Hanwha Q CELLS Met 54% Increase in Quarterly Revenue

Hanwha Q CELLS’ financial result for the first quarter of 2015 writes that the company’s revenue was US$333.5 million, increasing 54% compared to 1Q14. Its gross profit hit US$ 48.4million and gross margins reached 14.5%, but its net loss was US$20.4million.

FIRST QUARTER 2015 HIGHLIGHTS

• Revenues increased 54% year-over-year to US$333.5 million
• Shipments totaled 547.3 MW
• Gross profit rose 70% year-over-year to US$48.4 million
• Gross margins reached 14.5%
• The Company incurred a one-time US$22.1 million restructuring charge
• Excluding the restructuring charge the Company generated positive operating profit of US$4.8 million and pretax income of US$4 million.

Hanwha Q CELLS was merged with Hanwha SolarOne in late 2014. The new formed company has substantially higher revenues and total shipment than the predecessor entity, Hanwha SolarOne, on a standalone basis. However, the net loss, US$20.4 million, was higher than in 1Q14. Possible factors accounting for the drastically increased net loss are: new processing processes, utilization increase, manufacturing efficiencies improvement, automation increase, and new product lines.

Operation loss was US$17.3 million, compared with an operating loss of US$1.6 million in 1Q14. Operating income excluding the restructuring charge for 1Q15 would have been US$4.8 million and operating margin would have been 1.4%.

Gross profit increased to US$48.4 million from US$28.5 million in 1Q14. The increase in gross profit in 1Q15 was primarily due to higher revenues and an improved cost structure. Gross margin improved to14.5%from 13.1% in 1Q14. The improved gross margin is the result of higher utilization of manufacturing facilities and reduction in processing costs.

The company plans to continue to integrate the Q CELLS acquisition and to reduce redundant costs, leveraging increased scald and geographic breadth. It will also continue to reduce production costs as well as accelerate its downstream development.