SHANGHAI, Nov. 21, 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 September
30, 2014. The Company will host a conference call to discuss
the results at 8:00 am Eastern Time
(9:00 pm Shanghai Time) on
November 21, 2014. A slide
presentation with details of the results will also be available on
the Company's website prior to the call.
THIRD QUARTER 2014 HIGHLIGHTS
|
2Q14
|
3Q14
|
Percentage
Change[1]
|
(RMB)
|
(US$)
|
(RMB)
|
(US$)
|
(%)
|
Net
Revenues (Million)
|
1,107.3
|
|
178.5
|
1,198.0
|
195.2
|
+8.2
|
Shipments
(MW)
|
339.5
|
373.2
|
+9.9
|
Average Selling
Price (/W)
|
4.17
|
|
0.67
|
3.74
|
0.61
|
-10.3
|
Gross profit
(Million)
|
105.1
|
|
16.9
|
81.0
|
13.2
|
-22.9
|
Gross margin
(%)
|
9.5
|
6.8
|
-270 basis
points
|
Operating
loss (Million)
|
(39.9)
|
|
(6.4)
|
(72.8)
|
(11.9)
|
-82.7
|
Operating margin
(%)
|
-3.6
|
-6.1
|
-250 basis
points
|
Net loss
(Million)
|
(54.8)
|
|
(8.8)
|
(234.3)
|
(38.2)
|
Increased
327.5
|
Net
loss per basic ADS
|
(0.60)
|
|
(0.10)
|
(2.56)
|
(0.42)
|
Increased
326.7
|
|
[1] Percentage
changes are calculated based on RMB amounts to eliminate
fluctuations in the exchange rate of the dollar.
|
Mr. Seong-woo Nam, Chairman and CEO of Hanwha SolarOne, commented, "Our third quarter results
reflect the prevalent industry trends in place: record shipments
due to strong demand, lower average selling prices reflecting an
increasing proportion of business in China and the negative impact of a strong
U.S. dollar in relation to the Yen and Euro.
Our revenues improved over 8% quarter-to-quarter in spite of lower
pricing. We achieved more than a 3% reduction in production costs
quarter-to-quarter, which was not fully reflected in profitability
due to the more rapid decline in product pricing.
"Noticeable progress was made in
penetrating the large and growing domestic market in China. Shipments to China reached 30% of our total volume, over a
400% quarter-over-quarter gain. We signed several substantial
module supply agreements and have increased our pipeline of
potential downstream projects. We continued to maintain a strong
presence in the important Japanese market."
Chairman Nam noted, "There were a number of accomplishments on
the manufacturing front. We began commercial production of our next
generation S Series modules, fully automated a number of existing
module lines, and made significant progress towards installing up
to 500 MW of new capacity for both cells and modules. We continue
to upgrade the manufacturing equipment at our ingot and wafer
plant, which has improved efficiency and lowered costs."
Chairman Nam concluded, "The outlook for the fourth quarter is
good. We expect a new record in module shipments, stable to
improving average selling prices due to strong module demand and
tight supply, and an increase in the proportion of modules sold to
higher-priced markets, such as the EU and U.S. We also aim to further reduce
manufacturing costs, which should further increase profitability.
We also expect to begin development of our first IPP project."
THIRD QUARTER 2014 RESULTS
- Total net revenues were RMB1,
198.0 million (US$195.2 million), an
increase of 8.2% from RMB1, 107.3
million in 2Q14, and an increase of 5.5% from RMB1, 135.1 million in 3Q13. The increase in
total net revenues in 3Q14 compared with 2Q14 was primarily due to
higher shipments. Module processing services accounted for
approximately 10% of revenues.
- PV module shipments, including module processing services, were
373.2 MW, a 9.9% increase from 339.5 MW in 2Q14, and a 17.4%
increase from 317.8 MW in 3Q13.
Module revenue by
shipping destination 3Q 14
|
|
Module revenue by
shipping destination 2Q 14
|
|
|
|
Country
|
3Q14
|
|
Country
|
2Q14
|
Japan
|
43%
|
|
Japan
|
53%
|
China
|
30%
|
|
US
|
11%
|
Korea
|
8%
|
|
UK
|
9%
|
US
|
5%
|
|
Korea
|
9%
|
UK
|
4%
|
|
Canada
|
7%
|
Canada
|
3%
|
|
China
|
6%
|
Turkey
|
2%
|
|
Turkey
|
1%
|
Others
|
5%
|
|
Others
|
4%
|
- The Company continues to preserve a strong position in the
Japanese market this quarter, representing 43% of module shipments
worldwide in 3Q14. Shipments to China increased to almost one third of
shipments in response to strong demand in light of the Government's
policy change and as a result of the Company's heightened focus on
this market. We expect this trend to continue in the fourth
quarter. Penetration in the Korean market was sustained with the
support of the wider Hanwha Group, accounting for 8% of modules
shipped. Third quarter shipments to the U.S. declined
due to the uncertainty created by the ongoing regulatory changes.
