SHANGHAI, Sept. 11, 2012 /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 quarter ended June 30, 2012. The Company will host a conference call to discuss the results at 8:00 am Eastern Time (8:00 pm Shanghai Time) on September 11, 2012. A slide presentation with details of the results will also be available on the Company's website prior to the call.
Total net revenues were RMB1,071.7 million (US$168.7 million), an increase of 33.3% from 1Q12, and a decrease of 40.4% from 2Q11.
PV module shipments, including module processing services, were 230.7 MW, an increase of 43.6% from 160.7 MW in 1Q12, and an increase of 12.0% from 205.9 MW in 2Q11.
Average selling price ("ASP"), excluding module processing services, decreased to RMB4.85 per watt (US$0.77) from RMB5.30 per watt in 1Q12, and decreased from RMB10.09 per watt in 2Q11.
Gross profit was RMB67.5 million (US$10.6 million), compared with a gross loss of RMB75.2 million in 1Q12 and gross profit of RMB162.9 million in 2Q11.
Gross margin was 6.3%, compared with negative 9.4% in 1Q12, due to the decline in production costs outpacing the decline in ASP, and higher factory utilization which was driven by higher shipment volumes. Gross margin in 2Q11 was positive 9.1%.
Operating loss decreased to RMB82.8 million (US$13.0 million) from an operating loss of RMB220.9 million in 1Q12. The Company recorded an operating loss of RMB25.7 million in 2Q11. The decrease in operating loss in 2Q12 from 1Q11 was primarily due to the return to gross profitability and tight control of operating expenses.
Operating margin was negative 7.7%, compared with negative 27.5% in 1Q12 and negative 1.4% in 2Q11.
Net loss attributable to shareholders on a non-GAAP basis was RMB245.9 million (US$39.0 million), compared with a net loss of RMB269.9 million in 1Q12 and a net loss of RMB64.9 million in 2Q11.
Net loss per basic ADS on a non-GAAP basis was RMB2.91(US$0.46), compared with a net loss per basic ADS on a non-GAAP basis of RMB3.20 in 1Q12 and a net loss per ADS on a non-GAAP basis of RMB0.77 in 2Q11.
Net loss attributable to shareholders on a GAAP basis was RMB266.7 million (US$42.0 million), compared with a net loss attributable to shareholders on a GAAP basis of RMB303.7 million in 1Q12. The Company recorded a non-cash gain of RMB1.1 million (US$0.2 million) from the change in fair value of the convertible feature of the Company's convertible bonds as compared with a non-cash loss of RMB9.5 million in 1Q12. Net loss attributable to shareholders on a GAAP basis in 2Q11 was RMB69.0 million, including a non-cash gain of RMB51.9 million from the change in fair value of the convertible feature of the Company's convertible bonds. As explained in prior quarters, the fluctuations in the fair value of the convertible feature of the Company's convertible bonds are primarily due to changes in the Company's ADS price, over which the Company has no direct control, and does not reflect the operating performance of the Company.
Net loss per basic ADS on a GAAP basis was RMB3.16(US$0.50), compared with a net loss per basic ADS on a GAAP basis of RMB3.60 in 1Q12 and a net loss per basic ADS on a GAAP basis of RMB0.82 in 2Q11.
Annualized Return on Equity ("ROE") on a non-GAAP basis was negative 28.8% in 2Q12, compared with negative 29.4% in 1Q12 and negative 5.2% in 2Q11.
Annualized ROE on a GAAP basis was negative 27.6% in 2Q12, compared with negative 29.2% in 1Q12 and negative 5.2% in 2Q11.
