Hanwha SolarOne reports loss in Q2 2011
Shanghai, China - Hanwha SolarOne, a vertically integrated manufacturer of silicon ingots, wafers and photovoltaic cells and modules in China, has reported its unaudited financial results for the quarter ended June 30, 2011.
Total net revenues were RMB1,791.2 million, a decrease of 18.4% from the first quarter in 2011 but an increase of 2.2% from same quarter in 2010. The Company, which is listed in the RENIXX-World, recorded an operating loss of RMB32.3 million compared with an operating profit of RMB253.9 million in Q1 2011 and RMB274.3 million in previous year. According to company reports, the sequential decrease in operating profit was primarily due to the lower gross profit and higher operating expenses as the Hanwha SolarOne continued to invest in personnel, management systems, branding and technology, and to one-time severance expenses paid to former management. Hence the net loss attributable to shareholders on a GAAP basis was RMB69.0 million, compared with net income attributable to shareholders of RMB149.4 million and RMB272.8 million in Q1 2011 and Q2 2010, respectively.
Mr. Ki-Joon HONG, Chairman and CEO of Hanwha SolarOne, commented: "We were not insulated from the difficult operating environment during the second quarter. Regulatory changes in Italy, rapidly falling module prices, industry overcapacity and large channel inventories all negatively affected our second quarter results. We consciously reduced our manufacturing activities for a period of time to control expenses, manage working capital, and prevent the build-up of high cost inventory. We did not retreat from our aggressive posture towards the future. We moved forward with our capacity expansion plan, invested in management systems and personnel and made good progress in branding initiatives and research and development. We expect that demand will improve for the remainder of the year."