SEOUL, South Korea,
Nov. 22, 2016 /PRNewswire/ -- Hanwha
Q CELLS Co., Ltd. ("Hanwha Q CELLS" or the "Company") (NASDAQ:
HQCL), one of the world's largest photovoltaic manufacturers of
high-quality, high-efficiency solar modules, today reported its
unaudited financial results for the third quarter of 2016. The
Company will host a conference call to discuss the results at
8:00 am Eastern Time (10:00 pm Korea Standard Time) on November 22, 2016.
Third Quarter 2016 Highlights
- Net revenues were $707.8 million,
compared with $638.0 million in the
second quarter of 2016 and $427.2
million in the third quarter of 2015.
- Gross profit was $140.5 million,
compared with $151.2 million in the
second quarter of 2016 and $93.0
million in the third quarter of 2015.
- Gross margin was 19.9%, compared with 23.7% in the second
quarter of 2016 and 21.8% in the third quarter of 2015.
- Operating income was $72.4
million, compared with $84.5
million in the second quarter of 2016 and $40.3 million in the third quarter of 2015.
- Net income attributable to Company's ordinary shareholders was
$41.7 million, compared with net
income of $76.8 million in the second
quarter of 2016 and net income of $52.4
million in the third quarter of 2015.
- Earnings per fully diluted American Depositary Share ("ADS" and
each ADS represents 50 of the Company's ordinary shares) were
$0.50, compared with earnings per
fully diluted ADS of $0.92 in the
second quarter of 2016 and net income per fully diluted ADS of
$0.63 in the third quarter of
2015.
Mr. Seong-woo Nam, Chairman and CEO of Hanwha Q CELLS, remarked,
"Our financial and operational results in the third quarter were
solid while generating net revenues of $707.8 million in this quarter, an increase of
65.7% from the same period last year. And we are on course to
achieve our previously guided full-year total module shipments of
4,800 to 5,000 MW in 2016."
"Our industry is undergoing challenging time with elevated macro
uncertainties," Mr. Nam continued. "We will continue to focus
implementing disciplined financial and operational management as we
navigate current market environments, yet further strengthening our
industry leadership in technology, quality and customer services
for stable long-term growth."
Third Quarter 2016 Results
Net Revenues
- Total net revenues were $707.8
million, up 10.9% from $638.0
million in the second quarter of 2016 and up 65.7% from
$427.2 million in the third quarter
of 2015.
Gross Profit and Margin
- Gross profit in the third quarter of 2016 was $140.5 million, compared with $151.2 million in the second quarter of 2016 and
$93.0 million in the third quarter of
2015.
- Gross margin in the third quarter of 2016 was 19.9%, compared
with 23.7% in the second quarter of 2016 and 21.8% in the third
quarter of 2015.
Operating Expense, Income and Margin
- Total operating expenses were $68.1
million in the third quarter of 2016, up 2.1% from
$66.7 million in the second quarter
of 2016 and up 29.2% from $52.7
million in the third quarter of 2015.
- Selling and marketing expenses were $36.4 million in the third quarter of 2016, up
10.0% from $33.1 million in the
second quarter of 2016 and up 59.6% from $22.8 million in the third quarter of 2015.
- General and administrative expenses were $19.7 million in the third quarter of 2016, up
0.1% from $19.6 million in the second
quarter of 2016 and up 13.9% from $17.3
million in the third quarter of 2015.
- Research and development expenses were $12.0 million in the third quarter of 2016, down
14.3% from $14.0 million in the
second quarter of 2016 and down 4.8% from $12.6 million in the third quarter of 2015.
Net Interest Expense
- Net interest expense was $12.4
million in the third quarter of 2016, compared with
$9.3 million in the second quarter of
2016 and $11.9 million in the third
quarter of 2015.
Foreign Currency Exchange Gain (Loss)
- Net foreign currency exchange loss was $2.3 million in the third quarter of 2016,
compared with a net gain of $1.8
million in the second quarter of 2016 and net loss of
$17.8 million in the third quarter of
2015.
Changes in Fair Value of Derivative Contracts
- The Company recorded a net loss of $2.1
million in the third quarter of 2016 from the change in fair
value of derivatives in hedging activities, compared with a net
loss of $13.7 million in the second
quarter of 2016 and a net gain of $0.9
million in the third quarter of
2015.
Income Tax Expense (Benefit)
- Income tax expense was $10.3
million in the third quarter of 2016, compared with an
income tax benefit of $8.8 million in
the second quarter of 2016 and an income tax expense of
$2.4 million in the third quarter of
2015.
