SEOUL, South Korea,
March 23, 2017 /PRNewswire/ -- Hanwha
Q CELLS Co., Ltd. ("Hanwha Q CELLS" or the "Company") (NASDAQ:
HQCL), a global leading photovoltaic manufacturer of
high-performance, high-quality solar modules, today reported its
unaudited financial results for the fourth quarter and full year
ended December 31, 2016. The Company
will host a conference call to discuss the results at 8:00 am Eastern Time (9:00
pm Korea Standard Time) on March 23,
2017.
Fourth Quarter 2016 Highlights
- Net revenues were $565.9 million,
compared with $707.8 million in the
third quarter of 2016 and $702.1
million in the fourth quarter of 2015.
- Gross margin was 9.5%, compared with 19.9% in the third quarter of 2016 and 19.1% in
the fourth quarter of 2015.
- Operating loss was $6.1 million,
compared with operating income of $72.4
million in the third quarter of 2016 and operating income of
$53.8 million in the fourth quarter
of 2015.
- Net loss attributable to Company's ordinary shareholders was
$25.5 million, compared with net
income of $41.7 million in the third
quarter of 2016 and net income of $26.0
million in the fourth quarter of 2015.
- Loss per fully diluted American Depositary Share ("ADS" and
each ADS represents 50 of the Company's ordinary shares) was
$0.31, compared with earnings per
fully diluted ADS of $0.50 in the
third quarter of 2016 and earnings per fully diluted ADS of
$0.31 in the fourth quarter of
2015.
Full Year 2016
Highlights
- Total revenue-recognized module shipments in 2016 were 4,583 MW
for the full year 2016, an increase of 55.0% from 2,956 MW for the
full year 2015.
- Total net revenues were $2,426.6
million for the full year 2016, an increase of 34.8% from
$1,800.8 million for the full year
2015.
- Gross margin rate was 18.7% for the full year 2016, compared
with 18.5% for the full year 2015.
- Operating income was $207.5
million in the full year 2016, compared with $77.9 million in the full year 2015.
- Net income attributable to Company's ordinary shareholders was
$120.5 million for the full year
2016, compared with $43.8 million for
the full year 2015.
- Earnings per fully diluted ADS were $1.45 for the full year 2016, compared with
$0.53 for the full year 2015.
Mr. Seong-woo Nam, Chairman and CEO of Hanwha Q CELLS, remarked
"We achieved record high total module shipment and revenue in the
full year 2016 while establishing solid market positioning in key
strategic markets in both mature and emerging countries. In 2016,
we have also successfully ramped up a world leading PERC cell
in-house production capability, now having produced over 3
GW1 of both mono and
multi PERC cells since 2015, positioning Hanwha Q CELLS as a global
leader in production of advanced cells."
"Despite the market's concern for global solar demands, we have started 2017 with a strong
momentum," Mr. Nam continued. "Hanwha Q CELLS was awarded the
tender to construct the region's largest 1 GW solar power plant in
Turkey, which will help us
establish a stronger foothold in the region with great growth
potentials, and we have also entered into several large module
supply contracts strengthening our sales backlog for the year."
Mr. Jay Seo, CFO of Hanwha Q
CELLS, said "Our fourth quarter results came in weaker than
anticipated due to certain project schedule delays, which prevented
us from recognizing certain revenues in the year 2016, and several
other one-time accounting adjustments, such as measurement of
inventory at the lower of cost or market and asset impairments."
Mr. Seo added, "We will continue to execute on reducing
manufacturing costs and augmenting operating expense controls, while
diligently managing our balance sheet and cash management."
|
1 Also includes PERC
cells produced by Hanwha Q CELLS Korea Corporation, an affiliate of
the Company
|
Fourth Quarter 2016 Financial Results
Net Revenues
- Total net revenues were $565.9
million, down 20.0% from $707.8
million in the third quarter of 2016 and down 19.4% from
$702.1 million in the fourth quarter
of 2015.
Gross Profit and Margin
- Gross profit in the fourth quarter of 2016 was $54.0 million, compared with $140.5 million in the third quarter of 2016 and
$134.2 million in the fourth quarter
of 2015.
- Gross margin in the fourth quarter of 2016 was 9.5%, compared
with 19.9% in the third quarter of
2016 and 19.1% in the fourth quarter of 2015.
