Hanwha SolarOne Reports First Quarter 2014 Results

May 14, 2014, 06:00 ET from Hanwha SolarOne Co., Ltd.

SHANGHAI, May 14, 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 March 31, 2014. The Company will host a conference call to discuss the results at 8:00 am Eastern Time (8:00 pm Shanghai Time) on May 14, 2014. A slide presentation with details of the results will also be available on the Company's website prior to the call.

FIRST QUARTER 2014 HIGHLIGHTS

4Q13

1Q14

Percentage Change1

(RMB)

(US$)

(RMB)

(US$)

(%)

Net Revenues (Million)

1,294.9

213.9

1,138.4

183.1

-12.1

Shipments (MW)

352.2

323.6

-8.1

ASP (/W)

4.09

0.68

4.27

0.69

+4.4

Gross profit (Million)

183.0

30.2

158.1

25.4

-13.6

Gross margin (%)

14.1

13.9

-20 basis points

Operating (loss)/profit (Million)

(23.7)

(3.9)

21.9

3.5

N/M

Operating margin (%)

-1.8

1.9

+ 370 basis points

Net loss (Million)

(21.8)

(3.6)

(133.4)

(21.5)

-512.0

Net loss per basic ADS

(0.26)

(0.04)

(1.47)

(0.24)

-465.4

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 first quarter results were primarily impacted by (1) a slowdown in demand in China due to seasonality and delayed project installation, as customers anticipated more lucrative government subsidies later this year, and (2) the unexpected devaluation of the Renminbi, which resulted in a foreign exchange loss for the quarter. Our core business remained strong. We continued to maintain our strong position in the Japanese market and made good progress towards filling our allocation in the EU. Our average selling prices remained firm at the high end of peer averages, and we continued to effectively manage operating expenses."

Chairman Nam noted, "Beginning in the second quarter and for the remainder of the year, demand and shipment volumes look promising. We anticipate up to a 14% increase in shipments from the first quarter to the second quarter. China demand is beginning to warm and a strong second half of the year is expected in this market as the government increases incentives and improves the availability of credit for select companies. We expect business opportunities to develop further in China with cooperation from our strategic partners, including downstream project development."

Chairman Nam concluded, "There is good potential for cost reduction for the remainder of this year, especially as we increase utilization and reduce costs at our internal ingot and wafer operation. Conversion of existing module lines to full automation beginning mid-year will also cut costs and improve quality. Synergies with Hanwha Q CELLS remain strong, as the companies exchange technology, share manufacturing expertise, integrate supply chains, in each case where practical and appropriate, and continue a meaningful toll arrangement. Finally, we are now prepared to increase cell and module capacity to 1.5 GW and 2.0 GW respectively, positioning us to enter 2015 with higher capacity to meet a significant anticipated increase in demand."

FIRST QUARTER 2014 RESULTS

  • Total net revenues were RMB1, 138.4 million (US$183.1 million), a decrease of 12.1% from RMB1, 294.9 million in 4Q13, and an increase of 2.3% from RMB1, 112.9 million in 1Q13. The decrease in total net revenues in 1Q14 compared with 4Q13 was primarily due to lower shipments.
  • PV module shipments, including module processing services, were 323.6 MW, an 8.1% decrease from 352.2 MW in 4Q13, and an 11.9% increase from 289.1 MW in 1Q13.

