SHANGHAI, March 17, 2011 /PRNewswire/ -- Hanwha SolarOne Co., Ltd. ( "SolarOne" or the "Company") , 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 December 31, 2010. The Company will host a conference call to discuss the results at 8:00 am Eastern Time (8:00 pm Shanghai Time) on March 17, 2011. A slide presentation with details of the results will also be available on the Company's website prior to the call.
FOURTH QUARTER 2010 HIGHLIGHTS
-- Total net revenues were RMB2,112.7 million (US$320.1 million), a
decrease of 3.3% from 3Q10, but an increase of 68.7% from 4Q09.
-- PV module shipments, including module processing services, reached 218.8
MW, a decrease of 2.3% from 223.9 MW in 3Q10, but an increase of 97.5%
from 110.8 MW in 4Q09.
-- Total net revenues and PV module shipments for 4Q10 reported above are
lower than the estimated total revenues and PV module shipments for 4Q10
reported in the Company's pre-announcement dated February 24, 2011.
Subsequent to the Company's pre-announcement, the Company experienced a
cancellation of one order totaling 4.1 MW of PV modules, an equivalent
to Euro5.4 million in revenue. This order had been shipped to the
intended customer in 4Q10. Due to the rapidly changing regulatory
conditions in Europe, the customer has notified us that it could not
complete the sales contract. The Company plans to sell these PV modules
to other customers in a later period.
-- Average selling price ("ASP"), excluding module processing services,
increased to RMB11.82 per watt (US$1.79) from RMB11.72 per watt in 3Q10,
but decreased 11.2% from RMB13.31 per watt in 4Q09.
-- Gross profit decreased 13.6% to RMB428.7 million (US$64.9 million) from
RMB496.4 million in 3Q10, but increased 82.0% from RMB235.6 million in
4Q09.
-- Gross margin decreased to 20.3%, compared with 22.7% in 3Q10, primarily
due to an increase in the raw material costs. Gross margin in 4Q09 was
18.8%.
-- Operating profit decreased 24.8% to RMB296.2 million (US$44.9 million)
from RMB393.9 million in 3Q10, but increased from RMB127.7 million in
4Q09. The decrease in operating income in 4Q10 from 3Q10 was primarily
due to lower gross profit and higher selling expenses and research and
development expenses.
-- Operating margin decreased to 14.0% from 18.0% in 3Q10, but increased
from 10.2% in 4Q09.
-- Income tax expense in 4Q10 increased to RMB 148.9 million (US$ 22.6
million) compared with RMB 75.5 million in 3Q10 and RMB 7.3 million in
4Q09. In accordance with the People's Republic of China ("PRC") income
tax laws, an enterprise awarded with a High and New Technology
Enterprise ("HNTE") status may be eligible to apply for a reduced
Enterprise Income Tax ("EIT") rate of 15% instead of the statutory EIT
rate of 25%, subject to an annual self-assessment to determine whether
it continues to satisfy the criteria as an HNTE for each tax year. One
of the Company's major operating subsidiaries was certified by the PRC
taxation authorities as an HNTE and obtained its HNTE certificate in
2008, which is valid for a three-year period through 2010. In the
fourth quarter of 2010, the Company recognized an incremental income tax
expense of RMB 116.1 million (US$17.6 million) and a corresponding
liability due to the uncertainty as to whether this subsidiary met
certain requirement of HNTE in 2010. The Company did not recognize a
similar uncertain tax position in the first three quarters of 2010
because the self-assessment for the 2010 tax year could only be
conducted when the full-year 2010 financial statements were available in
January 2011. The PRC taxation authorities may determine, within a
three-year statute of limitation period starting from December 31, 2010,
that this subsidiary was not eligible for applying the EIT rate of 15%
for the 2010 tax year. In the absence of such determination during the
three-year period, the liability for this uncertain tax position will be
reversed.
-- Net income attributable to shareholders on a non-GAAP basis(1) was
RMB134.6million (US$20.4million), a decrease of 50.8% from
RMB273.7million in 3Q10, but an increase of 40.4% from RMB95.9 million
in 4Q09.
-- Net income per basic ADS on a non-GAAP basis was RMB1.82 (US$0.28), a
decrease of 60.6% from RMB4.62 in 3Q10, but an increase of 9.0% from
RMB1.67 in 4Q09.
-- Net income attributable to shareholders on a GAAP basis was RMB370.8
million (US$56.2million), compared with net loss attributable to
shareholders of RMB25.2 million in 3Q10. The Company recorded a
non-cash gain of RMB255.6 million (US$38.7 million) from the change in
fair value of the convertible feature of the Company's convertible bonds
as compared to a non-cash loss of RMB279.2 million in 3Q10. Net income
attributable to shareholders on a GAAP basis in 4Q09 was RMB10.6 million
including a non-cash loss of RMB71.3 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 income per basic ADS on a GAAP basis was RMB5.02 (US$0.76), compared
with net loss per basic ADS on a GAAP basis of RMB0.43 in 3Q10 and
RMB0.18 in 4Q09.
-- Annualized Return on Equity ("ROE") on a non-GAAP basis was 13.1% in
4Q10, compared with 35.3% in 3Q10 and 17.4% in 4Q09.