Deliveries to Europe were subdued
partly due to the weakening of the Euro, as well as continued
difficulty caused by the price undertaking mechanism. In the three
months ended September 30, 2014
deliveries to Canada and
Turkey remained fairly constant at
3% and 2%, respectively. The Company broadened its global footprint
by shipping PV modules to 25 separate countries during 3Q14,
including a number of notable new markets. Shipments to
Europe and Africa (EA) contributed 9% to total module
shipments, Asia Pacific (AP)
accounted for 83% and North
America (NA) 8%.
- The average selling price of modules, excluding module
processing services, decreased to RMB3.74 per watt (US$0.61), from RMB4.17 per watt in 2Q14 and decreased from
RMB4.16 per watt in 3Q13. This is
primarily attributable to a greater percentage of business in
China, which has lower market
prices.
- Gross profit in 3Q14 was RMB81.0
million (US$13.2 million),
compared with a gross profit of RMB105.1
million in 2Q14 and a gross profit of RMB57.8 million in 3Q13. The increase in gross
profit in 3Q14 was primarily due to higher shipments.
- Gross margin was positive 6.8%, compared with positive 9.5% in
2Q14 and positive 5.1% in 3Q13. The decline in gross margins is the
result of lower average selling price.
- The blended cost of goods sold ("COGS") per watt, excluding
module processing services, was US$0.57, representing a 3.4% decrease from 2Q14.
The blended COGS takes into account the production cost (silicon
and non-silicon) using internally sourced wafers, and purchase
costs and additional processing costs of externally sourced wafers
and cells. The Company's cost structure improved in light of
increased utilization and improved manufacturing efficiencies at
our ingot and wafer production facilities, lower polysilicon costs,
increased automation, and new product introductions that use fewer
raw materials.
- Operating loss in 3Q14 was RMB72.8
million (US$11.9 million),
compared with an operating loss of RMB39.9
million in 2Q14 and an operating loss of RMB132.7 million in 3Q13. Operating margin
decreased to negative 6.1% from negative 3.6% in 2Q14 and increased
from negative 11.7% in 3Q13.
- Operating expenses as a percentage of total net revenues were
12.8% in 3Q14, compared with 13.1% in 2Q14 and 16.8% in 3Q13. The
Company continues to maintain tight control over operating
expenses.
- Interest expense was RMB90.5
million (US$14.8 million),
compared with RMB83.7 million in 2Q14
and RMB89.3 million in 3Q13.
- The Company recorded a net loss of RMB71.0 million (US$11.6
million), which included a foreign exchange loss and a gain
from the change in fair value of derivatives in hedging activities.
The Company recorded a net gain of RMB37.3
million in 2Q14 and a net gain of RMB40.3 million in 3Q13 for the foreign exchange
gain/loss and the gain/loss from change in fair value of
derivatives in hedging activities.
- Gain from the change in fair value of the conversion feature of
the Company's convertible bonds was RMB4.4
million (US$0.7 million),
compared with a gain of RMB3.4
million in 2Q14 and a loss of RMB29.5
million in 3Q13. This line item has fluctuated, and is
expected to continue to fluctuate quarter-to-quarter, based
primarily on changes in the Company's ADS price. The Company has no
direct control over the fluctuations.
- Net loss attributable to shareholders on a non-GAAP basis[1]
was RMB203.7 million (US$33.2 million), compared with a net loss
attributable to shareholders of RMB54.0
million in 2Q14 and a net loss attributable to shareholders
of RMB401.6 million in 3Q13.
- Net loss per basic ADS on a non-GAAP basis was RMB2.23 (US$0.36),
compared with net loss per basic ADS on a non-GAAP basis of
RMB0.59 in 2Q14 and net loss per
basic ADS on a non-GAAP basis of RMB4.74 in 3Q13.
- Net loss attributable to shareholders on a GAAP basis was
RMB234.3 million (US$38.2 million), compared with net loss
attributable to shareholders of RMB54.8
million in 2Q14 and net loss attributable to shareholders of
RMB460.4 million in 3Q13.