Module revenue by shipping destination 1Q 14

Module revenue by shipping destination 4Q 13

Country

1Q14

Country

4Q13

Japan

51%

Japan

44%

UK

22%

China

16%

US

8%

US

11%

Korea

7%

Germany

7%

India

3%

Korea

7%

Canada

3%

Canada

5%

Guatemala

2%

Spain

2%

Others

4%

Others

8%

  • The Company continues to maintain a strong presence in Japan, representing 51% of module shipments worldwide in 1Q14. The UK market increased substantially this quarter and accounted for 22% of total shipments, due to strong demand for utility-scale solar projects ahead of scheduled incentive changes. Deliveries to the US, Korea and Canada remained relatively stable for the Company at 8%, 7% and 3% for this quarter, respectively. Guatemala entered the geographic mix this quarter after the completion of a previously announced module delivery. China, which represented 16% of shipments the prior quarter, experienced a pause as developers waited for new incentives from the government. We expect activity to increase starting in the second quarter and gain further during the second half of the year. The Company shipped PV modules to 22 countries during 1Q14, including a number of notable new markets. Shipments to Europe and Africa (EA) contributed 24% to total module shipments, Asia Pacific (AP) accounted for 63% and North America (NA) 13%.
  • The average selling price of modules, excluding module processing services, increased to RMB4.27 per watt (US$0.69), from RMB4.09 per watt in 4Q13 and RMB4.12 per watt in 1Q13.
  • Gross profit in 1Q14 was RMB158.1 million (US$25.4 million), compared with a gross profit of RMB183.0 million in 4Q13 and a gross profit of RMB28.9 million in 1Q13. The decrease in gross profit in 1Q14 was primarily due to lower revenues.
  • Gross margin was positive 13.9%, compared with positive 14.1% in 4Q13 and positive 2.6% in 1Q13.
  • The blended cost of goods sold ("COGS") per watt, excluding module processing services, was US$0.59, representing no change from 4Q13. The blended COGS takes into account the production cost (silicon and non-silicon) using internally sourced wafers, purchase costs and additional processing costs of externally sourced wafers and cells.
  • Operating profit in 1Q14 was RMB21.9 million (US$3.5 million), compared with an operating loss of RMB23.7 million in 4Q13 and an operating loss of RMB128.2 million in 1Q13. Operating margin improved to positive 1.9% from negative 1.8% in 4Q13 and negative 11.5% in 1Q13.
  • Operating expenses as a percentage of total net revenues were 12.0% in 1Q14, compared with 16.0% in 4Q13 and 14.1% in 1Q13.
  • Interest expense was RMB89.0 million (US$14.3million), compared with RMB85.4 million in 4Q13 and RMB75.8 million in 1Q13.
  • The Company recorded a net loss of RMB72.7 million (US$11.7 million), which included a foreign exchange loss and a loss from the change in fair value of derivatives in hedging activities. The Company recorded a net gain of RMB43.7 million in 4Q13 and a net loss of RMB23.8 million in 1Q13 for the foreign exchange gain/loss and the gain from change in fair value of derivatives in hedging activities.
  • Loss from the change in fair value of the conversion feature of the Company's convertible bonds was RMB0.3 million (US$0.05 million), compared with a gain of RMB32.6 million in 4Q13 and a gain of RMB2.1 million in 1Q13. This line item has fluctuated, and is expected to continue to fluctuate quarter-to-quarter, based 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 RMB98.8 million (US$15.9 million), compared with a net loss attributable to shareholders of RMB25.4 million in 4Q13 and a net loss attributable to shareholders of RMB202.9 million in 1Q13.
  • Net loss per basic ADS on a non-GAAP basis was RMB1.09 (US$0.17), compared with net loss per basic ADS on a non-GAAP basis of RMB0.30 in 4Q13 and net loss per basic ADS on a non-GAAP basis of RMB2.40 in 1Q13.
  • Net loss attributable to shareholders on a GAAP basis was RMB133.4 million (US$21.5 million), compared with net loss attributable to shareholders of RMB21.8 million in 4Q13 and net loss attributable to shareholders of RMB225.9 million in 1Q13.
  • Net loss per basic ADS on a GAAP basis was RMB1.47 (US$0.24), compared with net loss per basic ADS of RMB0.26 in 4Q13 and net loss per basic ADS of RMB2.67 in 1Q13.
  • Annualized ROE on a non-GAAP basis was negative 24.6% in 1Q14, compared with negative 6.3% in 4Q13 and negative 36.2% in 1Q13.
  • Annualized ROE on a GAAP basis was negative 28.4% in 4Q13, compared with negative 4.6% in 4Q13 and negative 34.3% in 1Q13.

