Hanwha Q CELLS Co., Ltd. (Seoul, South Korea) on May 28th, 2015 announced its unaudited financial results for the three months ended March 31st, 2015.
The company shipped solar photovoltaic (PV) products totaling 547.3 MW in the quarter, and increased revenues by 54% year-over-year to USD 333.5 million. Gross profit rose 70% year-over-year to USD 48.4 million; Gross margin reached 14.5%
“We are pleased to announce our results for the first time as a new company following our strategic merger with Q CELLS,” said Seong-woo Nam, Chairman and CEO of Hanwha Q CELLS.
“Since the acquisition was closed in February and we incurred one-time charges totaling USD 22.1 million related to the acquisition, the first quarter financials do not fully represent the business after the acquisition. The newly formed Company had substantially higher revenues of USD 334 million and total shipments of 547.3 MW than the predecessor entity, Hanwha SolarOne, on a standalone basis.”
Nam notes that profitability was improved immediately with gross margins approaching 15%, and the company returned to pre-tax profitability excluding the aforementioned one-time charges.
New company maintains a higher ASP, following the strategic merger with Q CELLS
“We are in the early stages of reducing redundant costs and realizing our economies of scale in areas like supply chain management. Our improved brand and product features resulting from the merger allowed us to maintain a higher Average Selling Price (ASP) than would have been achieved by the former entity,” Nam added.
Europe and certain emerging markets represented about one-third of Hanwha Q CELLS’ shipments, followed by Japan at nearly 25% and North America totaling 20%. The company’s ability to deliver modules “tariff free” to the U.S. has boosted its competitive position in that market. “China remains a market with enormous potential, although we chose to approach selectively near-term as pricing and credit terms stabilize,” Nam notes.
Hanwha Q CELLS is evaluating additional solar cell and PV module capacity additions this year
The company has largely completed the conversion of all module lines in its Qidong, China production plant to full automation and announced a 30% improvement in productivity. The first new module line in Korea, with annual capacity of 250 MW, is currently ramping up and the second line of 250 MW capacity is scheduled to commence operations in September.
The new module Fab in Malaysia is under construction and scheduled for mass production beginning in October. The company says it is evaluating additional cell and module capacity additions this year.
Hanwha Q CELLS targeted annual shipments are between 3.2 and 3.4 GW. Gross margins for the full year 2015 should range from 16% to 18%.
Chairman Nam concluded by noting, “the benefits of our recent acquisition with Q CELLS were quickly validated in April when we signed the largest solar module agreement in the history of our industry, at more than 1.5 GW over a five quarter period beginning in 4Q15. Our agreement with the largest US renewable energy company, NextEra Energy Resources, provides us strong visibility for the foreseeable future and greatly improves our potential profitability and growth. Our ability to ship tariff free modules in scale to the U.S., provide a high-efficiency module equipped with our innovative Q.Antum cell architecture, and the stability and longevity provided by our parent Hanwha Group, a Fortune Global 500 company, provided a powerful competitive advantage.”
2015-05-29 | Courtesy: Hanwha Q CELLS | solarserver.com © Heindl Server GmbH
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