- Net loss per basic ADS on a GAAP basis was RMB2.56 (US$0.42),
compared with net loss per basic ADS of RMB0.60 in 2Q14 and net loss per basic ADS of
RMB5.44 in 3Q13.
- Annualized ROE on a non-GAAP basis was negative 55.9% in 3Q14,
compared with negative 13.6% in 2Q14 and negative 88.8% in
3Q13.
- Annualized ROE on a GAAP basis was negative 55.2% in 3Q14,
compared with negative 11.9% in 2Q14 and negative 86.6% in
3Q13.
[1]
|
All non-GAAP numbers
used in this press release exclude the accounting impact from the
adoption of ASC 815-40, which relates to the accounting treatment
for the convertible bonds. Please refer to the attached financial
statements for the reconciliation between the GAAP and non-GAAP
financial results.
|
FINANCIAL POSITION
As of September 30, 2014, the
Company had cash and cash equivalents of RMB877.0 million (US$142.9
million) and negative net working capital of RMB1, 573.3 million (US$256.3 million), compared with cash and cash
equivalents of RMB981.5 million and
negative net working capital of RMB1,
204.7 million as of June 30, 2014.
Total short-term bank borrowings (including the current portion of
long-term bank borrowings) were RMB2,
961.4 million (US$482.5 million) as
of September 30, 2014, compared with
RMB2, 918.8 million as of
June 30, 2014. As of September 30, 2014 the Company's convertible
bonds were classified as a current liability and totaled
RMB492.6 million (US$80.3 million). Holders of the convertible
bonds have the option to require the Company to redeem the notes on
January 15, 2015. Since January 1, 2012, the Company has been buying back
its convertible bonds from time to time. The Company has
repurchased convertible bonds to the value of approximately
US$86.4 million out of US$172.5 million in face value as of September 30, 2014. As of September 30, 2014, the Company had total
long-term debt of RMB1, 520.9 million
(US$247.8 million), which is
comprised of long-term bank borrowings and long-term notes. The
Company's long-term bank borrowings are to be repaid in
installments until their maturities, which range from 1 to 2 years.
The Company's long-term notes are to be repaid in 2 years.
Net cash used in operating activities in 3Q14 was RMB247.2 million (US$40.3
million), compared with net cash provided in operating
activities of RMB130.6 million in
2Q14 and net cash used in operating activities of RMB315.9 million in 3Q13. As of September 30, 2014, accounts receivable were
RMB992.1 million (US$161.6 million), compared with RMB641.0 million as of June 30, 2014 and RMB744.7
million, as of December 31,
2013. Days sales outstanding ("DSO") decreased to 107 days in
3Q14 from 116 days in 2Q14, compared with 125 days in 3Q13. As of
September 30, 2014, inventories
increased to RMB932.7 million
(US$152.0 million) from RMB852.9 million as of June 30, 2014 and RMB752.3
million as of December 31,
2013. Inventories were increased in preparation for higher
shipment volumes. Day's inventory was 72 days in 3Q14 compared with
73 days in 2Q14 and 62 days in 3Q13.
Capital expenditures were RMB129.2
million (US$21.0 million) in
3Q14.
CAPACITY STATUS
As of September 30, 2014, the
Company had production capacity of 800 MW for ingot and wafer, 1.3
GW for cell and 1.5 GW for module. The Company is on plan to expand
cell and module capacities to at least 1.5 GW and 2.0 GW,
respectively, by the end of 2014.
ADDITIONAL DISCLOSURE
On June 8, 2012, we submitted an
arbitration request to Guangzhou Arbitration Commission requiring
Guangdong Guo Hua New Energy Investment Co., Ltd., or Guo Hua, owner of a PV project for which we
acted as an engineering, procurement and construction contractor,
or an EPC contractor, to pay a total amount of RMB92 million including, among others, overdue
payment of the EPC contract price, accrued interest, damages and
legal costs in accordance with the EPC contract. On August 5, 2012, Guo
Hua filed a counterclaim to Guangzhou Arbitration Commission
alleging that we have substantially breached the EPC contract, and
Guo Hua requested to terminate the
EPC contract and demanded that we pay a total amount of
RMB187 million for breach of
contract. On September 11, 2014,
Guangzhou Arbitration Commission issued their arbitral award which
dismisses Guo Hua's counterclaim for
approximately RMB187 million and
supports the Company's claim for payment of approximately
RMB78.2 million plus interests for
late payment at the rate of 8.33% per month since December 20, 2010 until the RMB78.2 million is fully paid.