[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 March 31, 2014, the Company had cash and cash equivalents of RMB1,078.6 million (US$173.5 million) and net working capital of RMB140.1 million (US$22.5 million), compared with cash and cash equivalents of RMB1,249.5 million and net working capital of RMB591.1 million as of December 31, 2013. Total short-term bank borrowings (including the current portion of long-term bank borrowings) were RMB1, 519.5 million (US$244.4 million) as of March 31, 2014, compared with RMB1, 339.7 million as of December 31, 2013. As of March 31 2014 the Company's convertible bonds are classified as a current liability and totaled RMB509.2 million (US$81.9 million). Holders of the convertible bonds have the option to require the Company to redeem the notes on January 15, 2015. The Company has from time to time been buying back its convertible bonds since January 1, 2012 and may do so in the future, subject to market conditions and other factors. The Company has repurchased convertible bonds to the value of approximately US$72 million out of US$172.5 million in face value as of March 31, 2014. Following the close of 1Q14, the Company repurchased an additional US$9.5 million of convertible bonds.

As of March 31, 2014, the Company had total long-term debt of RMB2, 985.0 million (US$480.2 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 ranging from 1 to 3 years. The Company's long-term notes are to be repaid in 2 years.

Net cash used in operating activities in 1Q14 was RMB290.5 million (US$46.7 million), compared with net cash provided in operating activities of RMB258.9 million in 4Q13 and net cash used in operating activities of RMB54.1 million in 1Q13. The change in operating cash flow was primarily due to an increase in net loss, as well as, a negative change in restricted cash and accounts and notes payable.

As of March 31, 2014, accounts receivable were RMB824.5million (US$132.6 million), compared with RMB744.7 million as of December 31, 2013 and RMB1, 131.6 million as of March 31, 2013. Days sales outstanding ("DSO") increased to 116 days in 1Q14 from 103 days in 4Q13 and 127 days in 1Q13. As of March 31, 2014, inventories increased to RMB779.6 million (US$125.4 million) from RMB752.3 million as of December 31, 2013 and RMB776.9 million as of March 31, 2013. Day's inventory was 70 days in 1Q14 compared with 63 days in 4Q13 and 67 days in 1Q13.

Capital expenditures were RMB31.6 million (US$5.1 million) in 1Q14.

CAPACITY STATUS

As of March 31, 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 aiming to expand cell and module capacities to 1.5 GW and 2.0 GW, respectively, by the end of 2014.

SUBSEQUENT EVENTS

Following the close of the first quarter, several changes were announced to the management team and board of directors. Chairman and CEO Ki-Joon HONG retired from his various roles within the Hanwha organization, including his management and board capacities at Hanwha SolarOne. Seong-woo Nam was named his replacement as both Chairman and CEO. Mr. Nam joins Hanwha SolarOne from Samsung Electronics where he most recently led their large and growing IT Solutions Business. Also, Min-Su KIM resigned as President and member of the board. His board seat was filled by Jay SEO, current Chief Financial Officer and Head of China Business for Hanwha SolarOne.

BUSINESS OUTLOOK

The Company provides the following guidance based on current operating trends and market conditions.

For the second quarter 2014 the Company expects:

  • Module shipments of 350 – 370MW

For the full year 2014, the Company expects:

  • Module shipments between 1.5 – 1.6 GW of which about 25-30% will be for PV module processing services
  • Capital expenditures of $80 million largely for automation of existing manufacturing lines, as well as, cell module capacity expansions to 1.5 GW and 2.0 GW respectively
  • Gross margins targeted in the range of 15-20%

CONFERENCE CALL

The Company will host a conference call to discuss the second quarter results at 8:00 AM Eastern Time (8:00 PM Shanghai Time) on May 14, 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:

8008190121

4006208038

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:

8008700205 (Mandarin)

4006022065

Conference ID: 38616442

Encore Dates: 14/05/2014 11:00 ET - 22/05/2014 23:59 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 March 31, 2014, which was RMB6.2164 to US$1.00, except for the conversion of Renminbi into U.S. dollars for 4Q13 which is based on the exchange rate of RMB6.0537 to US$1.00 as set forth in the H.10 statistical release of the Federal Reserve Board as of December 31, 2013 and the conversion of Renminbi into U.S. dollars for 1Q13 which is based on the exchange rate of RMB6.2108 to US$1.00 as set forth in the H.10 statistical release of the Federal Reserve Board as of March 29, 2013 . 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 March 31, 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 2Q and full-year 2014 estimates for PV product shipments, average selling prices, 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 plans to produce polysilicon in the future. 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$")