Net Income (Loss) and Earnings (Loss) per ADS
- Net income attributable to Company's ordinary shareholders was
$41.7 million in the third quarter of
2016, compared with net income of $76.8
million in the second quarter of 2016 and net income of
$52.4 million in the third quarter of
2015.
- Earnings per fully diluted ADS on a GAAP basis was $0.50 in the third quarter of 2016, compared with
earnings per fully diluted ADS of $0.92 in the second quarter of 2016 and net
income per fully diluted ADS of $0.63
in the third quarter of 2015.
Financial Positions
As of September 30, 2016, the
Company had cash and cash equivalents of $254.8 million, compared with $255.4 million as of June
30, 2016. The restricted cash as of September 30, 2016 was $147.2 million, compared with $165.2 million in the previous quarter.
As of September 30, 2016, accounts
receivable was $456.1 million,
compared with $518.3 million as of
June 30, 2016. Inventories were
$451.7 million, compared with
$485.3 million as of June 30, 2016.
Total short-term bank borrowings (including the current portion
of long-term bank borrowings) were $414.9
million as of September 30,
2016, an increase of $35.2
million from the second quarter of 2016. As of September 30, 2016, the Company had total
long-term debt (net of current portion and long-term notes) of
$796.9 million, a decrease of
$2.7 million from the second quarter
of 2016. The Company's long-term bank and government borrowings are
to be repaid in installments until their maturities, which range
from one to sixteen years.
Net cash used in operating activities was $94.9 million in the third quarter of 2016.
Capital expenditures were $23.0
million in the third quarter of 2016.
Operations Updates and Business Outlook
Capacity Status
As of September 30, 2016, the
Company had in-house, annualized production capacities of 1,550 MW
for ingot, 950 MW for wafer, 4,100 MW for cell and 4,050 MW for
module.
Additionally, the Company has an access of module supply of up
to 1,500 MW (annualized) as of September 30,
2016 from Hanwha Q CELLS Korea Corporation, an affiliate of
the Company.
Business Outlook
For the fourth quarter of 2016, the Company estimates net
revenues in the range of $600 to 620
million.
For the full year 2016, the Company reiterates its previous
guidance of module shipments and reduced capital expenditures as
below:
- Total module shipments in the range of 4,800 to 5,000 MW
- Revenue-recognized module shipments in the range of 4,600 to
4,800 MW
- Capital expenditures of approximately $130 million, of which $84
million for capacity expansion and the remaining
$46 million for manufacturing
technology upgrades and certain R&D related expenditures
Conference Call
The Company will host a conference call to discuss the results
at 8:00 am Eastern Time (10:00 pm Seoul Time) on November 22, 2016. The management will discuss
the results and take questions following the prepared remarks.
A live webcast of the conference call will be available on the
investor relations section of the Company's website at
www.hanwha-qcells.com or by clicking the following hyperlink:
http://edge.media-server.com/m/p/24kdrmj7.
The dial-in details for the live conference call are as
follows:
International Toll
Free Dial-In Number
|
+65
67135090
|
United
States
|
+1 (866)
519-4004
|
South
Korea
|
+82 (0)2
6490-3660
|
Germany
|
08001820671
|
China,
Domestic
|
8008190121 /
4006208038
|
Passcode: HQCL
A replay of the call will be available after the conclusion of
the conference call on the investor relations section of the
Company's website at www.hanwha-qcells.com and also by dialing
numbers below:
International Toll
Free Dial-In Number
|
+61 2 8199
0299
|
United
States
|
+1 (646)
254-3697
|
South
Korea
|
+82 (0)2
6490-3513
|
Germany
|
08001802149
|
China,
Domestic
|
8008700206 /
4006322162
|
Conference ID 9492007
Replay time period: Nov 22, 2016
11:00 ET - Nov 30, 2016
07:59 ET
About Hanwha Q CELLS
Hanwha Q CELLS Co., Ltd. (NASDAQ: HQCL) is one of the world´s
largest and most recognized photovoltaic manufacturers for its
high-quality, high-efficiency solar cells and modules. It is
headquartered in Seoul, South
Korea (Global Executive HQ) and Thalheim, Germany (Technology & Innovation HQ). With
its diverse international manufacturing facilities in South Korea, Malaysia and China, Hanwha Q CELLS is in a unique position
to flexibly address all global markets. Hanwha Q CELLS offers the
full spectrum of photovoltaic products, applications and solutions,
from modules to kits to systems to large scale solar power plants.