Operating Expense, Income and Margin
- Total operating expenses were $60.1
million in the fourth quarter of 2016, down 11.7% from
$68.1 million in the third quarter of
2016 and down 25.2% from $80.4
million in the fourth quarter of 2015.
- Selling and marketing expenses were $27.9 million in the fourth quarter of 2016, down
23.4% from $36.4 million in the third
quarter of 2016 and down 23.1% from $36.3
million in the fourth quarter of 2015.
- General and administrative expenses were $20.3 million in the fourth quarter of 2016, up
3.0% from $19.7 million in the third
quarter of 2016 and down 32.8% from $30.2
million in the fourth quarter of 2015.
- Research and development expenses were $11.9 million in the fourth quarter of 2016, down
0.8% from $12.0 million in the third
quarter of 2016 and down 14.4% from $13.9
million in the fourth quarter of 2015.
Net Interest Expense
- Net interest expense was $12.2
million in the fourth quarter of 2016, compared with
$12.4 million in the third quarter of
2016 and $18.4 million in the fourth
quarter of 2015.
Foreign Currency Exchange Gain (Loss)
- Net foreign currency exchange loss was $7.5 million in the fourth quarter of 2016,
compared with a net loss of $2.3
million in the third quarter of 2016 and net loss of
$6.6 million in the fourth quarter of
2015.
Gain (loss) on change in Fair Value of Derivative
Contracts
- The Company recorded a net gain of $7.0
million in the fourth quarter of 2016 from the change in
fair value of derivatives in hedging activities, compared with a
net loss of $2.1 million in the third
quarter of 2016 and a net loss of $0.7
million in the fourth quarter of 2015.
Income Tax Expense (Benefit)
- Income tax benefit was $5.4
million in the fourth quarter of 2016, compared with an
income tax expense of $10.3 million
in the third quarter of 2016 and an income tax expense of
$4.6 million in the fourth quarter of
2015.
Net Income (Loss) and Earnings (Loss) per ADS
- Net loss attributable to Company's ordinary shareholders was
$25.5 million in the fourth quarter
of 2016, compared with net income of $41.7
million in the third quarter of 2016 and net income of
$26.0 million in the fourth quarter
of 2015.
- Loss per fully diluted ADS on a GAAP basis was $0.31 in the fourth quarter of 2016, compared
with earnings per fully diluted ADS of $0.50 in the third quarter of 2016 and earnings
per fully diluted ADS of $0.31 in the
fourth quarter of 2015.
Financial Positions
As of December 31, 2016, the
Company had cash and cash equivalents of $390.9 million, compared with $254.8 million as of September 30, 2016. The restricted cash as
of December 31, 2016 was $108.1 million, compared with $147.2 million as of
September 30, 2016.
As of December 31, 2016, accounts
receivable was $415.1 million,
compared with $453.1 million as of
September 30, 2016. Inventories were
$333.5 million as of December 31,
2016, compared with $451.7
million as of September 30,
2016.
Total short-term bank borrowings (including the current portion
of long-term bank borrowings) were $527.9
million as of December 31,
2016, an increase of $113.0
million from the third quarter of 2016. As of December 31, 2016, the Company had total
long-term debt (net of current portion and long-term notes) of
$643.7 million, a decrease of
$153.2 million from the third 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 fourteen years.
Net cash provided by operating activities was $94.8 million in the fourth quarter of 2016.
Capital expenditures were $25.1
million in the fourth quarter of 2016.
Full Year 2016 Financial Results
Net Revenues
- Total net revenues were $2,426.6
million, up 34.8% from $1,800.8
million for the full year 2015.
Gross Profit and Margin
- Gross profit was $454.7 million,
compared with $334.0 million for the
full year 2015.
- Gross margin was 18.7%, compared with 18.5% for the full year
2015.
Operating Expense, Income and Margin
- Total operating expenses were $247.2
million, down 3.5% from $256.1
million for the full year 2015.
- Selling and marketing expenses were $120.2 million, up 27.7% from $94.1 million for the full year 2015.
- General and administrative expenses were $77.6 million, down 15.4% from $91.7 million for the full year 2015.
- Research and development expenses were $49.4 million, up 2.3% from $48.3 million for the full year 2015.
Net Interest Expense
- Net interest expense was $46.7
million, compared with $56.0
million for the full year 2015.
Foreign Currency Exchange Gain (Loss)
- Net foreign currency exchange loss was $4.0 million, compared with a net loss of
$23.6 million for the full year
2015.