Mr. Ki-Joon HONG, Chairman and CEO of Hanwha SolarOne commented, "In spite of a difficult operating environment, we achieved some good progress during the second quarter. Our shipment volumes grew nicely quarter-to-quarter, our production costs continued to improve and now are in reach of our year-end target, and we are increasingly seeing synergies with our parent company, particularly in downstream activities. We remain optimistic that our presence in large new growth markets such as China, Japan and the US, will provide incremental volume potential in the second half of 2012. Challenging industry conditions remain: overcapacity, a spike in manufacturer's inventories, declining prices, and regulatory issues pertaining to duties in the US and possibly Europe. In spite of these, we continue to move forward with our long-term goals, in concert with support from our largest shareholder, and believe we have established the brand, competitive cost structure, balance sheet and management team to enter the next growth stage of the industry."
SECOND QUARTER 2012 RESULTS
Total net revenues were RMB1,071.7 million (US$168.7 million), a increase of 33.3% from RMB803.9 million in 1Q12, and a decrease of 40.4% from RMB1,797.8 million in 2Q11. The increase in total net revenues in 2Q12 compared with 1Q12 is due to higher shipment volumes, partially offset by lower selling prices.
Revenue contribution from PV module processing services as a percentage of total net revenues was 4.8%, compared with 7.7% in 1Q12 as the Company continued to shift its focus to branded sales.
PV module shipments, including module processing services, were 230.7 MW, an increase from 160.7 MW in 1Q12, and also an increase from 205.9 MW in 2Q11. The increase in module shipments in 2Q12 was primarily due to increased demand from Germany ahead of the reduction of incentives that commenced on July 1, 2012.
The Company shipped to over 25 countries during 2Q12, led by activities in Germany prior to the reduction of incentives that commenced on July 1, 2012. Germany accounted for 57% of total shipments. Europe and Africa ("EA") accounted for 76% of total shipments. Other significant markets in Europe included England, Italy and Spain, representing 5%, 4% and 4% of total shipments, respectively. The Asia Pacific region ("AP") accounted for 17% of total shipments, including Korea (3%), Australia (3%), Japan (2%) and China (2%). Shipments to North America, including the United States, represented 7% of total shipments.
ASP, excluding module processing services, decreased to RMB4.85 per watt (US$0.77) from RMB5.30 per watt in 1Q12 and from RMB10.09 per watt in 2Q11.
Gross profit was RMB67.5 million (US$10.6 million), compared with a gross loss of RMB75.2 million in 1Q12 and gross profit of RMB162.9 million in 2Q11.
Gross margin was 6.3%, compared with negative 9.4% in 1Q12. Internal production costs decreased significantly and outpaced the decline in ASP from 1Q12 to 2Q12. Gross margin in 2Q11 was positive 9.1%.
The blended cost of goods sold ("COGS") per watt, excluding module processing services, was US$0.72, representing a 21.7% decrease from US$0.92 in 1Q12. 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.
Internal production costs (including both silicon and non-silicon costs) using internally sourced wafers were US$0.71 per watt, representing a 9.0% decrease from US$0.78 per watt in 1Q12. The decrease was primarily due to reduced polysilicon costs as well as operational improvements.
Operating loss was RMB82.8 million (US$13.0 million), compared with an operating loss of RMB220.9 million in 1Q12 and an operating loss of RMB25.7 million in 2Q11. Operating margin improved to negative 7.7% from negative 27.5% in 1Q12, compared with negative 1.4% in 2Q11.
Operating expenses as a percentage of total net revenues were 14.0% in 2Q12, compared with 18.1% in 1Q12 and 10.5% in 2Q11. The lower percentage in 2Q12 compared with 1Q12 was primarily due to an increase in total net revenues in 2Q12.
Interest expense was RMB76.6 million (US$12.1 million), compared with RMB69.1 million in 1Q12 and RMB40.3 million in 2Q11, as a result of the Company's higher debt levels.
The Company recorded a net loss of RMB34.3 million (US$5.4 million), which combined the effect of a foreign exchange loss with a gain from the change in fair value of derivatives. The Company recorded a net gain of RMB11.4 million in 1Q12 and a net loss of RMB38.2 million in 2Q11, which were the net effect of the foreign exchange gain/loss and the gain/loss from changes in fair value of derivatives.
