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Company Profile Solartech Energy Corp.

Abstract This research presents an overview of Solartech Energy's (Solartech Energy Corp.) company development and current status, surveying the company's history, facilities, results of operation, investment profile, R&D resources and patents, and with a SWOT analysis highlighted.

by Sean Kao

Document Code: NARPT13112001 Publication Date: November 2013 Check out MIC on the Internet! http://mic.iii.org.tw

© Copyright 2013 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All rights reserved. Reproduction of this publication without prior written permission is forbidden. The content herein represents our analysis of information generally available to the public or communicated to us by knowledgeable individuals or companies, but is not guaranteed as to its accuracy or completeness.

Table of Contents

Page

1. Company Overview ...... 1 1.1 Corporate Information ...... 1 1.2 History ...... 1 1.3 Facilities ...... 3 1.4 Results of Operation ...... 3 1.4.1 Income Statement, 1Q 2011 – 2Q 2013 ...... 3 1.4.2 Non-Operating Statement, 1Q 2011 – 2Q 2013...... 4 1.4.3 Revenue Share by Application, 2008 – 2012 ...... 4 1.5 Investments ...... 5 1.6 R&D Resources & Patents ...... 5 1.6.1 R&D Expenses, 2008 – 2012...... 5 1.6.2 R&D Employees, 2008 – 2012 ...... 6 1.6.3 Number of Patents and Effective Regions, 2009 – 2013.08 ...... 6

2. SWOT Analysis ...... 7 2.1 Strengths ...... 7 2.2 Weaknesses ...... 7 2.3 Opportunities ...... 7 2.4 Threats ...... 7

Appendix ...... 8 Research Scope ...... 8 Product Definitions ...... 8

List of Figures

Page

Figure 1 Income Statement, 1Q 2011 – 2Q 2013 ...... 3

Figure 2 Non-Operating Statement, 1Q 2011 – 2Q 2013 ...... 4

Figure 3 Revenue Share by Application, 2008 – 2012 ...... 5

Figure 4 R&D Expenses and Share of Sales, 2008 – 2012 ...... 6

Figure 5 Employee Education Levels, 2008 – 2012 ...... 6

Figure 6 R&D Resources & Patents ...... 6

List of Tables

Page

Table 1 Corporate Information ...... 1 Table 2 Solartech Energy's Capacity, Shipment Volume and Value, 2010 – 2012 ...... 3

Table 3 Income Statement, 1Q 2011 – 2Q 2013 ...... 3

Table 4 Non-Operating Statement, 1Q 2011 – 2Q 2013 ...... 4

Table 5 Revenue Share by Application, 2008 – 2012 ...... 4

Table 6 Business Investment Profile, 4Q 2012 ...... 5

Table 7 R&D Expenses, 2008 – 2012 ...... 5

Table 8 Employee Education Levels, 2008 – 2012 ...... 6

Table 9 Number of Patents and Effective Regions, 2009 – 2013.08 ...... 6

Solartech Energy Corp. ______1

1. Company Overview 1.1 Corporate Information

Table 1 Corporate Information Company Name Solartech Energy Corp. No.16, Guangfu N. Rd., Hsinchu Industrial Park, Hukou, Headquarters Hsinchu, Taiwan Contact +886 3 527 6888 Founded 27 May 2005 Chairman Kong-Hsin Liu President Jin-Long Chang Spokesperson Shin-Yuan Wu

Website www.solartech-energy.com Employees 808 Operating Income (NT$ Million) 6,165 Products Solar cells Note: US$1 = NT$29.385 Source: Solartech Energy, compiled by MIC, November 2013

1.2 History

2005 Solartech Energy was founded with paid-in capital of NT$1 million.

Solartech Energy signed a contract with German solar PV (photovoltaic) equipment supplier to install the first solar cell automated production line in Taiwan.

2006 Solartech Energy relocated to Taoyuan, Taiwan.

Solartech Energy signed a contract with German solar PV equipment supplier to add a second automated production line in Taiwan, increasing its annual capacity to 60MW.

2007 Solartech Energy is approved to launch IPO (Initial Public Offering) by the regulatory authority in Taiwan.

Solartech Energy is listed as the emerging companies in GTSM (Gre Tai Securities Market).

Solartech Energy reinvested in the upstream materials polysilicon business and set up Top Green Technologies, Inc.

Solartech Energy stroke a long-term materials supply deal worth $82 million Euro.

Solartech Energy expanded the third production line and prepared for the fourth one.

Solartech Energy diversified by investing CIGS thin-film technology, i.e. Sunshine PV Corp.

2008 Solartech Energy broke ground for its Hsinchu factory.

Solartech Energy invested cell manufacturer Solar PV in China.

Solartech Energy was listed in TWSE (Taiwan Stock Exchange).

2009 Solartech Energy's Hsinchu factory completed.

Solartech Energy's first production line in its Hsinchu factory began production, boosting the company's capacity to 132 MW.

2010 HTC chairwoman Cher Wang became the key shareholder of Solartech Energy.

Solartech Energy's fifth production line began mass production with an annual capacity of 60MW.

Solartech Energy's board of directors approved the plans to build the 6th, 7th, 8th, and 9th to 18th production lines.

Solartech Energy and SAS (Sino-America Silicon Products Inc.) set up a joint venture SinoSolar.

