EANS-News: Sunways AG closes 2nd quarter 2012

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Financial Figures/Balance Sheet/quarterly report/6-month report

Subtitle: - Increase in solar inverter sales volume - Production
bottlenecks affect solar module sales volumes and solar cell
production - Focus on new markets

Konstanz/Germany (euro adhoc) - 5 October 2012 - In the second
quarter of 2012, the solar inverter segment of Sunways AG (SWW:GR,
SWWG.DE, ISIN DE0007332207) participated in the development of the
photovoltaics markets. Although these markets continued to be marked
by global excess capacities and consolidation trends in the industry,
brisk demand was experienced in Germany due to the announced
amendment to the Renewable Energies Act (EEG). While sales volumes in
the solar inverter segment reflected the positive market development,
sales volumes in the solar module segment declined as the
availability of such products was limited due to continuing shortages
of raw materials for the production of solar modules at LDK Solar.
While, due to the demand situation, selling prices for solar modules
remained largely stable in the second quarter, pressure on the
selling prices for solar inverters intensified.

The Sunways Group's sales revenues for the period from April through
June 2012 amounted to EUR 17.2 million and thus declined by more than
half against the relevant prior year quarter (Q2/2011: EUR 38.7
million). The operating profit before interest and taxes (EBIT) at
EUR -6.5 million was again markedly negative (Q2/2011: EUR -6.3
million). Taking into account deferred taxes relating to loss
carry-forwards, earnings after taxes in the second quarter of 2012
were EUR 1.1 million.

In the first half of 2012, the Sunways Group generated sales revenues
of EUR 27.6 million (H1/2011: EUR 60.9 million). In the same period,
the operating loss (EBIT) amounted to EUR 13.3 million (H1/2011: EUR
-9.8 million). Earnings after taxes in the first six months of 2012
were EUR -6.2 million; as of 30 June 2011, earnings after taxes
(after adjustments for the earn-out relating to the sale of MHH
Solartechnik) had been EUR -7.3 million.

In the international markets, the Sunways Group generated sales
revenues of EUR 8.2 million (Q1/2011: EUR 19.4 million) in the
reporting period. Thus the international business accounted for 47.7
percent of total sales, compared to 50.4 percent in the second
quarter of 2011. Sunways experienced a significant growth in
individual markets of Eastern Europe, such as e.g. in Bulgaria, and
Greece. In the first six months of 2012, international sales amounted
to EUR 11.4 million and thus declined by 64.7 percent against the
comparable prior year period; in the first half of 2011, Sunways had
generated international sales of EUR 32.3 million.

Solar module production bottlenecks with negative impact In the solar
module segment, Sunways generated sales revenues of EUR 7.7 million
(Q2/2011: EUR 29.1 million) in the second quarter of 2012, a drop by
74 percent compared to the relevant prior year period. This was inter
alia due to the drastic decline in market prices by more than 40
percent against the period from April through June 2011. In addition,
the supply of Sunways solar modules was insufficient due to wafer
shortages at the beginning of the current year as well as module
production bottlenecks at LDK Solar. Although this supply situation
was to some extent offset by sales of LDK merchandise, the solar
module sales volume decreased by 56.7 percent against the prior year
to 9.4 megawatts peak in the second quarter of 2012 (Q2/2011: 21.7
megawatts peak).

Sales in the solar cell segment declined by 77.7 percent from EUR
26.5 million in the second quarter of 2011 to EUR 5.9 million in the
second quarter of 2012. In the second quarter of 2011, sales revenues
increased due to the start of the solar module production cooperation
with LDK Solar. The decline in sales against the prior year was also
due to the deterioration in market prices as well as solar module
production bottlenecks at LDK Solar. Sales volumes of solar cells
also decreased against the prior year by 58.8 percent to 11.2
megawatts peak (Q2/2011: 27.0 megawatts peak). Sunways solar cells
are mainly used to produce the company's own solar modules; sales
revenues are only recognized when marketable solar modules are
available. Due to the module production bottlenecks at LDK Solar, the
solar cell production at Sunways Production GmbH had to be reduced in
the second quarter to avoid excess inventories.

