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Josh is usually good at assessing these articles in Chinese. Is it one guy's speculation or does he have a source that leaked the bottom line? Anyway for them to reach profit in Q1 I think they would need help from some non-operating items, like reversing the tax provision in Q4 or CB gains or similar.

I am really curious what Pop got for response on this article. Another very good question is where is that 20% ASP increase coming from? SOL sold modules on average at 0.63, so are we saying they sold outsourced modules at $0.75 in Q1?

I am very cautious about this article. I read some articles in the past, which stated similar claims like one about LDK recently claiming billions of dollars in revenue, profit etc. during general assembly of shareholders in China.

I advise caution, without prejudice

.

I do not think the article is true!!! Just based on SOL last CC. The numbers do not match!!!

Let' assume innocence until proven guilty.

Congrats SOL on being profitable despite idled poly plant and massive outsourcing !

Proves demand for SOL products is going through the roof despite 20% ASP hike !!!!

It's not ASP 20% up.

20% is manufactured outside of China at 10% cost increase?

Can some translate this part of the text and post here we can do 100 words.

20%? Where did that come from? Anyone have a link?

另一方面，海外制造的组件销售价格高出中国制造价格20%，而成本上涨仅10%，大大提升了公司的盈利能力

On the other hand, price for parts manufactured outside China is 20% higher while cost is 10% higher. This greatly improves company's profitability.

so price for parts is not ASP? what is it then? clearly price 20%, versus cost of 10%, has the gross margin in between,no?

module price. So they claim to have 10%=20%-10% more profitable with overseas manufacturing.

Quoted from "odyd12"

SOL sold modules on average at 0.63, so are we saying they sold outsourced modules at $0.75 in Q1?

I thought I stated that "outsourced modules" have 20% higher price than average. Let's correct this statement. So let's assume they are at 0.55 per watt processing call it 0.61 outsource manufacturing. What did they sell modules in China for, 0.58-0.60? this still means 0.72 at 20%. 15% GM?

Quoted from "odyd12"

15% GM?

I just took a third mortgage on my house. All in on SOL

Quoted from "odyd12"

so price for parts is not ASP? what is it then? clearly price 20%, versus cost of 10%, has the gross margin in between,no?

I think somebody posted that outsourcing costs SOL same as internal cost (correct me if I am wrong since I don't follow too much SOL's news)? Now it costs 10% higher than domestically produced modules? Anyway, SOL has 500MW overseas OEM capacity according to the article. In a positive gross margin scenario, 20% increase in ASP and 10% increase in COGS means much more than 10% margin expansion.

Quoted from "odyd12"

Anyone have any theories as to why ex-china produced components fetch a higher price?

Is it because they would be tariff free ... assuming there are tariffs implemented?

If so, it sounds like market participants are pricing in at least a 20% tariff penalty.

Isn't that source the same source that had all that bs about Foxconn building all those factories and solar plants in China, which Foxconn later said was completely untrue?

So you're going to re-allocate your investment dollars based on this one article?...although it doesn't jive at all with the facts we all know? Like explo said, aint happening unless there's some big 1-timer...and the market won't reward you for a 1-timer (went thru that last year with CSIQ).

So roll the dice if you like...I'll stick with my steady and visible revenue and profit approach...and the market certainly has been seeing it that way also, and that's the only vote that really counts. Since earnings day, CSIQ is up about 50%, SOL is down 25%...that's a 75% differential in the outcome of your investing dollars, so the market is trying to tell you something.

When it comes to CSIQ, the market knows what's coming. When it comes to SOL, it's a lot more of a gamble.

ne21.com published same information that Sol would be coming out of the winter soon and returning to profit.

Quoted from "joshchang"

20% increase in ASP and 10% increase in COGS means much more than 10% margin expansion.

Yes , like I said 15% or more of 16%. Q4 processing 0.60, Q1 processing 0.55 plus 10% increase =0.605

ASP average 0.63, China average 0.60, 20% gain 0.12=0.72, 0.72-0.605=0.115 0.115/0.72=15.9%

Is this what modules sell for in Europe now?

In addtion to multiple warnings I cannot see 10% to be enough to cover outsourcing cost.

All Chinese solars are speculative. At any point during the past 12 months you would have been better off with a U.S. solar company FSLR than any of the Chinese solars. And that includes YGE, TSL, CSIQ, SOL and JASO.
http://chart.finance.yahoo.com/z?s=FSLR&…en-US&region=US