Gain from the change in fair value of the conversion feature of the Company's convertible bonds was RMB1.2 million (US$0.2 million), compared with a loss of RMB9.5 million in 1Q12 and a gain of RMB51.8 million in 2Q11. The fluctuations resulting from the application of ASC 815-40 on January 1, 2009, were primarily due to changes in the Company's ADS price during the quarter. This line item has fluctuated, and is expected to continue to fluctuate quarter-to-quarter. The Company has no direct control over the fluctuations.
Income tax expense in 2Q12 increased to RMB77.8 million (US$12.2 million), compared with income tax benefit of RMB37.7 million in 1Q12 and income tax expense of RMB16.1 million in 2Q11.
Net loss attributable to shareholders on a non-GAAP basis(1) was RMB245.9 million (US$39.0 million), compared with a net loss attributable to shareholders of RMB269.9 million in 1Q12 and net income attributable to shareholders of RMB64.9 million in 2Q11.
Net loss per basic ADS on a non-GAAP basis was RMB2.91(US$ 0.46), compared with a net loss per basic ADS on a non-GAAP basis of RMB3.20 in 1Q12 and a net loss per basic ADS on a non-GAAP basis of RMB0.77 in 2Q11.
Net loss attributable to shareholders on a GAAP basis was RMB266.7 million (US$42.0 million), compared with a net loss attributable to shareholders of RMB303.7 million in 1Q12 and net income attributable to shareholders of RMB69.0 million in 2Q11.
Net loss per basic ADS on a GAAP basis was RMB3.16(US$0.50), compared with a net loss per basic ADS on a GAAP basis of RMB3.60 in 1Q12 and net income per basic ADS of RMB0.82 in 2Q11.
Annualized ROE on a non-GAAP basis was negative 28.8 % in 2Q12, compared with negative 29.4% in 1Q12 and negative 5.2% in 2Q11.
Annualized ROE on a GAAP basis was negative 27.6 % in 2Q12, compared with negative 29.2% in 1Q12 and negative 5.2% in 2Q11.
FINANCIAL POSITION
As of June 30, 2012, the Company had cash and cash equivalents of RMB1,789.3 million (US$281.6 million) and net working capital of RMB1,280.4 million (US$201.5 million), compared with cash and cash equivalents of RMB1,908.9 million and net working capital of RMB45.9 million as of March 31, 2012. Total short-term bank borrowings (including the current portion of long-term bank borrowings) were RMB1,941.6 million (US$305.6 million), compared with RMB2,727.0 million as of March 31, 2012. The decrease in short-term bank borrowings was primarily due to the Company's ongoing strategy to shift debt to longer–term bank borrowings.
In the second quarter of 2012, the Group provided a full valuation allowance of RMB92 million on deferred tax assets related to tax losses of a subsidiary of the Group, as the subsidiary is not expected to have sufficient future taxable income from its operations, and such tax losses may not be utilized in the future.
As of June 30, 2012, the Company had total long-term debt of RMB2,878.4 million (US$453.1 million), which comprised both long-term bank borrowings and convertible notes payable. The Company's long-term bank borrowings are to be repaid in installments until their maturities, which range from 2 to 4 years. Holders of the convertible notes have the option to require the Company to redeem the notes beginning on January 15, 2015.
Net cash used in operating activities in 2Q12 was RMB335.5 million (US$52.8 million), compared with net cash generated from operating activities of RMB46.0 million in 1Q12 and net cash generated from operating activities of RMB443.8 million in 2Q11.
As of June 30, 2012, accounts receivable were RMB802.9 million (US$126.4 million), compared with RMB603.9 million as of March 31, 2012 and RMB537.5 million as of December 31, 2011. Days sales outstanding were 77 days in 2Q12, compared with 83 days in 1Q12 and 76 days in 2Q11.
