.19 per watt (US$1.65) from RMB 12.01 per watt in 1Q10. Gross profit increased 35.4% quarter-over-quarter to RMB 368.8 million (US$ 54.4 million) from RMB 272.5 million in 1Q10.  Despite the decline in ASP, gross margin increased to 21.0% from 18.5% in 1Q10, primarily due to a continued reduction in manufacturing costs.Despite the continued volatility in the currency market between Euro and RMB , the Company recorded a net currency gain of RMB 15.1 million (US$ 2.2 million). Net income attributable to shareholders on a GAAP basis was RMB 272.8 million (US$ 40.2 million), an increase of 96.4% from RMB 138.9 million in 1Q10.  Net income attributable to shareholders on a non-GAAP basis(1) was RMB 231.7 million (US$ 34.2 million), an increase of 46.5% from RMB 158.1 million in 1Q10.  Net income per basic ADS on a GAAP basis was RMB 4.71 (US$ 0.69), an increase of 96.2% from the previous quarter. Net income per basic ADS on a non-GAAP basis was RMB 4.00 (US$ 0.59), an increase of 46.5% from the previous quarter. Annualized ROE on a non-GAAP basis significantly improved to 35.9% in 2Q10 from 26.6% in 1Q10 and negative 38.3% in 2Q09.The Company generated RMB 417.5 million (US$ 61.6 million) in cash from operating activities during the quarter. Peter Xie, President of Solarfun, commented, "We are pleased to announce another quarter of outstanding performance.  For the first six months of 2010, the Company shipped a total of 355 MW of PV modules and achieved net income per basic ADS of US$1.05 on a GAAP basis and US$0.99 on a non-GAAP basis. The strong results can be attributed to continued strong end-market demand as well as consistent execution by the management team.  We expect robust demand for the rest of 2010, and are raising our 2010 full year shipment guidance from 650 MW to approximately 750 MW.    Based on early demand indications from our key customers for 2011, we are increasingly optimistic about the Company's future performance."SECOND QUARTER 2010 RESULTSTotal net revenues were RMB 1,752.7 million (US$ 258.5 million), an increase of 18.8% from 1Q10 and an increase of 105.1% from 2Q09.  The increase in net revenues in 2Q10 was primarily due to significantly higher shipment volumes which reflect improved industry demand as well as growth in the Company's production capacity. Revenue contribution from PV module processing services as a percentage of total net revenues was 11.9% as compared to 7.8% in 1Q10. PV module shipments, including module processing services, reached 204.6 MW, an increase from 150.6 MW in 1Q09 and from 64.3 MW in 2Q09. The revenue breakdowns by shipment destination and by invoiced location in 2Q10 are as follows:(Photo:  http://photos.prnewswire.com/prnh/20100803/LA44785-a)(Photo:  http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-a)(Photo:  http://photos.prnewswire.com/prnh/20100803/LA44785-b)(Photo:  http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-b)Starting next quarter, the Company will disclose only revenue breakdown by shipment destination as the management team believes this more accurately reflects the Company's geographic diversification.ASP, excluding module processing services, declined by 6.8% to RMB 11.19 (US$ 1.65) per watt from RMB 12.01 per watt in 1Q10. The decline in ASP in 2Q10 was primarily due to the depreciation of the Euro against the Renminbi. Gross profit grew 35.4% quarter-on-quarter to RMB 368.8 million (US$ 54.4 million) from RMB 272.5 million in 1Q10.  Despite the decline in ASP, gross margin increased to 21.0% from 18.5% in 1Q10, primarily due to a continued reduction in manufacturing costs.The blended COGS per watt, excluding module processing services, was US$ 1.31, representing a 7.7% decrease from US$ 1.42 per watt in 1Q10. The blended COGS takes into account the processing cost (silicon and non-silicon) using internally-sourced wafers, purchase cost and additional processing cost of externally-sourced wafers and cells, as well as freight costs.The production cost (including both silicon and non-silicon costs) using internal wafers was US$ 1.12 per watt, representing a 5.9% decrease from US$ 1.19 per watt in 1Q10.