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Trina Solar Announces Results of 2014 Annual General Meeting of Shareholders
CHANGZHOU, China, August 29, 2014 /PRNewswire/ — Trina Solar Limited (NYSE: TSL) (“Trina Solar” or the “Company”), a global leader in photovoltaic (PV) modules, solutions and services, announced today that it held its 2014 annual general meeting of shareholders on August 28, 2014. Each of the proposals submitted for shareholder approval was approved.
Specifically, the shareholders approved:
1. Re-election of Mr. Jifan GAO as a director of the Company;
2. Re-election of Mr. Li Ping QIU as a director of the Company;
3. Increase of the number of authorized shares for grant under the Company’s Share Incentive Plan from 352,718,350 ordinary shares to 552,718,350 ordinary shares; and
4. Appointment of KPMG as an auditor of the Company to audit the accounts of the Company for the fiscal year ending December 31, 2014 and that the board of directors or the audit committee of the board of directors of the Company shall fix the fee for KPMG.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL) is a global leader in photovoltaic modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company’s industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.
For further information, please contact:
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Trina Solar Limited |
Brunswick Group |
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Yvonne Young |
Hanwha SolarOne Reports Second Quarter 2014 Results
SHANGHAI, August 28, 2014 /PRNewswire/ — Hanwha SolarOne Co., Ltd. ( “SolarOne” or the “Company”) (Nasdaq: HSOL), a vertically integrated manufacturer of silicon ingots, wafers and photovoltaic (“PV”) cells and modules in China, today reported its unaudited financial results for the three months ended June 30, 2014. The Company will host a conference call to discuss the results at 8:00 am Eastern Time (8:00 pm Shanghai Time) on August 28, 2014. A slide presentation with details of the results will also be available on the Company’s website prior to the call.
SECOND QUARTER 2014 HIGHLIGHTS
|
1Q14 |
2Q14 |
Percentage Change1 |
||||
|
(RMB) |
(US$) |
(RMB) |
(US$) |
(%) |
||
|
Net Revenues (Million) |
1,138.4 |
183.1 |
1,107.3 |
178.5 |
-2.7 |
|
|
Shipments (MW) |
323.6 |
339.5 |
+4.9 |
|||
|
Average Selling Price (/W) |
4.27 |
0.69 |
4.17 |
0.67 |
-2.3 |
|
|
Gross profit (Million) |
158.1 |
25.4 |
105.1 |
16.9 |
-33.5 |
|
|
Gross margin (%) |
13.9 |
9.5 |
-440 basis points |
|||
|
Operating (loss)/profit (Million) |
21.9 |
3.5 |
(39.9) |
(6.4) |
N/M |
|
|
Operating margin (%) |
1.9 |
-3.6 |
-550 basis points |
|||
|
Net loss (Million) |
(133.4) |
(21.5) |
(54.8) |
(8.8) |
Reduced 58.9 |
|
|
Net loss per basic ADS |
(1.47) |
(0.24) |
(0.60) |
(0.10) |
Reduced 59.2 |
|
|
1 Percentage changes are calculated based on RMB amounts to eliminate fluctuations in the exchange rate of the dollar. |
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Mr. Seong-woo Nam, Chairman and CEO of Hanwha SolarOne commented, “The second quarter of 2014 showed an increase in shipments and a significant reduction in our net loss position. Our gross margins were driven down by a lower average selling price, reflecting a decreasing proportion of sales from the higher-priced EU market, particularly the UK, and an increasing proportion from the relatively lower priced China market. We maintained our strong position in Japan and began shipments to several newer emerging markets. We continued to maintain tight control over operating expenses.”
Chairman Nam noted, ” We see a number of positive developments for our business for the remainder of this year, including 1) strong growth in quarterly shipment volumes beginning in the third quarter, driven especially by good visibility in China 2) opportunities for cost reduction due to increased efficiency and improved utilization for our ingot and wafer manufacturing lines, 3) the introduction of new four busbar cell technology, 4) reduced processing costs from decreased use of raw materials 5) increased automation of our production lines and 6) the addition of new cell and module lines. Module manufacturers continue to compete intensely on price and we expect to continue to see decreasing average selling prices near term that make gross margin expansion challenging in the near term.”
SECOND QUARTER 2014 RESULTS
- Total net revenues were RMB1, 107.3 million (US$178.5 million), a decrease of 2.7% from RMB1,138.4 million in 1Q14, and a decrease of 6.4% from RMB1,182.8 million in 2Q13. The decrease in total net revenues in 2Q14 compared with 1Q14 was primarily due to a lower average selling price. Module processing services accounted for approximately 13% of revenues.
- PV module shipments, including module processing services, were 339.5 MW, a 4.9% increase from 323.6 MW in 1Q14, and a 5.7% increase from 321.2 MW in 2Q13.
Module revenue by shipping destination 2Q 14 Module revenue by shipping destination 1Q 14
|
Country |
2Q14 |
Country |
1Q14 |
||
|
Japan |
53% |
Japan |
51% |
||
|
US |
11% |
UK |
22% |
||
|
UK |
9% |
US |
8% |
||
|
Korea |
9% |
Korea |
7% |
||
|
Canada |
7% |
India |
3% |
||
|
China |
6% |
Canada |
3% |
||
|
Turkey |
1% |
Guatemala |
2% |
||
|
Others |
4% |
Others |
4% |
- The Company once again maintained a strong presence in Japan, representing 53% of module shipments worldwide in 2Q14. The US reversed its position with the UK from the prior quarter to become the second largest market for the Company in the three months ended June 30, 2014. The UK market declined this quarter to account for 9% of total shipments, due to lower demand for utility-scale solar projects after a change in the incentive scheme. Deliveries to Korea and Canada picked up for the Company at 9%, and 7% for this quarter, respectively. This quarter we saw a meaningful rebound in shipments to the China market, representing 6% of the 339.5 MW of modules shipped. We continue to see momentum building in the China market and expect strong demand in the second half of the year. The Company continues to penetrate new emerging markets, with Turkey being the Company’s newest market. The Company increased the shipment of PV modules to 23 countries during 2Q14, including a number of notable new markets. Shipments to Europe and Africa (EA) contributed 12% to total module shipments, Asia Pacific (AP) accounted for 70% and North America (NA) 18%.
- The average selling price of modules, excluding module processing services, decreased to RMB4.17 per watt (US$0.67), from RMB4.27 per watt in 1Q14 and increased from RMB4.03 per watt in 2Q13. This is primarily attributable to a greater percentage of business in China which is a lower price market and to a decline in volume to the UK which is comparatively a higher priced market.
- Gross profit in 2Q14 was RMB105.1 million (US$16.9 million), compared with a gross profit of RMB158.1 million in 1Q14 and a gross profit of RMB65.3 million in 2Q13. The decrease in gross profit in 2Q14 was primarily due to lower revenues due to declining average selling price.
- Gross margin was positive 9.5%, compared with positive 13.9% in 1Q14 and positive 5.5% in 2Q13.
- The blended cost of goods sold (“COGS”) per watt, excluding module processing services, was US$0.59, representing no change from 1Q14. The blended COGS takes into account the production cost (silicon and non-silicon) using internally sourced wafers, and purchase costs and additional processing costs of externally sourced wafers and cells.
- Operating loss in 2Q14 was RMB39.9 million (US$6.4 million), compared with an operating profit of RMB21.9 million in 1Q14 and an operating loss of RMB122.1 million in 2Q13. Operating margin decreased to negative 3.6% from positive 1.9% in 1Q14 and increased from negative 10.3% in 2Q13.
- Operating expenses as a percentage of total net revenues were 13.1% in 2Q14, compared with 12.0% in 1Q14 and 15.8% in 2Q13. The Company continues to maintain tight operating expense control.
- Interest expense was RMB88.4 million (US$14.2 million), compared with RMB89.0 million in 1Q14 and RMB73.3 million in 2Q13.
