Hanwha Q CELLS reported solid financial and operational results in the third quarter of 2016 despite the challenging market situation.
According to Q CELLS’ financial report, the total net revenues were US$707.8 million, up 10.9% from US$638 million in 2Q16 and up 65.7% from US$427.2% million in 3Q15. The gross profit was US$140.5 million, down from US$151.2 million in the previous quarter but up from US$93 million in the same quarter in 2015. The gross margin in 3Q16 was 19.9%, compared with 23.7% in 2Q16 and 21.8% in 3Q15.
Hanwha Q CELLS’s net income in 3Q16 was US$41.7 million, compared with US$76.8 million in 2Q16 and US$52.4 million in 3Q15. Earnings per fully diluted ADS (GAAP) was US$0.5, down from US$0.92 in 2Q16 and US$0.63 in 3Q15.
However, the financial execution was relatively solid because the solar demand was very weak in the third quarter.
"Our industry is undergoing challenging time with elevated macro uncertainties," said Seong-woo Nam, Chairman and CEO of Hanwha Q CELLS. "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."
As of the end of September, 2016, Hanwha Q CELLS had in-house capacity for ingot, wafer, PV cell and module of 1.55GW, 950MW, 4.1GW and 4.05GW, respectively. In addition, the company has an access of module supply of up to 1.5GW (annualized) as of September 30, 2016 from Hanwha Q CELLS Korea Corporation, an affiliate of it.
Hanwha Q CELLS expects net revenues for 4Q16 to be US$600~620 million. As for the full year of 2016, the company reiterates its previous guidance of module shipments to 4.8~5GW, including revenue-recognized module shipments of 4.6~4.8GW.
Its capital expenditures for 2016 would be at US$130 million, of which US$84 million for capacity expansion and the remaining US$46 million for manufacturing technology upgrades and certain R&D related expenditures.