2011 Solartech Energy installed the 9th, 10th, and 11th production lines, pushing up the total capacity to 800MW.

Solartech Energy and SAS formed a strategic alliance by exchanging shares.

Solartech Energy completed Fab II in Hsinchu.

2012 Solartech Energy released high-efficiency polycrystalline cell Fortis, having an average efficiency rate of 17.75%.

Solartech Energy increased paid-in capital to NT$3.17 billion.

2013 Solartech Energy built a solar power demonstration community in Kaohsiung, Taiwan.

Solartech Energy set up a subsidiary in Japan to strengthen local business.

1.3 Facilities Table 2 Solartech Energy's Capacity, Shipment Volume and Value, 2010 – 2012 Unit: Thousand Pieces/NT$ Million 2010 2011 2012 Capacity Shipment Shipment Capacity Shipment Shipment Capacity Shipment Shipment Volume Value Volume Value Volume Value

Solar Cell Note: US$1 = NT$29.385 Source: Solartech Energy, compiled by MIC, November 2013

1.4 Results of Operation 1.4.1 Income Statement, 1Q 2011 – 2Q 2013

Table 3 Income Statement, 1Q 2011 – 2Q 2013 Unit: NT$ Million

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Note: US$1 = NT$29.385 Source: Solartech Energy, compiled by MIC, November 2013

Figure 1 Income Statement, 1Q 2011 – 2Q 2013

Note: US$1 = NT$29.385 Source: Solartech Energy, compiled by MIC, November 2013

1.4.2 Non-Operating Statement, 1Q 2011 – 2Q 2013

Table 4 Non-Operating Statement, 1Q 2011 – 2Q 2013 Unit: NT$ Million 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Non-Operating Income Non-Operating Expense Net Non-Operating Income Note: US$1 = NT$29.385 Source: Solartech Energy, compiled by MIC, November 2013

Figure 2 Non-Operating Statement, 1Q 2011 – 2Q 2013

Note: US$1 = NT$29.385 Source: Solartech Energy, compiled by MIC, November 2013

1.4.3 Revenue Share by Application, 2008 – 2012

Table 5 Revenue Share by Application, 2008 – 2012

2008 2009 2010 2011 2012 Solar Cell Others Source: Solartech Energy, compiled by MIC, November 2013

Figure 3 Revenue Share by Application, 2008 – 2012

Source: Solartech Energy, compiled by MIC, November 2013

1.5 Investments

Table 6 Business Investment Profile, 4Q 2012 Company Location Main Business Shareholding Investor Shen Yang Material Co., Taiwan Sale of solar cell 100% Solartech Energy Corp. Ltd. materials Zhao Yang Taiwan Manufacturing and 100% Solartech Energy Corp. Optoelectronics Co., Ltd. sale of solar cells True Honour Limited Samoa General investment 99.43% Solartech Energy Corp. (Samoa) ASi (USA) United States Installation and sale of 100% True Honour Limited solar power modules (Samoa)

Note: Shen Yang Material Co., Ltd. and Zhao Yang Optoelectronics Co., Ltd. are the literal translation of their Chinese names. Source: Solartech Energy, compiled by MIC, November 2013

1.6 R&D Resources & Patents 1.6.1 R&D Expenses, 2008 – 2012

Table 7 R&D Expenses, 2008 – 2012 Unit: NT$ Million

2008 2009 2010 2011 2012 R&D Expenses Share of Sales Source: Solartech Energy, compiled by MIC, November 2013

Figure 4 R&D Expenses and Share of Sales, 2008 – 2012

Note: US$1 = NT$29.385 Source: Solartech Energy, compiled by MIC, November 2013

1.6.2 R&D Employees, 2008 – 2012

Table 8 Employee Education Levels, 2008 – 2012

2008 2009 2010 2011 2012 PhD Master Bachelor/ College High School Others Source: Solartech Energy, compiled by MIC, November 2013

Figure 5 Employee Education Levels, 2008 – 2012

Source: Solartech Energy, compiled by MIC, November 2013 1.6.3 Number of Patents and Effective Regions, 2009 – 2013.08

Table 9 Number of Patents and Effective Regions, 2009 – 2013.08 2009 2010 2011 2012 2013.08 Taiwan United States China - - - - - Source: Solartech Energy, compiled by MIC, November 2013

Figure 6 R&D Resources & Patents

Source: Solartech Energy, compiled by MIC, November 2013

2. SWOT Analysis 2.1 Strengths 1. Adherence to Division of Work

2. Implants Formosa Plastics' Cost Reduction Business Culture

2.2 Weaknesses 1. Difficulties in Acquiring Orders from Japanese Vendors

2. Burden of Investment in Thin-Film Technology

2.3 Opportunities 1. Opportunities from EU's Anti-dumping and Anti-Subsidy Duties against China

2. Increased Orders from Emerging Markets

2.4 Threats 1. Excess Supply Leads to Industrial Restructuring

2. High Loan Risk from Chinese Vendors

Appendix Research Scope The research covers the overall development of the major solar cell maker Solartech Energy Corp., including its technology, production capacity, competitiveness, company information, and a SWOT analysis.

Product Definitions Solar PV Industry The solar PV industry, from the upper stream to the downstream, covers: silicon materials, silicon ingot & wafer, solar cell, PV module, and PV system.

Solar Cell Solar cells include crystalline silicon solar cells, thin-film solar cells, concentrator solar cells, and dye-sensitized solar cells.

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