Suntech Power Reports Fourth Quarter and Fiscal Year 2005 Unaudited Financial Results

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     Increasing Adoption of Solar Energy Initiatives Worldwide

     Drives Strong Demand for Suntech's Products

    Highlights:

    - Fourth quarter 2005 net revenues up 136.3% to $89.0 million over fourth

     quarter 2004

    - Fiscal year 2005 net revenues up 165.0% to $226.0 million over fiscal

     year 2004

    - Fourth quarter 2005 net income was $10.6 million, or $0.10 per basic

     share

    - Fiscal year 2005 net income was $30.6 million, or $0.31 per basic share

    - Production capacity reached 150MW at the end of 2005

    WUXI, China, Feb. 13 - Suntech Power Holdings Co., Ltd. (NYSE: STP), a leading global solar energy company, today announced fourth quarter 2005 total net revenues of $89.0 million and net income of $10.6 million, or $0.10 per basic share. Total net revenues for fiscal year 2005 were $226.0 million and net income was $30.6 million, or $0.31 per basic share.

    "Increasing adoption of solar energy initiatives worldwide, particularly in China and Spain, drove strong demand for our solar cell and module products in the fourth quarter," said Dr. Zhengrong Shi, Suntech's chairman and CEO. "This led to our solid financial performance for the fourth quarter and the year as we continue to be one of the fastest growing pure play PV manufacturers in the world.

    "We significantly grew our production capacity in 2005 to 150MW. The demand for solar energy worldwide continues to exceed supply, and the market is rapidly absorbing any increases in capacity. By the end of 2006, we expect our capacity to reach 240MW," added Dr. Shi.

    Fourth Quarter 2005 Results

    Suntech's total net revenues for the fourth quarter increased 136.3 percent to $89.0 million over fourth quarter 2004 total net revenues of $37.7 million, and 57.2 percent over third quarter 2005 total net revenues of $56.6 million. Growth in net revenues in the fourth quarter was due to increases in production volumes and demand, and improvements in the average sales prices of Suntech's photovoltaic ("PV" or "solar") cell and module products.

    Suntech successfully executed its 2005 expansion plans adding a 30MW solar cell production line that became operational at the end of the fourth quarter of 2005. This increases Suntech's annual capacity to 150MW from 120MW as of September 30, 2005. During the fourth quarter, Suntech derived approximately 63.7 percent of total net revenues from PV modules.

    Fourth Quarter 2005 PV Net Revenues by Products

     Q4 2005 % of Q4 Growth Growth

     2005 Net vs. Q4 vs. Q3

     Revenues 2004 2005

    PV Cells $31.7 million 35.7 % +1,729.6% +126.6%

    PV Modules $56.7 million 63.7 % +57.8% +34.8%

    PV System Integration $ 0.6 million 0.6 % +6,301.8% +2.6%

    Total $89.0 million 100.0 %

    Gross profit for the fourth quarter was $23.6 million, representing an increase of 83.7 percent over fourth quarter 2004 gross profit of $12.8 million, and an increase of 39.6 percent over third quarter 2005. Gross margin decreased to 26.5 percent, compared with 34.1 percent in the fourth quarter 2004 and 29.8 percent in the third quarter 2005. The decrease in gross margin in the fourth quarter 2005 as compared with the fourth quarter 2004 and the third quarter 2005 was largely attributable to an increase in the cost of raw materials, which constituted the largest portion of cost of revenues. The sequential decrease in gross margin was also partly due to a $1.6 million inventory write-off for substandard wafers as well as an increase in share-based compensation to $1.2 million.

    The Company has continued to focus on technology research and development to achieve high performance solar cells at low cost per watt. As of December 31, 2005, the conversion efficiency rates of the Company's monocrystalline and multicrystalline silicon PV cells reached 17.0 percent and 15.3 percent, respectively, up from 16.5 percent and 15.0 percent, respectively, at the end of the third quarter 2005.

    Income from operations for the fourth quarter was $12.5 million, or 14.1 percent of total net revenues, compared with $11.0 million, or 29.3 percent of total net revenues in the fourth quarter of 2004, and $10.3 million, or 18.2 percent of total net revenues in the third quarter 2005. The decrease in operating margin compared with both prior periods was primarily due to decrease in gross profit margins as well as increases in share based compensation and research and development expenses.

