Release Date: 2007/10/30
On November 2, 2007, Gintech Energy Corporation will become the first solar energy company to be listed on the Taiwan stock market. Gintech's combination of strong technical capabilities and first-class management has already attracted the interest of foreign investors. Collaboration with leading international materials suppliers ensures that Gintech has a reliable supply of raw materials, and the company's production capacity has been growing rapidly. With high oil prices fuelling the long-term trend towards increased demand for alternative energy sources, Gintech has immense growth potential. In the future, Gintech will be focusing on upward vertical integration, collaborating with MEMC Electronic Materials, Inc. (a leading US supplier of raw materials for solar cell production) and Taiwan Polysilicon Corporation on raw materials production, while also continuing to expand its production capacity. Gintech's vision is to establish itself as a leading global brand in the solar energy field, and to become one of Taiwan's "star" companies.
Since its establishment in August 2005, Gintech has achieved impressive results. Volume production commenced in 2006; within three months, the company had broken even on a monthly basis, and within six months it was making a profit, setting a new record for the solar energy. For a company to achieve OTC listing within one year of its establishment and stock market listing within two years is an incredible achievement. In September 2007, Gintech\'s monthly sales revenue rose to a new high of NT$575 million. Gintech\'s rapid growth has brought it within sight of the number one spot in Taiwan\'s intensely competitive solar cell market.
Gintech\'s outstanding operational performance has attracted the interest of foreign investors. Merrill Lynch & Co., Inc., a leading international securities firm, acquired a 4.9% share in Gintech towards the end of 2006, while MEMC holds a 7.59% stake; Gintech and MEMC have forged a close collaborative partnership that goes far beyond an ordinary customer-supplier relationship. Between them, MEMC and Merrill Lynch hold a 12.49% share in Gintech.
Shortage of raw materials is a widespread problem in the solar energy industry at the moment; companies that have a reliable source of raw materials can be sure to win orders. In August 2006, Gintech signed a 10-year agreement (worth around NT$100 billion) with MEMC, a leading US manufacturer of multi-crystalline and mono-crystalline silicon wafers. The contract with MEMC gives Gintech a more stable supply of raw materials than most of its competitors enjoy, enabling Gintech to expand its production capacity without needing to worry about raw materials supplies. Gintech can expect to see a steady increase in the volume of orders received.
Gintech currently has an annual production capacity of 60MW, but this figure will rise to 260MW later this year when Gintech\'s new production facility (located in Jhunan site of Hsinchu Science Park) comes on-stream, giving Gintech the world’s largest solar cell factory in one single building. Gintech is forecast to achieve an annual production volume of NT$23.5 billion in 2008, which would represent a growth rate of over 400% compared to 2007. By 2011, Gintech expects to have increased its annual production capacity to 1,500MW. If Gintech can maintain the rapid production capacity growth that it has achieved since its establishment, the company will be on course to establish itself as one of the world\'s top three solar cell manufacturers.
The main factors behind Gintech\'s rapid growth include strong managerial capabilities, a stable supply of raw materials, and healthy finances. However, the factor that will enable Gintech to establish itself as a world-class player in the fiercely competitive solar cell market is the integration capabilities that are the chief source of core value for the company. With new entrants moving into the solar energy business all the time, companies that offer only a single line of product such as solar cells cannot expect to survive for long. Gintech continues to strengthen the collaboration with upstream partners, so as to bring its solar cell manufacturing capabilities up to world-class standards in terms of both quantity and quality.
Solar energy is a business that benefits all humanity. In the future, Gintech will continue to adhere to its management philosophy – “Respect for Mother Nature”, “Innovation and Creation”, and “Pursuit of Excellence”– and will move forward towards its goal of becoming the world\'s No.1 solar cell manufacturer through the implementation of seven key strategies: adopting the most advanced production equipment, achieving the highest yield rates and the highest conversion efficiency, keeping the lowest production costs, expanding the largest scale of production, maintaining the best R&D team, achieving the most effective upstream vertical integration, and providing the best possible service to customers.