SHANGHAI, May 14, 2014 /PRNewswire/ -- Hanwha SolarOne Co., Ltd. ( "SolarOne" or the "Company") (Nasdaq: HSOL), a vertically integrated manufacturer of silicon ingots, wafers and photovoltaic ("PV") cells and modules in China, today reported its unaudited financial results for the three months ended March 31, 2014. The Company will host a conference call to discuss the results at 8:00 am Eastern Time (8:00 pm Shanghai Time) onMay 14, 2014. A slide presentation with details of the results will also be available on the Company's website prior to the call.
FIRST QUARTER 2014 HIGHLIGHTS
|
4Q13
|
1Q14
|
Percentage Change1
|
|
(RMB)
|
(US$)
|
(RMB)
|
(US$)
|
(%)
|
|
Net Revenues (Million)
|
1,294.9
|
|
213.9
|
1,138.4
|
183.1
|
-12.1
|
|
Shipments (MW)
|
352.2
|
323.6
|
-8.1
|
|
ASP (/W)
|
4.09
|
|
0.68
|
4.27
|
0.69
|
+4.4
|
|
Gross profit (Million)
|
183.0
|
|
30.2
|
158.1
|
25.4
|
-13.6
|
|
Gross margin (%)
|
14.1
|
13.9
|
-20 basis points
|
|
Operating (loss)/profit (Million)
|
(23.7)
|
|
(3.9)
|
21.9
|
3.5
|
N/M
|
|
Operating margin (%)
|
-1.8
|
1.9
|
+ 370 basis points
|
|
Net loss (Million)
|
(21.8)
|
|
(3.6)
|
(133.4)
|
(21.5)
|
-512.0
|
|
Net loss per basic ADS
|
(0.26)
|
|
(0.04)
|
(1.47)
|
(0.24)
|
-465.4
|
|
|
1 Percentage changes are calculated based on RMB amounts to eliminate fluctuations in the exchange rate of the dollar.
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Mr. Seong-woo Nam, Chairman and CEO of Hanwha SolarOne commented, "Our first quarter results were primarily impacted by (1) a slowdown in demand in China due to seasonality and delayed project installation, as customers anticipated more lucrative government subsidies later this year, and (2) the unexpected devaluation of the Renminbi, which resulted in a foreign exchange loss for the quarter. Our core business remained strong. We continued to maintain our strong position in the Japanese market and made good progress towards filling our allocation in the EU. Our average selling prices remained firm at the high end of peer averages, and we continued to effectively manage operating expenses."
Chairman Nam noted, "Beginning in the second quarter and for the remainder of the year, demand and shipment volumes look promising. We anticipate up to a 14% increase in shipments from the first quarter to the second quarter. China demand is beginning to warm and a strong second half of the year is expected in this market as the government increases incentives and improves the availability of credit for select companies. We expect business opportunities to develop further in China with cooperation from our strategic partners, including downstream project development."
Chairman Nam concluded, "There is good potential for cost reduction for the remainder of this year, especially as we increase utilization and reduce costs at our internal ingot and wafer operation. Conversion of existing module lines to full automation beginning mid-year will also cut costs and improve quality. Synergies with Hanwha Q CELLS remain strong, as the companies exchange technology, share manufacturing expertise, integrate supply chains, in each case where practical and appropriate, and continue a meaningful toll arrangement. Finally, we are now prepared to increase cell and module capacity to 1.5 GW and 2.0 GW respectively, positioning us to enter 2015 with higher capacity to meet a significant anticipated increase in demand."
FIRST QUARTER 2014 RESULTS
-
Total net revenues were RMB1, 138.4 million (US$183.1 million), a decrease of 12.1% from RMB1, 294.9 million in 4Q13, and an increase of 2.3% from RMB1, 112.9 million in 1Q13. The decrease in total net revenues in 1Q14 compared with 4Q13 was primarily due to lower shipments.
-
PV module shipments, including module processing services, were 323.6 MW, an 8.1% decrease from 352.2 MW in 4Q13, and an 11.9% increase from 289.1 MW in 1Q13.
|
Module revenue by shipping destination 1Q 14
|
|
Module revenue by shipping destination 4Q 13
|
|
|
|
|
Country
|
1Q14
|
|
Country
|
4Q13
|
|
Japan
|
51%
|
|
Japan
|
44%
|
|
UK
|
22%
|
|
China
|
16%
|
|
US
|
8%
|
|
US
|
|
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