- The Company recorded a net gain of RMB37.3 million (US$6.0 million), which included a foreign exchange gain and a loss from the change in fair value of derivatives in hedging activities. The Company recorded a net loss of RMB72.7 million in 1Q14 and a net gain of RMB47.2 million in 2Q13 for the foreign exchange gain/loss and the gain/loss from change in fair value of derivatives in hedging activities.
- Gain from the change in fair value of the conversion feature of the Company’s convertible bonds was RMB3.4 million (US$0.6 million), compared with a loss of RMB0.3 million in 1Q14 and a loss of RMB11.3million in 2Q13. This line item has fluctuated, and is expected to continue to fluctuate quarter-to-quarter, primarily based on changes in the Company’s ADS price. The Company has no direct control over the fluctuations.
- Net loss attributable to shareholders on a non-GAAP basis[1] was RMB54.0 million (US$8.7 million), compared with a net loss attributable to shareholders of RMB98.8 million in 1Q14 and a net loss attributable to shareholders of RMB130.0 million in 2Q13.
- Net loss per basic ADS on a non-GAAP basis was RMB0.59 (US$0.10), compared with net loss per basic ADS on a non-GAAP basis of RMB1.09 in 1Q14 and net loss per basic ADS on a non-GAAP basis of RMB1.54 in 2Q13.
- Net loss attributable to shareholders on a GAAP basis was RMB54.8 million (US$8.8 million), compared with net loss attributable to shareholders of RMB133.4 million in 1Q14 and net loss attributable to shareholders of RMB166.0 million in 2Q13.
- Net loss per basic ADS on a GAAP basis was RMB0.60 (US$0.10), compared with net loss per basic ADS of RMB1.47 in 1Q14 and net loss per basic ADS of RMB1.96 in 2Q13.
- Annualized ROE on a non-GAAP basis was negative 13.6% in 2Q14, compared with negative 24.6% in 1Q14 and negative 25.1% in 2Q13.
- Annualized ROE on a GAAP basis was negative 11.9% in 2Q14, compared with negative 28.4% in 1Q14 and negative 27.2% in 2Q13.
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[1] All non-GAAP numbers used in this press release exclude the accounting impact from the adoption of ASC 815-40, which relates to the accounting treatment for the convertible bonds. Please refer to the attached financial statements for the reconciliation between the GAAP and non-GAAP financial results. |
FINANCIAL POSITION
As of June 30 2014, the Company had cash and cash equivalents of RMB981.5 million (US$158.2 million) and net working capital of negative RMB1,204.7 million (US$194.2 million), compared with cash and cash equivalents of RMB1,078.6 million and net working capital of RMB140.1 million as of March 31, 2014. The decline in net working capital results from the reclassification of a term loan from a long term to a short term liability. Total short-term bank borrowings (including the current portion of long-term bank borrowings) were RMB2, 918.8 million (US$470.5 million) as of June 30, 2014, compared with RMB1, 519.5 million as of March 31, 2014. As of June 30, 2014 the Company’s convertible bonds were classified as a current liability and totaled RMB462.1 million (US$74.5 million). Holders of the convertible bonds have the option to require the Company to redeem the notes on January 15, 2015. The Company has from time to time been buying back its convertible bonds since January 1, 2012. The Company has repurchased convertible bonds to the value of approximately US$86.4 million out of US$172.5 million in face value as of June 30, 2014. As of June 30, 2014, the Company had total long-term debt of RMB1, 619.4 million (US$261.0 million), which is comprised of long-term bank borrowings and long-term notes. The Company’s long-term bank borrowings are to be repaid in installments until their maturities ranging from 1 to 3 years. The Company’s long-term notes are to be repaid in 2 years.
Net cash provided in operating activities in 2Q14 was RMB130.6 million (US$21.0 million), compared with net cash used in operating activities of RMB209.5 million in 1Q14 and net cash provided in operating activities of RMB497.7 million in 2Q13. As of June 30, 2014, accounts receivable were RMB641.0 million (US$103.3 million), compared with RMB824.5 million as of March 31, 2014 and RMB1, 163.6 million as of June 30, 2013. Days sales outstanding (“DSO”) were unchanged in 2Q14 from 1Q14 at 116 days in and decreased from 124 days in 2Q13. As of June 30, 2014, inventories increased to RMB852.9 million (US$137.5 million) from RMB779.6 million as of March 31, 2014 and RMB686.6 million as of June 30, 2013. Day’s inventory was 73 days in 2Q14 compared with 70 days in 1Q14 and 59 days in 2Q13.
Capital expenditures were RMB84.6 million (US$13.6 million) in 2Q14.
CAPACITY STATUS
As of June 30, 2014, the Company had production capacity of 800 MW for ingot and wafer, 1.3 GW for cell and 1.5 GW for module. The Company is aiming to expand cell and module capacities to at least 1.5 GW and 2.0 GW, respectively, by the end of 2014.
BUSINESS OUTLOOK
The Company provides the following guidance based on current operating trends and market conditions.
For the third quarter 2014 the Company expects:
- Module shipments of approximately 400MW
For the full year 2014, the Company expects:
- Module shipments between 1.5 – 1.6 GW of which about 25-30% will be for PV module processing services
- Capital expenditures of $80 million largely for automation of existing manufacturing lines, as well as, cell module capacity expansions to at least 1.5 GW and 2.0 GW respectively
CONFERENCE CALL
The Company will host a conference call to discuss the second quarter results at 8:00 AM Eastern Time (8:00 PM Shanghai Time) on August 28, 2014.
Mr. Seong-woo Nam, Chairman and CEO; Mr. Jung Pyo SEO, Chief Financial Officer; and Mr. Paul Combs, Vice President of Investor Relations, will discuss the results and take questions following the prepared remarks.
The dial-in details for the live conference call are as follows:
|
– U.S. Toll Free Number: |
18665194004 |
|
– International dial-in Number: |
+65 67239381 |
|
– China Toll Free Numbers: |
4006208038 |
|
8008190121 |
|
|
Passcode: HSOL |
A live webcast of the conference call will be available on the investor relations section of the Company’s website at: http://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:
|
– U.S. Toll Free Number: |
18554525696 |
|
– International dial-in Number: |
+61 2 8199 0299 |
|
– China Domestic Toll Free Numbers: |
4006022065 (Mandarin) |
|
8008700205 |
|
|
Conference ID 84707308 |
Encore Dates: 28/08/2014 11:00 ET – 05/09/2014 09:59 ET
FOREIGN CURRENCY CONVERSION
The conversion in this release of Renminbi into U.S. dollars is made solely for the convenience of the reader, and is based on the exchange rate as set forth in the H.10 statistical release of the Federal Reserve Board as of June 30, 2014, which was RMB6.2036 to US$1.00, except for the conversion of Renminbi into U.S. dollars for 1Q14 which is based on the exchange rate of RMB6.2164 to US$1.00 as set forth in the H.10 statistical release of the Federal Reserve Board as of March 31, 2014 and the conversion of Renminbi into U.S. dollars for 2Q13 which is based on the exchange rate of RMB6.1374 to US$1.00 as set forth in the H.10 statistical release of the Federal Reserve Board as of June 28, 2013 . No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on June 30, 2014 or at any other date. Percentage changes stated in this press release are calculated based on Renminbi amounts.
USE OF NON-GAAP FINANCIAL MEASURES
The Company has included in this press release certain non-GAAP financial measures, including certain line items presented on the basis that the accounting impact of ASC 815-40 had not been recorded. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of the Company and when planning and forecasting future periods. Readers are cautioned not to view non-GAAP financial measures on a stand-alone basis or as a substitute for GAAP measures, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP measures with non-GAAP measures also included herein.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include 3Q and full-year 2014 estimates for PV product shipments, production capacities and other results of operations. Forward-looking statements involve inherent risks and uncertainties and actual results may differ materially from such estimates depending on future events and other changes in business climate and market conditions. Hanwha SolarOne disclaims any obligation to update or correct any forward-looking statements.