(Photo:  http://photos.prnewswire.com/prnh/20100803/LA44785-c)(Photo:  http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-c)(Photo:  http://photos.prnewswire.com/prnh/20100803/LA44785-d)(Photo:  http://www.newscom.com/cgi-bin/prnh/20100803/LA44785-d)Operating profit was RMB 269.2 million (US$ 39.7 million), representing an increase of 42.4% from RMB 189.1 million in 1Q10. The Company had an operating loss of RMB 121.9 million in 2Q09. Operating margin for 2Q10 was 15.4% which compares to 12.8% in 1Q10 and negative 14.3% in 2Q09.  Operating expenses as a percentage of total net revenues stayed flat at 5.7% in 2Q10 as compared to the previous quarter. Interest expense of 2Q10 was RMB 40.2 million (US$ 5.9 million) and has not fluctuated significant compared to 1Q10 of RMB 40.9 million.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 2Q10,  the Company recorded a net foreign exchange gain of RMB 15.1 million (US$ 2.2 million), representing foreign exchange losses that were more than offset by a gain from  the change in fair value of foreign currency derivatives. The Company recorded a net foreign exchange gain of RMB 3.7 million in 1Q10. Gain from the change in fair value of the conversion feature of the Company's convertible bonds was RMB 57.8 million (US$8.5 million), as compared to a loss of RMB 2.5 million in 1Q10 and a loss of RMB 113.4 million in 2Q09. The fluctuations, from the adoption of ASC 815-40 since January 1, 2010 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 GAAP basis, net income attributable to shareholders was RMB 272.8 million (US$40.2 million), compared to net income attributable to shareholders of RMB 138.9 million in 1Q10 and net loss attributable to shareholders of RMB 319.9 million in 2Q09. Net income per basic ADS was RMB 4.71 (US$0.69) in 2Q10, compared to RMB 2.40 in 1Q10 and net loss per basic ADS of RMB 5.95 in 2Q09. On a non-GAAP basis, net income attributable to shareholders was RMB 231.7 million (US$34.2 million), as compared to RMB 158.1 million in 1Q10 and net loss attributable to shareholders of RMB 196.6 million in 2Q09. Net income per basic ADS, on a non-GAAP basis, was RMB 4.00 (US$0.59) in 2Q10, as compared to RMB 2.73 in 1Q10 and net loss per basic ADS of RMB 3.66 in 2Q09. On a GAAP basis, the Company had an annualized return on equity of 35.2% in 2Q10, as compared to 19.2% in 1Q10 and negative 48.3% in 2Q09. On a non-GAAP basis, the Company had an annualized return on equity of 35.9% in 2Q10, as compared to 26.6% in 1Q10 and negative 38.3% in 2Q09. FINANCIAL POSITION As of June 30, 2010, the Company had cash and cash equivalents of RMB 885.4 million (US$130.6 million) and net working capital of RMB 2,002.4 million (US$295.3 million). Total short-term bank borrowings (including the current portion of long-term bank borrowings) were RMB 706.0 million (US$104.1 million), as compared to RMB 930.6 million as of March 31, 2010. The reduction in short-term borrowings was because the Company used additional cash generated from operations to reduce short-term bank borrowings.As of June 30, 2010, the Company had total long-term debt of RMB 884.7 million (US$130.5 million), which comprised 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. Holders of the convertible notes may require the Company to purchase the notes on January 15, 2015. Net cash from operating activities in 2Q10 was RMB 417.5 million (US$61.6 million), compared to negative RMB 5.4 million in 1Q10 and RMB140.8 million in 2Q09. The net cash inflow from operating activities was primarily due to the increase in net income and the reductions in accounts receivables and inventories.   As of June 30, 2010, accounts receivable declined to RMB 828.9 million (US$122.2 million) from RMB 849.0 million as of March 31, 2010. Days sales outstanding stayed relatively flat at 48 days in 2Q10, as compared to 47 days in 1Q10. As of June 30, 2010, inventories decreased to RMB 591.6 million (US$87.2 million) from RMB 720.9 million as of March 31, 2010. Days inventory outstanding improved to 43 days in 2Q10 from 57 days in 1Q10 and from 71 days in 4Q09, primarily because of continued improvements in the Company's supply chain management. Capital expenditures were RMB 204.5 million (US$ 30.2 million) in 2Q10. In the first 6 months of 2010, the total capital expenditures were 265.4 million (US$ 39.1 million).CAPACITY EXPANSION The Company recently announced the next phase of its cell line expansion. It plans to add another 50 MW to cell capacity from manufacturing process improvements and debottlenecking, to reach 550MW of cell capacity by early first quarter of 2011.  