CANADIAN Solar Inc, a Nasdaq-listed firm that makes solar power equipment in China, expects revenue to more than triple this year as it expands capacity to meet rising demand.
Revenue may reach US$220 million to US$230 million in 2007, up from US$68.2 million last year, according to a company statement. Company sales totaled US$17.5 million in the first quarter, and the second-quarter figure is expected to rise to US$58 million.
Chief Executive Officer Shawn Qu said the European market grew to account for 69 percent of the company's sales in the first quarter, up from 45 percent a year earlier. The firm achieved 11 percent of its sales in South America in the first quarter, up from zero before.
"We expanded our customer base and market penetration. We entered important new geographic markets," Qu said at the company's first annual shareholders meeting in Shanghai on Friday.
The company is set to have 100 megawatts of annual solar cell manufacturing capacity by the end of the year.
Among its major orders, the firm started delivering solar modules to Germany's City Solar AG last month. The deliveries are part of a contract valued at up to 90 million euros (US$122 million) to supply 31 megawatts of solar modules to projects in Germany and Spain.
Canadian Solar is incorporated in Canada and has all of its manufacturing operations in China. The company raised US$115.5 million in an initial public offering on Nasdaq late last year. Canadian Solar shares ended trading last week at US$9.40, down from a US$15 initial public offering price.
Several Chinese solar power companies have tapped the US capital market to raise funds. They need money to buy polysilicon, used to make photovoltaic cells. Prices of high-grade silicon have soared over recent years on growing demand.
Chinese solar firms typically import most of their polysilicon and export the bulk of their products.