On September 30, 2014, a European
customer initiated arbitration proceedings against Hanwha SolarOne
(Qidong) Co., Ltd., or SolarOne Qidong, a subsidiary of Hanwha
SolarOne Co., Ltd., under the rules of the London Court of International Arbitration. In
its initial pleading, the European customer alleged that
certain solar modules it purchased from SolarOne Qidong between
2009 and 2011 were defective, claiming total damages of
approximately US$240 million,
comprised of purchase price adjustments and damages, as well as
indemnification against any liability arising from the European
customer's sale of such modules to end customers. SolarOne
Qidong intends to vigorously defend against the claims. On
November 7, 2014, SolarOne Qidong
filed its Response to the European customer's Request for
Arbitration, denying all liability for the claims asserted and
reserving the right to assert any defense or counterclaim it deems
appropriate. The arbitral tribunal is currently being
constituted.
BUSINESS OUTLOOK
The Company provides the following guidance based on current
operating trends and market conditions.
For the fourth quarter 2014 the Company expects:
- Module shipments of 400 - 425 MW
For the full year 2014, the Company expects:
- Module shipments to be between 1.43 GW to 1.46 GW of which
about 25 to 30% will be for PV module processing services
- Capital expenditures of $80
million largely for automation of existing manufacturing
lines, as well as cell and module capacity expansions
CONFERENCE CALL
The Company will host a conference call to discuss the third
quarter results at 8:00 AM Eastern
Time (9:00 PM Shanghai Time)
on November 21, 2014.
Mr. Seong-woo Nam, Chairman and CEO; Mr. Jung Pyo SEO, Chief
Financial Officer; and Mr. Paul
Combs, Vice President of Investor Relations, will discuss
the results and take questions following the prepared remarks.
The dial-in details for the live conference call are as
follows:
U.S. Toll Free
Number:
|
18665194004
|
International dial-in
Number:
|
+65 67239381
|
China Toll Free
Numbers:
|
4006208038
|
|
8008190121
|
Passcode:
|
HSOL
|
A live webcast of the conference call will be available on the
investor relations section of the Company's website at:
http://www.hanwha-solarone.com. A replay of the webcast will be
available for one month.
A telephone replay of the call will be available for seven days
after the conclusion of the conference call. The dial-in details
for the replay are as follows:
U.S. Toll Free
Number:
|
18554525696
|
International dial-in
Number:
|
+61 2 8199 0299
|
China Domestic Toll
Free Numbers:
|
4006022065
(Mandarin)
|
|
8008700205
|
Conference
ID:
|
34576148
|
Encore Dates: November 21, 2014
11:00 AM ET - November 29, 2014 7:59 AM
ET
FOREIGN CURRENCY CONVERSION
The conversion in this release of Renminbi into U.S. dollars is
made solely for the convenience of the reader, and is based on the
exchange rate as set forth in the H.10 statistical release of the
Federal Reserve Board as of September 30,
2014, which was RMB6.1380 to
US$1.00, except for the conversion of
Renminbi into U.S. dollars for 2Q14 which is based on the exchange
rate of RMB6.2036 to US$1.00 as set forth in the H.10 statistical
release of the Federal Reserve Board as of June 30, 2014. No representation is intended to
imply that the Renminbi amounts could have been, or could be,
converted, realized or settled into U.S. dollars at that rate on
September 30, 2014 or at any other
date. Percentage changes stated in this press release are
calculated based on Renminbi amounts.
USE OF NON-GAAP FINANCIAL MEASURES
The Company has included in this press release certain non-GAAP
financial measures, including certain line items presented on the
basis that the accounting impact of ASC 815-40 had not been
recorded. The Company believes that both management and investors
benefit from referring to these non-GAAP financial measures in
assessing the performance of the Company and when planning and
forecasting future periods. Readers are cautioned not to view
non-GAAP financial measures on a stand-alone basis or as a
substitute for GAAP measures, or as being comparable to results
reported or forecasted by other companies, and should refer to the
reconciliation of GAAP measures with non-GAAP measures also
included herein.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements include 4Q and full-year
2014 estimates for PV product shipments, production capacities and
other results of operations. Forward-looking statements involve
inherent risks and uncertainties and actual results may differ
materially from such estimates depending on future events and other
changes in business climate and market conditions. Hanwha SolarOne
disclaims any obligation to update or correct any forward-looking
statements.
