Anwell Technologies, which has just published its FY2011 annual report, is one of a kind on the Singapore Exchange, as it is a manufacturer of equipment for various industries as well as an producer of the products made from the same equipment. Its business segments span optical discs, OLED panels and thin film solar panels. In the annual report, its chairman's statement highlights the challenges the company faced in 2011 and the achievements, especially in the solar industry -- plus the recent state of the ever-changing global industry and its prospects. Read on....
On behalf of the Board, I am pleased to present to you the annual report of the Group for the financial year ended 31 December 2011 (“FY2011”).
2011 was a challenging year for us and our customers, as we felt the effects of a lackluster US economy and a steadily worsening sovereign-debt crisis in Europe. The global photovoltaic (PV) industry faced an oversupply glut which caused solar panel prices to drop severely in 2011. As such, most industry players suffered losses with some exiting the industry altogether.
However, Anwell’s cost leadership as a vertically integrated business enabled us to achieve revenue of HK$1.4 billion, growing 37% from HK$1.1 billion in FY2010.
Gross profit jumped 163% year-on-year to HK$161.1 million in FY2011 from HK$61.3 million in FY2010. The improvement in gross profit was mainly due to the first full year of contribution from our fast growing solar products division. The Group recorded a net loss attributable to shareholders of HK$523.8 million this year.
LONG-TERM GOVERNMENT FUNDING SUPPORT
Anwell is currently the only manufacturer in China with the technology to produce highly-advanced thin film solar panel with our own proprietary fully-automated manufacturing solutions, with other solar panel makers using production equipment imported mainly from Europe and the United States.
Recognising the strategic importance of Anwell’s advancements in thin film solar panel technology, the PRC government has granted strong support to Anwell in FY2011 that will enable us to strengthen our thin film solar panel manufacturing capability. Coupled with new banking facilities, the Group’s balance sheet was significantly strengthened as cash and cash equivalents grew 638.8% YoY to HK$1.8 billion from HK$249.5 million in FY2010.
In 2010, we started mass production of thin film solar panel with annual production capacity of 40MW at our plant in Henan, China. Leveraging on our unique inhouse equipment and R&D capabilities, we managed to expand the production capacity of the plant into 150MW by the end of 2011.
Site construction of our new thin film solar panel manufacturing plant in Dongguan had already been started in 2011. The new plant will be producing Anwell’s latest proprietary products including tandem junction and advanced multi-junction thin film solar panels.
According to Digitimes Research, the global solar market is forecasted to grow by 18.75% to 28.5GW in 2012 from 24GW in 2011 due to growing demand from markets such as China, Thailand, India and the United States while demand from Europe recovers gradually.
The ongoing industry consolidation in the solar market segment is expected to stabilise the price of solar panels in 2012. This will be beneficial to Anwell, as a solar panel capital equipment maker, which holds a cost leadership position.
Amidst a backdrop of continued uncertainty in solar industry, Anwell will strive to maintain its competitive edges through continual investments in R&D. Evolving beyond our established position as a thin film solar panel manufacturer, we are also transforming to become an EPC (Engineering, Procurement and Construction) contractor and to provide integrated solutions under the BOT (Build-Operate-Transfer) model for large-scale solar power projects, which will enable us to further expand the Group’s solar business platform.
Last but not least, I would like to thank our shareholders, customers and suppliers for their support during this tough year. I also would like to express my appreciation to our employees for their hard work and dedication. Their contribution has set the foundation for Anwell to forge ahead in 2012 and beyond.
Fan Kai Leung
Executive Chairman & Chief Executive Officer