Sunpower swings into the black with 21.4m yuan Q2 net profit

MAINBOARD-LISTED Sunpower Group recorded a net profit of 21.4 million yuan (S$4.2 million) for its second quarter ended June 30, 2020, reversing from a net loss of 5.2 million yuan a year ago.

Without the financial effects of convertible bonds and warrants, the group's net profit for Q2 2020 will be 122.5 million yuan, more than double the 50.5 million yuan net profit recorded in Q2 2019. 

Earnings per share (EPS) stood at 2.7 fen for Q2 2020, compared with a loss per share (LPS) of 0.7 fen a year ago. Without the financial effects of convertible bonds and warrants, EPS will be 15.47 fen, up from an EPS of 6.69 fen the year before.

Revenue for Q2 2020 jumped 64.5 per cent to 1.08 billion yuan, from 659 million yuan in Q2 2019, boosted by the group's manufacturing and services segment and green investments business.

No dividend was declared for the second quarter, unchanged from a year ago.

For the half year ended June 30, 2020, the group recorded a net profit of 239.4 million yuan, compared with a net loss of 46.8 million yuan a year ago. Without the financial effects of convertible bonds and warrants, the group would have recorded a 56.3 per cent rise in net profit to 173.5 million yuan, from 111 million yuan the year before.

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Revenue for the first half was up 19.5 per cent year on year to 1.76 billion yuan, from 1.47 billion yuan.

EPS for the six months ended June 30, 2020 was 30.23 fen, compared with an LPS of 6.2 fen a year ago. Without the financial effects of convertible bonds and warrants, EPS will be 21.92 fen, up from an EPS of 14.71 fen in the corresponding period last year.

Sunpower said it bounced back from the temporary headwinds from the Covid-19 pandemic and achieved "new records" in revenue and profit in H1 2020. Group profit margins and operating cash flow were even "above pre-pandemic levels".

Sunpower executive chairman Guo Hong Xin said for the rest of 2020 and beyond, the group will press forward with its green investments expansion strategy and be on the alert for opportunities.

Shares of Sunpower were trading down one Singapore cent or 1.7 per cent at 57 cents as at 11.28am on Thursday.