SEOUL, South Korea, Nov. 30, 2018 /PRNewswire/ -- Hanwha Q CELLS Co., Ltd. ("Hanwha Q CELLS" or the "Company") (NASDAQ: HQCL), a global leading photovoltaic manufacturer of high-performance, high-quality solar modules, today reported its unaudited financial results for the third quarter ended September 30, 2018. The Company will not be hosting a conference call to discuss these results.
Third Quarter 2018 Highlights
Third Quarter 2018 Results of Operations
Net Revenues
Gross Profit and Margin
Results of Operations and Operating Margin
Net Interest Expense
Foreign Currency Exchange Gain (Loss)
Gain (loss) on Change in Fair Value of Derivative Contracts
Income Tax Expense (Benefit)
Net Income (Loss) and Earnings (Loss) per ADS
2018 Third Quarter Financial Position
As of September 30, 2018, the Company had cash and cash equivalents of $197.4 million, compared with $183.4 million as of December 31, 2017. The restricted cash as of September 30, 2018 was $140.2 million, compared with $139.7 million as of December 31, 2017.
As of September 30, 2018, accounts receivable was $554.8 million, compared with $525.4 million, as of December 31, 2017. Inventories were $498.4 million as of September 30, 2018, compared with $293.6 million as of December 31, 2017.
As of September 30, 2018, accounts payable was $665.9 million, compared with $454.8 million, as of December 31, 2017.
Total short-term borrowings (including the current portion of long-term borrowings) as of September 30, 2018 was $729.5 million, compared with $679.5 million as of December 31, 2017.
As of September 30, 2018, the Company had total long-term debt (net of current portion and long-term notes) of $625.5 million compared with $536.2 million as of December 31, 2017. The Company's long-term debt is comprised of bank and government borrowings, to be repaid in installments until their maturities, ranging from one to thirteen years.
Capital expenditures were $11.3 million in the third quarter of 2018.
Operations Updates
Production Capacity
As of September 30, 2018, the Company's in-house, annualized production capacities were 4,500 MW for cells and 4,500 MW for modules.
Furthermore, the Company has additional module availability of up to 3,900 MW (annualized) as of September 30, 2018 from Hanwha Q CELLS Korea Corporation, an affiliate of the Company. Hanwha Q CELLS Korea is expected to have a nameplate capacity of 1,700 MW of module capacity in the United States in the first quarter of 2019.
Business Outlook
Fourth Quarter and Full Year 2018 Guidance
For the fourth quarter of 2018, the Company estimates net revenues in the range of $590 to 610 million.
For the full year 2018, the Company provides the following guidance:
About Hanwha Q CELLS
Hanwha Q CELLS Co., Ltd. (NASDAQ: HQCL) is one of the world´s largest and most recognized photovoltaic manufacturers for its high-performance, high-quality solar cells and modules. It is headquartered in Seoul, South Korea (Global Executive HQ) and Thalheim, Germany (Technology & Innovation HQ) with its diverse international manufacturing facilities in Malaysia and China. Hanwha Q CELLS offers the full spectrum of photovoltaic products, applications and solutions, from modules to kits to systems to large-scale solar power plants. Through its growing global business network spanning Europe, North America, Asia, South America, Africa and the Middle East, the company provides excellent services and long-term partnerships to its customers in the utility, commercial, governmental and residential markets. Hanwha Q CELLS is a flagship company of Hanwha Group, a FORTUNE Global 500 firm and a Top 10 business enterprise in South Korea. For more information, visit: http://www.hanwha-qcells.com.
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 the United States under existing or potential new statutes and regulations governing trade between the United States and other countries, and potential antidumping, countervailing or other duties imposed on goods imported into the United States, as well as the Company's access to new capacity from an affiliate. Further information regarding these and other risks is included in Hanwha Q CELLS' filings with the Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, Hanwha Q CELLS does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Hanwha Q CELLS Co., Ltd. |
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Unaudited Condensed Consolidated Balance Sheets |
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(in millions of US dollars, except share data) |
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September 30, |
December 31, |
||||||||||
ASSETS |
(unaudited) |
(audited) |
|||||||||
Current assets |
|||||||||||
Cash and cash equivalents |
197.4 |
183.4 |
|||||||||
Restricted cash |
140.2 |
139.7 |
|||||||||
Accounts and notes receivable - net |
455.5 |
363.7 |
|||||||||
Receivables from related parties |
99.3 |
161.7 |
|||||||||
Inventories |
498.4 |
293.6 |
|||||||||
Derivative contracts |
0.9 |
0.5 |
|||||||||
Other current assets |
135.1 |
109.5 |
|||||||||
Total current assets |
1,526.8 |
1,252.1 |
|||||||||
Fixed assets - net |
755.8 |
837.6 |
|||||||||
Intangible assets - net |
30.0 |
32.0 |
|||||||||
Land use rights - net |
31.3 |
49.0 |
|||||||||
Deferred tax assets - net |
6.5 |
9.1 |
|||||||||
Loans to related parties |
0.6 |
