Hanwha SolarOne reports Q2, 2014 results: Increased PV module shipments, dropped revenues

Hanwha SolarOne is aiming to expand solar cell and PV module capacities to at least 1.5 GW and 2.0 GW, respectively by the end of 2014
Hanwha SolarOne is aiming to expand solar cell and PV module capacities to at least 1.5 GW and 2.0 GW, respectively by the end of 2014

Hanwha SolarOne Co., Ltd. (Shanghai, China) on August 28th, 2014 reported its unaudited financial results for the three months ended June 30th, 2014. In Q2, 2012 Hanwha SolarOne increased solar photovoltaic (PV) module shipments including module processing services by 4.9% to 339.5 MW (Q1, 2014: 323.6 MW; Q2, 2013: 321.2 MW). 

Q2 total net revenues were RMB 1, 107.3 million (USD 178.5 million), a decrease of 2.7% from RMB 1,138.4 million in Q1, 201414, and a decrease of 6.4% from RMB 1,182.8 million in Q2, 2013.

The decrease in total net revenues in Q2, 2014 compared withQ1, 2014 was primarily due to a lower average module selling price, the company emphasizes.


Gross margins driven down by a lower average selling price

Gross profit in Q2, 2014 14 was RMB 105.1 million (USD 16.9 million), compared with a gross profit of RMB 158.1 million inQ1, 2014 and a gross profit of RMB 65.3 million in Q2, 2013. The company attributes this decrease to lower revenues due to declining average selling price. Gross margin was positive 9.5%, compared with positive 13.9% in 1Q14 and positive 5.5% in 2Q13.


Chairman expects positive developments for the remainder of 2014

"The second quarter of 2014 showed an increase in shipments and a significant reduction in our net loss position. Our gross margins were driven down by a lower average selling price, reflecting a decreasing proportion of sales from the higher-priced EU market, particularly the UK, and an increasing proportion from the relatively lower priced China market,” commented Seong-woo Nam, Chairman and CEO of Hanwha SolarOne.

“We maintained our strong position in Japan and began shipments to several newer emerging markets. We continued to maintain tight control over operating expenses."

The Chairman announced a number of positive developments for Hanwha SolarOne’s business for the remainder of this year, including a strong growth in quarterly shipment volumes beginning in the third quarter, driven especially by good visibility in China. Seong-woo Nam also identified opportunities for cost reduction due to increased efficiency and improved utilization of the company’s ingot and wafer manufacturing lines

Nam also announced the introduction of a four busbar solar cell technology, and reduced processing costs from decreased use of raw materials, increased automation of production lines, and the addition of new cell and module lines.


Strong presence in Japan; UK shipments declined

The Company once again maintained a strong presence in Japan, representing 53% of PV module shipments worldwide in Q2, 2014. The US reversed its position with the UK from the prior quarter to become the second largest market for the Hanwha SolarOne in the three months ended June 30th, 2014.

The UK market declined this quarter to account for 9% of total shipments, due to lower demand for utility-scale solar projects after a change in the incentive scheme.

Deliveries to Korea and Canada picked up for the Company at 9%, and 7% for this quarter, respectively. This Hanwha SolarOne saw a meaningful rebound in shipments to the China market, representing 6% of the 339.5 MW of modules shipped.

The Company increased the shipment of PV modules to 23 countries during Q2, 2014, including a number of notable new solar markets. Shipments to Europe and Africa (EA) contributed 12% to total module shipments, Asia Pacific (AP) accounted for 70% and North America (NA) 18%.

As of June 30th, 2014 the Company had production capacity of 800 MW for ingots and wafers, 1.3 GW for solar cells and 1.5 GW for PV modules. The Company is aiming to expand cell and module capacities to at least 1.5 GW and 2.0 GW, respectively, by the end of 2014.

For the third quarter 2014 the Company expects module shipments of approximately 400MW, and of 1.5 - 1.6 GW for the full year 2014.



2014-08-28 | Courtesy: Hanwha SolarOne | © Heindl Server GmbH

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