Nov 22, 2011 - Chinese solar products maker Hanwha SolarOne (NASDAQ:HSOL) today said its net loss widened to CNY 177.6 million (USD 27.9m/EUR 20.6m) from a loss of CNY 25.2 million a year ago due to challenging industry conditions.
Adjusted net loss was CNY 295.7 million in July-September 2011 compared to a profit of CNY 273.7 million in the corresponding period of 2010.
The company booked a non-cash inventory write-down of CNY 194.9 million due to lower of cost or market (LCM) assessment and regular provision for obsolescence.
Hanwha SolarOne booked an operating loss of CNY 327.8 million for the reporting period versus a profit of CNY 398.7 million a year ago.
Gross margin came in at negative 10.8% from positive 24% due to inventory write-down.
Revenue decreased 34.4% on the year to CNY 1.43 billion. Sales in Germany accounted for 45% of the total sales, below the company's expectations. Average selling price decreased, too.
Module shipments, including module processing services, fell 10.3% to 200.9 MW due to lower than expected demand in Europe and tight credit on solar project development globally.
Cash outflow from operations was CNY 344 million as at September 30, compared to cash outflow of CNY 194 million a year ago.
Hanwha SolarOne reduced its full-year module shipments guidance to 815 MW-835 MW from the previously forecast 1 GW, expecting industry environment to remain difficult into the beginning of 2012.
(CNY 1.0 = USD 0.157/EUR 0.116)
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