Comtec Solar Continues to Lead Monocrystalline Wafer Industry

Results Were Strong by All Measures

HONG KONG, SHANGHAI and SINGAPORE, March 17, 2011 /PRNewswire-Asia/ --

• Revenue in 2010 was record high of RMB1.02 billion, up 101.5% from 2009
• Gross Margin in 2010 was 32.4%, up from 10.9% in 2009
• GAAP net profit in 2010 was RMB222.9 million, up 795.2% from 2009
• Excluding a non-cash and one-off share-based compensation of RMB38 million, net profit would be approximately RMB260.9 million
• Shipment Volume more than double to 175.3MW
• Strong balance sheet and maintained net cash position

Comtec Solar Systems Group Limited ("Comtec" or the "Company", together with its subsidiaries the "Group", HKEx stock code: 712), a PRC-based leading manufacturer of monocrystalline solar wafers, today announced its financial results for the twelve months ended 31 December 2010.  

Financial Highlights

Financial Review

For the year ended 31 December 2010, Comtec delivered record revenue as strong demand on their quality wafers coupled with improved pricing environment in the industry. During the year, their sales volume was approximately 165.5MW (total shipment, including both sales and processing services, of approximately 175.3MW), increased from 81.6 MW in 2009 by 102.9%, which was the highest shipments in the Group's history. Comtec's industry-leading brand recognition enabled the Group to capitalize on favorable industry demand and to deliver robust performance.

Comtec also benefited from their continuous cost reduction efforts and efficient execution to improve the profitability in 2010. Our gross profit in 2010 was RMB330.6 million, up 500.0% year-on-year from RMB55.1 million for the corresponding period in 2009. Their gross margin in 2010 also improved to over 32.4% from 10.9% in the corresponding period in 2009. The Group's net profit in 2010 was RMB222.9 million, up approximately 795.2% year-on-year from RMB24.9 million for the corresponding period in 2009. Their net profit margin in 2010 expanded to over 21.8% from 4.9% in the corresponding period in 2009.

The Group continues to maintain a healthy balance sheet with net cash position of RMB123.7 million which included cash and cash equivalents of RMB293.7 million and short-term bank loans of RMB170 million in FY2010.

Looking Forward

In response to strong market demand and customer requests on the Group's premium products, which have high value-added features and are technically advanced, Comtec is in the process of expanding its manufacturing capacity to support its customers' growth and their growing demand for its products. Comtec has expanded its annualized production capacity to 600MW by the end of 2010. During the first half of 2011, the Group would gradually ramp up the newly installed capacity. Due to the strong demand on their quality wafers, they will further expand to approximately 1,000MW in the second half of 2011. The capital expenditures for expansion from 600MW to 1,000MW would be approximately RMB500 million.

On 1 March 2011, the Group was ranked by Green World Investors, a reputable green funds' blog, as one of top 10 wafer companies in the world. Comtec would fully focus on our core business to further strengthen its competitive advantage in the industry.

"With our high-quality products, successful brand penetration, strong customer loyalties, powerful research and development capabilities and fast expanding capacity, we are confident in solidifying our leading position in the rapidly growing industry and further increasing our market shares. Looking ahead, we will remain focused on our core wafer business where we have demonstrated solid track records and established competitive advantages. We believe such focus will best position our Group in the fast growing and increasingly competitive market of solar products. With strong performance achieved in 2010 and solid strategies in place, we are confident to capture enormous opportunities in the upcoming era of clean and economical power of solar energy, to driving continued healthy growth for the Group in the future," said Mr. John Zhang, Chairman and CEO of Comtec Solar.

About Comtec Solar Systems Group Limited

Comtec Solar is a leading monocrystalline solar ingot and wafer manufacturer in the PRC.  With its production base in Shanghai, it focuses on the design, development, manufacture and marketing of high-quality solar wafers. Comtec Solar, founded in 1999, is one of the first manufacturers in China to be able to mass produce 156mm x 156mm monocrystalline solar wafers with a thickness of approximately 170 microns. It has accumulated strong industry experience in the manufacture of semiconductor ingots and wafers. Comtec Solar currently supplies most of its solar products to the leading solar cell/module manufacturers. Listed on the Main Board of the SEHK on Oct. 30, 2009, it is committed to enhancing product quality as well as developing new and innovative solar wafers. As it is well positioned to benefit from the growth of the solar PV industry, the Company aims to broaden its customer base internationally. For more information please visit http://www.comtecsolar.com.

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