Gain (loss) on change in Fair Value of Derivative
Contracts
- The Company recorded a net loss of $24.1
million from the change in fair value of derivatives in
hedging activities, compared with a net gain of $9.6 million for the full year 2015.
Income Tax Expense (Benefit)
- Income tax expense was $0.8
million, compared with an income tax expense of $10.1 million for the full year 2015.
Net Income (Loss) and Earnings (Loss) per ADS
- Net income attributable to Company's ordinary shareholders was
$120.5 million, compared with net
income of $43.8 million for the full
year 2015.
- Earnings per fully diluted ADS on a GAAP basis was $1.45, compared with earnings per fully diluted
ADS of $0.53 for the full year
2015.
Financial Positions
As of December 31, 2016, the
Company had cash and cash equivalents of $390.9 million, compared with $200.0 million as of December 31, 2015. The restricted cash as of
December 31, 2016 was $108.1 million, compared with $172.2 million in the previous year.
As of December 31, 2016, accounts
receivable was $415.1 million,
compared with $641.9 million as of
December 31, 2015. Inventories were
$333.5 million, compared with
$406.1 million as of December 31, 2015.
Total short-term bank borrowings (including the current portion
of long-term bank borrowings) were $527.9
million as of December 31,
2016, an increase of $111.2
million from the full year of 2015. As of December 31, 2016, the Company had total
long-term debt (net of current portion and long-term notes) of
$643.7 million, a decrease of
$9.8 million from the full year of
2015. The Company's long-term bank and government borrowings are to
be repaid in installments until their maturities, which range from
one to fourteen years.
Net cash provided by operating activities was $125.5 million in the full year 2016.
Capital expenditures were $137.7
million in the full year 2016.
Operations Updates
Production Capacity
As of December 31, 2016, the
Company's in-house, annualized production capacities were 1,550 MW
for ingot, 950 MW for wafer, 4,150 MW for cell and 4,150 MW for
module.
Additionally, the Company has an access of module supply of up
to 1,550 MW (annualized) as of December 31,
2016 from Hanwha Q CELLS Korea Corporation, an affiliate of
the Company.
Business Outlook
First Quarter and Full Year 2017 Guidance
For the first quarter of 2017, the Company estimates net
revenues in the range of $410 to 430
million.
For the full year 2017, the Company estimates:
- Total module shipments in the range of 5,500 to 5,700 MW
- Revenue-recognized module shipments in the range of 5,300 to
5,500 MW
- Capital expenditures of approximately $50 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 (9:00
pm Korea Standard Time)
on March 23, 2017. 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 http://investors.hanwha-qcells.com or by
clicking the following hyperlink:
http://edge.media-server.com/m/p/5wtyqxo3.
The dial-in details for the live conference call are as
follows:
|
International Toll
Free Dial-In Number
|
+65
67135090
|
|
United
States
|
+1 (845)
675-0437
|
|
South
Korea
|
+82 (0)2
6490-3660
|
|
Germany
|
08001820671
|
|
China,
Domestic
Hong Kong
|
8008190121 /
4006208038
+852
30186771
|
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 (855)
452-5696
|
|
South
Korea
|
0079861361602
|
|
Germany
|
08001802149
|
|
China,
Domestic
Hong Kong
|
8008700206 /
4006322162
800963117
|
Conference ID 83925129
Replay time period: March 23, 2017
11:00 ET – March 31, 2017 08:59
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-performance, high-quality solar cells and modules. It is
headquartered in Seoul, South
Korea (Global Executive HQ) and Thalheim, Germany (Technology & Innovation HQ), with
diverse international manufacturing facilities in Malaysia and China. 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://www.hanwha-qcells.com/.
Safe Harbor Statement
This report contains forward-looking statements that are not
statements of historical fact. 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. Such statements,
particularly statements about our guidance for performance in the
first quarter and the full year 2017, involve certain risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Further information
regarding these and other risks is included in Hanwha Q CELLS'
filings with the Securities and Exchange Commission, including its
annual report on Form 20-F. Except as required by law, Hanwha Q
CELLS 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.
