Hareon 2015 Annual Report and Profit

On April 22nd, 2016, Hareon Solar released its 2015 annual report, which showed a total revenue of RMB 6.1Billion, a net profit of RMB 96.1Million, and net assets of RMB 4.9 Billion, resulting in a 22.8% growth year-over-year compared to the period ending December 31st 2014. On April 29th, 2016, Hareon Solar’s Board of Directors announced its profits to the Shanghai Stock Exchange (SSE) which examined and approved the annual report. Hareon Solar’s daily stock value fluctuation limit was increased from 5% to 10%.

The Company ascribed the profit in 2015 to a recovery in the PV market, and improvement in gross margins of its primary products. Also, the Company reported sale of a portion of its power stations holdings in order to improve its asset structure. As a result, Hareon Solar was able to report improved business performance and profit ability.

Hareon Solar also announced its 2016 Q1 report, showing an upward trend in business performance. In the 2016 Q1 report, Hareon Solar reported revenue of RMB 1.2 Billion and a net profit of RMB 12.5 Million. According to market analysts, Hareon Solar’s business performance is expected to improve quickly after the SSE removes the “ST” restriction based on the 2015 annual report and positive net profit.

Hareon Solar’s 2015 performance is expected to pave the path towards its next development step. From 2011 onwards, Hareon took the initiative to adjust its strategic direction and extend its downstream business from product manufacturing and sales to include the development and construction of domestic and overseas PV power stations. Hareon Solar has established subsidiaries in Germany, Italy, Switzerland, South Africa, among other countries. In 2013, Hareon Solar signed a cooperation project with Shunfeng PV Technology Co., Ltd. with the total value of RMB 4.3 Billion, which is the biggest order in the area of PV power stations, started the scale development of power station business. In 2014, the company finished follow-on fund raising of RMB 3.8 Billion which can lever RMB 20 Billion. In 2015, Hareon Solar’s domestic on-going projects totaled 350 MW and the annual investment totaled RMB 2.7 Billion. Overseas projects capacity was 257 MW with an investment of 380 Million dollars. Up to now, the total investment for the global PV projects is about RMB 8 Billion. PV power station development capability of each year is GW level; Global reserves of power station projects exceed 10 GW. The Company is striving to unlock a large-scale, mature mode of PV power station development.

Over the years, Hareon Solar has developed into one of China's largest crystalline silicon solar cell and module producers. In addition to producing high-efficiency crystalline silicon solar cells and modules, Hareon Solar also develops, constructs, and operates PV power plants around the world, with a goal of becoming a leading clean power producer. Hareon is proud to say that its international business management team is led by senior pioneers of the Chinese PV industry and consists of members from eleven different countries. This team has experienced multiple industry cycles and is very familiar with the solar development phases. They all have an eye for international business and the capacity to leverage different resources, making them the core of Hareon Solar’s development towards the future. Mr. Guangbao Meng, Hareon Solar’s Chairman, is a favored candidate for the Top Ten Economic Leaders of Jiangyin.

Hareon Solar continuously focuses on research & development as well as quality control in order to guarantee that its products are above the market standard in both technological specifications and quality. At the sametime, the Company also increased the scale at which it develops power stations, making it a global leader in the pursuit of clean energy. Gradually, Hareon Solar has become a high-quality service provider that can provide clean energy solutions to the world. Hareon Solar is determined to popularize the use of green energy not only for the sake of our families, but also for human kind as a whole.

In May, 2016, Hareon Solar and ReNew Power, India’s leading clean energy company announced that their joint venture company has commissioned 72 MW project in Andhra Pradesh, India. The project, located across two districts of Andhra Pradesh-Kurnool and Prakasam - is expected to generate 115 million units of energy per year and is connected to 132/33kV Adoni substation and132/33kV Cumbum substation respectively. The project was part of competitive bidding conducted in November 2014 by two distribution utilities of Andhra Pradesh namely, Southern Power Distribution Company Limited of Andhra Pradesh (APSPDCL) and Eastern Power Distribution Company (APEPDCL).

Out of the total selected 619 MW solar PV power projects, this JV enjoys the distinction of having its project amongst the first few to be commissioned. The power generated from this project will be sold under a 25-year power purchase agreement (PPA) with APSPDCL. The project was built using Hareon Solar’s high efficiency multi-crystalline silicon solar modules.