Shunfeng acquires 723 MW of wind capacity

Looks like Shunfeng International Clean Energy has started doing justice to its name change, as the company recently entered the wind energy sector. Shungfeng is listed on the HK stock exchange and was a minor renewable energy player till it made a bid for Suntech. The company had changed its name from Shunfeng Photovoltaic International, stating it wanted to widen its focus from just solar to other renewable sources of energy as well. Shunfeng purchased 723 MW of wind portfolio, by acquiring eight wind projects in China in early February 2015. According to the Global Wind Energy Council, China had installed 23.3GW of wind power in 2014 which accounted to ~45% of the total global capacity.

Today Shunfeng chairman Zhang Yi said: “Through the acquisitions, we aim to expand our scope of business operations into wind power in order to widen our range of power generation and enrich source of income of the group so as to become a fully integrated clean energy enterprise.”

Source: Recharge News

Shunfeng had absorbed Suntech earlier in April 2014, a prominent solar module supplier on the brink of its bankruptcy. Shunfeng now plans to install 10 GW of solar capacity by 2016. However that remains to be seen, since there are other more aggressive companies in China. The big 4 utilities as well as pure play solar players such as Goldpoly, GCL, Hareon and others are also pursuing large solar power projects in China.

Shunfeng FY 2014 Results

Shunfeng had a successful 2014, with the company returning to profits (net profit of $209.9 million), as compared to a net loss of US$292.6 million in 2013. Gross margin also improved from 9.9% in 2013 to 22.1% in 2014. The company’s revenue increased by 275% annually, to $924.7 million in 2014. The revenue from power generation was $80.99 million in 2014. The management credits Suntech for Shunfeng’s turnaround. China was the largest market for Shunfeng with 73.9% share of total revenue. International sales were 26.1% of revenue in 2014.