As of June 30, 2012, inventories increased slightly to RMB684.9 million (US$107.8 million) from RMB659.1 million as of March 31, 2012, and from RMB684.0 million as of December 31, 2011. Days inventory were 60 days in 2Q12, compared with 69 days in 1Q12 and 51 days in 2Q11.
Capital expenditures were RMB39.6 million (US$6.2 million) in 2Q12. Following the close of the 2Q.12, the Company repurchased an additional $22 million of its convertible bonds. The Company previously repurchased approximately $50 million of its convertible bonds during 1Q12.
CAPACITY
As of June 30, 2012, the Company had production capacity of 800 MW for ingots and wafers, 1.3 GW for cells and 1.5 GW for modules. The Company currently has no near-term plan to add additional capacity. Management will review expansion needs in the future in line with changes in overall market demand.
BUSINESS OUTLOOK
The Company provides the following guidance based on current operating trends and market conditions.
For 3Q12, the Company expects
Total module shipments to be similar to those achieved in the 2Q 2012.
Gross margin to be positive.
For the full year 2012, the Company expects:
Module shipments reduced from the previous forecast of 1 GW to a range of 900 MW to 1 GW.
Capital expenditures of US$150 million, depending on demand and other market conditions.
Processing costs (excluding silicon costs) to be approximately US$0.50 per watt by the end of 2012.
OTHER DEVELOPMENTS
On September 6, 2012, the European Commission launched an anti-dumping investigation regarding whether Chinese producers are selling solar panels at unfairly low prices in Europe. The Company believes its pricing practices have been fair and lawful in Europe and other jurisdictions. In any event, the Company intends to vigorously defend itself and rebut all allegations.
CONFERENCE CALL
The Company will host a conference call to discussthe second quarter of 2012 results at 8:00 am Eastern Time (8:00 pm Shanghai Time) on September 11, 2012. Mr. Ki-Joon HONG, Chairman and CEO, Mr. Hee Cheul KIM, President, Mr. Dong Kwan KIM, Chief Strategy Officer, and Mr. Jung Pyo SEO, Chief Financial Officer, 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:
1 866 519 4004
-
International dial-in number:
+65 6723 9381
-
China Toll Free Number:
800 819 0121
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:
1 866 214 5335
-
International dial-in number:
+61 2 8235 5000
Passcode: 25632143
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 June 29, 2012, which was RMB6.3530 to US$1.00. 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 June 30, 2012 or at any other date. The percentages 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 3Q and/or full-year 2012 estimates for PV product shipments, ASPs, gross margin, production capacities, production costs, capital expenditures 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.
For further information, please contact:
Hanwha SolarOne Co., Ltd.
Paul Combs V.P. of Investor Relations Tel: +86 21 3852 1533 / Mobile: +86 138 1612 2768 Email: [email protected]
(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.
