Sunpower receives Deloitte's inaugural 'Best Managed Companies' award in China
SINGAPORE (Mar 25): Sunpower Group has been lauded as one of China’s Best Managed Companies (BMC) by big four accounting firm Deloitte Touche Tohmatsu through its BMC programme, a global initiative recognising private companies with advanced management ideas.
This is the first year the BMC award was introduced to China following the award’s inception in Canada in 1993.
Shortlisted recipients of the award are evaluated based on Deloitte’s framework of “Best Managed” criteria which comprises four key tenets of management excellence, namely: strategy, operational excellence, leadership & employees’ commitment to corporate excellence, as well as financial strength.
In a press release last Friday, Sunpower says its strategic expansion into or green investments (GI) since 2016 has driven the group to new heights.
This was accomplished by the merging of Sunpower’s proprietary integrated technologies and expertise, management expertise and decades of experience in the manufacturing & services (M&S) segment into a synergistic business model structured to maximise returns, says the group.
Sunpower largely attributes its 87.1% y-o-y growth in earnings to RMB267.8 million ($53.9 million) in FY18 to the stronger-than-expected ramp up of its GI projects, adding that its GI segment recorded a fourfold increase in operating cash flow over the financial year despite being still in the early stages in development.
Going forward, the group says it is on track to build a sizeable GI portfolio targeting to invest RMB2.5 billion in equity by 2021.
“Our position now is the result of proven strategic planning and execution, in seizing the right opportunities with foresight, specifically, having identified an advantageous business model for GI projects that can deliver long-term, recurring high-quality income and cash flows,” says Guo Hongxin, executive chairman of Sunpower.
“We will remain focused on continuously realising the enormous potential of GI, which we believe will drive sustainable growth for Sunpower and also fulfill our social mission to alleviate smog and return blue skies to China,” he adds.
Earlier this month, The Edge Singapore noted how Sunpower had contributed total returns of 10.1% as of Mar 1, mainly as the group’s GI segment carries significantly higher margins.
Login to read: Falling margins will hold back stock price gains
Considering the group’s intentions to continue expanding its GI portfolio, the group’s revenue, earning sand average margin is expected to grow as GI continues to account for a larger share of total earnings in the near-term.
As at 10:53am, shares in Sunpower are trading half a cent lower at 58 cents.