-- Annualized ROE on a GAAP basis was 33.2% in 4Q10, compared with negative
2.9% in 3Q10 and 1.5 in 4Q09.
FULL YEAR 2010 HIGHLIGHTS
-- Total net revenues were RMB7,527.0 million (US$1,140.5 million),
representing an increase of 99.2% from RMB3,778.3 million in 2009.
-- PV module shipments, including module processing services, reached 797.9
MW, representing an increase of 154.6% from 313.4 MW in 2009.
-- Gross profit increased to RMB1,566.3 million (US$237.3 million) from
RMB436.4 million in 2009.
-- Gross margin increased to 20.8% from 11.5% in 2009.
-- Operating profit increased to RMB1,162.9 million (US$176.2 million) from
RMB125.5 million in 2009.
-- Operating margin increased to 15.5% from 3.3% in 2009.
-- Net income attributable to shareholders on a non-GAAP basis(1) was
RMB798.2 million (US$120.9 million), compared with net loss attributable
to shareholders of RMB 20.0 million in 2009.
-- Net income per basic ADS on a non-GAAP basis was RMB12.82 (US$1.94),
compared with net loss per basic ADS of RMB0.36 in 2009.
-- Net income attributable to shareholders on a GAAP basis was RMB757.4
million (US$114.8 million), compared with net loss attributable to
shareholders of RMB145.2 million in 2009.
-- Net income per basic ADS on a GAAP basis was RMB12.17 (US$1.84),
compared with net loss per basic ADS of RMB2.65 in 2009.
-- ROE on a non-GAAP basis was 22.8% in 2010, compared with negative 0.9%
in 2009.
-- ROE on a GAAP basis was 18.9% in 2010, compared with negative 5.2% in
2009.
Dr. Peter Xie, President and CEO of Hanwha SolarOne, commented, " We concluded the year 2010 with another profitable quarter, a stronger balance sheet, and diversified our shipments towards new longer term growth markets. For the full year, our revenues nearly doubled to over $1 billion, our shipments rose 155%, and we returned to a healthy level of profitability. We enter 2011 with a high degree of enthusiasm and confidence: our capabilities and brand is strengthened with our strategic partnership with Hanwha, we have good visibility of orders into mid-year, new technology initiatives are progressing towards completion, and significant new capacity will come on stream soon enhancing our ability to meet customer demand and to improve our cost structure."
FOURTH QUARTER 2010 RESULTS
-- Total net revenues were RMB2,112.7 million (US$320.1 million), a
decrease of 3.3% from RMB2,185.7 million in 3Q10, but an increase of
68.7% from RMB1,252.7 million in 4Q09. The decrease in net revenues in
4Q10 compared with 3Q10 was primarily due to lower shipments and was
partially offset by higher ASP.
-- Revenue contribution from PV module processing services as a percentage
of total net revenues was 8.0%, compared with 6.9% in 3Q10.
-- PV module shipments, including module processing services, reached 218.8
MW, a decrease from 223.9 MW in 3Q10, but an increase from 110.8 MW in
4Q09.
(Photo: http://photos.prnewswire.com/prnh/20110317/LA66986-a)
(Photo: http://photos.prnewswire.com/prnh/20110317/LA66986-b)
-- Module revenue attributable to shipments to Germany decreased to 25% in
4Q10 from 53% in 3Q10, while shipments to Italy, China, USA, Australia,
France and the Netherlands increased during the quarter.
-- Average selling price ("ASP"), excluding module processing services,
increased to RMB11.82 per watt (US$1.79) from RMB11.72 per watt in 3Q10,
but decreased 11.2% from RMB13.31 per watt in 4Q09.
-- Gross profit decreased 13.6% to RMB428.7 million (US$64.9 million) from
RMB496.4 million in 3Q10, but increased 82.0% from RMB235.6 million in
4Q09.
-- Gross margin decreased to 20.3% compared with 22.7% in 3Q10, primarily
due to an increase in raw material costs. Gross margin in 4Q09 was
18.8%. The decrease from 4Q10 was primarily due to the increase in the
cost of silicon materials, including polysilicon and externally sourced
wafers and cells.
(Photo: http://photos.prnewswire.com/prnh/20110317/LA66986-c)
(Photo: http://photos.prnewswire.com/prnh/20110317/LA66986-d)
-- The blended cost of goods sold ("COGS") per watt, excluding module
processing services, was US$1.41, representing a 4.4% increase from US$
1.35 in 3Q10. 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, as well as freight costs.
-- The production cost (including both silicon and non-silicon costs) using
internal wafers was US$1.20 per watt, representing a 3.4% increase from
US$1.16 per watt in 3Q10. The increase was primarily due to the
increase in polysilicon price.
-- Operating profit decreased 24.8% to RMB296.2 million (US$44.9 million)
from RMB393.9 million in 3Q10, but increased from RMB127.7 million in
4Q09. Operating margin decreased to 14.0% from 18.0% in 3Q10, but
increased from 10.2% in 4Q09.
-- Operating expenses as a percentage of total net revenues were 6.3% in
4Q10, as compared with 4.7% in 3Q10 and 8.6% in 4Q09. The higher
operating expenses in 4Q10 compared with 3Q10 was primarily due to
higher selling expenses and research and development expenses.
