BEIJING, Jun. 30, 2009 (Xinhua News Agency) -- China's PV battery industry is forecast to see a 30-percent decline in prime operating revenues despite a 20-percent growth in delivery of goods.

China's PV cell prices slumped in the fourth quarter of last year, and the downward trend preceded into the year of 2009.

Suntech Power Holdings Co. (STP.NYSE), a leading PV cell manufacturer in China, reported a gross profit margin of 0.6 percent and losses of 65.9 million U.S. dollars for the fourth quarter of 2008. For the first quarter of 2009, its gross profit margin jumped to 17.8 percent, with profits reaching 1.8 million dollars.

Another large PV product manufacturer Yingli Green Energy Holding Co. (NYSE:YGE) (YGE.NYSE) posted a gross profit margin of 13.2 percent and net profits of 14.7 million dollars for the fourth quarter of 2008. One quarter later, the gross profit margin increased to 15.3 percent, but net losses reached 20.7 million dollars.

Since the second quarter of 2009, China's PV cell market saw rising demands upon low prices and revitalizing down-stream PV industry. It is predicted that the delivery of PV cell goods will achieve positive growth for the full year of 2009. Suntech Power is expected to deliver 600-700 MW, up from last year's 497.5 MW. Yingli Green Energy will possibly deliver 450-500 MW, up from 281.5 MW in 2008.

However, the delivery of goods will have to increase 60 percent to offset profit decline, as cell prices have slumped about 40 percent.

Leading enterprises with high quality and fame will enjoy chances of increasing their market shares in a buyer's market.

Suntech Power's earnings per share is expected to reach 0.3 dollars in 2009 and 0.7 dollars in 2010, while Yingli green Energy is predicted to reach 0.5 dollars in 2009 and 1.1 dollars in 2010.