The Company is on track to expand its module capacity to 900 MW by August 30, 2010.In addition, the Company recently announced that it plans to convert 160 MW of its cell capacity to high efficiency cell capacity through the introduction of selective emitter technologies.   The high efficiency cell capacity is expected to realize efficiency targets exceeding 18.5% and 17.0 % for monocrystalline and multicrystalline cells, respectively.Details on the Company's production capacities and expected production capacities as follows: Capacity ramp-up plan Jun 30, 2009 Mar 31, 2010 Jun 30, 2010 Dec 31, 2010 (Estimated)Ingot MW300300360360Wire sawMW300300400400CellMW360360400500Module MW550600700900BUSINESS OUTLOOK The Company provides the following guidance based on current operating trends and market conditions. For 3Q10, the Company expects: Total module shipments to be 210 MW to 220 MW, of which approximately 30% will be for PV module processing services. ASP excluding PV module processing services to increase by approximately 3% from 2Q10 on the assumption that the Euro/US dollar exchange rate stays at approximately 1.28 during the third quarter of 2011.In view of the continued robust demand from the Company's customers for the remainder of 2010, the Company is raising its full-year 2010 shipment guidance from 650MW to approximately 750MW. Module processing services are expected to represent approximately 30% of the total shipments. CONFERENCE CALL Management will host a conference call to discuss Solarfun's 2010 second quarter results on Aug 3, 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: - U.S. Toll Free Number:  +1 800 510 0219- International dial-in number: +1 617 614 3451- China Toll Free Number (North):  +10 800 152 1490- China Toll Free Number (South):  +10 800 130 0399Passcode: 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: - U.S. Toll Free Number:  +1 888 286 8010- International dial-in number:  +1 617 801 6888Passcode:    88957192FOREIGN CURRENCY CONVERSION The 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 June 30, 2010, which was RMB 6.7815 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 June 30, 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 3Q 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 Power Holdings Ltd. (NASDAQ: SOLF) is a leading manufacturer of solar PV cells and modules in China, focusing on delivering high quality and reliable products at competitive prices. Solarfun produces its monocrystalline and polycrystalline products at its internationally certified, vertically-integrated manufacturing facilities. Solarfun partners with third-party distributors, OEM manufacturers, and system integrators to sell its modules into large-scale utility, commercial and governmental, and residential/small commercial markets. Solarfun maintains a strong global presence with local staff throughout Europe, North America, and Asia.  Solarfun embraces environmental responsibility and sustainability by taking an active role in the photovoltaic cycle voluntary recycling program. For more information, visit: www.solarfun-power.com.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 Combs    V.P. Strategic Planning    26F BM Tower    218 Wusong Road    Shanghai, 200080    P. R. China    Tel:  86-21-26022833 / Mobile:  86 138 1612 2768    E-mail: IR@solarfun-power.com    Christensen    Kathy Li    Tel:  +1 480 614 3036    E-mail:  kli@ChristensenIR.com    Roger Hu    Tel:  +86 158 1049 5326    E-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)December 31March 31June 30June 302009201020102010(Unaudited)(Unaudited)(Unaudited)(Unaudited)RMBRMBRMBUSDASSETSCurrent assetsCash and cash equivalents645,720936,313885,442130,567Restricted cash60,53983,440100,46214,814Derivative contracts7,36047,27566,5279,810Accounts