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Jifan Gao
Chairman and Chief Executive Officer
Dear Shareholders, Customers and Partners
2009 saw notable challenges for the PV industry in general due to the global financial crisis and volatility experienced in the sector. However, I am pleased to say that over the course of the year, Trina Solar was successful in all key operating areas, with enhanced technology, more efficient production and a higher quality product portfolio. We also witnessed strong customer recognition of the Trina Solar brand as result of our customer-focused organization reflecting a more effective sales and marketing orientation. As a result, Trina Solar entered 2010 with greater confidence than ever before, ready to deliver the best value per kilowatt-hour to our customers and investors. |
IOur strong efforts in 2009 resulted in Trina Solar shipping a company record of approximately 399 megawatt of solar modules, an increase of 98.5% from 2008. The Company delivered strong financial results as net income increased 59.0% year over year to $97.6m and our gross margin increased significantly from 19.8% in 2008 to 28.1% in 2009. Manufacturing capacity also increased to 600 megawatt at the end of 2009 through enhanced production efficiency and the successful delivery in our new East campus.
Solar innovation leadership was a central focus in 2009, which saw Trina Solar’s commitment to be a technology leader and national standard developer. During the year we established the Center for Excellence, a world class and state-of-the-art testing laboratory with comprehensive testing capabilities to ensure superior product quality and reliability for our modules. Soon after, in January 2010, our research and development platform was further enhanced by an R&D Laboratory commissioned by PRC Ministry of Science and Technology to be established in the Changzhou Trina Industrial PV Park adjacent to our headquarters. This represents one of the first approved national platforms for technology innovation to perform dedicated research on PV related materials, cells, modules and systems, which will bring together researchers from around the world to play a leading role in national PV standard development.
Our continued and attentive focus on research and development has energized us to achieve consistent improvements in our cell efficiencies. Our monocrystalline and multicrystalline cells reached conversion efficiencies of 18.8% and 17.5% respectively based on laboratory test production, demonstrating our continuous efforts to enhance cell manufacturing processes through passivation and metallization techniques and adoption of new cell structures.
To meet our customers’ growing requirements, we are leveraging our strong R&D efforts and advanced technological capabilities to develop and manufacture new and innovative premium product offerings and value-added services. This diversified products portfolio, which will leverage our leading cost platforms include an aesthetically appealing black module design series, premium branded square mono cell modules and larger size utility scale modules for targeted introduction in 2010.
We believe success in coming years will continue to depend on the creation of innovative and superior performing new products. Moreover, the ability to maintain a leading manufacturing cost structure with superior quality is also of key importance. Manufacturing cost leadership has been recognized as a core competitive strength for Trina Solar as we continually refine the integration of our manufacturing processes, seek greater efficiency optimization and ensure competitive prices for our raw materials. We will also benefit from the integration of our key suppliers into the PV Park that is co-located with our manufacturing headquarters. In June 2009 we announced that one of our key glass suppliers will establish a production facility in the Changzhou Trina Industrial PV Park, a move that will support our goal of realizing procurement and logistical advantages to accelerate our cost reduction initiatives as well as providing synergies for research and development.
We made notable sales achievements in 2009. Growth remained solid in our core European markets including Germany, Italy, Spain and Belgium, where we supplied modules for Europe’s largest photovoltaic rooftop system. This was primarily due to an improved international sales strategy that targeted entry into new markets, and a renewed focus to leverage local talent to serve local markets. In 2009, Trina Solar concentrated on expanding our global footprint by establishing regional headquarters in North America and Europe, adding to earlier established offices in Germany, Italy, Spain, Japan and Korea. In each of the regional headquarters and offices, we have increased our sales and service personnel to provide enhanced coverage with localized language capability and in-depth understanding of the market. We have also strengthened our strategic customer network through PV distributors, wholesalers, system integrators and project developers, as well as national grid owners and operators. Finally, we continue to expand our presence in the US and Australian markets, and continue to play an increasingly active role in China’s expanding solar market.
As worldwide PV industry demand growth continues, we believe it is essential to maintain a strong balance sheet to fully exploit market opportunities and rise above our competitors. Supported by our impressive operational cashflows, in June of 2009 the Company negotiated a $57m credit facility with Standard Chartered Bank for trade financing and defensive hedging products. In July we also completed a successful follow-on public offering, raising approximately $143m, part of which we employed to fund expansion of facilities. In September 2009 we obtained a $304m syndicated loan from five domestic banks to provide project finance for a 500 megawatt vertical integration capacity expansion project.
Although 2010 continues to hold challenges for our company and industry, Trina Solar is well-positioned to deliver solid financial results for 2010 and beyond. Our technology capabilities, operational excellence and strong reputation for high quality products will enable us to grow our business worldwide to meet the increasingly sophisticated demands of our customers. At Trina Solar, we believe we can emerge from this dynamic environment as a solidified industry leader. We thank you for your support and invite you to join us as we move towards our goal of securing a leading position as a global solar brand in PV products.
Sincerely,
Jifan Gao
Chairman and Chief Executive Officer |
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