Companies: SOLA   

Chinese solar power play ReneSola has increased first-half profits 11-fold to £3.4 million and expects growth to continue.

Shanghai-based ReneSola makes silicon wafers for the solar power industry and operates through wholly-owned Zhejiang Yuhui Solar Energy Source, whose results the parent has announced today. The AIM debutante, which raised £26 million at 79p last week through Hanson Westhouse, lifted turnover fourfold to £12.6 million in the six months to June and increased gross margins.

Li Xian Shou, founder and chief executive officer of ReneSola, says the company, which uses silicon waste as a feedstock, almost doubled its productive capacity with 20 new monocrystalline furnaces, taking its total to 36. He adds another 18 furnaces are now in trial production, with the same number again being installed.

ReneSola says it expects continued strong growth in the third quarter, at the end of which Shou and his colleagues suggest production capacity to have reached 80 megawatts a year. The company has been busily negotiating feedstock supply deals and has so far secured nearly 400 tonnes of scrap silicon for delivery next year, on top of the 200 tonnes procured for the rest of 2006.

At 94.5p, up 56p today and valuing the company at £94.5 million, ReneSola could repay a punt.

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