Solar Maker Risen Energy Q1 Profits Surge 18-Fold
Solar Maker Risen Energy Q1 Profits Surge 18-Fold
Risen Energy, China’s major solar company, released their quarterly financial statements last week and within, reported nearly 150 percent growth in revenue for the first quarter this year, due to rising sales of solar products and subsidiary restructuring.
The Ningbo-based Company swung to a net profit of 353 million yuan from January to March, from a loss of 20.5 million yuan in the same time frame last year, with revenue growth to nearly 1.9 billion yuan (+ approximately 150%) during the same corresponding period.
The Company contributed the growth to the surging demand for solar products as well as a restructuring plan with its recent acquisition of Luoyang Chaori Solar Co., Ltd, a subsidiary of Shanghai Chaori. The company was purchased for a total amount of 85 million yuan in a strategic move to strengthen Risen’s business in China’s western and central regions. The debt-ridden company was shut down in 2012 but it resumed production after Risen’s acquisition and restructuring.
At the same time, the Risen has been expanding its presence in overseas markets including Mexico, Italy, Germany, Romania and India, with growth of 50% annually to 1.45 billion yuan revenue; further growth anticipated in these and other numerous regions.
Risen’s International and Domestic expansion during 2015 saw a year on year growth of 78%, with 5.26 billion yuan revenue, and 320 million yuan of net profit, which has provided a stable platform upon which the first quarter results have expanded. During 2015 the domestic market contributed to more than 70% of the Company’s business, it is however anticipated that the global expansion will amend this split during 2016 and onwards.
Wang Hong, president of Risen Energy Co., Ltd, noted that the company is shifting its focus on the development of photovoltaic power station, which has also helped increase profit margins. “As the price of solar pv products continues on its downward trend, profit margins are very thin. One way to obviate this issue is to invest in solar power plants to allow our cash to generate a greater return on investment.”