March 31

December 31

March 31

March 31

2013

2013

2014

2014

(Unaudited)

(Audited)

 (Unaudited)

(Unaudited)

 RMB'000

 RMB'000

 RMB'000

US$'000

ASSETS

Current assets

Cash and cash equivalents

1,004,954

1,249,481

1,078,644

173,516

Restricted cash

161,649

163,948

239,361

38,505

Derivative contracts

4,020

26,632

-

-

Accounts receivable - net

1,131,593

744,739

824,512

132,635

Notes receivable

550

10,780

10,490

1,687

Inventories - net

776,865

752,291

779,604

125,411

Advance to suppliers - net

178,684

182,129

167,870

27,004

Other current assets - net

268,670

301,561

258,363

41,562

Deferred tax assets - net

139,179

-

-

-

Amount due from related parties - net

418,798

530,732

589,477

94,827

    Total current assets

4,084,962

3,962,293

3,948,321

635,147

Non-current assets

Fixed assets – net

4,728,164

4,482,656

4,387,922

705,862

Intangible assets – net

333,274

272,444

270,946

43,586

Deferred tax assets - net

125,742

2,946

2,946

474

Long-term deferred expenses

21,743

9,594

6,557

1,055

Long-term prepayments

172,150

132,011

118,124

19,002

    Total non-current assets

5,381,073

4,899,651

4,786,495

769,979

TOTAL ASSETS

9,466,035

8,861,944

8,734,816

1,405,126

LIABILITIES

Current liabilities

Derivative contracts

7,845

6,513

17,489

2,813

Short-term bank borrowings

1,279,312

1,105,575

1,283,269

206,433

Long-term bank borrowings, current portion

497,605

234,121

236,241

38,003

Convertible bonds

-

-

509,249

81,920

Accounts payable

942,143

695,530

624,270

100,423

Notes payable

294,642

494,462

363,740

58,513

Accrued expenses and other liabilities

355,737

388,747

341,269

54,898

Customer deposits

26,995

47,763

34,637

5,572

Unrecognized tax benefit

143,473

143,473

143,473

23,080

Amount due to related parties

191,473

255,033

254,629

40,961

    Total current liabilities

3,739,225

3,371,217

3,808,266

612,616

Non-current liabilities

Long-term bank borrowings

2,112,483

2,446,076

2,369,789

381,216

Long-term notes

627,821

609,690

615,210

98,966

Convertible bonds

390,594

470,357

-

-

Long term payable

50,000

50,000

50,000

8,043

Deferred tax liabilities

24,651

24,209

24,062

3,871

    Total non-current liabilities

3,205,549

3,600,332

3,059,061

492,096

TOTAL LIABILITIES

6,944,774

6,971,549

6,867,327

1,104,712

Redeemable ordinary shares

24

24

24

4

EQUITY

Shareholders' equity

Ordinary shares

316

321

337

54

Additional paid-in capital

4,004,639

4,022,147

4,126,818

663,860

Statutory reserves

174,456

174,456

174,456

28,064

Accumulated deficits

(1,656,346)

(2,304,523)

(2,437,931)

(392,177)

Accumulated other comprehensive income (loss)

(1,828)

(2,030)

3,785

609

    Total shareholders' equity

2,521,237

1,890,371

1,867,465

300,410

TOTAL EQUITY

2,521,261

1,890,395

1,867,489

300,414

TOTAL LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS' EQUITY

9,466,035

8,861,944

8,734,816

1,405,126

 

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

 March 31

 December 31

March 31

March 31

2013

2013

2014

2014

(Unaudited)

(Unaudited)

 (Unaudited)

(Unaudited)

RMB'000

RMB'000

 RMB'000

US$'000

Net revenues

1,112,898

1,294,915

1,138,426

183,132

Cost of revenues

(1,083,999)

(1,111,928)

(980,340)

(157,702)

----------------

-----------------

-----------------

-----------------

Gross profit

28,899

182,987

158,086

25,430

Operating expenses

Selling expenses

(82,122)

(74,101)

(52,772)

(8,489)

General and administrative expenses

(55,070)

(108,420)

(62,600)

