Sunpower net profit down in Q3, but would have risen without financial effects

ENVIRONMENTAL protection solutions provider Sunpower Group reported a net profit of 36.6 million yuan (S$7.45 million) for the third quarter ended Sept 30, down 66.8 per cent from the year-ago period, in a results release on Thursday night.

But without the financial effects of convertible bonds and warrants, net profit would have risen 33.4 per cent to 105.2 million yuan.

Gross profit was up 28.5 per cent at 253.6 million yuan, with revenue up 15.9 per cent at 901.1 million yuan. The rise in revenue was due to a 48.1 million or 9 per cent increase from the manufacturing and services segment, and a 75.2 million or 30.8 per cent increase from the "green investment" business.

Sunpower executive chairman Guo Hongxin said that anti-pollution investment projects or "green investments" will drive growth, with the group aiming to invest 2.5 billion yuan in such project equity by 2021.

Earnings per share for the third quarter were 4.62 fen, compared to 14.36 fen in the year-ago period. Without the financial effects of convertible bonds and warrants, earnings per share would be 13.28 fen, compared with 10.26 fen in the year-ago period. No dividend was declared.

Sunpower shares closed down 1.5 Singapore cents or 2.29 per cent at S$0.64 on Thursday before the results release.