About Hanwha SolarOne
Hanwha SolarOne Co., Ltd. (NASDAQ: HSOL) is a
vertically-integrated manufacturer of silicon ingots, wafers, PV
cells and modules. Hanwha SolarOne offers high-quality, reliable
products and services at competitive prices. Partnering with
third-party distributors, OEM manufacturers, and systems
integrators, Hanwha SolarOne serves the utility, commercial,
government, and residential markets. The Company maintains a strong
presence worldwide, with employees located throughout Europe, North
America and Asia, and
embraces environmental responsibility and sustainability, with an
active role in the voluntary photovoltaic recycling program. Hanwha
Group, Hanwha SolarOne's largest shareholder, is active in solar
project development and financing, and the production of
polysilicon. For more information, please visit:
http://www.hanwha-solarone.com.
Hanwha SolarOne
Co., Ltd.
|
CONSOLIDATED
BALANCE SHEETS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
June 30
|
September 30
|
September 30
|
|
2013
|
2014
|
2014
|
2014
|
|
(Audited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
RMB'000
|
RMB'000
|
RMB'000
|
US$'000
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
1,249,481
|
981,490
|
877,012
|
142,882
|
Restricted
cash
|
163,948
|
434,943
|
622,926
|
101,487
|
Derivative
contracts
|
26,632
|
-
|
10,766
|
1,754
|
Accounts receivable -
net
|
744,739
|
640,962
|
992,105
|
161,633
|
Notes
receivable
|
10,780
|
7,437
|
10,014
|
1,631
|
Inventories
|
752,291
|
852,947
|
932,721
|
151,958
|
Advance to suppliers
- net
|
182,129
|
202,213
|
177,272
|
28,881
|
Other current assets
- net
|
301,561
|
250,772
|
286,049
|
46,603
|
Amount due from
related parties - net
|
530,732
|
562,483
|
434,807
|
70,839
|
|
|
|
|
|
Total
current assets
|
3,962,293
|
3,933,247
|
4,343,672
|
707,668
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Fixed assets -
net
|
4,482,656
|
4,359,730
|
4,389,089
|
715,068
|
Land use rights -
net
|
272,444
|
269,546
|
267,761
|
43,623
|
Long-term
investment
|
-
|
-
|
5,241
|
854
|
Deferred tax assets -
net
|
2,946
|
2,946
|
2,835
|
462
|
Long-term deferred
expenses
|
9,594
|
4,247
|
3,358
|
547
|
Long-term
prepayments
|
132,011
|
75,322
|
84,302
|
13,734
|
|
|
|
|
|
Total
non-current assets
|
4,899,651
|
4,711,791
|
4,752,586
|
774,288
|
|
|
|
|
|
TOTAL
ASSETS
|
8,861,944
|
8,645,038
|
9,096,258
|
1,481,956
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Derivative
contracts
|
6,513
|
17,659
|
6,005
|
978
|
Short-term bank
borrowings
|
1,105,575
|
1,343,676
|
1,386,314
|
225,858
|
Long-term bank
borrowings, current portion
|
234,121
|
1,575,117
|
1,575,040
|
256,605
|
Convertible
bonds
|
-
|
462,126
|
492,581
|
80,251
|
Accounts
payable
|
695,530
|
522,806
|
764,661
|
124,578
|
Notes
payable
|
494,462
|
465,800
|
610,930
|
99,532
|
Accrued expenses and
other liabilities
|
388,747
|
361,661
|
381,995
|
62,234
|
Customer
deposits
|
47,763
|
34,492
|
26,021
|
4,239
|
Unrecognized tax
benefit
|
143,473
|
116,089
|
116,089
|
18,913
|
Amount due to related
parties
|
255,033
|
238,529
|
557,310
|
90,797
|
|
|
|
|
|
Total
current liabilities
|
3,371,217
|
5,137,955
|
5,916,946
|
963,985
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Long-term bank
borrowings
|
2,446,076
|
1,004,137
|
905,648
|
147,548
|
Long-term
notes
|
609,690
|
615,280
|
615,250
|
100,236
|
Convertible
bonds
|
470,357
|
-
|
-
|
-
|
Long term
payable
|
50,000
|
50,000
|
50,000
|
8,146
|
Deferred tax
liabilities
|
24,209
|
23,914