|
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
(in millions of US
dollars, except share data)
|
|
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
ASSETS
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
390.9
|
|
254.8
|
|
200.0
|
|
Restricted
cash
|
|
108.1
|
|
147.2
|
|
172.2
|
|
Accounts and notes
receivable - net
|
|
330.8
|
|
327.0
|
|
365.1
|
|
Receivables from
related parties
|
|
84.3
|
|
126.1
|
|
276.8
|
|
Inventories
|
|
333.5
|
|
451.7
|
|
406.1
|
|
Loans to related
parties
|
|
13.0
|
|
120.0
|
|
47.8
|
|
Other current
assets
|
|
80.1
|
|
101.4
|
|
102.7
|
|
Total current
assets
|
|
1,340.7
|
|
1,528.2
|
|
1,570.7
|
|
|
|
|
|
|
|
|
|
Long-term
prepayments
|
|
-
|
|
1.9
|
|
2.6
|
|
Fixed assets -
net
|
|
758.4
|
|
822.6
|
|
877.3
|
|
Intangible assets -
net
|
|
12.2
|
|
18.5
|
|
14.8
|
|
Land use rights -
net
|
|
52.3
|
|
49.7
|
|
51.8
|
|
Deferred tax assets -
net
|
|
0.6
|
|
(0.4)
|
|
0.8
|
|
Loans to related
parties
|
|
3.0
|
|
3.0
|
|
9.3
|
|
Other long-term
assets
|
|
31.5
|
|
24.0
|
|
20.2
|
|
Total assets
|
|
2,198.7
|
|
2,447.5
|
|
2,547.5
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
199.8
|
|
142.2
|
|
226.1
|
|
Notes
payable
|
|
107.2
|
|
140.0
|
|
129.0
|
|
Payables to related
parties
|
|
128.7
|
|
247.4
|
|
169.0
|
|
Loans from related
parties
|
|
-
|
|
-
|
|
32.4
|
|
Deferred
revenue
|
|
18.9
|
|
24.9
|
|
402.1
|
|
Accrued
expenses
|
|
36.6
|
|
41.9
|
|
41.8
|
|
Other
payables
|
|
22.7
|
|
20.4
|
|
25.0
|
|
Tax
payables
|
|
16.0
|
|
20.2
|
|
0.2
|
|
Short-term
debt
|
|
407.4
|
|
404.1
|
|
255.6
|
|
Current portion of
long-term debt
|
|
120.5
|
|
10.8
|
|
161.1
|
|
Customer
deposits
|
|
17.3
|
|
31.9
|
|
7.0
|
|
Unrecognized tax
benefit
|
|
-
|
|
-
|
|
17.9
|
|
Derivative
contracts
|
|
-
|
|
10.6
|
|
0.8
|
|
Litigation
accruals
|
|
0.2
|
|
1.7
|
|
5.9
|
|
Deferred tax
liabilities
|
|
2.4
|
|
1.1
|
|
5.7
|
|
Warranty
provision
|
|
42.2
|
|
43.8
|
|
43.6
|
|
Other current
liabilities
|
|
6.3
|
|
4.7
|
|
7.3
|
|
Total current
liabilities
|
|
1,126.2
|
|
1,145.7
|
|
1,530.5
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
643.7
|
|
796.9
|
|
653.5
|
|
Long-term warranty
provision
|
|
19.0
|
|
20.7
|
|
17.4
|
|
Deferred tax
liabilities
|
|
7.2
|
|
6.7
|
|
5.9
|
|
Total liabilities
|
|
1,796.1
|
|
1,970.0
|
|
2,207.3
|
|
Redeemable ordinary
shares
|
|
-
|
|
-
|
|
-
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
0.4
|
|
0.4
|
|
0.4
|
|
Additional paid-in
capital
|
|
431.7
|
|
431.8
|
|
431.1
|
|
Accumulated income
(deficit)
|
|
99.8
|
|
125.7
|
|
(20.2)
|
|
Accumulated other
comprehensive loss
|
|
(129.3)
|
|
(80.4)
|
|
(71.1)
|
|
Total stockholders'
equity
|
|
402.6
|
|
477.5
|
|
340.2
|
|
Total liabilities,
redeemable ordinary shares and stockholders' equity
|
|
2,198.7
|
|
2,447.5
|
|
2,547.5
|
|
Hanwha Q CELLS
Co., Ltd.