About Hanwha SolarOne
Hanwha SolarOne Co., Ltd. (NASDAQ: HSOL) is a vertically-integrated manufacturer of silicon ingots, wafers, PV cells and modules. Hanwha SolarOne offers high-quality, reliable products and services at competitive prices. Partnering with third-party distributors, OEM manufacturers, and systems integrators, Hanwha SolarOne serves the utility, commercial, government, and residential markets. The Company maintains a strong presence worldwide, with employees located throughout Europe, North America and Asia, and embraces environmental responsibility and sustainability, with an active role in the voluntary photovoltaic recycling program. Hanwha Group, Hanwha SolarOne’s largest shareholder, is active in solar project development and financing, and the production of polysilicon. For more information, please visit: http://www.hanwha-solarone.com.
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Hanwha SolarOne Co., Ltd. |
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CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||||||||||||||||
|
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”) |
|||||||||||||||||||||||||||||||||
|
June 30 |
March 31 |
June 30 |
June 30 |
||||||||||||||||||||||||||||||
|
2013 |
2014 |
2014 |
2014 |
||||||||||||||||||||||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||||||||||||||||||||
|
RMB’000 |
RMB’000 |
RMB’000 |
US$’000 |
||||||||||||||||||||||||||||||
|
ASSETS |
|||||||||||||||||||||||||||||||||
|
Current assets |
|||||||||||||||||||||||||||||||||
|
Cash and cash equivalents |
1,418,559 |
1,078,644 |
981,490 |
158,213 |
|||||||||||||||||||||||||||||
|
Restricted cash |
116,171 |
239,361 |
434,943 |
70,111 |
|||||||||||||||||||||||||||||
|
Derivative contracts |
4,050 |
– |
– |
– |
|||||||||||||||||||||||||||||
|
Accounts receivable – net |
1,163,606 |
824,512 |
640,962 |
103,321 |
|||||||||||||||||||||||||||||
|
Notes receivable |
50 |
10,490 |
7,437 |
1,199 |
|||||||||||||||||||||||||||||
|
Inventories – net |
686,570 |
779,604 |
852,947 |
137,492 |
|||||||||||||||||||||||||||||
|
Advance to suppliers – net |
181,160 |
167,870 |
202,213 |
32,596 |
|||||||||||||||||||||||||||||
|
Other current assets – net |
295,363 |
258,363 |
250,772 |
40,424 |
|||||||||||||||||||||||||||||
|
Deferred tax assets – net |
136,205 |
– |
– |
– |
|||||||||||||||||||||||||||||
|
Amount due from related parties – net |
347,379 |
589,477 |
562,483 |
90,671 |
|||||||||||||||||||||||||||||
|
Total current assets |
4,349,113 |
3,948,321 |
3,933,247 |
634,027 |
|||||||||||||||||||||||||||||
|
Non-current assets |
|||||||||||||||||||||||||||||||||
|
Fixed assets – net |
4,655,408 |
4,387,922 |
4,359,730 |
702,774 |
|||||||||||||||||||||||||||||
|
Intangible assets – net |
275,390 |
270,946 |
269,546 |
43,450 |
|||||||||||||||||||||||||||||
|
Deferred tax assets – net |
127,209 |
2,946 |
2,946 |
475 |
|||||||||||||||||||||||||||||
|
Long-term deferred expenses |
17,415 |
6,557 |
4,247 |
685 |
|||||||||||||||||||||||||||||
|
Long-term prepayments |
154,278 |
118,124 |
75,322 |
12,142 |
|||||||||||||||||||||||||||||
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Total non-current assets |
5,229,700 |
4,786,495 |
4,711,791 |
759,526 |
|||||||||||||||||||||||||||||
|
TOTAL ASSETS |
9,578,813 |
8,734,816 |
8,645,038 |
1,393,553 |
|||||||||||||||||||||||||||||
|
LIABILITIES |
|||||||||||||||||||||||||||||||||
|
Current liabilities |
|||||||||||||||||||||||||||||||||
|
Derivative contracts |
11,141 |
17,489 |
17,659 |
2,847 |
|||||||||||||||||||||||||||||
|
Short-term bank borrowings |
1,063,858 |
1,283,269 |
1,343,676 |
216,596 |
|||||||||||||||||||||||||||||
|
Long-term bank borrowings, current portion |
111,217 |
236,241 |
1,575,117 |
253,904 |
|||||||||||||||||||||||||||||
|
Convertible bonds |
– |
509,249 |
462,126 |
74,493 |
|||||||||||||||||||||||||||||
|
Accounts payable |
1,139,431 |
624,270 |
522,806 |
84,275 |
|||||||||||||||||||||||||||||
|
Notes payable |
422,275 |
363,740 |
465,800 |
75,085 |
|||||||||||||||||||||||||||||
|
Accrued expenses and other liabilities |
413,730 |
341,269 |
361,661 |
58,299 |
|||||||||||||||||||||||||||||
|
Customer deposits |
51,531 |
34,637 |
34,492 |
5,560 |
|||||||||||||||||||||||||||||
|
Unrecognized tax benefit |
143,473 |
143,473 |
116,089 |
18,713 |
|||||||||||||||||||||||||||||
|
Amount due to related parties |
121,158 |
254,629 |
238,529 |
38,449 |
|||||||||||||||||||||||||||||
|
Total current liabilities |
3,477,814 |
3,808,266 |
5,137,955 |
828,221 |
|||||||||||||||||||||||||||||
|
Non-current liabilities |
|||||||||||||||||||||||||||||||||
|
Long-term bank borrowings |
2,632,126 |
2,369,789 |
1,004,137 |
161,864 |
|||||||||||||||||||||||||||||
|
Long-term notes |
617,870 |
615,210 |
615,280 |
99,181 |
|||||||||||||||||||||||||||||
|
Convertible bonds |
421,018 |
– |
– |
– |
|||||||||||||||||||||||||||||
|
Long term payable |
50,000 |
50,000 |
50,000 |
8,060 |
|||||||||||||||||||||||||||||
|
Deferred tax liabilities |
24,504 |
24,062 |
23,914 |
3,855 |
|||||||||||||||||||||||||||||
|
Total non-current liabilities |
3,745,518 |
3,059,061 |
1,693,331 |
272,960 |
|||||||||||||||||||||||||||||
|
TOTAL LIABILITIES |
7,223,332 |
6,867,327 |
6,831,286 |
1,101,181 |
|||||||||||||||||||||||||||||
|
Redeemable ordinary shares |
24 |
24 |
24 |
4 |
|||||||||||||||||||||||||||||
|
EQUITY |
|||||||||||||||||||||||||||||||||
|
Shareholders’ equity |
|||||||||||||||||||||||||||||||||
|
Ordinary shares |
316 |
337 |
337 |
54 |
|||||||||||||||||||||||||||||
|
Additional paid-in capital |
4,005,732 |
4,126,818 |
4,127,259 |
665,301 |
|||||||||||||||||||||||||||||
|
Statutory reserves |
174,456 |
174,456 |
174,456 |
28,122 |
|||||||||||||||||||||||||||||
|
Accumulated deficits |
(1,822,340) |
(2,437,931) |
(2,492,720) |
(401,818) |
|||||||||||||||||||||||||||||
|
Accumulated other comprehensive income (loss) |
(2,707) |
3,785 |
4,396 |
709 |
|||||||||||||||||||||||||||||
|
Total shareholders’ equity |
2,355,457 |
1,867,465 |
1,813,728 |
292,368 |
|||||||||||||||||||||||||||||
|
TOTAL EQUITY |
2,355,481 |
1,867,489 |
1,813,752 |
292,372 |
|||||||||||||||||||||||||||||
|
TOTAL LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS’ EQUITY |
9,578,813 |
8,734,816 |
8,645,038 |
1,393,553 |
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Hanwha SolarOne Co., Ltd. |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), |
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except for number of shares (ADS) and per share (ADS) data |
|||||
|
For the three months ended |
|||||
|
June 30 |
March 31 |
June 30 |
June 30 |
||
|
2013 |
2014 |
2014 |
2014 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
RMB’000 |
RMB’000 |
RMB’000 |
US$’000 |
||
|
Net revenues |
1,182,799 |
1,138,426 |
1,107,253 |
178,485 |
|
|
Cost of revenues |
(1,117,479) |
(980,340) |
(1,002,182) |
(161,548) |
|
|
————— |
————— |
————— |
————— |
||
|
Gross profit |
65,320 |
158,086 |
105,071 |
16,937 |
|
|
Operating expenses |
|||||
|
Selling expenses |
(95,466) |
(52,772) |
(62,952) |
(10,148) |