Hanwha SolarOne Co., Ltd.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
December 31
March 31
June 30
June 30
2011
2012
2012
2012
(Audited)
(Unaudited)
(Unaudited)
(Unaudited)
RMB'000
RMB'000
RMB'000
US$'000
ASSETS
Current assets
Cash and cash equivalents
1,976,555
1,908,859
1,789,265
281,641
Restricted cash
281,626
217,841
603,157
94,941
Derivative contracts
29,091
3,198
6,778
1,067
Accounts receivable, net
537,540
603,860
802,939
126,387
Notes receivable
60,208
7,799
7,210
1,135
Inventories, net
684,049
659,116
684,887
107,805
Advance to suppliers, net
475,645
573,587
406,806
64,034
Other current assets
528,572
382,416
353,433
55,632
Deferred tax assets - net
264,590
306,988
232,698
36,628
Amount due from related parties
241,453
96,568
323,828
50,972
Total current assets
5,079,329
4,760,232
5,211,001
820,242
Non-current assets
Fixed assets – net
4,715,962
4,899,072
4,828,485
760,032
Intangible assets – net
334,987
340,336
338,518
53,285
Goodwill
-
-
-
-
Deferred tax assets - net
16,493
11,915
9,581
1,508
Long-term deferred expenses
49,702
34,136
35,751
5,627
Amount due from related parites
-
-
-
-
Long-term prepayment
204,570
204,570
197,841
31,141
Total non-current assets
5,321,714
5,490,029
5,410,176
851,593
TOTAL ASSETS
10,401,043
10,250,261
10,621,177
1,671,835
LIABILITIES
Current liabilities
Derivative contracts
30,670
6,094
9,701
1,527
Short-term bank borrowings
1,764,251
2,103,536
1,520,570
239,347
Long-term bank borrowings, current portion
242,604
623,492
420,980
66,264
Accounts payable
1,024,947
1,133,379
826,174
130,045
Notes payable
462,602
316,105
562,783
88,585
Accrued expenses and other liabilities
375,238
338,331
339,854
53,493
Customer deposits
84,871
37,998
63,904
10,059
Unrecognized tax benefit
143,473
143,473
143,473
22,584
Amount due to related parties
42,342
11,921
43,151
6,792
Total current liabilities
4,170,998
4,714,329
3,930,590
618,696
Non-current liabilities
Long-term bank borrowings
1,352,373
1,075,722
2,475,305
389,628
Convertible bonds
498,646
382,922
403,055
63,443
Long term payable
50,000
50,000
50,000
7,870
Deferred tax liabilities
25,387
25,240
25,093
3,950
Total non-current liabilities
1,926,406
1,533,884
2,953,453
464,891
TOTAL LIABILITIES
6,097,404
6,248,213
6,884,043
1,083,587
Redeemable ordinary shares
24
24
24
4
EQUITY
Shareholders' equity
Ordinary shares
315
315
315
50
Additional paid-in capital
3,996,418
3,998,485
4,000,222
629,659
Statutory reserves
174,456
174,456
174,727
27,503
Retained earnings
132,426
(171,232)
(438,160)
(68,969)
Accumulated other comprehensive income
-
-
6
1
Total shareholders' equity
4,303,615
4,002,024
3,737,110
588,244
TOTAL EQUITY
4,303,639
4,002,048
3,737,134
588,248
TOTAL LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS' EQUITY
10,401,043
10,250,261
10,621,177
1,671,835
0.00
0.00
0.00
0.00
Hanwha SolarOne Co., Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),
except for number of shares (ADS) and per share (ADS) data
For the three months ended
June 30
March 31
June 30
June 30
2011
2012
2012
2012
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
RMB'000
RMB'000
RMB'000
US$'000
Net revenues
1,797,760
803,873
1,071,715
168,694
Cost of revenues
(1,634,899)
(879,111)
(1,004,179)
(158,064)
Gross profit
162,861
(75,238)
67,536
10,630
Operating expenses
Selling expenses
(55,340)
(58,695)
(75,888)
(11,945)
G&A expenses
(113,396)
(63,329)
(56,918)
(8,959)
R&D expenses
(19,804)
(23,596)
(17,514)
(2,757)