    Net income for the fourth quarter was $10.6 million, representing a 4.0 percent decrease from the same quarter in the prior year and a 21.9 percent increase from the third quarter 2005. Basic net income per share for the fourth quarter 2005 was $0.10.

    Full Year 2005 Financial Results

    For the full year 2005, Suntech's total net revenues increased 165.0 percent to $226.0 million over total net revenues in 2004 of $85.3 million. For the full year 2005, Suntech derived approximately 24.2 percent of total net revenues from PV cells driven mainly by the strong demand from China's domestic market.

    Fiscal Year 2005 PV Net Revenues by Products

     2005 % of Growth 2004 % of

     2005 vs. 2004

     Net 2004 Net

     Revenues Revenues

    PV Cells $54.7 million 24.2% 645.5% $7.3 million 8.6%

    PV Modules $170.1 million 75.3% 118.4% $77.9 million 91.4%

    PV System

     Integration $1.2 million 0.5% 2,012.6% $0.1 million 0.0%

    Total $226.0 million 100.0% $85.3 million 100.0%

    Gross profit for the full year 2005 was $68.6 million, representing an increase of 173.0 percent from the prior year's gross profit of $25.1 million. Gross margin increased slightly to 30.3 percent, compared with 29.4 percent in the previous year. Income from operations for the full year 2005 was $42.7 million, or 18.9 percent of total net revenues, and a 113.2 percent increase over 2004 income from operations of $20.0 million, or 23.5 percent of total net revenues. The decline in operating margin in 2005 is primarily due to the increase in general and administrative expenses related to Suntech's business expansion, restructuring and share based compensation charges.

    Net income for the full year 2005 was $30.6 million, representing a 55.0 percent increase from the previous year. Basic net income per share was $0.31 in 2005 compared to $0.22 in 2004.

    Balance Sheet and Cash Flow

    As of December 31, 2005, Suntech had cash and cash equivalents of $359.3 million. Net operating cash flow for the full year 2005 was $22.6 million, compared with $2.6 million for 2004. Suntech had capital expenditures of $29.7 million in 2005, compared with $9.4 million for 2004.

    Business Outlook

    Suntech expects its total net revenues in the first quarter 2006 to be in the range of $75 million to $80 million, representing year-over-year growth in the range of 95 percent and 108 percent.

    Fourth Quarter and Year End 2005 Conference Call

    Suntech's earnings announcement conference call will take place on February 13, 2006 at 7:00 p.m., Eastern Time, which corresponds to February 14, 2006 at 8:00 a.m., Beijing/Hong Kong time. To access the conference call, please dial +1 617 213 8858 (in the U.S.) or +852 3002 1672 (in Hong Kong) and ask to be connected to the Suntech earnings call.

    A live webcast of the conference call will be available on the investor relations section of Suntech Power's website at http://www.suntech-power.com.

    A replay of the conference call will be available for two weeks on the investor relations section of Suntech Power's website or by dialing +1 617 801 6888 (passcode: 12676998).

    About Suntech Power Holdings Ltd.

    Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by production output in 2004. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial and public utility sectors. Suntech's customers are located in various markets worldwide, including Germany, Spain, China and the United States. For more information, please visit http://www.suntech-power.com.

    Safe Harbor Statement

    This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Suntech's strategic and operational plans, contain forward-looking statements. Suntech may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Suntech's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: expectations regarding the worldwide demand for electricity and the market for solar energy; the company's beliefs regarding the effects of environmental regulation, the lack of infrastructure reliability and long-term fossil fuel supply constraints; the importance of environmentally friendly power generation; expectations regarding governmental support for the deployment of solar energy; expectations regarding the scaling of the company's manufacturing capacity; expectations with respect to the company's ability to secure raw materials in the future; future business development, results of operations and financial condition; and competition from other manufacturers of PV products and conventional energy suppliers. Further information regarding these and other risks is included in Suntech's registration statement on Form F-1, as amended, filed with the U.S. Securities and Exchange Commission. Suntech does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

     SUNTECH POWER HOLDINGS CO., LTD.

     SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS DATA

     (In $'000, Except Per Share Data)

     2005 2004 2005

     Q4 Q4 Q3

     (Note) (Note) (Note)

    Net revenues 88,989 37,651 56,624

    Cost of revenues 65,407 24,810 39,728

    Gross profit 23,582 12,841 16,896

    Operating expenses

     Selling expenses 946 803 1,017

     General and administrative expenses 8,008 825 4,720

     Research and development expenses 2,084 180 826

    Income from operations 12,544 11,033 10,333

     Interest expenses (773) (408) (570)

     Interest income 174 26 25

     Other (expenses) income (105) 35 (161)

    Income before income taxes 11,840 10,686 9,627

     Tax (expenses) benefit (1,500) 335 (859)

    Net income after tax before

     minority interests and equity

     in gain of affiliates 10,340 11,021 8,768

     Minority interest 29 0 5

     Equity in gain (loss) of an

     affiliate 244 (24) (103)

    Net income 10,555 10,997 8,660

    Deemed dividend on Series

    A redeemable convertible

     preferred shares 784 0 972

    Net income attributable to holders

     of ordinary shares 9,771 10,997 7,688

    Net income per share and per ADS

     - Basic 0.10 0.12 0.09

     - Diluted 0.09 0.12 0.07

    Shares used in computation

     - Basic 98,123,263 90,000,000 90,000,000

     - Diluted 103,104,352 90,000,000 127,898,426

    Note: The quarterly summary statement of operations data are unaudited. The summary consolidated balance sheet data as of December 31, 2005 and summary consolidated statement of operations data for the year ended December 31, 2005 are derived from Suntech's unaudited consolidated financial statements. The summary consolidated balance sheet data as of December 31, 2004 and summary consolidated statement of operations data for the year ended December 31, 2004 are derived from Suntech's audited consolidated financial statements.

     SUNTECH POWER HOLDINGS CO., LTD.

     SUMMARY CONSOLIDATED BALANCE SHEET DATA

     (In $'000)

     As of December 31,

     2005 2004

     (Note) (Note)

    ASSETS

    Current assets:

     Cash and cash equivalents 359,324 19,122

     Inventories 40,428 17,472

     Advances to suppliers 24,001 2,195

    Total current assets 436,479 51,913

    Property, plant and equipment, net 39,717 13,211

    TOTAL ASSETS 481,664 68,468

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:

    Short-term borrowings, including current

     portion of long-term bank borrowings 52,193 34,442

    Total current liabilities 71,976 40,225

    Long-term bank borrowing 3,717 0

    Total liabilities 78,312 41,072

    Total shareholders' equity 401,923 27,396

    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 481,664 68,468

    Per Share Data: Ordinary share of par value $0.01; 90,000,000 shares issued and outstanding, as of December 31, 2004; 147,487,707 shares issued and outstanding as of December 31, 2005

     SUNTECH POWER HOLDINGS CO., LTD.

     SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS DATA

     (In $'000, Except Per Share Data)

     For the Year Ended December 31,

     2005 2004

     (Note) (Note)

    Net revenues:

     PV cells 54,653 7,331

     PV modules 170,129 77,898

     PV System integration 1,218 58

    Total net revenues 226,000 85,287

    Cost of revenues:

     PV cells 35,441 5,269

     PV modules 121,183 54,862

     PV system integration 814 43

    Total cost of revenues 157,438 60,174

    Gross profit 68,562 25,113

    Operating expenses

     Selling expenses 3,667 1,750

     General and administrative expenses 18,874 2,889

     Research and development expenses 3,358 465

    Total operating expenses 25,899 5,104

    Income from operations 42,663 20,009

     Interest expenses (including share

     based compensation of $5,652,952

     for 2005) (7,907) (1,036)

     Interest income 296 57

     Other (expense) income (758) 167

    Income before income taxes 34,294 19,197

     Tax (expenses) benefit (3,753) 611

    Net income after taxes before minority

     interest and equity in gain of affiliates 30,541 19,808

     Minority interest 34 0

     Equity in gain (loss) of an affiliate 121 (51)

    Net income 30,628 19,757

    Deemed dividend on Series A

     redeemable convertible preferred shares 2,406 0

    Net income attributable to holders

     of ordinary shares 28,222 19,757

    Net income per share and per ADS

     - Basic 0.31 0.22

     - Diluted 0.30 0.22

    Shares used in computation

     - Basic 92,047,507 90,000,000

     - Diluted 95,360,059 90,000,000
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