receivable, net587,488848,959828,939122,236Inventories, net783,973720,860591,58587,235Advance to suppliers, net979,762995,542954,220140,709Other current assets180,315224,419225,34033,230Deferred tax assets63,11569,46060,4028,907Amount due from related parties12,45886,73096,22014,189    Total current assets3,320,7304,012,9983,809,137561,697Non-current assetsFixed assets ? net1,586,2831,599,2471,764,560260,202Intangible assets ? net208,563209,042207,94930,664Goodwill134,735134,735134,73519,868Deferred tax assets13,78914,41715,0132,214Long-term deferred expenses33,15831,52730,2894,466    Total non-current assets1,976,5281,988,9682,152,546317,414TOTAL ASSETS5,297,2586,001,9665,961,683879,111LIABILITIESCurrent liabilitiesDerivative contracts1,1481,131739109Short-term bank borrowings404,764783,132530,98578,299Long-term bank borrowings, current portion90,000147,500175,00025,806Accounts payable441,768416,885410,06160,468Notes payable186,921266,650209,59030,906Accrued expenses and other liabilities191,895212,716270,67439,914Customer deposits59,685141,426122,74318,100Deferred tax liability----Unrecognized tax benefit27,38527,38527,3854,038Amount due to related parties16,76538,07459,5788,785    Total current liabilities1,420,3312,034,8991,806,755266,425Non-current liabilitiesLong-term bank borrowings, non-current portion380,000300,000250,00036,865Convertible notes payable658,653677,738634,66693,588Long term payableDeferred tax liability26,56626,41926,2713,874    Total non-current liabilities1,065,2191,004,157910,937134,327TOTAL LIABILITIES2,485,5503,039,0562,717,692400,752Redeemable ordinary shares5555558EQUITYShareholders? equityOrdinary shares22722722733Additional paid-in capital2,331,7972,344,0502,352,293346,869Statutory reserves69,56483,281104,46715,405Retained earnings410,065535,297786,949116,044    Total shareholders? equity2,811,6532,962,8553,243,936478,351Noncontrolling interest----TOTAL EQUITY2,811,6532,962,8553,243,936478,351TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS? EQUITY5,297,2586,001,9665,961,683879,111SOLARFUN POWER HOLDINGS CO., LTD.CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),except for number of shares and per share data)For the three months endedJune 30March 31June 30June 302009201020102010(Unaudited)(Unaudited)(Unaudited)(Unaudited)RMBRMBRMBUSDNet revenues854,6101,475,8321,752,708258,455Cost of revenues(907,645)(1,203,334)(1,383,868)(204,065)----Gross profit / (loss)(53,035)272,498368,84054,390Operating expensesSelling expenses(18,206)(29,481)(39,238)(5,786)G&A expenses(47,002)(38,027)(42,092)(6,207)R&D expenses(3,673)(15,916)(18,290)(2,697)    Total operating expenses(68,881)(83,424)(99,620)(14,690)Operating profit (loss)(121,916)189,074269,22039,700Interest expenses(36,091)(40,919)(40,230)(5,932)Interest income1,0605441,285189Exchange gain (loss)15,590(47,011)(82,258)(12,130)Gain (loss) on change in fair value of derivative(49,423)50,75697,31214,350Gain (loss) on change in conversion feature fair value of convertible bond(113,423)(2,505)57,7658,518Other income2763,0089,1961,356Other expenses(4,302)(1,996)(484)(71)Government grant1,7979,36513,1951,946Net income (loss) before income tax(306,432)160,316325,00147,926----Income tax expenses(13,475)(21,367)(52,163)(7,692)----Net income (loss)(319,907)138,949272,83840,234Net income (loss) attributableto shareholders(319,905)138,949272,83840,234Net income (loss) per shareBasic(1.19)0.480.940.14Diluted(1.19)0.480.730.11Shares used in computationBasic268,981,409289,674,891289,851,889289,851,889Diluted268,981,409290,187,034335,514,967335,514,967Net income (loss) per ADSBasic(5.95)2.404.710.69Diluted(5.95)2.393.630.53ADSs used in computationBasic53,796,28257,934,97857,970,37857,970,378Diluted53,796,28258,037,40767,102,99367,102,993SOLARFUN POWER HOLDINGS CO., LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),except for number of shares and per share data)For the three months endedJune 30, 2009March 31, 2010June 30, 2010 June 30, 2010 RMBRMBRMB USD Cash flow from operating activitiesNet income (loss)(319,905)138,949272,83840,233Adjustments to reconcile net income (loss) to net cashprovided (used) in operating activities:Unrealised financial derivative71,328(39,932)(19,644)(2,897)Amortization of convertible