-- Interest expense was RMB40.7 million (US$6.2 million), compared with
RMB39.9 million in 3Q10 and RMB39.7 million in 4Q09.
-- The Company recorded a net foreign exchange loss of RMB 4.5 million (US$
0.7 million), which combined a foreign exchange loss with a loss from
the change in fair value of foreign currency derivatives. The Company
recorded a net foreign exchange loss of RMB34.1 million in 3Q10 and a
net foreign exchange loss of RMB0.7 million in 4Q09.
-- Gain from the change in fair value of the conversion feature of the
Company's convertible bonds was RMB255.6 million (US$38.7 million),
compared with a loss of RMB279.2 million in 3Q10 and a loss of RMB71.3
million in 4Q09. The fluctuations resulting from the adoption of ASC
815-40 on January 1, 2009, were primarily due to changes in the
Company's ADS price during the quarter. This line item has fluctuated,
and is expected to continue to fluctuate quarter-to-quarter. The Company
has no direct control over the fluctuations.
-- Income tax expense in 4Q10 increased to RMB 148.9 million (US$ 22.6
million) compared with RMB 75.5 million in 3Q10 and RMB 7.3 million in
4Q09. In accordance with the People's Republic of China ("PRC") income
tax laws, an enterprise awarded with a High and New Technology
Enterprise ("HNTE") status may be eligible to apply a reduced Enterprise
Income Tax ("EIT") rate of 15% instead of the statutory EIT rate of 25%,
subject to an annual self-assessment to determine whether it continues
to satisfy the criteria as an HNTE for each tax year. One of the
Company's major operating subsidiaries, was certified by the PRC
taxation authorities as an HNTE and obtained its HNTE certificate in
2008, which is valid for a three-year period through 2010. In the
fourth quarter of 2010, the Company recognized an incremental income tax
expense of RMB 116.1 million (US$17.6 million) and a corresponding
liability due to the uncertainty as to whether this subsidiary would
meet certain requirement of HNTE. The Company had not recognized a
similar uncertain tax position in prior three quarters of 2010 because
the self-assessment for the 2010 tax year could only be conducted when
the full-year 2010 financial statements were available in January 2011.
The PRC taxation authorities may determine, within a three-year statute
of limitation period starting from December 31, 2010, that this
subsidiary was not eligible for applying the EIT rate of 15% for the
2010 tax year. In the absence of such determination during the
three-year period, the liability for this uncertain tax position will be
reversed.
-- Net income attributable to shareholders on a non-GAAP basis(1) was
RMB134.6million (US$20.4million), a decrease of 50.8% from RMB273.7
million in 3Q10, but an increase of 40.4% from RMB95.9 million in 4Q09.
-- Net income per basic ADS on a non-GAAP basis was RMB1.82 (US$0.28), a
decrease of 60.6% from RMB4.62 in 3Q10, but an increase of 9.0% from
RMB1.67 in 4Q09.
-- Net income attributable to shareholders on a GAAP basis was RMB370.8
million (US$56.2million), compared with net loss attributable to
shareholders of RMB25.2 million in 3Q10 and net income attributable to
shareholders of RMB10.6 million in 4Q09.
-- Net income per basic ADS on a GAAP basis was RMB5.02 (US$0.76), compared
with net loss per basic ADS of RMB0.43 in 3Q10 and net income per basic
ADS of RMB0.18 in 4Q09.
-- Annualized ROE on a non-GAAP basis was 13.1% in 4Q10, compared with
35.3% in 3Q10 and 17.4% in 4Q09.
-- Annualized ROE on a GAAP basis was 33.2% in 4Q10, compared with negative
2.9% in 3Q10 and 1.5% in 4Q09.
FINANCIAL POSITION
As of December 31, 2010, the Company had cash and cash equivalents of RMB1,630.8 million (US$247.1 million) and net working capital of RMB3,179.9 million (US$481.8 million), compared with cash and cash equivalents of RMB1,296.7 million and net working capital of RMB2,286.5 million as of September 30, 2010. Total short-term bank borrowings (including the current portion of long-term bank borrowings) were RMB533.9 million (US$80.9 million), compared with RMB950.5 million as of September 30, 2010. The decrease in short-term borrowings was because the Company repaid some of its bank borrowings with the proceeds from its equity offering in November 2010.
As of December 31, 2010, the Company had total long-term debt of RMB822.4 million (US$124.6 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 in 2011 and 2012. Holders of the convertible notes have the option to require the Company to redeem the notes on January 15, 2015.
Net cash generated from operating activities in 4Q10 was RMB50.4million (US$7.6million), compared with net cash used in operating activities of RMB194.0 million in 3Q10 and RMB336.9 million in 4Q09.
As of December 31, 2010, accounts receivable were RMB1,282.8 million (US$194.4 million) compared with RMB1,289.9 million as of September 30, 2010 and RMB587.5 million as of December 31, 2009. Days sales outstanding increased to 55 days in 4Q10 from 46 days in 3Q10 and 47 days in 4Q09.