|
|
Unaudited 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 twelve months
ended
|
|
Dec 31,
2016
|
|
Sep 30,
2016
|
|
Dec 31,
2015
|
|
Dec 31,
2016
|
|
Dec 31,
2015
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
Net sales
|
565.9
|
|
707.8
|
|
702.1
|
|
2,426.6
|
|
1,800.8
|
|
Cost of goods
sold
|
511.9
|
|
567.3
|
|
567.9
|
|
1,971.9
|
|
1,466.8
|
|
Gross profit
|
54.0
|
|
140.5
|
|
134.2
|
|
454.7
|
|
334.0
|
|
Selling and marketing
expenses
|
27.9
|
|
36.4
|
|
36.3
|
|
120.2
|
|
94.1
|
|
General and
administrative expenses
|
20.3
|
|
19.7
|
|
30.2
|
|
77.6
|
|
91.7
|
|
Research and
development expenses
|
11.9
|
|
12.0
|
|
13.9
|
|
49.4
|
|
48.3
|
|
Restructuring
charges
|
-
|
|
-
|
|
-
|
|
-
|
|
22.0
|
|
Operating income (loss)
|
(6.1)
|
|
72.4
|
|
53.8
|
|
207.5
|
|
77.9
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
3.1
|
|
0.1
|
|
4.5
|
|
8.1
|
|
10.9
|
|
Interest expense
|
(15.3)
|
|
(12.5)
|
|
(22.9)
|
|
(54.8)
|
|
(66.9)
|
|
Foreign exchange gain
(loss)
|
(7.5)
|
|
(2.3)
|
|
(6.6)
|
|
(4.0)
|
|
(23.6)
|
|
Gain (loss) on change in
fair value of derivative contracts
|
7.0
|
|
(2.1)
|
|
(0.7)
|
|
(24.1)
|
|
9.6
|
|
Investment income
(loss)
|
0.8
|
|
(0.6)
|
|
(0.4)
|
|
(1.2)
|
|
(1.9)
|
|
Other income (expense) -
net
|
(12.9)
|
|
(3.0)
|
|
2.9
|
|
(10.2)
|
|
(0.6)
|
|
Reversal of litigation
accruals
|
-
|
|
-
|
|
-
|
|
-
|
|
48.5
|
|
Other expense,
net
|
(24.8)
|
|
(20.4)
|
|
(23.2)
|
|
(86.2)
|
|
(24.0)
|
|
Income (loss) before income tax
|
(30.9)
|
|
52.0
|
|
30.6
|
|
121.3
|
|
53.9
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(5.4)
|
|
10.3
|
|
4.6
|
|
0.8
|
|
10.1
|
|
Net income (loss)
|
(25.5)
|
|
41.7
|
|
26.0
|
|
120.5
|
|
43.8
|
|
|
|
|
Net income (loss)
attributable to Hanwha Q CELLS Co., Ltd.'s stockholders per
share:
|
|
Basic
|
(US$0.01)
|
|
US$0.01
|
|
US$0.01
|
|
US$0.03
|
|
US$0.01
|
|
Diluted
|
(US$0.01)
|
|
US$0.01
|
|
US$0.01
|
|
US$0.03
|
|
US$0.01
|
|
|
Net income (loss)
attributable to Hanwha Q CELLS Co., Ltd.'s stockholders per
ADS:
|
|
Basic
|
(US$0.31)
|
|
US$0.50
|
|
US$0.31
|
|
US$1.45
|
|
US$0.53
|
|
Diluted
|
(US$0.31)
|
|
US$0.50
|
|
US$0.31
|
|
US$1.45
|
|
US$0.53
|
|
|
Number of shares used
in computation of net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
4,159,051,773
|
|
4,159,051,773
|
|
4,158,755,035
|
|
4,158,984,882
|
|
4,120,369,328
|
|
Diluted
|
4,159,287,244
|
|
4,159,514,634
|
|
4,159,506,708
|
|
4,159,297,541
|
|
4,120,689,668
|
|
|
Number of shares used
in computation of net income (loss) per ADS:
|
|
Basic
|
83,181,035
|
|
83,181,035
|
|
83,175,101
|
|
83,179,698
|
|
82,407,387
|
|
Diluted
|
83,185,745
|
|
83,190,293
|
|
83,190,134
|
|
83,185,951
|
|
82,413,793
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment
|
(48.9)
|
|
(2.0)
|
|
39.0
|
|
(58.2)
|
|
(34.6)
|
|
Comprehensive income
(loss)
|
(74.4)
|
|
39.7
|
|
65.0
|
|
62.3
|
|
9.2
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hanwha-q-cells-reports-fourth-quarter-and-full-year-2016-results-300428351.html
SOURCE Hanwha Q CELLS Co., Ltd.