Neo Solar Power Corporation(3576 TT) (“NSP”, or “the Company”), a leading producer of high quality solar cells in Hsinchu, Taiwan, approved its 2012 financial report in the Board Meeting. Consolidated revenue for 2012 was totaled of NT$12,241 million. Due to falling ASP and recognizing long-term contract loss, the net loss after tax was NT$4,193 million, and a diluted EPS of NT$-9.69 for 2012 based on 430.8 million weighted average outstanding shares.

According to the consolidated Financial Statements, net revenue for 2012 was NT$12,241 million and 2012 shipment also set a record high. However, due to overcapacity of the industry, falling ASP, and recognizing long-term contract loss, the company incurred gross loss of NT$3,232 million, and gross margin was -26%. The operating expense and operating loss for 2012 was NT$819 million and NT$4,051 million, respectively, and the operating margin was -33%. The net loss after tax of the company was NT$4,193 million, and a diluted EPS was NT$-9.69.

NSP always adopts sound operating strategy and is with abundant cash. Cash on hand as of 2012 year-end was around NT$5,800 million. Debt-to-Asset ratio was 47%. Besides, the inventory level has decreased dramatically by 44% on Year-over-Year base. Overall, the company keeps a solid financial structure.

To ensure long-term development and keep the competitiveness of the company, NSP got the approval earlier from extraordinary shareholders’ meeting dated February 6th to merge with DelSolar Co. through 100% share swap. The combined entity will have solar cell capacity of close to 2GW and become the largest solar cell manufacturer in Taiwan and second largest globally. By enlarging procuring power, the material sourcing cost can be largely reduced. Besides, with economy of scale, the combined entity can rapidly enhance R&D results. Looking ahead, the company will have the most well rounded position from mid-stream to down-stream solar supply chain by utilizing cell & module from NSP and DelSolar, plus the system business from NSP’s subsidiaries, GES and Delta Group.

Additionally, the company’s January revenue was with a growth rate of 3.12% and also hit a 5-month high.