As of December 31, 2010, inventories increased to RMB790.8 million (US$119.8 million) from RMB689.6 million as of September 30, 2010, and from RMB784.0 million as of December 31, 2009. Days inventory was 40 days in 4Q10 compared with 35 days in 3Q10 and 71 days in 4Q10.
Capital expenditures were RMB332.7 million (US$50.4 million) in 4Q10. For full year 2010, the total capital expenditures were RMB717.8 million (US$108.8 million).
CAPACITY EXPANSION
Details on the Company's annual production capacities and expected production capacities are as follows:
Capacity ramp-up plan
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q4 2010 (Projected) (Projected) (Projected) (Projected) ------- ----------- ----------- ----------- ----------- Ingot MW 400 400 450 710 800 Wafer MW 400 400 450 700 800 Cell MW 600 650 900 1,200 1,300 Module MW 900 900 1,000 1,500 1,500 ------ --- --- --- ----- ----- -----
BUSINESS OUTLOOK
The Company provides the following guidance based on current operating trends and market conditions.
For 1Q11, the Company expects:
-- Total module shipments to be 235MW to 245MW, of which about 25% to 30%
will be for PV module processing services.
-- ASP excluding PV module processing services to decrease approximately 5%
from 4Q10, assuming that the average Euro/US dollar exchange rate stays
at around 1.36 the rest of 1Q11.
For the full year 2011, the Company expects:
-- Module shipments ranging from 1GW to 1.2GW of which about 20-25% will be
for PV module processing services.
-- Capital expenditures to be approximately US$450 million
CONFERENCE CALL
The Company will host a conference call to discuss the fourth quarter and full year of 2010 results at 8:00 AM Eastern Time (8:00 PM Shanghai Time) on March 17, 2011.
Mr. Peter Xie, CEO and President, Mr. Gareth Kung, 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: +1 866 700 5192 -- International dial-in number: +1 617 213 8833 -- China Toll Free Number (North): +10 800 152 1490 -- China Toll Free Number (South): +10 800 130 0399 -- China Toll Free Number (South): +10 800 852 1490 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: 1 888 286 8010
-- International dial-in number: +1 617 801 6888
Passcode: 36339192
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 December 31, 2010, which was RMB 6.6000 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 December 31, 2010 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 1Q and full-year 2011 estimates for PV product shipments, ASPs, 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. is a leading manufacturer of solar PV cells and modules in China, focusing on delivering high quality and reliable products at competitive prices. Hanwha SolarOne produces its monocrystalline and polycrystalline products at its internationally certified, vertically-integrated manufacturing facilities. Hanwha SolarOne partners with third-party distributors, OEM manufacturers, and system integrators to sell its modules into large-scale utility, commercial and governmental, and residential/small commercial markets. Hanwha SolarOne maintains a strong global presence with local staff throughout Europe, North America, and Asia. Hanwha SolarOne embraces environmental responsibility and sustainability by taking an active role in the photovoltaic cycle voluntary recycling program.
(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.
For further information, please contact:
Hanwha SolarOne Co., Ltd. Investor Contact: Paul Combs V.P. Strategic Planning Building 1, 18(th) Floor 1199 Minsheng Road, Shanghai, PRC 200135 P. R. China Tel: 86-21-3852 1533 / Mobile: 86 138 1612 2768 E-mail: paul.combs@hanwha-solarone.com Christensen Kathy Li Tel: +1 480 614 3036 E-mail: kli@ChristensenIR.com Tip Fleming Tel: +852 9212 0684 E-mail: tfleming@ChristensenIR.com
Hanwha SolarOne Co, Ltd. CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"))
September December 31 30 December 31 December 31 2009 2010 2010 2010 (Unaudited) (Unaudited) (Unaudited) RMB RMB RMB USD ASSETS Current assets Cash and cash equivalents 645,720 1,296,734 1,630,777 247,087 Restricted cash 60,539 63,858 100,490 15,226 Derivative contracts 7,360 1,910 7,489 1,135 Accounts receivable, net 587,488 1,289,932 1,282,807 194,365 Notes receivable 10,000 1,515 Inventories, net 783,973 689,566 790,773 119,814 Advance to suppliers, net 540,145 851,329 764,063 115,767 Other current assets 180,315 236,285 255,431 38,702 Deferred tax assets - net 63,115 75,734 91,611 13,880 Amount due from related parties 12,458 - 42,819 6,488 Total current assets 2,881,113 4,505,348 4,976,260 753,979 --------- --------- --------- ------- Non-current assets Fixed assets - net 1,586,283 1,829,395 2,084,027 315,762 Intangible assets - net 208,563 206,856 205,763 31,176 Goodwill 