5.6 |
|||||||||
Other long-term assets |
69.4 |
77.2 |
|||||||||
Total assets |
2,420.4 |
2,262.6 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||||
Current liabilities |
|||||||||||
Accounts payable |
164.8 |
180.3 |
|||||||||
Notes payable |
109.9 |
76.3 |
|||||||||
Payables to related parties |
391.2 |
198.2 |
|||||||||
Deferred revenue |
4.5 |
2.0 |
|||||||||
Accrued expenses |
33.5 |
31.5 |
|||||||||
Other payables |
24.1 |
23.1 |
|||||||||
Tax payables |
11.9 |
9.2 |
|||||||||
Short-term debt |
514.3 |
385.2 |
|||||||||
Current portion of long-term debt |
115.3 |
294.3 |
|||||||||
Bonds payable - current portion |
99.9 |
- |
|||||||||
Customer deposits |
17.5 |
10.4 |
|||||||||
Derivative contracts |
0.6 |
0.4 |
|||||||||
Litigation accruals |
0.1 |
0.2 |
|||||||||
Warranty provision |
32.4 |
31.0 |
|||||||||
Other current liabilities |
5.9 |
2.1 |
|||||||||
Total current liabilities |
1,525.9 |
1,244.2 |
|||||||||
Long-term debt |
625.5 |
536.2 |
|||||||||
Long-term warranty provision |
17.0 |
17.5 |
|||||||||
Deferred tax liabilities |
5.3 |
8.7 |
|||||||||
Total liabilities |
2,173.7 |
1,806.6 |
|||||||||
Stockholders' equity |
|||||||||||
Ordinary shares |
0.4 |
0.4 |
|||||||||
Additional paid-in capital |
432.2 |
432.2 |
|||||||||
Accumulated income |
(80.0) |
94.9 |
|||||||||
Accumulated other comprehensive loss |
(105.9) |
(71.5) |
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Total stockholders' equity |
246.7 |
456.0 |
|||||||||
Total liabilities, redeemable ordinary shares and stockholders' equity |
2,420.4 |
2,262.6 |
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Hanwha Q CELLS Co., Ltd. |
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Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) |
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(in millions of US dollars, except share data and net income (loss) per share) |
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For the three months ended |
For the nine months ended |
||||||||||||
September 30, 2018 |
June 30, 2018 |
March 31, 2018 |
September 30, 2018 |
September 30, 2017 |
|||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
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Net sales |
559.3 |
518.4 |
443.0 |
1,520.7 |
1,552.7 |
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Cost of goods sold |
594.6 |
445.8 |
364.1 |
1,404.5 |
1,362.5 |
||||||||
Gross profit |
(35.3) |
72.6 |
78.9 |
116.2 |
190.2 |
||||||||
Selling and marketing expenses |
37.5 |
42.0 |
28.6 |
108.1 |
82.0 |
||||||||
General and administrative expenses |
30.0 |
21.0 |
12.7 |
63.7 |
49.1 |
||||||||
Research and development expenses |
4.2 |
4.8 |
4.5 |
13.5 |
17.5 |
||||||||
Other operating expenses (income) |
- |
- |
- |
- |
(17.4) |
||||||||
Income (loss) from operations |
(107.0) |
4.8 |
33.1 |
(69.1) |
59.0 |
||||||||
Other income (expenses) |
|||||||||||||
Interest income |
1.7 |
1.0 |
0.5 |
3.2 |
4.1 |
||||||||
Interest expense |
(15.8) |
(16.2) |
(12.7) |
(44.7) |
(32.8) |
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Foreign exchange gain (loss) |
(42.4) |
(37.8) |
11.5 |
(68.7) |
16.9 |
||||||||
Gain (loss) on change in fair value of derivative contracts |
(0.9) |
8.1 |
- |
7.2 |
(4.0) |
||||||||
Investment income (loss) |
0.6 |
0.4 |
0.7 |
1.7 |
1.7 |
||||||||
Miscellaneous income (expense) - net |
0.4 |
0.3 |
1.2 |
1.9 |
1.3 |
||||||||
Other income (expenses), net |
(56.4) |
(44.2) |
1.2 |
(99.4) |
(12.8) |
||||||||
Income (loss) before income tax |
(163.4) |
(39.4) |
34.3 |
(168.5) |
46.2 |
||||||||
Income tax expense (benefit) |
1.2 |
1.9 |
3.3 |
6.4 |
4.9 |
||||||||
Net income (loss) |
(164.6) |
(41.3) |
31.0 |
(174.9) |
41.3 |
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Net income (loss) attributable to Hanwha Q CELLS Co., Ltd.'s stockholders per share: |
|||||||||||||
Basic |
(US$0.04) |
(US$0.01) |
US$0.01 |
(US$0.04) |
US$0.01 |
||||||||
Diluted |
(US$0.04) |
(US$0.01) |
US$0.01 |
(US$0.04) |
US$0.01 |
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Net income (loss) attributable to Hanwha Q CELLS Co., Ltd.'s stockholders per ADS: |
|||||||||||||
Basic |
(US$1.98) |
(US$0.50) |
US$0.37 |
(US$2.10) |
US$0.50 |
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Diluted |
(US$1.98) |
(US$0.50) |
US$0.37 |
(US$2.10) |
US$0.50 |
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Number of shares used in computation of net income (loss) per share: |
|||||||||||||
Basic |
4,165,088,417 |
4,165,088,417 |
4,163,822,242 |
4,164,670,997 |
4,158,769,098 |
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Diluted |
4,165,088,417 |
4,165,088,417 |
4,163,822,242 |
4,164,670,997 |
4,158,769,098 |
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Number of shares used in computation of net income (loss) per ADS: |
|||||||||||||
Basic |
83,301,768 |
83,301,768 |
83,276,445 |
83,293,420 |
83,175,382 |
||||||||
Diluted |
83,301,768 |
83,301,768 |
83,276,445 |
83,293,420 |
83,175,382 |
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Other comprehensive income (loss) |
|||||||||||||
Foreign currency translation adjustment |
(13.8) |
(45.7) |
25.1 |
(34.4) |
51.3 |
||||||||
Pension adjustments |
- |
- |
- |
- |
- |
||||||||
Comprehensive income (loss) |
(178.4) |
(87.0) |
56.1 |
(209.3) |
92.6 |
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