North Coast Solar Stocks

May 8, 2009

Suntech Files 2008 Annual Report on Form 20-F

Filed under: STP — Tags: , , , , , — Jason @ 8:00 am

Incurs Additional Impairment Charge for Investment in Nitol Solar

Friday May 8, 2009, 8:00 am EDT

SAN FRANCISCO and WUXI, China, May 8 /PRNewswire-Asia/ — Suntech Power Holdings Co., Ltd. (STP), the world’s largest manufacturer of crystalline silicon photovoltaic (PV) modules, today announced the filing of its 2008 annual report on Form 20-F with the Securities and Exchange Commission, including its 2008 audited financial statements. During the course of its 2008 year-end financial audit process, the Company determined that the investment impairment charge previously reported in its press release discussing its preliminary fourth quarter 2008 results should be increased from $48.8 million to $73.8 million. The additional $25.0 million impairment charge relates to Suntech’s investment in Nitol Solar, a polysilicon manufacturer in which the Company owned a 14.0% equity interest as of December 31, 2008.

The additional impairment charge was primarily due to updated information obtained from Nitol Solar’s final December 31, 2008 financial statements including new material information related to fixed asset impairments and losses on financial instruments. As this additional information related to conditions that existed at December 31, 2008, the assumptions used to determine the fair value of Suntech’s investment in Nitol Solar were re-assessed and it was determined that an additional provision of $25 million was necessary. The after tax impact to Suntech’s 2008 net income as a result of this additional investment impairment was $22.8 million.

In March 2009, Nitol Solar entered into a series of debt restructuring agreements through which it secured approximately $400 million in debt financing to complete the construction of its 3,800 metric ton polysilicon production facility. Nitol Solar currently has 300 metric tons of production capacity and intends to initiate production in an additional 3,500 metric ton facility in early 2010. As a result of the dilution caused by the recent debt restructuring, Suntech owned an 11.5% equity interest in Nitol Solar as of May 8, 2009.

The audited consolidated balance sheet as of December 31, 2008 and statement of operations data for the fourth quarter and full year 2008 can be found in an SEC filing on Form 6-K filed today. Additional information relating to our 2008 financial statements, including the notes thereto, can be found in our annual report on Form 20-F. Copies of the related 6-K and 20-F can be found in the “Investor Center” section of the Suntech website under “SEC Filings.” Should you wish to be sent a hard copy of the complete audited financial statements please contact ir@suntech-power.com.

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