Through its growing global business network spanning Europe, North
America, Asia, South America, Africa and the Middle East, the Company provides excellent
services and long-term partnership to its customers in the utility,
commercial, government and residential markets. Hanwha Q CELLS is a
flagship company of Hanwha Group, a FORTUNE Global 500 firm and a
Top 10 business enterprise in South
Korea. For more information, visit
http://investors.hanwha-qcells.com.
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 can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends, "plans," "believes," "estimates" and similar statements.
Among other things, the quotations from management in this press
release and the Company's operations and business outlook, contain
forward-looking statements. These forward-looking statements also
include 4Q16, 2H16 and full-year 2016 estimates for PV product
shipments, 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. Further information regarding these and
other risks is included in the Company's filings with the U.S.
Securities and Exchange Commission, including its annual report on
Form 20-F. Except as required by law, the Company does not
undertake any obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Hanwha Q CELLS
Co., Ltd.
|
Interim Condensed
Consolidated Balance Sheets
|
(in millions of US
dollars, except share data)
|
|
|
|
Sep 30,
2016
|
|
Dec 31,
2015
|
ASSETS
|
|
|
|
|
(unaudited)
|
|
(audited)
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
254.8
|
|
200.0
|
|
Restricted
cash
|
|
147.2
|
|
172.2
|
|
Accounts and notes
receivable
|
|
327.0
|
|
365.1
|
|
Receivables from
related parties
|
|
126.1
|
|
276.8
|
|
Inventories
|
|
|
451.7
|
|
406.1
|
|
Loans to related
parties
|
|
120.0
|
|
47.8
|
|
Other current
assets
|
|
101.4
|
|
102.7
|
|
|
Total current
assets
|
|
|
1,528.2
|
|
1,570.7
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
prepayments
|
|
1.9
|
|
2.6
|
|
Fixed assets -
net
|
|
822.6
|
|
877.3
|
|
Intangible assets -
net
|
|
18.5
|
|
14.8
|
|
Land use right -
net
|
|
49.7
|
|
51.8
|
|
Deferred tax assets -
net
|
|
(0.4)
|
|
0.8
|
|
Receivables from
related parties - non-current
|
|
3.0
|
|
9.3
|
|
Other long-term
assets
|
|
24.0
|
|
20.2
|
|
|
Total
assets
|
|
|
|
2,447.5
|
|
2,547.5
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
142.2
|
|
226.1
|
|
Notes
payable
|
|
140.0
|
|
129.0
|
|
Payables to related
parties
|
|
247.4
|
|
169.0
|
|
Loan from related
parties
|
|
-
|
|
32.4
|
|
Deferred
revenue
|
|
24.9
|
|
402.1
|
|
Accrued
expenses
|
|
41.9
|
|
41.8
|
|
Other
payables
|
|
20.4
|
|
25.0
|
|
Tax
payables
|
|
20.2
|
|
0.2
|
|
Short-term
debt
|
|
404.1
|
|
255.6
|
|
Current portion of
long-term debt
|
|
10.8
|
|
161.1
|
|
Customer
deposits
|
|
31.9
|
|
7.0
|
|
Unrecognized tax
benefit
|
|
-
|
|
17.9
|
|
Derivative
contracts
|
|
10.6
|
|
0.8
|
|
Litigation
accruals
|
|
1.7
|
|
5.9
|
|
Deferred tax
liabilities
|
|
1.1
|
|
5.7
|
|
Warranty
provision
|
|
43.8
|
|
43.6
|
|
Other current
liabilities
|
|
4.7
|
|
7.3
|
|
|
Total current
liabilities
|
|
1,145.7
|
|
1,530.5
|
|
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
|
796.9
|
|
653.5
|
|
Long-term warranty
provision
|
|
20.7
|
|
17.4
|
|
Deferred tax
liabilities
|
|
6.7
|
|
5.9
|
|
|
Total
liabilities
|
|
1,970.0
|
|
2,207.3
|
Redeemable ordinary
shares
|
|
-
|
|
-
|
Stockholders'
Equity
|
|
|
|
|
|
Ordinary
shares
|
|
0.4
|
|
0.4
|
|
Additional paid-in
capital
|
|
431.8
|
|
431.1
|
|
Accumulated
income(deficit)
|
|
125.7
|
|
(20.2)
|
|
Accumulated other
comprehensive loss
|
|
(80.4)
|
|
(71.1)
|
|
|
Total stockholders'
equity
|
|
477.5
|
|
340.2
|
|
|
Total liabilities,
redeemable ordinary shares and stockholders' equity
|
2,447.5
|
|
2,547.5
|
Hanwha Q CELLS
Co., Ltd.