|
|
General and administrative expenses |
(69,422) |
(62,600) |
(63,925) |
(10,304) |
|
|
Research and development expenses |
(22,573) |
(20,822) |
(18,053) |
(2,910) |
|
|
————— |
————— |
————— |
————— |
||
|
Total operating expenses |
(187,461) |
(136,194) |
(144,930) |
(23,362) |
|
|
————– |
————— |
————— |
————— |
||
|
Operating loss |
(122,141) |
21,892 |
(39,859) |
(6,425) |
|
|
Interest expenses |
(73,321) |
(88,966) |
(88,370) |
(14,245) |
|
|
Interest income |
6,123 |
6,511 |
11,956 |
1,927 |
|
|
Exchange gain |
36,709 |
(44,718) |
39,569 |
6,379 |
|
|
Changes in fair value of derivative contracts |
10,491 |
(27,978) |
(2,226) |
(359) |
|
|
Changes in fair value of conversion feature of convertible bonds |
(11,253) |
(311) |
3,427 |
552 |
|
|
Loss on extinguishment of debt |
– |
– |
(9,939) |
(1,602) |
|
|
Other income |
1,616 |
2,540 |
2,066 |
333 |
|
|
Other expenses |
(11,148) |
(2,906) |
(2,382) |
(384) |
|
|
————— |
————— |
————— |
————— |
||
|
Net loss before income tax |
(162,924) |
(133,936) |
(85,758) |
(13,824) |
|
|
Income tax benefit (expenses) |
(3,070) |
528 |
30,969 |
4,992 |
|
|
————— |
————— |
————— |
————— |
||
|
Net loss |
(165,994) |
(133,408) |
(54,789) |
(8,832) |
|
|
————— |
————— |
————— |
————— |
||
|
Net loss attributable |
|||||
|
to shareholders |
(165,994) |
(133,408) |
(54,789) |
(8,832) |
|
|
Other comprehensive income (loss), net of tax |
|||||
|
Foreign currency translation adjustment |
(879) |
5,815 |
611 |
98 |
|
|
Comprehensive loss atributable to ordinary shareholders |
|||||
|
Net loss per share |
|||||
|
Basic |
(0.39) |
(0.29) |
(0.12) |
(0.02) |
|
|
Diluted |
(0.39) |
(0.29) |
(0.12) |
(0.02) |
|
|
Shares used in computation |
|||||
|
Basic |
423,111,372 |
454,560,163 |
457,277,047 |
457,277,047 |
|
|
Diluted |
423,111,372 |
454,560,163 |
457,277,047 |
457,277,047 |
|
|
Net loss per ADS |
|||||
|
Basic |
(1.96) |
(1.47) |
(0.60) |
(0.10) |
|
|
Diluted |
(1.96) |
(1.47) |
(0.60) |
(0.10) |
|
|
ADSs used in computation |
|||||
|
Basic |
84,622,274 |
90,912,033 |
91,455,409 |
91,455,409 |
|
|
Diluted |
84,622,274 |
90,912,033 |
91,455,409 |
91,455,409 |
|
|
Hanwha SolarOne Co., Ltd. |
|||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”) |
|||||||
|
For the three months ended |
|||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
June 30, 2014 |
||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
|
RMB’000 |
RMB’000 |
RMB’000 |
US$’000 |
||||
|
Cash flow from operating activities |
|||||||
|
Net loss |
(165,994) |
(133,408) |
(54,789) |
(8,832) |
|||
|
Adjustments to reconcile net loss to net cash |
|||||||
|
provided by (used in) operating activities: |
|||||||
|
Unrealised loss from derivative contracts |
3,266 |
37,608 |
170 |
27 |
|||
|
Amortization of convertible bonds discount |
19,171 |
38,581 |
31,752 |
5,118 |
|||
|
Changes in fair value of conversion feature of convertible bonds |
11,253 |
311 |
(3,427) |
(552) |
|||
|
Loss on extinguishment of debt |
– |
– |
9,939 |
1,602 |
|||
|
Loss from disposal of fixed assets |
7,394 |
127 |
43 |
7 |
|||
|
Depreciation and amortization |
108,209 |
110,024 |
109,492 |
17,650 |
|||
|
Amortization of long-term deferred expenses |
8,409 |
3,210 |
4,411 |
711 |
|||
|
Reversal of doubtful debt for amount due from related parties |
(7,980) |
– |
– |
– |
|||
|
Write down of inventories |
37,043 |
8,858 |
7,911 |
1,275 |
|||
|
Stock compensation expense |
1,093 |
320 |
441 |
71 |
|||
|
Warranty provision / utilization |
10,875 |
(16,428) |
5,457 |
880 |
|||
|
Warranty reversal |
(2,918) |
(6,177) |
(2,957) |
(477) |
|||
|
Deferred tax benefit (expense) |
1,360 |
(147) |
(148) |
(24) |
|||
|
Foreign currency exchange gains (losses) |
(9,951) |
5,520 |
70 |
11 |
|||
|
Reversal of unrecognized tax benefit |
– |
– |
(27,384) |
(4,414) |
|||
|
Changes in operating assets and liabilities |
|||||||
|
Restricted cash |
(23,970) |
(34,190) |
(128,243) |
(20,672) |
|||
|
Inventories |
53,252 |
(36,171) |
(81,254) |
(13,098) |
|||
|
Accounts and notes receivable |
(32,392) |
(73,668) |
187,214 |
30,178 |
|||
|
Advance to suppliers and long-term prepayments |
15,396 |
28,146 |
8,459 |
1,364 |
|||
|
Long-term deferred expenses |
(505) |
– |
– |
– |
|||
|
Intangible assets |
56,335 |
– |
– |
– |
|||
|
Other current assets |
(23,719) |
46,546 |
16,557 |
2,669 |
|||
|
Amount due from related parties |
79,399 |
(58,745) |
26,994 |
4,351 |
|||
|
Accounts and notes payable |
333,477 |
(182,531) |
5,243 |
845 |
|||
|
Accrued expenses and other liabilities |
56,829 |
(24,873) |
24,642 |
3,972 |
|||
|
Customer deposits |
24,536 |
(13,126) |
(145) |
(23) |
|||
|
Amount due to related parties |
(62,161) |
9,712 |
(9,893) |
(1,594) |
|||
|
Long-term payable |
– |
– |
– |
||||
|
Net cash provided by (used in) operating activities |
497,707 |
(290,501) |
130,555 |
21,045 |
|||
|
Cash flows from investing activities |
|||||||
|
Acquisition of fixed assets |
(60,505) |
(31,570) |
(84,643) |
(13,643) |
|||
|
Disposal of fixed assets |
2,497 |
388 |
– |
– |
|||
|
Change of restricted cash |
4,550 |
4,504 |
(71,070) |
(11,456) |
|||
|
Net cash used in investing activities |
(53,458) |
(26,678) |
(155,713) |
(25,099) |
|||
|
Cash flows from financing activities |
|||||||
|
Proceeds from issuance of ordinary shares |
104,367 |
– |
– |
||||
|
Payment for repurchase of convertible bonds |
– |
– |
(84,999) |
(13,702) |
|||
|
Change of restricted cash |
64,898 |
(45,727) |
3,731 |
601 |
|||
|
Proceeds from short-term borrowings |
374,417 |
913,419 |
464,637 |
74,898 |
|||
|
Proceeds from long-term borrowings |
617,970 |
– |
– |
– |
|||
|
Payment of short term borrowings |
(589,871) |
(748,029) |
(410,384) |
(66,153) |
|||
|
Payment for long term borrowings |
(484,715) |
(74,167) |
(26,776) |
(4,316) |
|||
|
Arrangement fee and other related costs for long-term |
(6,793) |
– |
(6,750) |
(1,088) |
|||
|
Arrangement fee and other related costs for long-term notes |
(3,721) |
– |
(3,695) |
(596) |
|||
|
Arrangement fee and other related costs for short-term bank |
(2,829) |
(3,521) |
(7,760) |
(1,251)
|
|||
|
Net cash provided by (used in) financing activities |
(30,644) |
146,342 |
(71,996) |
(11,607) |
|||
|
Net increase (decrease) in cash and cash equivalents |
413,605 |
(170,837) |
(97,154) |
(15,661) |
|||
|
Cash and cash equivalents at the beginning of period |
1,004,954 |
1,249,481 |
1,078,644 |
173,874 |
|||
|
Cash and cash equivalents at the end of period |
1,418,559 |
1,078,644 |
981,490 |
158,213 |
|||
|
Supplemental disclosure of cash flow information: |
|||||||
|
Interest paid |
29,838 |
42,749 |
39,947 |
6,439 |
|||
|
Income tax paid (refunded) |
(18,728) |
(932) |
1,592 |
257 |
|||
|
Realized gain (loss) from derivative contracts |
13,757 |
9,630 |
(2,056) |
(332) |
|||
|
Supplemental schedule of non-cash activities: |
|||||||
|
Acquisition of fixed assets included in accounts payable, |
(16,710) |
(17,263) |
(4,700) |
(758) |
|||
|
For the three months ended |
|||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
June 30, 2014 |
||||
|
(RMB million) |
