Hengdian Group to invest RMB 260 mln in solar cell project

Oct. 29, 2009 (China Knowledge) - Hengdian Group DMEGC Magnetics Co Ltd<002056> yesterday announced that it plans to divert a planned RMB 260-million investment in a laser printer project into a solar cell project due to shrinkage in the laser printer market, sources reported. 

The Shenzhen-listed firm plans to complete the solar cell project within two years. The new plant will produce solar cells with a total capacity of 100 megawatts per year. Sales revenue will hit RMB 1 billion and net profit will reach RMB 80.48 million.

In addition, the enterprise intends to set up a solar energy unit to design, produce and sell products related to the photovoltaic industry.

On Oct. 21, the company said its net profit for the first three quarters of this year was RMB 112 million, down 13.22% year on year. Operating revenue slid 26.78% year on year, hitting RMB 956 million, and operating costs decreased 27.45% year on year, reaching RMB 822 million.

In the third quarter, the firm's operating revenue was RMB 396 million, down 13.24% from RMB 457 million. Net profit was RMB 62.06 million.