|
Unaudited Interim
Condensed Consolidated Statements of Operations and Comprehensive
Income (Loss)
|
(in millions of US
dollars, except share data and net income (loss) per
share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
|
|
|
Sep 30,
2016
|
|
Jun 30,
2016
|
|
Mar 31,
2016
|
|
Sep 30,
2016
|
|
Sep 30,
2015
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
Net sales
|
|
707.8
|
|
638.0
|
|
514.9
|
|
1,860.7
|
|
1,098.7
|
Cost of goods
sold
|
567.3
|
|
486.8
|
|
405.9
|
|
1,460.0
|
|
898.9
|
|
Gross
profit
|
|
140.5
|
|
151.2
|
|
109.0
|
|
400.7
|
|
199.8
|
Selling and marketing
expenses
|
36.4
|
|
33.1
|
|
22.8
|
|
92.3
|
|
57.8
|
General and
administrative expenses
|
19.7
|
|
19.6
|
|
17.9
|
|
57.2
|
|
61.5
|
Research and
development expenses
|
12.0
|
|
14.0
|
|
11.6
|
|
37.6
|
|
34.4
|
Restructuring
charges
|
-
|
|
-
|
|
-
|
|
-
|
|
22.1
|
|
Operating income
(loss)
|
|
72.4
|
|
84.5
|
|
56.7
|
|
213.6
|
|
24.0
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
0.1
|
|
1.7
|
|
3.1
|
|
4.9
|
|
6.4
|
|
Interest
expense
|
(12.5)
|
|
(11.0)
|
|
(15.9)
|
|
(39.4)
|
|
(44.0)
|
|
Foreign exchange gain
(loss)
|
(2.3)
|
|
1.8
|
|
4.0
|
|
3.5
|
|
(17.1)
|
|
Changes in fair value
of derivative contracts
|
(2.1)
|
|
(13.7)
|
|
(15.3)
|
|
(31.1)
|
|
10.3
|
|
Investment
loss
|
(0.6)
|
|
-
|
|
(1.5)
|
|
(2.1)
|
|
(1.5)
|
|
Other income
(expense) - net
|
(3.0)
|
|
4.8
|
|
1.0
|
|
2.8
|
|
(3.5)
|
|
Reversal of
litigation accruals
|
-
|
|
-
|
|
-
|
|
-
|
|
48.7
|
|
Other expense,
net
|
(20.4)
|
|
(16.5)
|
|
(24.6)
|
|
(61.5)
|
|
(0.7)
|
|
Income (loss) before
income tax
|
|
52.0
|
|
68.0
|
|
32.1
|
|
152.1
|
|
23.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
10.3
|
|
(8.8)
|
|
4.6
|
|
6.1
|
|
5.5
|
|
Net income
(loss)
|
|
41.7
|
|
76.8
|
|
27.5
|
|
146.0
|
|
17.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Hanwha Q CELLS Co., Ltd.'s stockholders per
share:
|
|
|
|
|
|
|
Basic
|
|
|
US$0.01
|
|
US$0.02
|
|
US$0.01
|
|
US$0.04
|
|
US$0.00
|
Diluted
|
|
US$0.01
|
|
US$0.02
|
|
US$0.01
|
|
US$0.04
|
|
US$0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Hanwha Q CELLS Co., Ltd.'s stockholders per
ADS:
|
|
|
|
|
|
|
Basic
|
|
|
US$0.50
|
|
US$0.92
|
|
US$0.33
|
|
US$1.75
|
|
US$0.21
|
Diluted
|
|
US$0.50
|
|
US$0.92
|
|
US$0.33
|
|
US$1.75
|
|
US$0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used
in computation of net income (loss) per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
4,159,051,773
|
|
4,159,105,023
|
|
4,158,891,211
|
|
4,159,061,169
|
|
4,107,574,093
|
Diluted
|
|
4,159,514,634
|
|
4,160,058,250
|
|
4,159,413,477
|
|
4,159,521,554
|
|
4,107,720,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used
in computation of net income (loss) per ADS:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
83,181,035
|
|
83,182,100
|
|
83,177,824
|
|
83,181,223
|
|
82,151,482
|
Diluted
|
|
83,190,293
|
|
83,201,165
|
|
83,188,270
|
|
83,190,431
|
|
82,154,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(2.0)
|
|
(29.7)
|
|
22.4
|
|
(9.3)
|
|
(73.6)
|
Comprehensive income
(loss)
|
39.7
|
|
47.1
|
|
49.9
|
|
136.7
|
|
(55.8)
|
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visit:http://www.prnewswire.com/news-releases/hanwha-q-cells-reports-third-quarter-2016-results-300367235.html
SOURCE Hanwha Q CELLS Co., Ltd.