|
23,767
|
3,872
|
|
|
|
|
|
Total
non-current liabilities
|
3,600,332
|
1,693,331
|
1,594,665
|
259,802
|
|
|
|
|
|
TOTAL
LIABILITIES
|
6,971,549
|
6,831,286
|
7,511,611
|
1,223,787
|
|
|
|
|
|
Redeemable
ordinary shares
|
24
|
24
|
24
|
4
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Ordinary
shares
|
321
|
337
|
337
|
55
|
Additional paid-in
capital
|
4,022,147
|
4,127,259
|
4,126,872
|
672,348
|
Statutory
reserves
|
174,456
|
174,456
|
174,456
|
28,422
|
Accumulated
deficits
|
(2,304,523)
|
(2,492,720)
|
(2,726,970)
|
(444,277)
|
Accumulated other
comprehensive income (loss)
|
(2,030)
|
4,396
|
9,928
|
1,617
|
|
|
|
|
|
Total
shareholders' equity
|
1,890,371
|
1,813,728
|
1,584,623
|
258,165
|
|
|
|
|
|
TOTAL
EQUITY
|
1,890,395
|
1,813,752
|
1,584,647
|
258,169
|
|
|
|
|
|
TOTAL LIABILITIES,
REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS' EQUITY
|
8,861,944
|
8,645,038
|
9,096,258
|
1,481,956
|
Hanwha SolarOne
Co., Ltd.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$"),
|
except for number
of shares (ADS) and per share (ADS) data
|
|
|
For the three months
ended
|
|
September 30
|
June
30
|
September 30
|
September 30
|
|
2013
|
2014
|
2014
|
2014
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
RMB'000
|
RMB'000
|
RMB'000
|
US$'000
|
|
|
|
|
|
Net
revenues
|
1,135,080
|
1,107,253
|
1,197,984
|
195,175
|
|
|
|
|
|
Cost of
revenues
|
(1,077,312)
|
(1,002,182)
|
(1,116,951)
|
(181,973)
|
|
|
|
|
|
Gross
profit
|
57,768
|
105,071
|
81,033
|
13,202
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
(73,733)
|
(62,952)
|
(59,599)
|
(9,710)
|
General and
administrative expenses
|
(91,132)
|
(63,925)
|
(70,054)
|
(11,413)
|
Research and
development expenses
|
(25,597)
|
(18,053)
|
(24,184)
|
(3,940)
|
|
|
|
|
|
Total operating
expenses
|
(190,462)
|
(144,930)
|
(153,837)
|
(25,063)
|
|
|
|
|
|
Operating
loss
|
(132,694)
|
(39,859)
|
(72,804)
|
(11,861)
|
|
|
|
|
|
Interest
expenses
|
(89,331)
|
(83,687)
|
(90,539)
|
(14,751)
|
Interest
income
|
4,624
|
7,273
|
3,660
|
596
|
Exchange gain
(loss)
|
27,114
|
39,569
|
(95,670)
|
(15,586)
|
Changes in fair value
of derivative contracts
|
13,191
|
(2,226)
|
24,703
|
4,025
|
Changes in fair value
of conversion feature of convertible bonds
|
(29,522)
|
3,427
|
4,383
|
714
|
Loss on
extinguishment of debt
|
-
|
(9,939)
|
-
|
-
|
Other
income
|
1,142
|
2,066
|
2,024
|
330
|
Other
expenses
|
(810)
|
(2,382)
|
(7,439)
|
(1,212)
|
|
|
|
|
|
Net loss before
income tax
|
(206,286)
|
(85,758)
|
(231,682)
|
(37,745)
|
|
|
|
|
|
Income tax benefit
(expenses)
|
(254,067)
|
30,969
|
(2,568)
|
(418)
|
|
|
|
|
|
Net
loss
|
(460,353)
|
(54,789)
|
(234,250)
|
(38,163)
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to
shareholders
|
(54,789)
|
(38,163)
|
(460,353)
|
(234,250)
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax
|
|
|
|
|
Foreign currency
translation adjustment
|
1,267
|
611
|
5,532
|
901
|
|
|
|
|
|
Comprehensive loss
attributable to
ordinary shareholders
|
(459,086)
|
(54,178)
|
(228,718)
|
(37,262)
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
Basic
|
(1.09)
|
(0.12)
|
(0.51)
|
(0.08)
|
Diluted
|
(1.09)
|
(0.12)
|
(0.51)
|
(0.08)
|
|
|
|
|
|
Shares used in
computation
|
|
|
|
|
Basic
|
423,373,456
|
457,277,047
|
457,420,084
|
457,420,084
|
Diluted
|
423,373,456
|
457,277,047
|
457,420,084
|
457,420,084
|
|
|
|
|
|
|
|
|
|
|
Net loss per
ADS
|
|
|
|
|
Basic
|
(5.44)
|
(0.60)
|
(2.56)
|
(0.42)
|
Diluted
|
(5.44)
|
(0.60)
|
(2.56)
|
(0.42)
|
|
|