134,735 134,735 134,735 20,414 Deferred tax assets - net 13,789 16,239 16,759 2,539 Long-term deferred expenses 33,158 29,639 27,273 4,132 Long-term prepayment 439,617 395,007 394,283 59,741 ------- ------- ------- ------ Total non-current assets 2,416,145 2,611,871 2,862,840 433,764 TOTAL ASSETS 5,297,258 7,117,219 7,839,100 1,187,743 ========= ========= ========= ========= LIABILITIES Current liabilities Derivative contracts 1,148 70,605 8,047 1,219 Short-term bank borrowings 404,764 748,010 318,919 48,321 Long-term bank borrowings, current portion 120,000 202,500 215,000 32,576 Accounts payable 441,768 528,902 478,129 72,444 Notes payable 186,921 142,509 181,265 27,464 Accrued expenses and other liabilities 191,895 356,860 404,826 61,337 Customer deposits 59,685 127,498 33,538 5,082 Deferred tax liabilities - 766 - - Unrecognized tax benefit 27,385 27,385 143,473 21,738 Amount due to related parties 16,765 13,767 13,183 1,997 Total current liabilities 1,450,331 2,218,802 1,796,380 272,178 --------- --------- --------- ------- Non-current liabilities Long-term bank borrowings 350,000 200,000 135,000 20,455 Convertible bonds 658,653 928,369 687,435 104,157 Deferred tax liabilities 26,566 26,124 25,977 3,936 Total non-current liabilities 1,035,219 1,154,493 848,412 128,548 --------- --------- ------- ------- TOTAL LIABILITIES 2,485,550 3,373,295 2,644,792 400,726 Redeemable ordinary shares 55 55 55 8 EQUITY Shareholders' equity Ordinary shares 227 252 314 48 Additional paid-in capital 2,331,797 2,877,447 3,956,953 599,538 Statutory reserves 69,564 151,541 170,000 25,758 Retained earnings 410,065 714,629 1,066,986 161,665 ------- ------- --------- ------- Total shareholders' equity 2,811,653 3,743,869 5,194,253 787,009 Noncontrolling interest - - TOTAL EQUITY 2,811,653 3,743,869 5,194,253 787,009 --------- --------- --------- ------- TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY 5,297,258 7,117,219 7,839,100 1,187,743 ========= ========= ========= ========= 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 and per share data)
For the three months ended September December December 31 30 31 2009 2010 2010 (Unaudited) (Unaudited) (Unaudited) RMB RMB RMB Net revenue Photovoltaic modules 1,153,184 1,988,801 1,851,940 Photovoltaic cells 12,567 32,909 18,886 PV cells processing - - - PV modules processing 78,909 151,037 168,280 Wafer processing 774 (1,922) - Raw materials 7,277 12,832 - System integration - - 68,431 Others - 2,092 5,167 Net revenues 1,252,711 2,185,749 2,112,704 --------- --------- --------- Cost of revenue Photovoltaic modules (927,266) (1,529,838) (1,458,188) Photovoltaic cells (15,317) (23,260) (18,135) PV cells processing - - - PV modules processing (67,205) (124,446) (146,358) Wafer processing (965) 2,137 - Raw materials (6,388) (13,129) - System integration - - (56,114) Others - (857) (5,258) Cost of revenues (1,017,141) (1,689,393) (1,684,053) ---------- ---------- ---------- Gross profit 235,570 496,356 428,651 Operating expenses Selling expenses (46,114) (44,195) (65,143) G&A expenses (50,866) (55,716) (54,760) R&D expenses (12,843) (4,672) (14,622) Government grant 2,000 2,166 2,121 Total operating expenses (107,823) (102,417) (132,404) -------- -------- -------- Operating profit (loss) 127,747 393,939 296,247 Interest expenses (39,662) (39,870) (40,658) Interest income 1,298 1,962 2,350 Exchange gain (loss) (14,694) 76,220 (36,222) Gain (loss) on change in fair value of derivative 15,397 (108,042) 37,505 Gain (loss) on change in conversion feature fair value of convertible bond (71,279) (279,228) 255,591 Other income 1,265 5,086 7,063 Other expenses (2,046) (1,291) (2,133) Government grant 1,503 - Net income (loss) before income tax 18,026 50,279 519,743 ------ ------ ------- Income tax expenses (7,338) (75,525) (148,927) ------ ------- -------- Net income (loss) 10,688 (25,246) 370,816 Net loss attributable to noncontrolling interest 67 - - --- --- --- Net income (loss) attributable to shareholders 10,621 (25,246) 370,816 ====== ======= ======= Net income (loss) per share Basic 0.04 (0.09) 1.00 Diluted 0.04 (0.09) 0.35 Shares used in computation Basic 287,982,207 296,202,329 369,518,133 Diluted 288,210,311 296,202,329 415,850,842 Net income (loss) per ADS Basic 0.18 (0.43) 5.02 Diluted 0.18 (0.43) 1.76 ADSs used in computation Basic 57,596,441 59,240,466 73,903,627 Diluted 57,642,062 59,240,466 83,170,168