(10,070)

Research and development expenses

(19,927)

(24,159)

(20,822)

(3,350)

-----------------

-----------------

-----------------

-----------------

    Total operating expenses

(157,119)

(206,680)

(136,194)

(21,909)

------------------

-----------------

-----------------

-----------------

Operating loss

(128,220)

(23,693)

21,892

3,521

Interest expenses

(75,755)

(85,413)

(88,966)

(14,311)

Interest income

2,337

8,128

6,511

1,047

Exchange gain

(28,800)

8,664

(44,718)

(7,194)

Changes in fair value of derivative contracts

5,021

35,036

(27,978)

(4,501)

Changes in fair value of conversion feature of convertible bonds

2,113

32,557

(311)

(50)

Other income

1,517

3,530

2,540

409

Other expenses

(3,587)

(649)

(2,906)

(467)

-----------------

-----------------

-----------------

-----------------

Net loss before income tax

(225,374)

(21,840)

(133,936)

(21,546)

Income tax benefit (expenses)

(539)

10

528

85

-----------------

-----------------

-----------------

-----------------

Net loss

(225,913)

(21,830)

(133,408)

(21,461)

-----------------

-----------------

-----------------

-----------------

Net loss attributable

to shareholders

(225,913)

(21,830)

(133,408)

(21,461)

Other comprehensive income (loss), net of tax

Foreign currency translation adjustment

(609)

(590)

5,815

935

Comprehensive loss atributable to ordinary shareholders

(226,522)

(22,420)

(127,593)

(20,526)

Net loss per share

Basic

(0.53)

(0.05)

(0.29)

(0.05)

Diluted

(0.53)

(0.05)

(0.29)

(0.05)

Shares used in computation

Basic

422,857,465

425,359,422

454,560,163

454,560,163

Diluted

422,857,465

425,359,422

454,560,163

454,560,163

Net loss per ADS

Basic

(2.67)

(0.26)

(1.47)

(0.24)

Diluted

(2.67)

(0.26)

(1.47)

(0.24)

ADSs used in computation

Basic

84,571,493

85,071,884

90,912,033

90,912,033

Diluted

84,571,493

85,071,884

90,912,033

90,912,033

 

Hanwha SolarOne Co., Ltd.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")

For three months ended

March 31, 2013

December 31, 2013

March 31

March 31

 (Unaudited)

 (Unaudited)

2014

2014

 RMB'000

 RMB'000

 RMB'000

US$'000

Cash flow from operating activities

Net loss

(225,913)

(21,830)

(133,408)

(21,461)

Adjustments to reconcile net loss to net cash

provided by (used in) operating activities:

Unrealised loss (gain) from derivative contracts

(13,486)

(23,116)

37,608

6,050

Amortization of convertible bonds discount

24,117

25,279

38,581

6,206

Changes in fair value of conversion feature of convertible bonds

(2,113)

(32,557)

311

50

Loss from disposal of fixed assets

1,161

616

127

20

Depreciation and amortization

106,477

110,737

110,024

17,699

Amortization of long-term deferred expenses

4,656

3,956

3,210

516

Provision for doubtful debt of advance to suppliers

-

15,565

-

-

Provision for doubtful debt of other receivables

-

28,562

-

-

Write down of inventories

35,171

10,250

8,858

1,425

Stock compensation expense

440

371

320

51

Warranty provision / utilization

10,023

9,599

(16,428)

(2,643)

Warranty reversal

(1,277)

(3,270)

(6,177)

(994)

Deferred tax benefit (expense)

(7,467)

(147)

(147)

(24)

Foreign currency exchange gains (losses)

-

-

5,520

888

Changes in operating assets and liabilities

Restricted cash

2,758

235,644

(34,190)

(5,500)

Inventories

26,691

30,559

(36,171)

(5,819)

Accounts and notes receivable

(173,102)

238,421

(73,669)

(11,851)

Advance to suppliers and long-term prepayments

69

(10,709)

28,146

4,528

Other current assets

90,543

(61,920)

46,546

7,488

Amount due from related parties

1,812

(90,367)

(58,744)

(9,448)

Accounts and notes payable

15,824

(177,625)

(182,531)

(29,363)