Growth in the solar inverter segment For the period from April
through June 2012, Sunways reported sales revenues of EUR 8.8 million
in the solar inverter segment - an increase by 10 percent (Q2/2011:
EUR 8.0 million). In terms of capacity sold, the sales volume of
Sunways solar inverters of 61.2 megawatts peak rose by 60.2 percent
against the comparable prior year quarter (Q2/2011: 38.2 megawatts
peak). Owing to brisk demand, some supply bottlenecks occurred,
mainly with respect to large devices. However, due to pressures on
selling prices, this significant rise in sales volume did not result
in a corresponding increase in sales revenues and margins.

Focus on new markets Since May this year, Sunways has for the first
time been offering its products in the Australian market in a
targeted manner. Within the framework of a partnership initially
entered into for a one-year period, Solar Energy Australia Ltd. is
marketing Sunways solar inverters in Australia on an exclusive basis.
Initial sales revenues were already reported in the second quarter.
Thus Sunways is positioning itself in a major international market of
the future: over recent years, the Australian photovoltaics market
recorded a steady growth which, according to the opinion of experts,
will increase further in the future.

Prospects for the fiscal year 2012 Against the background of weaker
overall economic growth expectations worldwide, the global situation
of the photovoltaics industry, in particular that of manufacturers,
continues to be affected by the massive deterioration of prices due
to substantial excess capacities, strong competitive pressures and
increasing consolidation. In all, this results in continuous pressure
on achievable margins and, accordingly, has a negative impact on
earnings and cash-flows.

"This difficult market environment constitutes a great challenge for
all market participants. In this phase of market consolidation,
efficient actions must be based on targeted and coordinated market
activities. In this context, the LDK Solar Group, due to the global
activities of all its companies in the areas of sales and supply,
will enable Sunways to strengthen its competitiveness in the long
term and to return to profitable corporate growth", says Michael
Wilhelm, Chairman of the Management Board of Sunways AG.

With respect to solar modules, Sunways will mainly rely on brand
strength and service quality. Thanks to its extensive know-how
relating to the development of highly efficient solar cells, Sunways
is to play an important role in this area as a technology center in
the future. Finally, there are plans to enter the U.S., Canadian and
Chinese markets for solar inverters together with LDK Solar.

The goals of Sunways in the fiscal year 2012 are to stabilize the
development of its sales volumes and sales revenues and to reduce its
losses compared to the fiscal year 2011. Against the background of
steadily changing political and economic framework conditions, no
more detailed prognosis can be given for the current fiscal year.

Key figures Q2/2012 Group Sales revenues: EUR 17.2 million (Q2/2011:
EUR 38.7 million) EBITDA: EUR -4.4 million (Q2/2011: EUR -4.7
million) EBIT: -6,5 million (Q2/2011: -6,3 million) Consolidated net
income: EUR 1.1 million (Q2/2011: EUR 0.2 million) Eearnings per
share: EUR 0.06 (Q2/2011: EUR 0.01) Sales revenues Germany: EUR 9.0
million (Q2/2011: EUR 19.2 million) Sales revenues rest of Europe:
EUR 8.0 million (Q2/2011: EUR 19.4 million) Number of employees (30
June 2012): 286 (30 June 2011: 347)

Solar cell segment
Sales volume: 11.2 MWp (Q2/2011: 27.0 MWp)
Sales revenues: EUR 5.9 million (Q2/2011: EUR 26.5 million)
EBIT: EUR -0.9 million (Q2/2011: EUR -2.1 million)

Solar module segment
Sales volume: 9.4 MWp (Q2/2011: 21.7 MWp)
Sales revenues: EUR 7.7 million (Q2/2011: EUR 29.1 million)
EBIT: EUR -3.1 million (Q2/2011: EUR -3.6 million)'

Solar inverter segment
Sales volume: 61.2 MWp (Q2/2011: 38.2 MWp)
Sales revenues: EUR 8.8 million (Q2/2011: EUR 8.0 million)
EBIT: EUR -2.5 million (Q2/2011: EUR -0.6 million)

