Sunpower Group, the China-based heat transfer technology specialist, recorded a 59.9% y-o-y increase in net profit attributable to shareholders to RMB64.2 million ($13.2 million) for the full year ended 31 December 2009 (FY2009).

The group attributed the strong growth to improved margins in the contracts delivered and more stringent internal controls in FY2009. In FY2009, the group says it successfully delivered contracts to prominent customers such as Shenhua Group, GCL-Poly Energy Holdings, Hyundai Steel and China Bao Steel.

Revenue dipped y-o-y by 1.72% to RMB753.6 million mainly due to more stringent evaluation of new contracts and to abstain from high-risk projects. In addition, average selling price of products was reduced in line with lower raw material prices.

As a result of cost-saving measures and improved margins specifically coming from the Pipe Supports and Energy Saving and Environmental Protection Systems segments, gross profit margin for the Group has improved yoy to 26.7% in FY2009 from 22.6% in FY2008.

In FY2009, the group successfully curbed key operating costs to improve operational efficiency. Selling and distribution expenses remained flat at RMB24.7 million, and administrative expenses decreased yoy by 12.4% to RMB84.5 million. Finance costs were reduced yoy by 14.4% to RMB11.9 million.

The group strengthened its balance sheet with 159.3% y-o-y increase in cash and cash equivalents to RMB196.0 million as at 31 December 2009. Operating cash flow improved to RMB70.8 million in FY2009 from RMB3.1 million in FY2008 as a result of tightened internal controls.