Hanwha Q Cells turns to profit in Q2 2016

Hanwha Q Cells (NASDAQ:HQCL) on Tuesday posted a net profit of USD 76.8 million (EUR 69.8m) for the second quarter of 2016 and said it remains optimistic about the long-term growth prospects in the solar industry.

The table below contains the photovoltaic (PV) products maker’s results for the past quarter and comparative figures.

Results in USD	Q2 2016	Q1 2016	Q2 2015
Net profit (loss) attributable to ordinary shareholders	76.8 million	27.5 million	(14.2 million)
Earnings (loss) per fully diluted ADS	0.92	0.33	(0.17)
Operating profit	84.5 million	56.7 million	1 million
Gross margin	23.7%	21.2%	17.3%
Net revenues	638 million	514.9 million	338 million

The firm did not disclose the capacity of the solar equipment it sold in April-June.

“We are pleased to report a solid quarterly execution which exceeded our financial targets driven by disciplined, yet flexible global operations, while adopting into continuously changing market environments cost effectively,” chairman and CEO, Seong-woo Nam, said. In 2016, the South Korea-based company is maintaining a net debt-to-equity ratio below 250% while its cash conversion cycle is less than 60 days as compared with over 100 days a year back, he added.

Hanwha Q Cells reaffirmed its revised module shipments guidance of 4.8 GW-5.0 GW for the full 2016. The company’s capital expenditures for the year are planned at USD 100 million for manufacturing capacity expansion and USD 80 million for technology upgrades, research and development (R&D).

At end-March, the firm had annualised production capacities of 1,500 MW for ingots, 900 MW for wafers, 4,000 MW for cells and 4,000 MW for modules.

Hanwha Q Cells had total short-term bank borrowings of USD 379.7 million as of June 30, 2016.

(USD 1.0 = EUR 0.909)

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