For the three months ended December 31 2010 (Unaudited) USD Net revenue Photovoltaic modules 280,597 Photovoltaic cells 2,862 PV cells processing - PV modules processing 25,497 Wafer processing - Raw materials - System integration 10,368 Others 783 Net revenues 320,107 ------- Cost of revenue Photovoltaic modules (220,938) Photovoltaic cells (2,748) PV cells processing - PV modules processing (22,176) Wafer processing - Raw materials - System integration (8,502) Others (797) Cost of revenues (255,161) -------- Gross profit 64,946 Operating expenses Selling expenses (9,870) G&A expenses (8,297) R&D expenses (2,215) Government grant 321 Total operating expenses (20,061) ------- Operating profit (loss) 44,885 Interest expenses (6,160) Interest income 356 Exchange gain (loss) (5,488) Gain (loss) on change in fair value of derivative 5,683 Gain (loss) on change in conversion feature fair value of convertible bond 38,726 Other income 1,070 Other expenses (323) Government grant - Net income (loss) before income tax 78,749 ------ Income tax expenses (22,565) ------- Net income (loss) 56,184 Net loss attributable to noncontrolling interest - --- Net income (loss) attributable to shareholders 56,184 ====== Net income (loss) per share Basic 0.15 Diluted 0.05 Shares used in computation Basic 369,518,133 Diluted 415,850,842 Net income (loss) per ADS Basic 0.76 Diluted 0.27 ADSs used in computation Basic 73,903,627 Diluted 83,170,168
For the years ended December 31 December 31 December 31 2009 2010 2010 (Unaudiued) (Unaudiued) RMB RMB USD Net revenue Photovoltaic modules 3,375,638 6,658,642 1,008,885 Photovoltaic cells 38,396 100,566 15,237 PV cells processing - - - PV modules processing 336,485 644,037 97,581 Wafer processing 1,830 - - Raw materials 25,967 23,342 3,537 System integration - 68,431 10,368 Others - 31,975 4,845 Net revenues 3,778,316 7,526,993 1,140,453 --------- --------- --------- Cost of revenue - Photovoltaic modules (3,012,428) (5,239,628) (793,883) Photovoltaic cells (53,516) (77,177) (11,693) PV cells processing - - - PV modules processing (248,832) (537,314) (81,411) Wafer processing (2,339) - - Raw materials (24,821) (23,582) (3,573) System integration - (56,114) (8,502) Others - (26,833) (4,066) Cost of revenues (3,341,936) (5,960,648) (903,128) ---------- ---------- -------- Gross profit 436,380 1,566,345 237,325 Operating expenses - Selling expenses (105,454) (178,057) (26,978) G&A expenses (180,989) (190,594) (28,878) R&D expenses (32,025) (53,500) (8,106) Government grant 7,571 18,755 2,841 Total operating expenses (310,897) (403,396) (61,121) -------- -------- ------- Operating profit (loss) 125,483 1,162,949 176,204 - Interest expenses (157,907) (161,677) (24,497) Interest income 5,002 6,141 930 Exchange gain (loss) (23,814) (89,272) (13,526) Gain (loss) on change in fair value of derivative 9,594 77,531 11,747 Gain (loss) on change in conversion feature fair value of convertible bond (73,887) 31,623 4,791 Other income 6,286 24,353 3,691 Other expenses (11,835) (5,903) (894) Government grant 90 9,595 1,454 Net income (loss) before income tax (120,988) 1,055,340 159,900 -------- --------- ------- Income tax expenses (23,928) (297,983) (45,149) ------- -------- ------- Net income (loss) (144,916) 757,357 114,751 Net loss attributable to noncontrolling interest 311 - --- --- Net income (loss) attributable - to shareholders (145,227) 757,357 114,751 ======== ======= ======= Net income (loss) per share Basic (0.53) 2.43 0.37 Diluted (0.53) 2.36 0.36 Shares used in computation Basic 274,067,760 311,263,308 311,263,308 Diluted 274,067,760 357,272,605 357,272,605 Net income (loss) per ADS Basic (2.65) 12.17 1.84 Diluted (2.65) 11.82 1.79 ADSs used in computation Basic 54,813,552 62,252,662 62,252,662 Diluted 54,813,552 71,454,521 71,454,521
For the three months ended December September 30, December 31, December 31, 31,2009 2010 2010 2010 (RMB million) (RMB million) (RMB million) (US$ million) Non-GAAP net income/ (loss) 95.9 273.7 134.6 20.4 Fair value changes of the conversion features of the Convertible bonds (71.3) (279.2) 255.6 38.7 Accretion of interest of the Convertible bonds (14.0) (19.7) (19.4) (2.9) GAAP net income/ (loss) 10.6 (25.2) 370.8 56.2 ---- ----- ----- ----
For the twelve months ended December 31, December 31, December 2010 2010 31,2009 (US$ (RMB (RMB million) million) million) Non-GAAP net income/(loss) 798.2 120.9 (20.0) Fair value changes of the conversion features of the Convertible bonds 31.6 4.8 (73.9) Accretion of interest of the Convertible bonds (72.4) (11.0) (51.3) GAAP net income/(loss) 757.4 114.8 -145.2 ----- ----- ------
For the three months ended December September 30, December 31, December 31, 31,2009 2010 2010 2010 (RMB million) (RMB) (RMB) (USD) Non GAAP net income per ADS - Basic 1.66 4.62 1.82 0.28 Fair value changes of the conversion features of the Convertible bonds (1.24) (4.71) 3.46 0.52 Accretion of interest of the Convertible bonds (0.24) (0.33) (0.26) (0.04) Net profit contributed to shareholders per ADS -Basic 0.18 (0.43) 5.02 0.76 ---- ----- ---- ---- ADS (Basic) 57,596,441 59,240,466 73,903,627 73,903,627