|
|
|
ADSs used in
computation
|
|
|
|
|
Basic
|
84,674,691
|
91,455,409
|
91,484,017
|
91,484,017
|
Diluted
|
84,674,691
|
91,455,409
|
91,484,017
|
91,484,017
|
Hanwha SolarOne
Co., Ltd.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands of Renminbi ("RMB") and U.S. dollars
("US$")
|
|
|
For the three months
ended
|
|
September 30, 2013
|
June 30, 2014
|
September 30, 2014
|
September 30, 2014
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
RMB'000
|
RMB'000
|
RMB'000
|
US$'000
|
|
|
|
|
|
Cash flow from
operating activities
|
|
|
|
|
Net loss
|
(460,353)
|
(54,789)
|
(234,250)
|
(38,163)
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Unrealised loss from derivative contracts
|
(4,094)
|
170
|
(22,420)
|
(3,653)
|
Amortization of convertible bonds discount
|
27,095
|
31,752
|
34,838
|
5,676
|
Changes in fair value of conversion feature of convertible bonds
|
29,522
|
(3,427)
|
(4,383)
|
(714)
|
Loss on
extinguishment of debt
|
-
|
9,939
|
-
|
-
|
Loss from disposal of
fixed assets
|
506
|
43
|
5,899
|
961
|
Depreciation and
amortization
|
110,651
|
109,492
|
112,107
|
18,264
|
Amortization of
long-term deferred expenses
|
4,043
|
4,411
|
3,746
|
610
|
Provision for
doubtful debt for other current assets
|
11,854
|
-
|
-
|
-
|
Write down of
inventories
|
30,772
|
7,911
|
15,066
|
2,455
|
Stock compensation
expense
|
756
|
441
|
746
|
122
|
Warranty provision /
utilization
|
(14,085)
|
5,457
|
9,505
|
1,549
|
Warranty
reversal
|
(5,410)
|
(2,957)
|
-
|
-
|
Deferred tax expense
(benefit)
|
260,320
|
(148)
|
(36)
|
(6)
|
Foreign currency
exchange losses (gains)
|
(3,070)
|
70
|
(30)
|
(5)
|
Reversal of
unrecognized tax benefit
|
-
|
(27,384)
|
-
|
-
|
Changes in
operating assets and liabilities
|
|
|
|
|
Restricted
cash
|
(281,247)
|
(128,243)
|
(221,050)
|
(36,013)
|
Inventories
|
(137,302)
|
(81,254)
|
(94,840)
|
(15,451)
|
Accounts and notes
receivable
|
136,721
|
187,214
|
(348,188)
|
(56,727)
|
Advance to suppliers
and long-term prepayments
|
16,442
|
8,459
|
15,961
|
2,600
|
Other current
assets
|
51,656
|
16,557
|
(30,973)
|
(5,047)
|
Amount due from
related parties
|
(92,986)
|
26,994
|
127,676
|
20,801
|
Accounts and notes
payable
|
(76,459)
|
5,243
|
373,290
|
60,816
|
Accrued expenses and
other liabilities
|
(3,948)
|
24,642
|
10,829
|
1,764
|
Customer
deposits
|
27,112
|
(145)
|
(8,471)
|
(1,380)
|
Amount due to related
parties
|
55,624
|
(9,893)
|
7,795
|
1,270
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
(315,880)
|
130,555
|
(247,183)
|
(40,271)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Acquisition of fixed
assets
|
(65,234)
|
(84,643)
|
(129,196)
|
(21,048)
|
Disposal of fixed
assets
|
-
|
-
|
3
|
-
|
Change of restricted
cash
|
(5,520)
|
(71,070)
|
11,879
|
1,935
|
Acquision in
long-term investment
|
-
|
-
|
(5,241)
|
(854)
|
Proceeds from
disposal of a subsidiary
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(70,754)
|
(155,713)
|
(122,555)
|
(19,967)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
(payments for) issuance of ordinary shares
|
-
|
-
|
(1,133)
|
(185)
|
Payment for
repurchase of convertible bonds
|
-
|
(84,999)
|
-
|
-
|
Change of restricted
cash
|
(14,786)
|
3,731
|
21,188
|
3,452
|
Proceeds from
short-term borrowings
|
643,764
|
464,637
|
1,135,137
|
184,936
|
Repayment of
short-term borrowings
|
(588,809)
|
(410,384)
|
(784,205)
|
(127,762)
|
Repayment of
long-term borrowings
|
(13,631)
|
(26,776)
|
(98,566)
|
(16,058)
|
Arrangement fee and