(RMB million) |
(RMB million) |
(US$ milllion) |
||||
|
Non-GAAP net loss |
(130.0) |
(98.8) |
(54.0) |
(8.7) |
|||
|
Fair value changes of the conversion features of the Convertible bonds |
(11.3) |
(0.3) |
3.4 |
0.6 |
|||
|
Accretion of interest of the Convertible bonds |
(24.7) |
(34.3) |
(31.6) |
(5.1) |
|||
|
Unrecognized tax benefit |
– |
– |
27.4 |
4.4 |
|||
|
GAAP net loss |
(166.0) |
(133.4) |
(54.8) |
(8.8) |
|||
|
For the three months ended |
|||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
June 30, 2014 |
||||
|
(RMB) |
(RMB) |
(RMB) |
(US$) |
||||
|
Non GAAP net loss per ADS – Basic |
(1.54) |
(1.09) |
(0.59) |
(0.10) |
|||
|
Fair value changes of the conversion features of the Convertible bonds |
(0.13) |
– |
0.04 |
0.03 |
|||
|
Accretion of interest of the Convertible bonds |
(0.29) |
(0.38) |
(0.35) |
(0.07) |
|||
|
Unrecognized tax benefit |
– |
– |
0.30 |
0.04 |
|||
|
GAAP net loss contributed to shareholders per ADS – Basic |
(1.96) |
(1.47) |
(0.60) |
(0.10) |
|||
|
ADS (Basic) |
84,622,274 |
90,912,033 |
91,455,409 |
91,455,409 |
|||
|
For three months ended |
Annualized for the three months ended |
||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
||
|
Non-GAAP Return on Equity |
-6.27% |
-6.16% |
-3.41% |
-25.08% |
-24.64% |
-13.64% |
|
|
Fair value changes of the conversion features of the Convertible bonds |
0.47% |
0.89% |
0.66% |
1.88% |
3.56% |
2.64% |
|
|
Accretion of interest of the Convertible bonds |
-1.01% |
-1.83% |
-1.72% |
-4.04% |
-7.32% |
-6.88% |
|
|
Unrecognized tax benefit |
– |
– |
1.49% |
– |
– |
5.96% |
|
|
GAAP Return on equity |
-6.81% |
-7.10% |
-2.98% |
-27.24% |
-28.40% |
-11.92% |
|
CREG Chairman Makes Additional Investment of US$18.9 Million
XI’AN, China, August 28, 2014 /PRNewswire-FirstCall/ — China Recycling Energy Corp. (NASDAQ: CREG or “the Company”), a leading industrial waste-to-energy solution provider in China, today announced that its Chairman and CEO, Mr. Guohua Ku, has entered into a Share Purchase Agreement (“SPA”) with the Company on August 27, 2014 to purchase 13,829,074 shares of common stock of the Company (the “Shares”) at the market price. The SPA was unanimously approved by the Company’s Board of Directors on August 25, 2014, and became effective upon the execution by the parties, today.
Under the SPA, the Company shall issue and sell the Shares to Mr. Ku at US$1.37 per share, the average closing price quoted on the NASDAQ Global Market for the common stock of the Company for the 15 trading days prior to the effective date of the SPA. The total purchase price for the Shares shall be paid by Mr. Ku within 20 days of the effective date of the SPA.
Mr. Ku stated, “I have full confidence in the future of the Company and I am pleased to be able to further my contribution to its ability to grow and capitalize on the huge market potential in this new energy industry. I believe that, with the solid execution track record of the Company, CREG is well positioned to capture the significant growth opportunities in the energy saving and recycling market in China and deliver long-term shareholder value.”
About China Recycling Energy Corp.
China Recycling Energy Corp. (NASDAQ: CREG or “the Company”) is based in Xi’an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://www.creg-cn.com.
Safe Harbor Statement
This press release may contain certain “forward-looking statements” relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Mr. David Chong, Chief Financial Officer
China Recycling Energy Corp.
Tel: +86-1370-1813139; +65-9721 6163
Email: chongscd@creg-cn.com
Christensen
Ms. Xiaoyan Su (China)
Vice President
Tel: +86-10-59001548
Email: xsu@christensenir.com
Mr. Christian Arnell (China)
Vice President
Phone: +86-10-59001548
E-mail: carnell@christensenir.com
Yingli Green Energy Reports Second Quarter 2014 Results
Cumulative PV Module Shipments Exceeded 10 GW Globally
BAODING, China, August 27, 2014 /PRNewswire/ — Yingli Green Energy Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”), the world’s largest vertically integrated photovoltaic manufacturer, known as “Yingli Solar,” today announced its unaudited consolidated financial results for the quarter ended June 30, 2014.
Second Quarter 2014 Consolidated Financial and Operating Summary
- Total net revenues were RMB 3,408.9 million (US$549.5 million).
- Total PV module shipments (including shipments for PV systems) were 887.9MW.
- Overall gross profit was RMB 532.1 million (US$85.8 million), representing an overall gross margin of 15.6%. Gross margin for sales of PV module was 16.2%.
- Operating loss was RMB 85.9 million (US$13.9 million), representing an operating margin of negative 2.5%.
- Net loss[1] was RMB 285.2 million (US$46.0 million) and loss per ordinary share and per American depositary share (“ADS”) was RMB 1.64(US$0.26). On an adjusted non-GAAP[2] basis, net loss was RMB 275.0 million (US$44.3 million) and loss per ordinary share and per ADS was RMB 1.58 (US$0.25).
- On an adjusted non-GAAP basis, earnings before interest, tax expenses, depreciation and amortization (EBITDA) were RMB 288.5 million (US$46.5 million).
|
[1] For convenience purposes, all references to “net loss/income” in this press release, unless otherwise specified, represent “net loss/income attributable to Yingli Green Energy” for all periods presented. |
|
[2] All non-GAAP measures other than EBITDA exclude, as applicable, share-based compensation, interest expenses related to the changes in the fair value of the interest rate swap and the amortization of the debt discount, the amortization of intangible assets, inventory provision, impairment of long-lived assets and non-cash provision for inventory purchase commitments. EBITDA excludes interest, tax expenses, depreciation and amortization. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company’s use of non-GAAP information set forth elsewhere in this press release. |
“I’m very pleased to report that we delivered another set of solid results in the second quarter of 2014 with an increase of 40.8% in our PV module shipments over the first quarter of 2014, which includes shipments for PV systems to the Company’s own downstream power plants in China, and an overall gross margin of 15.6%, well in line with our previous guidance,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “We remain focused on returning to net profitability by improving our operating efficiency, reducing manufacturing costs and optimizing our geographical footprints. In the second quarter, we saw increased demand for Yingli Solar modules from our key markets, such as China, Japan, United Kingdom and other new emerging markets. In particular, our shipments to new emerging markets in the second quarter increased by approximately 18% quarter over quarter while customer base doubled compared with the second quarter of 2013. Our dedicated local team in Japan has obtained notable achievements, which resulted in our shipments to Japan in the first half of 2014 exceeded our total shipments to Japan in 2013.”