For the twelve months ended December 31, December 31, December 31, 2010 2010 2009 (RMB) (USD) (RMB) Non GAAP net income per ADS -Basic 12.82 1.94 (0.36) Fair value changes of the conversion features of the Convertible bonds 0.51 0.08 (1.35) Accretion of interest of the Convertible bonds (1.16) (0.18) (0.94) Net profit contributed to shareholders per ADS - Basic 12.17 1.84 (2.65) ----- ---- ----- ADS (Basic) 62,252,662 62,252,662 54,813,552
For the three months ended -------------------------- September 30, December 31, December 31,2009 2010 2010 Non-GAAP Return on Equity 4.4% 8.8% 3.3% Fair value changes of the conversion features of the Convertible bonds -3.3% -9.0% 5.5% Accretion of interest of the Convertible bonds -0.7% -0.6% -0.4% GAAP Return on equity 0.4% -0.7% 8.3% --- ---- ---
Annualized for Annualized for Q3 Annualized for Q4 Q4 2009 2010 2010 -------------- ------------------ ------------------ September 30, December 31,2009 2010 December 31, 2010 Non-GAAP Return on Equity 17.4% 35.3% 13.1% Fair value changes of the conversion features of the Convertible bonds -13.3% -35.9% 21.8% Accretion of interest of the Convertible bonds -2.6% -2.3% -1.7% GAAP Return on equity 1.5% -2.9% 33.2% --- ---- ----
For the twelve For the twelve months ended months ended -------------- -------------- December 31, 2010 December 31,2009 Non-GAAP Return on Equity 22.8% -0.9% Fair value changes of the conversion features of the Convertible bonds -2.1% -2.5% Accretion of interest of the Convertible bonds -1.8% -1.8% GAAP Return on equity 18.9% -5.2% ---- ----
Hanwha SolarOne Co, Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"))
For three months ended December 31, September 30, December December 2009 2010 31,2010 31,2010 (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB RMB RMB USD Cash flow from operating activities Net income (loss) 10,688 (25,246) 370,816 56,184 Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities: Unrealised financial derivative (47,701) 134,483 (68,138) (10,324) Amortization of convertible bonds discount 13,933 14,475 14,657 2,221 Changes in fair value of conversion feature of convertible 71,279 279,228 (255,591) (38,726) bonds Loss from disposal of fixed assets 96 133 139 21 Depreciation and amortization 43,072 48,064 51,490 7,802 Amortization of long- term deferred expense 1,570 1,802 1,816 275 Provision for doubtful debt of advance to suppliers 163 (46) - - Reversal of doubtful debt for accounts receivable 3,723 - - - Provision for doubtful debt of accounts receivable - - (1,006) (152) Write down of inventory 40,341 41,498 35,266 5,343 Stock compensation expense 8,509 10,586 6,736 1,021 Warranty provision 2,744 21,705 9,925 1,504 Deferred tax benefit (854) (15,939) (17,310) (2,623) Unrecognized tax benefit (1,082) - 116,089 17,589 Changes in operating assets and liabilities - Restricted cash 5,166 37,044 (8,559) (1,297) Inventory (15,899) (139,479) (136,472) (20,678) Account receivables 116,024 (460,992) (1,870) (283) Advances to suppliers (165,766) (310,268) 87,266 13,222 Prepaid expense 18,663 52,510 25,378 3,845 Other current assets 84,065 (63,457) (44,525) (6,746) Long-term prepayment 13,721 18,198 725 110 Amount due from related parties 30,132 96,219 (42,819) (6,488) Accounts payable 51,946 42,067 (37,112) (5,623) Accrued expenses and other liabilities 10,811 64,461 38,041 5,764 Customer deposits 38,339 4,755 (93,960) (14,236) Amount due to related parties 3,201 (45,811) (584) (88) Net cash provided (used) in operating activities 336,884 (194,010) 50,398 7,637 ------- -------- ------ ----- Cash flows from investing activities Acquisition of fixed assets (27,468) (103,397) (279,523) (42,352) Change of restricted cash 65,832 (440) (28,074) (4,254) Acquisition of intangible assets (125) - - - Acquisition of subsidiaries (850) - - - Net cash provided (used) in investing activities 37,389 (103,837) (307,597) (46,606) ------ -------- -------- ------- Cash flows from financing activities Proceeds from share lending - 21 - - Proceeds from exercise of stock option 22 4,263 2,048 310 Proceeds from issuance of ordinary shares 70,387 510,330 1,070,784 162,240 Proceeds from short-term bank borrowings 65,097 460,713 32,687 4,953 Payment of short term bank borrowings (674,071) (243,688) (461,777) (69,966) Proceeds from long term bank borrowings - - - - Payment for long term bank borrowings (7,500) (22,500) (52,500) (7,955) Utilization of notes payable 27,726 - - - Profit distribution (3,400) - - - - Net cash provided (used) by financing activities (521,739) 709,139 591,242 89,582 -------- ------- ------- ------ Unrealised foreign exchange gain/loss Net increase (decrease) in cash and cash equivalents (147,466) 411,292 334,043 50,612 Cash and cash equivalents at the beginning of period 793,186 885,442 1,296,734 196,475 Cash and cash equivalents at the end of period 645,720 1,296,734 1,630,777 247,087 ======= ========= ========= ======= - 0 - - Supplemental disclosure of cash flow information: - Interest paid 21,268 31,438 11,621 1,761 Income tax paid 30,978 41,589 79,080 11,982 Realized gain (loss) from derivative contracts (32,305) 26,443 (30,633) (4,641) Supplemental schedule of non-cash activities: - Acquisition of fixed assets included in accounts payable, accrued expenses and other liabilities (2,803) 9,694 25,096 3,802 Conversion of CB into ordinary shares - - - - Transfer of unamortized debt issuance costs to equity upon conversion of CB into ordinary shares - - - -