Accrued expenses and other liabilities

(52,764)

3,327

(24,873)

(4,001)

Customer deposits

(9,319)

(30,880)

(13,126)

(2,112)

Amount due to related parties

111,274

(1,520)

9,712

1,562

Net cash provided by (used in) operating activities

(54,425)

258,945

(290,501)

(46,733)

Cash flows from investing activities

Acquisition of fixed assets

(201,281)

(99,274)

(31,570)

(5,079)

Disposal of fixed assets

-

66

388

62

Change of restricted cash

(2,202)

5,553

4,504

725

Net cash used in investing activities

(203,483)

(93,655)

(26,678)

(4,292)

Cash flows from financing activities

Proceeds from issuance of ordinary shares

-

15,293

104,367

16,789

Payment for repurchase of convertible bonds

-

-

-

-

Change of restricted cash

(11,743)

12,579

(45,727)

(7,356)

Proceeds from short-term borrowings

826,398

387,872

913,419

146,938

Proceeds from the issuance of long-term notes

627,821

-

-

-

Payment of short term borrowings

(709,458)

(321,339)

(748,029)

(120,331)

Payment for long term borrowings

(142,222)

(49,515)

(74,167)

(11,931)

Arrangement fee and other related costs for long-term bank borrowings

(782)

(4,534)

-

-

Arrangement fee and other related costs for long-term notes

(1,856)

-

-

-

Arrangement fee and other related costs for short-term bank borrowings

(1,772)

(5,925)

(3,521)

(566)

Net cash provided by (used in) financing activities

586,386

34,431

146,342

23,543

Net increase (decrease) in cash and cash equivalents

328,478

199,721

(170,837)

(27,482)

Cash and cash equivalents at the beginning of period

676,476

1,049,760

1,249,481

200,998

Cash and cash equivalents at the end of period

1,004,954

1,249,481

1,078,644

173,516

Supplemental disclosure of cash flow information:

Interest paid

46,594

33,643

42,749

6,877

Income tax paid (refunded)

362

(2,681)

(932)

(150)

Realized gain (loss) from derivative contracts

(8,465)

11,920

9,630

1,549

Supplemental schedule of non-cash activities:

Acquisition of fixed assets included in accounts payable, accrued expenses and other liabilities

(147,125)

(67,191)

(17,263)

(2,777)

For the three months ended

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

(RMB million)

(RMB million)

(RMB million)

(US$ milllion)

Non-GAAP net loss

(202.9)

(25.4)

(98.8)

(15.9)

Fair value changes of the conversion features of the Convertible bonds

2.1

32.6

(0.3)

(0.1)

Accretion of interest of the Convertible bonds

(25.1)

(29.0)

(34.3)

(5.5)

GAAP net loss

(225.9)

(21.8)

(133.4)

(21.5)

For the three months ended

March 31, 2013

December 31, 2013

March 31, 2014

March 31, 2014

(RMB)

(RMB)

(RMB)

(US$)

Non GAAP net loss per ADS - Basic

(2.40)

(0.30)

(1.09)

(0.17)

Fair value changes of the conversion features of the Convertible bonds

0.03

0.38

-

-

Accretion of interest of the Convertible bonds

(0.30)

(0.34)

(0.38)

(0.07)

GAAP net loss contributed to shareholders per ADS - Basic

(2.67)

(0.26)

(1.47)

(0.24)

ADS - Basic

84,571,493

85,071,884

90,912,033

90,912,033

 

For thee months ended

Annualized for the three months ended

March 31, 2013

September 30, 2013

March 31, 2014

March 31, 2013

December 31, 2013

March 31, 2014

Non-GAAP Return on Equity 

-9.06%

-22.21%

-6.16%

-36.24%

-6.32%

-24.64%

Fair value changes of the conversion features of the Convertible bonds

1.43%

1.94%

0.89%

5.72%

7.84%

3.56%

Accretion of interest of the Convertible bonds

-0.95%

-1.38%

-1.83%

-3.80%

-6.12%

-7.32%

GAAP Return on equity

-8.58%

-21.65%

-7.10%

-34.32%

-4.60%

-28.40%

 

SOURCE Hanwha SolarOne Co., Ltd.



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