Hanwha SolarOne narrows second-quarter loss, improves revenue

Hanwha SolarOne on Monday posted a second-quarter net loss of CNY 166 million ($27 million) and revenue of CNY 1.18 billion ($192.7 million), up 6.3% from the first three months of the year.

The company narrowed its loss by more than 26% compared to the first quarter and nearly 38% from a year ago as shipments grew 11.1% from the first three months of the year.

"We recorded a solid performance for the second quarter ending June including further gross margin improvement reflecting an improved cost structure and better factory utilization, an 11% quarter-over quarter shipment gain and a return to positive operating cash flow," said Hanwha SolarOne Chairman and CEO Ki-Joon Hong.

"Shipments of 321 MW were the highest quarterly level since Hanwha’s purchase of the predecessor company in September 2010," he added, pointing out that the company’s presence in emerging markets such as Japan and South Africa remained strong.

Indeed, Japan accounted for the company’s highest module shipment revenue with a 34% share, followed by South Africa with 20%, Germany (12%), the United States (7%) and South Korea (5%).

In June, the company announced it was expanding activities in Japan with a second sales office in the booming solar market.

The company also strengthened its liquidity position with a US$100 million long-term loan from the Export-Import Bank of Korea, Hong said, expressing optimism about the state of the international market.

"Solar industry conditions continue to improve and we remain optimistic for the remainder of 2013 and beyond. We should continue to enjoy success in Japan and we expect to see improved volumes in the important China market. With the EU and China having reached agreement on import duties, we believe our market allocation and higher pricing will lead to good opportunity there."

Hong said the company would seek to improve its presence in other emerging markets including South America, the Middle East and Southeast Asia.

"Our manufacturing module services business with Hanwha Q CELLS should see improved volumes during the second half of this year. We are also continuing to make progress in innovation with the planned introduction of our second-stage E Star module later this year with improved performance and lower manufacturing costs."

Despite its solid performance and improving results, Hanwha SolarOne saw its liabilities increase 4% to CNY 7.2 billion ($1.18 billion) from the first quarter.