Sunpower Group reported on Wednesday its fourth quarter net profit jumped 161.6 percent on-year to 138.5 million yuan (S$27.93 million or US$20.71 million) on the first full quarter of contributions from the Yongxing Plant and a stronger-than-expected ramp-up of other green investments (GI) projects.
Underlying net profit for the quarter, which adjusts for amortized interest expenses and fair value changes associated with the convertible bonds issued in 2017 as well as foreign exchange gains or losses, increased 140.1 percent on-year to 138.5 million yuan, it said.
Revenue for the period ended 31 December increased 52.5 percent on-year to 1.28 billion yuan, Sunpower said in a filing to SGX after the market close on Wednesday.
For the full year, net profit increased 117.5 percent on-year to 253.6 million yuan on revenue of 3.26 billion yuan, up 66 percent, it said.
Guo Hong Xin, executive chairman of Sunpower, said the successful execution of the GI strategy provided new growth drivers and record earnings expansion.
“China is working hard to fix its air pollution problems and has expanded smog governance policies to the whole of China,” Guo said in the statement. “We are well placed to tap into this expanded market opportunity right away and orientate the future direction of the company in a way that will create substantial value for our shareholders.”
Sunpower has said it is targeting the anti-smog services sector.
“We believe that building a sizeable and valuable portfolio of GI assets which generates long-term, recurring and high-quality cash flows will see us reach new heights,” Guo added.