Total operating expenses
(188,540)
(145,620)
(150,320)
(23,661)
Operating profit
(25,679)
(220,858)
(82,784)
(13,031)
Interest expenses
(40,282)
(69,111)
(76,601)
(12,057)
Interest income
2,619
2,668
4,447
700
Exchange gain (loss)
3,147
2,630
(41,207)
(6,486)
Gain (loss) on change in fair value of derivative
(41,374)
8,742
6,939
1,092
Gain (loss) on change in conversion feature fair value of convertible bond
51,860
(9,472)
1,150
181
Loss on extinguishment of debt
-
(56,114)
2,455
386
Other income
283
1,900
2,367
373
Other expenses
(3,468)
(1,710)
(5,651)
(890)
Net income before income tax
(52,894)
(341,325)
(188,885)
(29,732)
Income tax expenses
(16,060)
37,667
(77,772)
(12,242)
Net income
(68,954)
(303,658)
(266,657)
(41,974)
Net income attributable
to shareholders
(68,954)
(303,658)
(266,657)
(41,974)
Net income per share
Basic
(0.16)
(0.72)
(0.63)
(0.10)
Diluted
(0.16)
(0.72)
(0.63)
(0.10)
Shares used in computation
Basic
419,536,540
421,816,336
422,023,107
422,023,107
Diluted
419,536,540
421,816,336
422,023,107
422,023,107
Net income per ADS
Basic
(0.82)
(3.60)
(3.16)
(0.50)
Diluted
(0.82)
(3.60)
(3.16)
(0.50)
ADSs used in computation
Basic
83,907,308
84,363,267
84,404,621
84,404,621
Diluted
83,907,308
84,363,267
84,404,621
84,404,621
Hanwha SolarOne Co., Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
For the three months ended
June 30, 2011
March 31, 2012
June 30, 2012
June 30, 2012
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
RMB'000
RMB'000
RMB'000
US$'000
Cash flow from operating activities
Net income
(68,954)
(303,658)
(266,657)
(41,973)
Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities:
Unrealised (gain)/loss from derivative contracts
24,716
1,317
27
4
Amortization of convertible bonds discount
16,874
24,102
23,728
3,735
Changes in fair value of conversion feature of convertible bonds
(51,860)
9,472
(1,140)
(179)
Loss on extinguishment of debt
-
56,114
(2,455)
(386)
Loss from disposal of fixed assets
3
263
3,884
611
Depreciation and amortization
54,362
84,855
88,299
13,899
Amortization of long-term deferred expenses
1,936
1,395
11,015
1,734
Provision for doubtful debt of accounts receivable
1,462
-
-
Write down of inventories
44,474
206,814
20,395
3,210
Stock compensation expense
25,321
2,067
1,737
273
Warranty provision
20,895
4,432
9,812
1,544
Warranty reversal
(8,038)
(2,195)
(686)
(108)
Deferred tax benefit
(14,315)
(37,967)
76,477
12,038
Unrecognized tax benefit
5,004
-
-
-
Other comprehensive income
-
-
6
1
Changes in operating assets and liabilities
-
Restricted cash
14,120
12,290
(40,184)
(6,325)
Inventory
61,285
(181,881)
(46,166)
(7,267)
Account and notes receivables
370,469
(13,911)
(198,490)
(31,244)
Advance to suppliers and long-term prepayments
189,347
(97,942)
173,510
27,312
Long-term deferred expenses
-
-
(1,484)
(234)
Intangible assets
(46,600)
(7,104)
-
-
Other current assets
(41,940)
156,713
31,340
4,935
Amount due from related parties
(65,282)
144,885
(227,260)
(35,772)
Accounts and notes payable
(94,954)
102,350
(40,690)
(6,405)
Accrued expenses and other liabilities
(26,306)
(39,144)
(7,603)
(1,197)
Customer deposits
(3,897)
(46,873)
25,906
4,078
Amount due to related parties
35,686
(30,421)
31,230
4,916
Net cash provided (used) in operating activities
443,808
45,973
(335,449)
(52,800)
Cash flows from investing activities
Acquisition of fixed assets
(664,873)
(406,888)
(39,615)
(6,236)
Change of restricted cash
(36,952)
51,495
15,989
2,517