other related costs for long-term bank borrowings
|
(6,662)
|
(6,750)
|
-
|
-
|
Arrangement fee and
other related costs for long-term notes
|
-
|
(3,695)
|
-
|
-
|
Arrangement fee and
other related costs for short-term bank borrowings
|
(2,041)
|
(7,760)
|
(7,161)
|
(1,167)
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
17,835
|
(71,996)
|
265,260
|
43,216
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
(368,799)
|
(97,154)
|
(104,478)
|
(17,022)
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of period
|
1,418,559
|
1,078,644
|
981,490
|
159,904
|
|
|
|
|
|
Cash and cash
equivalents at the end of period
|
1,049,760
|
981,490
|
877,012
|
142,882
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest
paid
|
56,441
|
39,947
|
49,117
|
8,002
|
Income tax paid
(refunded)
|
(24,817)
|
1,592
|
(457)
|
(74)
|
Realized gain (loss)
from derivative contracts
|
9,097
|
(2,056)
|
2,283
|
372
|
Supplemental
schedule of non-cash activities:
|
|
|
|
|
Acquisition of fixed
assets included in accounts payable, accrued expenses and other
liabilities
|
(50,439)
|
(4,700)
|
16,387
|
2,670
|
|
|
For the three
months ended
|
|
|
|
|
|
September 30, 2013
|
June 30, 2014
|
September 30, 2014
|
September 30, 2014
|
|
|
|
|
|
(RMB
million)
|
(RMB
million)
|
(RMB
million)
|
(US$
milllion)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
loss
|
(401.6)
|
(54.0)
|
(203.7)
|
(33.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of the conversion
features of the Convertible bonds
|
(29.5)
|
3.4
|
4.4
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest
of the Convertible bonds
|
(29.3)
|
(31.6)
|
(35.0)
|
(5.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrecognized tax
benefit
|
-
|
27.4
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
(460.4)
|
(54.8)
|
(234.3)
|
(38.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
|
|
|
September 30,
2013
|
June 30,
2014
|
September 30,
2014
|
September 30,
2014
|
|
|
|
|
|
(RMB)
|
(RMB)
|
(RMB)
|
(US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP net loss per
ADS - Basic
|
(4.74)
|
(0.59)
|
(2.23)
|
(0.36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of
the conversion features of the Convertible bonds
|
(0.35)
|
0.04
|
0.05
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of interest
of the Convertible bonds
|
(0.35)
|
(0.35)
|
(0.38)
|
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrecognized tax
benefit
|
|
0.30
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
contributed to shareholders per ADS - Basic
|
(5.44)
|
(0.60)
|
(2.56)
|
(0.42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS
(Basic)
|
84,674,691
|
91,455,409
|
91,484,017
|
91,484,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For three months
ended
|
|
|
Annualized for the
three months ended
|
|
September 30,
2013
|
June 30,
2014
|
September 30,
2014
|
|
|
September 30, 2013
|
June 30, 2014
|
September 30, 2014
|
|
|
|
|
|
|
|
|
|
Non-GAAP Return on
Equity
|
-22.21%
|
-3.41%
|
-13.98%
|
|
|
-88.84%
|
-13.64%
|
-55.92%
|
|
|
|
|
|
|
|
|
|
Fair value changes of
the conversion features of the Convertible bonds
|
1.94%
|
0.66%
|
2.25%
|
|
|
7.76%
|
2.64%
|
9.00%
|
|
|
|
|
|
|
|
|
|
Accretion of interest
of the Convertible bonds
|
-1.38%
|
-1.72%
|
-2.06%
|
|
|
-5.52%
|
-6.88%
|
-8.24%
|
|
|
|
|
|
|
|
|
|
Unrecognized tax
benefit
|
-
|
1.49%
|
-
|
|
|
-
|
5.96%
|
-
|
|
|
|
|
|
|
|
|
|
GAAP Return on
equity
|
-21.65%
|
-2.98%
|
-13.79%
|
|
|
-86.60%
|
-11.92%
|
-55.16%
|
SOURCE Hanwha SolarOne Co., Ltd.