Key figures H1/2012 Group Sales revenues: EUR 27.6 million (H1/2011:
EUR 60.9 million) EBITDA: EUR -9.5 million (H1/2011: EUR -6.5
million) EBIT: EUR -13.3 million (H1/2011: EUR -9.8 million)
Consolidated net loss: EUR -6.2 million (H1/2011: EUR -2.5 million)
Earnings per share: EUR -0.36 (H1/2011: EUR -0.21) Sales revenues
Germany: EUR 16.2 million (H1/2011: EUR 28.6 million) Sales revenues
rest of Europe: EUR 10.8 million (H1/2011: EUR 32.3 million)

Solar cell segment
Sales volume: 16.1 MWp (H1/2011: 33.8 MWp)
Sales revenues: EUR 10.0 million (H1/2011: EUR 34.0 million)
EBIT: EUR -2.5 million (H1/2011: EUR -2.9 million)

Solar module segment
Sales volume: 15.8 MWp (H1/2011: 33.4 MWp)
Sales revenues: EUR 12.8 million (H1/2011: EUR 45.5 million)
EBIT: EUR -5.6 million (H1/2011: EUR -4.7 million)

Solar inverter segment
Sales volume: 85.4 MWp (H1/2011: 50.8 MWp)
Sales revenues: EUR 12.9 million (H1/2011: EUR 11.1 million)
EBIT: EUR -5.2 million (H1/2011: EUR -2.2 million)

This press release is also available at http://www.sunways.eu/en or
http://www.presseportal.de/pm/57666/sunways-ag.

Forward-looking statements This press release contains statements
relating to the future business development of Sunways AG that are
based on management assumptions and estimates made at the time of
publication. Should the assumptions underlying the prognoses fail to
be fulfilled, actual events may vary substantially from
forward-looking statements. Uncertainties include changes in the
political, legal, economic and business environment, exchange and
interest rate fluctuations as well as the behaviour of competitors
and other market participants. Sunways does not intend and is not
under any obligation to update forward-looking statements on an
ongoing basis as these are exclusively based on the circumstances
prevailing as of the date of publication.

About Sunways Sunways AG, Konstanz/Germany, stands for consistent use
of solar energy to secure long-term energy supply of man in an
efficient and sustainable manner. Sunways offers technological
competence, performance and highest quality - from single components
to complete solar systems. Since its foundation in 1993, Sunways AG
evolved into a technology leader in the photovoltaics industry
serving international markets. With silicon-based solar cells,
inverters, solar modules and solar systems, the company offers all
components required for high-yield photovoltaic power generation.
With photovoltaic solutions tailored to customers' needs (transparent
and coloured solar cells, building- integrated photovoltaic
installations), Sunways turns exceptional ideas into reality. Sunways
Production GmbH in Arnstadt/Germany is a subsidiary of Sunways AG; in
addition, the group has own branch offices in Barcelone/Spain and
Bologna/Italy. In 2011, Sunways AG with about 330 employees realised
sales of around EUR 115 million. The shares of Sunways AG are listed
at the Frankfurt Stock Exchange (SWW:GR, SWWG.DE, ISIN DE0007332207).
For further information, please visit http://www.sunways.eu/en.

About LDK Solar LDK Solar Co., Ltd. (NYSE: LDK) is a leading
vertically integrated manufacturer of photovoltaic products. LDK
Solar manufactures e.g. polysilicon, mono and multicrystalline
wafers, solar cells, and solar modules. LDK Solar's headquarters and
principal manufacturing facilities are located in Hi-Tech Industrial
Park, Xinyu City, Jiangxi Province in the People's Republic of China.
For more information about LDK Solar and its products, please visit
http://www.ldksolar.com.

Further inquiry note:
Dr. Harald F. Schäfer
Head of Corporate Communications and Investor Relations
Tel.: +49 (0)7531 996 77-415
E-Mail: communications@sunways.de

end of announcement euro adhoc
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company: Sunways AG
Macairestr. 3 - 5
D-78467 Konstanz
phone: +49 (0)7531 99677 0
FAX: +49 (0)7531 99677 10
mail: info@sunways.de
WWW: http://www.sunways.eu/de
sector: Alternative energy
ISIN: DE0007332207
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English