bonds discount10,24316,58014,6932,167Fair value change of convertion feature113,4232,505(57,765)(8,518)Loss from disposal of fixed assets3658010515Depreciation and amortization38,52643,13444,9006,621Amortization of long-term deferred expense1,7621,7801,796265Provision for doubtful debt of advance to suppliers236,5151630Reversal of doubtful debt for accounts receivable(115)(278)0Provision for doubtful debt of accounts receivable1,0050Write down of inventory66,14437,84419,8812,932Stock compensation expense11,9057,1497,4921,105Warranty provision6,86913,56213,0381,923Deferred tax benefit7,574(7,120)8,3141,226Unrecognized tax benefit814000Changes in operating assets and liabilitiesRestricted cash45,516(17,761)(16,022)(2,363)Inventory(14,300)25,269109,39416,131Account receivables(312,117)(262,198)20,0192,952Advances to suppliers39,827(15,943)41,3226,093Prepaid expense31,40112,865(6,819)(1,006)Other current assets17,451(56,967)5,898868Amount due from related parties(24,416)(74,272)(9,489)(1,399)Accounts payable114,08857,354(80,216)(11,828)Accrued expenses and other liabilities(130)7,25944,9196,624Customer deposits39081,741(18,683)(2,755)Amount due to related parties(2,006)21,30921,5043,171Net cash provided (used) in operating activities140,823(5,423)417,47561,560Cash flows from investing activitiesAcquisition of fixed assets(29,086)(63,418)(188,170)(27,748)Change of restricted cash(35,867)0(6,140)(905)Acquisition of intangible assets(1,538)(140)(21)Net cash provided (used) in investing activities(64,953)(64,956)(194,450)(28,674)Cash flows from financing activitiesProceeds from exercise of stock option1,0805,104751111Proceeds from short-term bank borrowings587,014508,36897,14314,325Payment of short term bank borrowings(628,000)(130,000)(349,290)(51,506)Proceeds from long term bank borrowings(7,500)00Payment for long term bank borrowings(22,500)(22,500)(3,318)Net cash provided (used) by financing activities(47,406)360,972(273,896)(40,388)Unrealised foreign exchange gain/lossNet increase (decrease) in cash and cash equivalents28,464290,593(50,871)(7,502)Cash and cash equivalents at the beginning of period466,276645,720936,313138,069Cash and cash equivalents at the end of period494,740936,313885,442130,567Supplemental disclosure of cash flow information:Interest paid16,699 33,066 13,731 2,025 Income tax paid5,035 8,404 31,542 4,651 Realized gain from derivative contracts(2,029)10,823 77,668 11,453 Supplemental schedule of non-cash activities:Acquisition of fixed assets included in accounts payable, accrued expenses and other liabilities(2,055)(2,509)16,332 2,408 Conversion of CB into ordinary shares179 Transfer of unamortized debt issurance costs to equity upon conversion of CB into ordinary shares(5)For the three months ended For the three months ended June 30, 2009March 31, 2010June 30, 2010June 30, 2010(RMB million)(RMB million)(RMB million)(US$ million)Non-GAAP net income/(loss)(196.6)158.1231.734.2Fair value changes of the conversion features of the Convertible bonds(113.4)(2.5)57.88.5Accretion of interest of the Convertible bonds(9.9)(16.7)(16.7)(2.5)GAAP net income/(loss)(319.9)138.9272.840.2For the three months ended For the three months ended June 30, 2009March 31, 2010June 30, 2010June 30, 2010(RMB)(RMB)(RMB)(USD)Non GAAP net income per ADS - Basic(3.66)2.734.000.59Fair value changes of the conversion features of the Convertible bonds(2.11)(0.04)1.000.15Accretion of interest of the Convertible bonds(0.18)(0.29)(0.29)(0.04)Net profit contributed to Solarfun Power Holdings Co., Ltd shareholders per ADS - Basic(5.95)2.404.710.69ADS (Basic)53,796,28257,934,97857,970,37857,970,378For the three months ended Annualised for the 2nd quarter of 2009Annualised for the 1st quarter of 2010Annualised for the 2nd quarter of 2010June 30, 2009March 31, 2010June 30, 2010June 30, 2009March 31, 2010June 30, 2010Non-GAAP Return on Equity -9.58%6.65%8.97%-38.32%26.60%35.88%Fair value changes of the coversion features of the Convertible bonds-2.12%-1.26%0.36%-8.47%-5.04%1.44%Accretion of interest of the Convertible bonds-0.37%-0.58%-0.54%-1.49%-2.32%-2.16%GAAP Return on equity-12.07%4.81%8.79%-48.28%19.24%35.16%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.