Net cash provided (used) in investing activities
(701,825)
(355,393)
(23,626)
(3,719)
Cash flows from financing activities
Proceeds from exercise of stock option
188
-
-
Payment for repurchase of redeemable ordinary shares
-
-
-
-
Payment for repurchase of convertible bonds
-
(199,831)
-
Change of restricted cash
-
-
(361,121)
(56,843)
Proceeds from short-term bank borrowings
477,646
1,096,384
495,694
78,025
Proceeds from long-term bank borrowings
327,694
104,237
1,258,676
198,123
Payment of short term bank borrowings
(366,226)
(757,099)
(1,078,660)
(169,788)
Payment for long term bank borrowings
(50,000)
-
(61,605)
(9,697)
Payment of arrangement fee of long-term loans
-
(1,967)
(10,571)
(1,664)
Payment of arrangement fee of short-term loans
-
-
(2,932)
(462)
Net cash provided (used) by financing activities
389,302
241,724
239,481
37,694
Net increase (decrease) in cash and cash equivalents
131,285
(67,696)
(119,594)
(18,825)
Cash and cash equivalents at the beginning of period
1,354,392
1,976,555
1,908,859
300,466
Cash and cash equivalents at the end of period
1,485,677
1,908,859
1,789,265
281,641
Supplemental disclosure of cash flow information:
Interest paid
6,104
39,151
47,116
7,416
Income tax paid
85,490
26,384
30,610
4,818
Realized gain/(loss) from derivative contracts
(16,657)
10,059
6,967
1,097
Supplemental schedule of non-cash activities:
Acquisition of fixed assets included in accounts payable, accrued expenses and other liabilities
254,026
(140,415)
(19,837)
(3,122)
For the three months ended
June 30, 2011
March 31, 2012
June 30, 2012
June 30, 2012
(RMB million)
(RMB million)
(RMB million)
(US$ million)
Non-GAAP net income/(loss)
(64.9)
(269.9)
(245.9)
(38.7)
Fair value changes of the conversion features of the Convertible bonds
51.9
(9.5)
1.1
0.1
Accretion of interest of the Convertible bonds
(22.5)
(24.3)
(21.9)
(3.4)
Unrecognized tax benefit
(5.0)
-
-
-
Severance fee to previous senior management
(32.6)
-
-
-
Tax impact of severance fee to previous senior management
4.1
-
-
-
GAAP net income/(loss)
(69.0)
(303.7)
(266.7)
(42.0)
For the three months ended
June 30, 2011
March 31, 2012
June 30, 2012
June 30, 2012
(RMB)
(RMB)
(RMB)
(US$)
Non GAAP net income per ADS - Basic
(0.77)
(3.20)
(2.91)
(0.46)
Fair value changes of the conversion features of the Convertible bonds
0.62
(0.11)
0.01
0.00
Accretion of interest of the Convertible bonds
(0.27)
(0.29)
(0.26)
(0.04)
Unrecognized tax benefit
(0.06)
-
-
-
Severance fee to previous senior management
(0.39)
-
-
-
Tax impact of severance fee to previous senior management
0.05
-
-
-
Net profit contributed to shareholders per ADS - Basic
(0.82)
(3.60)
(3.16)
(0.50)
ADS (Basic)
83,907,308
84,363,267
84,404,621
84,404,621
For thee months ended
Annualized for the three months ended
June 30, 2011
March 31, 2012
June 30, 2012
June 30, 2011
March 31, 2012
June 30, 2012
Non-GAAP Return on Equity
-1.31%
-7.36%
-7.21%
-5.24%
-29.44%
-28.84%
Fair value changes of the conversion features of the Convertible bonds
1.07%
0.64%
0.89%
4.28%
2.56%
3.56%
Accretion of interest of the Convertible bonds
-0.43%
-0.59%
-0.57%
-1.69%
-2.36%
-2.28%
Unrecognized tax benefit
-0.09%
-
-
-0.37%
-
-
Severance fee to previous senior management
-0.61%
-
-
-2.45%
-
-
Tax impact of severance fee to previous senior management
0.08%
-
-
0.31%
-
-
GAAP Return on equity
-1.29%
-7.31%
-6.89%
-5.16%
-29.24%
-27.56%
SOURCE Hanwha SolarOne Co., Ltd.
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