Sep 9, 2013 - Chinese solar equipment maker Hanwha SolarOne Co Ltd (NASDAQ:HSOL) saw its preliminary second-quarter 2013 net loss contract to CNY 166 million (USD 27m/EUR 20.6m) from CNY 266.7 million a year ago.
The result included a gain of CNY 47.2 million on foreign exchange effects and from the change in fair value of derivatives in hedging activities, against a loss of CNY 34.3 million previously. During the period, Hanwha SolarOne posted positive operating cash flow of CNY 494.8 million, versus cash outflow of CNY 335.5 million a year back.
Amid relatively stable average selling prices and thanks to better factory utilisation, lower expenses and improved revenues the company’s gross margin stood at 5.5% in April-June 2013. This compares to 2.6% in the preceding quarter and 6.3% in the second quarter of 2012.
Revenues for the reporting period hit CNY 1.18 billion, growing by 10.4% year-on-year and by 6.3% quarter-on-quarter. One of the main reasons was a rise in photovoltaic (PV) module shipments to 321.2 MW from 230.7 MW a year before and from 289.1 MW in the first quarter of 2013. Hanwha SolarOne chairman and chief executive Ki-Joon Hong said that the manufacturing module services business with Hanwha Q CELLS in Germany should see higher volumes in the second half of 2013.
Japan accounted for 34% of the company’s revenues in the second quarter of 2013, while South Africa brought 20%. Germany had a share of 12%. Hong noted that Hanwha SolarOne was working to further expand its footprint in emerging markets such as South America, the Middle East and Southeast Asia.
Hanwha expects third-quarter 2013 shipments of 300 MW to 325 MW. For the full year the company guided for module shipments of 1.2 GW-1.4 GW.
At the end of June the company had CNY 1.42 billion in cash and cash equivalents and CNY 884.2 million net working capital. Its short-term bank borrowings amounted to CNY 1.18 billion, while total long-term debt was CNY 3.68 billion.
(CNY 10 = USD 1.634/EUR 1.238)
Choose your newsletter by Renewables Now. Join for free!