“In the first half of this year, we are developing in the aggregate 155 MW of downstream projects, some of these projects under construction are expected to be further developed together with our business partners such as China National Nuclear Corporation, Shanghai Sailing Capital Investment Fund and Datong Coal Mine Group Co., Ltd. In the third quarter, we expect to start construction of a total of 168 MW of downstream projects across China.”
“Moving back to domestic market, we see large potential for distributed generation PV projects in the second half of 2014 although the growth in demand was slower than expectation in the first half of this year. The National Energy Administration of PRC announced that it planned to issue a notice requiring further efforts to implement the supportive polices for distributed generation PV projects and announced the goal of achieving at least 13 GW of PV capacity to be connected to the grid in 2014. We expect that the demand for PV modules in China market will accelerate in the second half of 2014,” Mr. Miao concluded.
Second Quarter 2014 Financial Results
Total Net Revenues
Total net revenues were RMB 3,408.9 million (US$549.5 million) in the second quarter of 2014, compared to RMB 2,686.8 million in the first quarter of 2014 and RMB 3,378.3 million in the second quarter of 2013. Total PV module shipments were 887.9 MW in the second quarter of 2014 (including 71.8 MW shipments for PV systems to the Company’s own downstream power plants in China), representing a significant increase of 40.8% from that in the first quarter of 2014. Revenues were not recognized for 71.8 MW of internal shipments as required by U.S. GAAP. The increase of PV module shipments was primarily due to the stronger demand in the global PV markets especially in China, UK and new emerging markets.
Gross Profit and Gross Margin
Overall gross profit was RMB 532.1 million (US$85.8 million) in the second quarter of 2014, significantly improved from RMB 421.3 million in the first quarter of 2014 and RMB 397.5 million in the second quarter of 2013.
Overall gross margin was 15.6% in the second quarter of 2014, slightly down from 15.7% in the first quarter of 2014 and up from 11.8% in the second quarter of 2013. Gross margin for sales of PV modules was 16.2% in the second quarter of 2014, compared to 16.8% in the first quarter of 2014 and 12.5% in the second quarter of 2013.
Operating Expenses
Operating expenses were RMB 618.1 million (US$99.6 million) in the second quarter of 2014, compared to RMB 550.2 million in the first quarter of 2014 and RMB 526.7 million in the second quarter of 2013. The increase of operating expenses was mainly due to the increased selling and marketing expense in line with the Company’s increased PV module shipments in this quarter, and partially offset by the decrease of general and administrative expenses.
Operating expenses as a percentage of total net revenues were 18.1% in the second quarter of 2014, compared to 20.5% in the first quarter of 2014 and 15.6% in the second quarter of 2013.
Operating Loss and Margin
Operating loss was RMB 85.9 million (US$13.9 million) in the second quarter of 2014, a significant decrease from RMB 129.0 million in the first quarter of 2014 and RMB 129.2 million in the second quarter of 2013.
Operating margin was negative 2.5% in the second quarter of 2014, compared to negative 4.8% in the first quarter of 2014 and negative 3.8% in the second quarter of 2013.
EBITDA
On an adjusted non-GAAP basis, earnings before interest, tax expenses, depreciation and amortization (EBITDA) were RMB 288.5 million (US$46.5 million) in the second quarter of 2014, compared to EBITDA of RMB 221.9 million in the first quarter of 2014 and negative EBITDA of RMB 198.9 million in the second quarter of 2013.
Interest Expense
Interest expense was RMB 232.4 million (US$37.5 million) in the second quarter of 2014, compared to RMB 252.0 million in the first quarter of 2014 and RMB 224.9 million in the second quarter of 2013. As of June 30, 2014, the Company had an aggregate of RMB 14.9 billion (US$2.4 billion) of bank borrowings and medium-term notes outstanding, which decreased from RMB 15.2 billion as of March 31, 2014. The weighted average interest rate was 6.25% in the second quarter of 2014, compared to 6.42% in the first quarter of 2014 and 6.20% in the second quarter of 2013.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 2.8 million (US$0.5 million) in the second quarter of 2014, compared to foreign currency exchange loss of RMB 13.8 million in the first quarter of 2014 and foreign currency exchange gain of RMB 6.5 million in the second quarter of 2013. The foreign currency exchange gain was mainly due to the Company’s USD denominated liabilities increased and the appreciation of the RMB against the USD in this quarter.
Income Tax Expense (Benefit)
Income tax expense was RMB 1.2 million (US$0.2 million) in the second quarter of 2014, compared to income tax benefit of RMB 18.6 million in the first quarter of 2014 and RMB 4.2 million in the second quarter of 2013. The income tax expense in this quarter was mainly resulted from the main operating subsidiaries of the Company turning into profitability.
Net Loss
Net loss was RMB 285.2 million(US$46.0 million) in the second quarter of 2014, compared to RMB 341.8 million in the first quarter of 2014 and RMB 320.8 million in the second quarter of 2013. Loss per ordinary share and per ADS was RMB 1.64(US$0.26), compared to RMB 2.18 in the first quarter of 2014 and RMB 2.05 in the second quarter of 2013.
On an adjusted non-GAAP basis, net loss was RMB 275.0 million (US$44.3 million) in the second quarter of 2014, compared to RMB 338.5 million in the first quarter of 2014 and RMB 321.5 million in the second quarter of 2013. Adjusted non-GAAP loss per ordinary share and per ADS was RMB 1.58 (US$0.25) in the second quarter of 2014, compared to RMB 2.16 in the first quarter of 2014 and RMB 2.05 in the second quarter of 2013.
Balance Sheet Analysis
As of June 30, 2014, the Company had RMB 981.5 million (US$158.2 million) in cash and cash equivalents, compared to RMB 1,273.2 million as of March 31, 2014.
As of June 30, 2014, the Company had RMB 1,493.6 million (US$240.8 million) in restricted cash, compared to RMB 1,726.2 million as of March 31, 2014.
As of June 30, 2014, accounts receivable were RMB 4,995.0 million (US$805.2 million), compared to RMB 4,616.4 million as of March 31, 2014. Days sales outstanding were 132 days in the second quarter of 2014, decreased from 155 days in the first quarter of 2014.
As of June 30, 2014, inventory was RMB 2,289.7 million (US$369.1 million), compared to RMB 2,129.9 million as of March 31, 2014. Inventory turnover days was 72 days in the second quarter of 2014, compared to 85 days in the first quarter of 2014.
As of June 30, 2014, accounts payable were RMB 5,418.6 million (US$873.5 million), compared to RMB 5,403.3 million as of March 31, 2014. Days payable outstanding was 170 days in the second quarter of 2014, compared to 215 days in the first quarter of 2014.
As of the date of this press release, the Company had approximately RMB 5,847 million in unutilized short-term lines of credit and RMB 2,033 million committed long-term facility that can be drawn down in the near future. The Company is currently exploring financing options to alleviate near-term pressure on the Company’s liquidity and enhance financial flexibility.
Business Outlook for Full Year 2014
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, the Company revises its PV module shipment target to be in the estimated range of 3.6GW to 3.8GW (including 400 to 600MW shipment for PV systems) for fiscal year 2014, which represents an increase of 11.3% to 17.5% compared to fiscal year 2013.
Downstream Development in 2014
Currently, the Company has in the aggregate approximately 1.4 GW of PV projects pipeline at different approval stages across a dozen of provinces in China. During the second quarter of 2014, the Company started construction for two ground-mounted PV plants with a total capacity of 110MW and a distributed generation project of 20MW. Therefore, accumulatively 155 MW of PV projects started construction in the first half of 2014. These PV projects were included in the consolidated financial statements. In the third quarter, the Company plans to start constructions of 168 MW of PV projects located in Hebei, Ningxia, Shanxi, Guangdong and Shandong provinces. Some of these projects are expected to be co-developed with our business partners such as China National Nuclear Corporation, Shanghai Sailing Capital Investment Fund and Datong Coal Mine Group Co., Ltd.
