Hanwha SolarOne Expects a 1.46GW of Module Shipment in 2014

Hanwha SolarOne reported its unaudited financial results for the three months ended September 30, 2014. The company will host a conference call to discuss the results at 8:00 am Eastern Time (9:00 pm Shanghai Time) on November 21, 2014. A slide presentation with details of the results will also be available on the Company's website prior to the call.

According to the report, the company’s net revenues increased from 2Q14 mainly due to higher shipment and module processing services. It market share in both Japan and China increased, and the strong demands in the two countries drove lower selling prices and higher net revenues. Higher shipments explained the gross profit growth, while lower selling prices was blamed to the decline of gross margin in the quarter.

For the fourth quarter of 2014, the company expects a module shipment of 400-425MW, more than 10% higher than in the 3Q14. Also, the full year expectation is 1.43~1.46GW of PV module shipment and capital expenditures of $80 million largely for automation of existing manufacturing lines, as well as cell and module capacity expansions.

Highlights:

• Total net revenues were RMB1, 198.0 million (US$195.2 million), an increase of 8.2% from RMB1, 107.3 million in 2Q14, and an increase of 5.5% from RMB1, 135.1 million in 3Q13.
• PV module shipments, including module processing services, were 373.2 MW, a 9.9% increase from 339.5 MW in 2Q14, and a 17.4% increase from 317.8 MW in 3Q13.
• Market shares in Japan and China increased.
  
• The average selling price of modules, excluding module processing services, decreased to RMB3.74 per watt (US$0.61), from RMB4.17 per watt in 2Q14 and decreased from RMB4.16 per watt in 3Q13.
• Gross profit in 3Q14 was RMB81.0 million (US$13.2 million), compared with a gross profit of RMB105.1 million in 2Q14 and a gross profit of RMB57.8 million in 3Q13.
• Gross margin was positive 6.8%, compared with positive 9.5% in 2Q14 and positive 5.1% in 3Q13.
• Operating loss in 3Q14 was RMB72.8 million (US$11.9 million), compared with an operating loss of RMB39.9 million in 2Q14 and an operating loss of RMB132.7 million in 3Q13. Operating margin decreased to negative 6.1% from negative 3.6% in 2Q14 and increased from negative 11.7% in 3Q13.
• Operating expenses as a percentage of total net revenues were 12.8% in 3Q14, compared with 13.1% in 2Q14 and 16.8% in 3Q13. The Company continues to maintain tight control over operating expenses.
• The company recorded a net loss of RMB71.0 million (US$11.6 million), which included a foreign exchange loss and a gain from the change in fair value of derivatives in hedging activities.
• Annualized ROE on a non-GAAP basis was negative 55.9% in 3Q14, compared with negative 13.6% in 2Q14 and negative 88.8% in 3Q13.
• Annualized ROE on a GAAP basis was negative 55.2% in 3Q14, compared with negative 11.9% in 2Q14 and negative 86.6% in 3Q13.

The conference call:

The dial-in details for the live conference call are as follows:

A live webcast of the conference call will be available on the investor relations section of the Company's website at: 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:

Encore Dates: November 21, 2014 11:00 AM ET - November 29, 2014 7:59 AM ET