New Chairman At NSP

• Quincy Lin of NSP decided to step back from his responsibility as the chairman of the company
• Lin will now be the honorary chairman while continuing to be director and CSO at NSP. Lin will also be the chairman of two NSP subsidiaries
• Sam Hong, co-founder of NSP along with Lin, will be the new chairman who will focus on the company's pre-set strategies to carry forward
• The management blamed the scheduled relocation of manufacturing from Taiwan(China) to Vietnam for sequential decrease of over 26% in revenues for June 2016 and decrease of over 30% from last year.
• Year-to-Date cumulative revenues reached NT$ 10,410 million as of June 2016, a +8.23% growth YoY

The Co-Founder of Neo Solar Power Corporation (NSP), Quincy Lin has resigned as Chairman of the company, bequeathing to job to his partner in the founding of the company, Sam Hong.

Both Lin and Hong started the company together in 2005 manufacturing solar cells and modules. Lin resigned of his own will choosing to be the honorary chairman. He will continue to be NSP director and chief strategic officer (CSO), along with being chairman of two subsidiaries of NSP – General Energy Solutions Inc. (GES) and V5 Technology Ltd.

Going forward, Lin said he will "focus on the synergies between NSP and NSP subsidiaries from now on, especially on solar system project business, YieldCo and other new businesses."

The board accepted his recommendation of appointing Hong as the Chairman. Hong is also the CEO of NSP. On the occasion, Hong gave a glimpse into his plans for the company as its new chairman. He said, "I will succeed the position apprehensively and cautiously, continue the pre-set strategy and carry forward & enlarge NSP's leading position in photovoltaic technology and solar system business. NSP is still under capacity relocation progress in second quarter and third quarter this year. Once completed, those relocated capacity will be very competitive. In addition, under strong policy support of solar energy from Taiwan new government, NSP will enter into a new phase in the coming years."

The Taiwan-based company has been working to expand its solar system business investment and build manufacturing sites overseas, as demand from China was found to be slowing down since April 2016 (see NSP Q1/2016). NSP is shifting its manufacturing base to Vietnam from Taiwan.

June revenues down, year-to-date still up
The management blamed this scheduled relocation for sequential decrease of over 26% in revenues for June 2016 and decrease of over 30% from last year. However, Year-to-Date cumulative revenues reached NT$ 10,410 million as of June 2016, a +8.23% growth in YoY terms as compared with NT$ 9,618 million.

Under the new Chairman, the relocated capacity will start production at the end of third quarter, and this the company expects to add to the shipment volume, which it which is sees as a 'positive for the coming traditional industry peak season.'

When publishing the H1 results in early July, NSP said, that it was looking forward into the second half of this year, as the market expects that the ASP declining situation and conservative order visibility will be bottomed-up after China released its 2016 annual installation target of 18.1 GW. It believed that 'the industry is expected to gain its growth momentum in fourth quarter.'

However, in the meantime it had become public that China had installed  20 GW alone in H1 – and analysts are increasingly talking of overcapacities as prices for modules continue to decline.