In addition, the Company has manifested an encouraging breakthrough in its overseas PV plants business by expanding its footprints into Poland and Senegal with a strategic alliance with AMB Energia Wytwarzanie to co-develop 30 MW of PV projects in Poland in June and an engineering, procurement and construction (“EPC”) contract with Senelec for a 2 MW ground-mounted PV plant in Senegal in July.
Based on the current project development status and the progress of project pipelines, the Company expects to develop approximately 400MW to 600MW of PV projects by the end of 2014.
Non-GAAP Financial Measures
To supplement the financial measures calculated in accordance with GAAP, this press release includes certain non-GAAP financial measures of adjusted gross profit, adjusted gross margin, adjusted operating loss, adjusted operating margin, adjusted net income (loss), adjusted diluted earnings (loss) per ordinary share and per ADS and EBITDA, each of which (other than EBITDA) is adjusted to exclude, as applicable, items related to share-based compensation, interest expense related to the changes in the fair value of the interest-rate swap and the amortization of the debt discount, the amortization of intangible assets, inventory provision, impairment of long-lived assets and non-cash provision for inventory purchase commitments. EBITDA excludes interest, tax expenses, depreciation and amortization. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyse the Company’s on-going performance as such items are not directly attributable to the underlying performance of the Company’s business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company’s current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release.
Currency Conversion
Solely for the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB 6.2036 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board as of June 30, 2014. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollar amounts at such rate, or at any other rate. The percentages stated in this press release are calculated based on Renminbi.
Conference Call
Yingli Green Energy will host a conference call and live webcast to discuss the results at 8:00 AM Eastern Daylight Time (EDT) on August 27, 2014, which corresponds to 8:00 PM Beijing/Hong Kong time on the same day.
The dial-in details for the live conference call are as follows:
— U.S. Toll Free Number: +1-866-519-4004
— International Dial-in Number: +1-845-675-0437
— Passcode: 81625802
A live and archived webcast of the conference call will be available on the Investors section of Yingli Green Energy’s website at www.yinglisolar.com. A replay will be available shortly after the call on Yingli Green Energy’s website for 90 days.
A replay of the conference call will be available until September 4, 2014 by dialing:
— U.S. Toll Free Number: +1-855-452-5696
— International Dial-in Number: +1-646-254-3697
— Passcode: 81625802
About Yingli Green Energy
Yingli Green Energy Holding Company Limited (NYSE: YGE), known as “Yingli Solar,” is the world’s largest vertically integrated photovoltaic module supplier in terms of shipment in 2013 based on public information. Yingli Green Energy’s manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and module assembly. Headquartered in Baoding, China, Yingli Green Energy has more than 30 regional subsidiaries and branch offices and has distributed more than 10 GW PV modules to customers worldwide. For more information please visit www.yinglisolar.com and join the conversation on Facebook, Twitter and Weibo.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy’s control, which may cause Yingli Green Energy’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy’s filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For further information, please contact:
|
Qing Miao |
|
Vice President of Corporate Communications |
|
Yingli Green Energy Holding Company Limited |
|
Tel: +86 312 8929787 |
|
Email: ir@yingli.com |
|
YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (In thousands)
|
||||||
|
March 31, 2014 |
June 30, 2014 |
|||||
|
RMB |
RMB |
US$ |
||||
|
ASSETS |
||||||
|
Current assets: |
||||||
|
Cash and cash equivalents |
1,273,172 |
981,516 |
158,217 |
|||
|
Restricted cash |
1,726,199 |
1,493,638 |
240,770 |
|||
|
Accounts receivable, net |
4,616,408 |
4,995,040 |
805,184 |
|||
|
Inventories |
2,129,945 |
2,289,679 |
369,089 |
|||
|
Prepayments to suppliers |
728,356 |
970,160 |
156,387 |
|||
|
Prepaid expenses and other current assets |
1,265,614 |
1,059,874 |
170,848 |
|||
|
Total current assets |
11,739,694 |
11,789,907 |
1,900,495 |
|||
|
Long-term prepayments to suppliers |
794,105 |
699,046 |
112,684 |
|||
|
Property, plant and equipment, net |
12,907,542 |
12,631,421 |
2,036,144 |
|||
|
Project assets |
378,973 |
718,347 |
115,795 |
|||
|
Land use rights |
699,114 |
695,398 |
112,096 |
|||
|
Intangible assets, net |
58,797 |
58,735 |
9,468 |
|||
|
Other assets |
1,004,678 |
1,031,552 |
166,282 |
|||
|
Total assets |
27,582,903 |
27,624,406 |
4,452,964 |
|||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ |
||||||
|
Current liabilities: |
||||||
|
Short-term bank borrowings, including current |
7,470,398 |
7,629,929 |
1,229,920 |
|||
|
Accounts payable |
5,403,323 |
5,418,591 |
873,459 |
|||
|
Other current liabilities and accrued expenses |
2,220,984 |
2,147,609 |
346,187 |
|||
|
Total current liabilities |
15,094,705 |
15,196,129 |
2,449,566 |
|||
|
Long-term debt, excluding current portion |
3,796,607 |
3,402,335 |
548,445 |
|||
|
Medium-term notes |
3,912,655 |
3,910,655 |
630,385 |
|||
|
Accrued warranty cost, excluding current portion |
647,422 |
679,891 |
109,596 |
|||
|
Other liabilities |
2,386,094 |
2,449,090 |
394,786 |
|||
|
Total liabilities |
25,837,483 |
25,638,100 |
4,132,778 |
|||
|
SHAREHOLDERS’S EQUITY |
||||||
|
Ordinary shares |
12,252 |
13,791 |
2,223 |
|||
|
Additional paid-in capital |
6,687,175 |
7,213,618 |
1,162,812 |
|||
|
Treasury stock |
(127,331) |
(127,331) |
(20,525) |
|||
|
Accumulated other comprehensive income |
264,525 |
269,934 |
43,512 |
|||
|
Accumulated deficit |
(6,692,693) |
(6,977,851) |
(1,124,807) |
|||
|
Total equity attributable to Yingli Green Energy |
143,928 |
392,161 |
63,215 |
|||
|
Noncontrolling interests |
1,601,492 |
1,594,145 |
256,971 |
|||
|
Total shareholders’ equity |
1,745 ,420 |
1,986,306 |
320,186 |
|||
|
Total liabilities and shareholders’ equity |
27,582,903 |
27,624,406 |
4,452,964 |
|||
|
YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES Unaudited Condensed Statements of Comprehensive Income (In thousands, except for share, ADS, per share and per ADS data)
|
||||||||
|
Three months ended |
||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
||||||
|
RMB |
RMB |
RMB |
US$ |
|||||
|
Net revenues: |
||||||||
|
Sales of PV modules |
3,200,275 |
2,541,831 |
3,248,354 |
523,624 |
||||
|
Sales of PV systems |
56,630 |
23,963 |
55,864 |
9,005 |
||||
|
Other revenues |
121,387 |
120,964 |
104,684 |
16,875 |
||||
|
Total net revenues |
3,378,292 |
2,686,758 |
3,408,902 |
549,504 |
||||
|
Cost of revenues: |
||||||||
|
Cost of PV modules sales |
(2,801,332) |
(2,113,966) |
(2,722,706) |
(438,891) |
||||
|
Cost of PV systems sales |
(54,723) |
(19,632) |
(53,834) |
(8,678) |
||||
|
Cost of other revenues |
(124,770) |
(131,897) |
(100,213) |
(16,155) |
||||
|
Total cost of revenues |
(2,980,825) |
(2,265,495) |
(2,876,753) |
(463,724) |
||||
|
Gross profit (loss) |
397,467 |
421,263 |
532,149 |
85,780 |
||||
|
Selling expenses |
(291,204) |
(195,857) |
(314,272) |
(50,660) |
||||
|
General and administrative expenses |
(173,387) |
(222,384) |
(178,386) |
(28,755) |
||||
|
