Hanwha Q CELLS Reports Second Quarter 2018 Results
Second Quarter 2018 Highlights
- Net revenues were
$518.4 million , compared with$443.0 million in the first quarter of 2018 and$577.7 million in the second quarter of 2017. - Gross margin was 14.0%, compared with 17.8% in the first quarter of 2018 and 11.6% in the second quarter of 2017.
- Operating income was
$4.8 million , compared with$33.1 million in the first quarter of 2018 and$20.1 million in the second quarter of 2017. - Net loss attributable to Company's ordinary shareholders was
$41.3 million , compared with net income of$31.0 million in the first quarter of 2018 and$18.7 million in the second quarter of 2017. - Loss per fully diluted American Depositary Share ("ADS" and each ADS represents 50 of the Company's ordinary shares) was
$0.50 , compared with income per fully diluted ADS of$0.37 in the first quarter of 2018 and income per fully diluted ADS of$0.22 in the second quarter of 2017.
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Second Quarter 2018 Results of Operations
Net Revenues
- Total net revenues were
$518.4 million , up 17.0% from$443.0 million in the first quarter of 2018 and down 10.3% from$577.7 million in the second quarter of 2017.
Gross Profit and Margin
- Gross profit in the second quarter of 2018 was
$72.6 million , down 8.0% from$78.9 million in the first quarter of 2018 and up 8.0% from$67.2 million in the second quarter of 2017. - Gross margin in the second quarter of 2018 was 14.0%, compared with 17.8% in the first quarter of 2018 and 11.6% in the second quarter of 2017.
Results of Operations and Operating Margin
- Income from operations in the second quarter of 2018 was
$4.8 million , compared with$33.1 million in the first quarter of 2018 and$20.1 million in the second quarter of 2017. - Operating margin in the second quarter of 2018 was 0.9%, compared with 7.5% in the first quarter of 2018 and 3.5% in the second quarter of 2017.
- Total operating expenses were
$67.8 million in the second quarter of 2018, up 48.0% from$45.8 million in the first quarter of 2018 and up 43.9% from$47.1 million in the second quarter of 2017. - Selling and marketing expenses were
$42.0 million in the second quarter of 2018, up 46.9% from$28.6 million in the first quarter of 2018 and up 42.4% from$29.5 million in the second quarter of 2017. - General and administrative expenses were
$21.0 million in the second quarter of 2018, up 65.4% from$12.7 million in the first quarter of 2018 and up 55.6% from$13.5 million in the second quarter of 2017. - Research and development expenses were
$4.8 million in the second quarter of 2018, up 6.7% from$4.5 million in the first quarter of 2018 and up 17.1% from$4.1 million in the second quarter of 2017.
Net Interest Expense
- Net interest expense was
$15.2 million in the second quarter of 2018, compared with$12.2 million in the first quarter of 2018 and$9.2 million in the second quarter of 2017.
Foreign Currency Exchange Gain (Loss)
- Foreign currency exchange loss was
$37.8 million in the second quarter of 2018, compared with a gain of$11.5 million in the first quarter of 2018 and a gain of$7.1 million in the second quarter of 2017.
Gain (loss) on Change in Fair Value of Derivative Contracts
- Gain on change in fair value of derivative contracts was
$8.1 million in the second quarter of 2018, compared to no gain or loss in the first quarter of 2018 and a loss of$3.0 million in the second quarter of 2017.
Income Tax Expense (Benefit)
- Income tax expense was
$1.9 million in the second quarter of 2018, compared with an income tax expense of$3.3 million in the first quarter of 2018 and an income tax benefit of$3.0 million in the second quarter of 2017.
Net Income (Loss) and Earnings (Loss) per ADS
- Net loss attributable to Company's ordinary shareholders was
$41.3 million in the second quarter of 2018, compared with net income of$31.0 million in the first quarter of 2018 and net income of$18.7 million in the second quarter of 2017. - Loss per fully diluted ADS on a GAAP basis was
$0.50 in the second quarter of 2018, compared with an income per fully diluted ADS of$0.37 in the first quarter of 2018 and income per fully diluted ADS of$0.22 in the second quarter of 2017.
2018 Second Quarter Financial Position
As of
As of
As of
Total short-term bank borrowings (including the current portion of long-term bank borrowings) as of
As of
Capital expenditures were
Operations Updates
Production Capacity
As of
Furthermore, the Company has additional module availability of up to 3,700 MW (annualized) as of
Business Outlook
Third Quarter and Full Year 2018 Guidance
For the third quarter of 2018, the Company estimates net revenues in the range of
For the full year 2018, the Company provides the following guidance:
- Total module shipments in the range of 5,600 to 5,800 MW
- Capital expenditures of approximately
$145.0 million for manufacturing technology upgrades and certain R&D related expenditures.
Conference Call
The Company will host a conference call to discuss the results at
A live webcast of the conference call will be available on the investor relations section of the Company's website at www.hanwha-qcells.com or by clicking the following hyperlink: https://edge.media-server.com/m6/p/k928uvqy.
The dial-in details for the live conference call are as follows:
International Toll Free Dial-In Number |
+65 6713-5090 |
United States |
+1 (845) 675-0437 |
South Korea |
+82 2-6490-3660 |
Germany |
08001820671 |
United Kingdom |
+44 2036214779 |
China, Domestic |
4006208038 / 8008190121 |
Hong Kong |
+852 30186771 |
Passcode: |
HQCL |
A replay of the call will be available after the conclusion of the conference call on the investor relations section of the Company's website at www.hanwha-qcells.com and also by dialing the numbers below:
International Toll Free Dial-In Number |
+61 2 8199 0299 |
United States |
+1 (855) 452-5696 |
South Korea |
00798-6136-1602 |
Germany United Kingdom |
08001802149 08082340072 |
China, Domestic |
8008700206 / 4006322162 |
Hong Kong |
800963117 |
Conference ID: |
9982736 |
Replay time period:
About
Safe Harbor Statement
This report contains forward-looking statements that are not statements of historical fact. 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 can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements, particularly statements about our guidance for performance in the second quarter and the full year 2018, involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include pending administrative and civil actions in
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SOURCE
Sam (Seoyun) Chun, +82-2-729-2179, seoyun.chun@hanwha-qcells.com