For the years ended December 31, December December 2009 31,2010 31,2010 (Unaudited) (Unaudited) RMB RMB USD Cash flow from operating activities Net income (loss) (144,916) 757,357 114,751 Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities: Unrealised financial derivative 27,661 6,769 1,026 Amortization of convertible bonds discount 50,788 60,405 9,152 Changes in fair value of conversion feature of convertible 73,887 (31,623) (4,791) bonds Loss from disposal of fixed assets 719 957 145 Depreciation and amortization 153,174 187,587 28,422 Amortization of long-term deferred expense 6,670 7,194 1,090 Provision for doubtful debt of advance to suppliers 234,724 117 18 Reversal of doubtful debt for accounts receivable 3,723 (278) (42) Provision for doubtful debt of accounts receivable - - Write down of inventory 282,574 134,489 20,377 Stock compensation expense 42,671 31,963 4,843 Warranty provision 24,824 58,230 8,823 Deferred tax benefit (15,792) (32,055) (4,857) Unrecognized tax benefit - 116,089 17,589 Changes in operating assets and liabilities - - Restricted cash 2,011 (5,298) (803) Inventory (334,839) (141,288) (21,407) Account receivables (271,674) (705,041) (106,824) Advances to suppliers 370,745 (224,035) (33,945) Prepaid expense 86,375 83,934 12,717 Other current assets 215,059 (159,052) (24,099) Long-term prepayment (439,617) 45,335 6,869 Amount due from related parties (12,439) (30,361) (4,600) Accounts payable 238,804 (17,908) (2,713) Accrued expenses and other liabilities 33,648 154,680 23,436 Customer deposits 50,191 (26,147) (3,962) Amount due to related parties 10,362 (3,582) (543) Net cash provided (used) in operating activities 689,333 268,438 40,672 ------- ------- ------ Cash flows from investing activities Acquisition of fixed assets (260,054) (634,506) (96,137) Change of restricted cash 25,587 (34,653) (5,250) Acquisition of intangible assets (438) (1,678) (254) Acquisition of subsidiaries (89,818) - - Net cash provided (used) in investing activities (324,723) (670,837) (101,641) -------- -------- -------- Cash flows from financing activities Proceeds from share lending - 21 3 Proceeds from exercise of stock option 1,103 12,166 1,843 Proceeds from issuance of ordinary shares 148,994 1,581,114 239,563 Proceeds from short-term bank borrowings 1,900,675 1,098,911 166,502 Payment of short term bank borrowings (2,594,743) (1,184,756) (179,508) Proceeds from long term bank borrowings 300,000 - - Payment for long term bank borrowings (30,000) (120,000) (18,182) Utilization of notes payable 147,580 - - Profit distribution (3,400) - - Net cash provided (used) by financing activities (129,791) 1,387,456 210,221 -------- --------- ------- Unrealised foreign exchange gain/loss Net increase (decrease) in cash and cash equivalents 234,819 985,057 149,251 Cash and cash equivalents at the beginning of period 410,901 645,720 97,836 Cash and cash equivalents at the end of period 645,720 1,630,777 247,087 ======= ========= ======= - - - Supplemental disclosure of cash flow information: - Interest paid 156,143 89,855 13,614 Income tax paid 39,159 160,615 24,336 Realized gain (loss) from derivative contracts 37,255 84,301 12,773 Supplemental schedule of non-cash activities: - - Acquisition of fixed assets included in accounts payable, accrued expenses and other liabilities 21,842 48,613 7,366 Conversion of CB into ordinary shares 179 - - Transfer of unamortized debt issuance costs to equity upon conversion of CB into ordinary shares (5) - -
http://photos.prnewswire.com/prnh/20110317/LA66986-b
http://photos.prnewswire.com/prnh/20110317/LA66986-c
http://photos.prnewswire.com/prnh/20110317/LA66986-d
PRN Photo Desk, photodesk@prnewswire.com
Hanwha SolarOne Co., Ltd.
CONTACT: Investors, Paul Combs, V.P. Strategic Planning of Hanwha SolarOne
Co., Ltd., 86-21-3852 1533, Mobile, 86 138 1612 2768,
paul.combs@hanwha-solarone.com; or Kathy Li, +1-480-614-3036,
kli@ChristensenIR.com, or Tip Fleming, +852 9212 0684,
tfleming@ChristensenIR.com, both of Christensen, for Hanwha SolarOne Co.,
Ltd.
Web site: http://www.hanwha-solarone.com/