Research and development expenses |
(62,104) |
(131,981) |
(125,429) |
(20,219) |
||||
|
Provision for inventory purchase commitments |
||||||||
|
Total operating expenses |
(526,695) |
(550,222) |
(618,087) |
(99,634) |
||||
|
Loss from operations |
(129,228) |
(128,959) |
(85,938) |
(13,854) |
||||
|
Other income (expense): |
||||||||
|
Interest expense |
(224,927) |
(251,986) |
(232,404) |
(37,463) |
||||
|
Interest income |
5,164 |
2,997 |
9,178 |
1,480 |
||||
|
Foreign currency exchange gains (losses) |
6,530 |
(13,754) |
2,797 |
451 |
||||
|
Other income |
8,911 |
12,450 |
14,078 |
2,270 |
||||
|
Loss before income taxes |
(333,550) |
(379,252) |
(292,289) |
(47,116) |
||||
|
Income tax (expense) benefit |
4,176 |
18,577 |
(1,213) |
(196) |
||||
|
Net loss |
(329,374) |
(360,675) |
(293,502) |
(47,312) |
||||
|
Less: Loss attributable to the non-controlling interests |
8,528 |
18,917 |
8,344 |
1,346 |
||||
|
Net loss attributable to Yingli Green Energy |
(320,846) |
(341,758) |
(285,158) |
(45,966) |
||||
|
Weighted average shares and ADSs outstanding |
||||||||
|
Basic and diluted |
156,585,020 |
156,722,968 |
173,796,737 |
173,796,737 |
||||
|
Loss per share and per ADS |
||||||||
|
Basic and diluted |
(2.05) |
(2.18) |
(1.64) |
(0.26) |
||||
|
Net loss |
(329,374) |
(360,675) |
(293,502) |
(47,312) |
||||
|
Other comprehensive income (loss) |
||||||||
|
Foreign currency exchange translation adjustment, net of nil tax |
21,903 |
(14,630) |
745 |
120 |
||||
|
Cash flow hedging derivatives, net of nil tax |
(6,734) |
(9,370) |
4,681 |
755 |
||||
|
Comprehensive loss |
(314,205) |
(384,675) |
(288,076) |
(46,437) |
||||
|
Less: Comprehensive loss attributable to the noncontrolling interest |
10,773 |
13,889 |
8,327 |
1,342 |
||||
|
Comprehensive loss attributable to Yingli Green Energy |
(303,432) |
(370,786) |
(279,749) |
(45,095) |
||||
|
Reconciliation of Non-GAAP measures to GAAP measures |
||||||||
|
Three months ended |
||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
||||||
|
RMB |
RMB |
RMB |
US$ |
|||||
|
Non-GAAP loss attributable to Yingli |
(321,455) |
(338,539) |
(274,978) |
(44,325) |
||||
|
Share-based compensation |
(3,543) |
(3,110) |
(10,208) |
(1,646) |
||||
|
Amortization of intangible assets |
(753) |
– |
– |
– |
||||
|
Inventory provision |
– |
– |
– |
– |
||||
|
Impairment of long-lived assets |
– |
– |
– |
– |
||||
|
Provision for inventory purchase commitments |
– |
– |
– |
– |
||||
|
Interest expenses consisting of changes in |
4,905 |
(109) |
28 |
5 |
||||
|
Net loss attributable to Yingli Green |
(320,846) |
(341,758) |
(285,158) |
(45,966) |
||||
|
Non-GAAP diluted loss per share and per |
(2.05) |
(2.16) |
(1.58) |
(0.25) |
||||
|
Diluted loss per share and per ADS |
(2.05) |
(2.18) |
(1.64) |
(0.26) |
||||
|
Reconciliation of EBITDA measures to income before income tax & minority interest measures |
||||||||
|
Three months ended |
||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
||||||
|
RMB |
RMB |
RMB |
US$ |
|||||
|
Income before income taxes and |
(333,550) |
(379,252) |
(292,289) |
(47,116) |
||||
|
Interest expense |
224,927 |
251,986 |
232,404 |
37,462 |
||||
|
Accumulated depreciation |
301,054 |
343,590 |
342,784 |
55,256 |
||||
|
Amortization for intangible assets |
6,472 |
5,576 |
5,582 |
900 |
||||
|
EBITDA |
198,903 |
221,900 |
288,481 |
46,502 |
||||
Logo – http://www.prnasia.com/sa/2012/04/01/20120401160439160364.jpg
Yingli Green Energy to Supply 66 MWp of PV Modules to Push Energy for Four Large-scale Projects in the United Kingdom
BAODING, China, August 27, 2014 /PRNewswire/ — Yingli Green Energy Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”), the largest vertically integrated photovoltaic (“PV”) module manufacturer in the world, known as “Yingli Solar,” today announced that it has partnered with renewable energy developer Push Energy Ltd. (“Push Energy”) to supply Yingli Solar’s multicyrstalline modules for four large-scale PV power plants in the United Kingdom (“U.K.”).
(Photo: http://www.prnasia.com/sa/2012/04/01/20120401160439160364.jpg )
The four sites will collectively have a clean, renewable electricity capacity of up to 66 MWp and will be located in East Anglia, U.K. The projects will be completed by February 2015. Push Energy works with landowners, local stakeholders, planners and the power networks to supply renewable, green power into the grid for local use. The company has a strong background in farming and conservation management and selects sites that have minimum visual impact with appropriate landscaping.
“Solar PV farms have an important role to play in the U.K.’s long-term energy security. Working with strong partners such as Yingli Green Energy is critical to our vision for the future. The company has provided invaluable support and hands-on practical advice which has allowed us to complete all projects to a very tight time schedule,” said Mr. Jason Wallis, Finance Director of Push Energy.
“We are thrilled to work with Push Energy in Europe’s largest and most promising solar market to date,” said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “We are committed to working with well-established companies with a solid project pipeline such as Push Energy. It also supports our long-term commitment to the U.K. market where we see sustainable growth potential in the coming years.”
About Yingli Green Energy
Yingli Green Energy Holding Company Limited (NYSE: YGE), known as “Yingli Solar,” is the world’s largest photovoltaic module manufacturer in terms of production capacity and shipments. Yingli Green Energy’s manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and module assembly. Headquartered in Baoding, China, Yingli Green Energy has more than 30 regional subsidiaries and branch offices and has distributed more than 10,000 MW of PV modules to customers worldwide. For more information, please visit www.yinglisolar.com and join the conversation on Facebook, Twitter and Weibo.
About Push Energy
Push Energy is a renewable energy developer currently specializing in rural solar farming. The team of experts will control the site selection, plant development and provision of operational and maintenance support for the 25 year life of the project, ensuring that plants are maintained to optimize both energy generation and environmental benefit of the site.
Push Energy works with the landowners, local communities, planners and the power networks to supply renewable, green solar power into the grid, much of which will meet local demand.
Push Energy has a subsidiary Push Build, which acts as an Engineering Design and Procurement Contractor (EPC). Being an EPC enables the Push Energy group to keep control of the build process of sites, notably the timing of delivery, and ensures that the quality of work completed is maximized. Push Energy’s management have deep roots in the East Anglian farming community and this background allows them an understanding of the needs of farmers and farmland. For more information please visit www.pushenergy.co.uk.
For further information about Yingli Green Energy, please contact:
In China
Qing Miao
Vice President of Corporate Communications
Yingli Green Energy Holding Company Limited
Tel: +86 312 8929787
E-mail: ir@yingli.com
In the Americas:
Helena Kimball
Head of Marketing
Yingli Green Energy Americas Inc.
Tel: +1-603-591-5812
Email: helena.kimball@yingliamericas.com
In Europe:
Rebecca Jarschel
Public Affairs & Public Relations Director
Yingli Green Energy International AG
Tel: +41 (0) 44 567 6143
Email: rebecca.jarschel@yinglisolar.ch
For further information, please contact:
Justine Smith, Hugh Massam, Amy Sadler at KISS PR
Justine@kisscom.co.uk / T: 01223 967 432
