Hanwha SolarOne Reports Second Quarter 2013 Results

             Hanwha SolarOne Reports Second Quarter 2013 Results

PR Newswire

SHANGHAI, Sept. 9, 2013

SHANGHAI, Sept. 9, 2013 /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 quarter ended June 30,
2013. The Company will host a conference call to discuss the results at 9:00
am Eastern Time (9:00 pm Shanghai Time) on September 9, 2013.A slide
presentation with details of the results will also be available on the
Company's website prior to the call.

Second QUARTER 2013 HIGHLIGHTS
                                                                   Percentage
                                                       2Q13
                                 1Q13                               change^1
                       (RMB)            (US$)  (RMB)         (US$)  (%)
Net Revenues
                       1,112.90         179.2  1,182.8       192.7  +6.3
(Million)
Shipments (MW)                   289.1                 321.2        +11.1
ASP (/W)               4.12             0.66   4.03          0.66   -2.2
Gross profit
                       28.9             4.7    65.3          10.6   +126
(Million)
Gross margin (%)                 2.6                   5.5          +290 basis
                                                                    points
Operating loss
                       (128.2)          (20.6) (122.1)       (19.9) +4.8
(Million)
Operating margin (%)             -11.5                 -10.3        +120 basis
                                                                    points
Net loss (Million)     (225.9)          (36.4) (166.0)       (27.0) +26.5
Net loss per basic
                       (2.67)           (0.43) (1.96)        (0.32) +26.6
ADS on a GAAP basis
1 Percentage changes arecalculated based on RMB amounts to eliminate
fluctuations in the exchange rate of the dollar.

Mr. Ki-Joon HONG, Chairman and CEO of Hanwha SolarOne, commented, "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. Shipments of 321 MW were the highest quarterly
level since Hanwha's purchase of the predecessor company in September 2010.
Our presence in emerging markets such as Japan and South Africa remained
strong. We also strengthened our liquidity position with a US$100 million
long-term loan from the Export-Import Bank of Korea."

Chairman HONG continued, "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. We look towards improving our 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".

SECOND QUARTER 2013 RESULTS

  oTotal net revenues were RMB1,182.8 million (US$192.7 million), an increase
    of 6.3% from RMB1,112.9 million in 1Q13, and an increase of 10.4% from
    RMB1,071.7 million in 2Q12. The increase in total net revenues in 2Q13
    compared with 1Q13 was primarily due to higher shipments, lower costs and
    stable ASP.
  oPV module shipments, including module processing services, were 321.2 MW,
    an increase from 289.1 MW in 1Q13, and an increase from 230.7 MW in 2Q12.

Module revenue by shipping destination  Module revenue by shipping destination
Q2 13                                   Q1 13
Country                 2Q13            Country                 1Q13
Japan                   34%             Japan                   33%
South Africa            20%             South Africa            21%
Germany                 12%             Germany                 13%
US                      7%              US                      9%
Korea                   5%              UK                      5%
China                   4%              Portugal                4%
UK                      3%              China                   3%
Others                  15%             Others                  12%

  oModule shipments to Japan, a market that values quality and brand,
    remained stable at 34% in 2Q13 at a good pricing level. Shipments to South
    Africa continued this quarter, representing 20% of revenues. The German
    market remained solid for the Company and made up 12% of total module
    shipments in 2Q13.The US (7%), China (4%) and the UK (3%) continued to be
    a mainstay of the Company's dispersion of shipments. Korea came to the
    forefront this quarter as a notable new market for the Company accounting
    for 5% of shipments in 2Q13.The Company continues to actively diversify
    its business outside the EU in order to minimize the risk from the ongoing
    trade dispute with the region; therefore shipments to Europe declined to
    26% of total shipments. The Company shipped PV modules to 29 countries
    during 2Q13, further diversifying the geographic spread. Shipments to
    Europe and Africa (EA) contributed 46% to total module shipments, Asian
    Pacific (AP) accounted for 46% and North America (NA) 8%.
  oAverage selling price ("ASP"), excluding module processing services,
    decreased to RMB4.03 per watt (US$0.66) from RMB4.12 per watt in 1Q13 and
    from RMB4.85 per watt in 2Q12.
  oGross profit for 2Q13 was RMB65.3 million (US$10.6 million), compared with
    a gross profit of RMB28.9 million in 1Q13 and a gross profit of RMB67.5
    million in 2Q12.
  oGross margin was positive 5.5%, compared with positive 2.6% in 1Q13. The
    improvement in gross margin was primarily due to stable ASP, lower cost,
    higher revenues and decreased idle capacity loss. Gross margin in 2Q12 was
    positive 6.3%.
  oThe blended cost of goods sold ("COGS") per watt, excluding module
    processing services, was US$0.62, representing a 4.6% decrease from
    US$0.65 in 1Q13, which excluded non-cash charges. The blended COGS takes
    into account the production cost (silicon and non-silicon) using
    internally sourced wafers, purchase costs and additional processing costs
    of externally sourced wafers and cells.
  oOperating loss of 2Q13 was RMB122.1 million (US$19.9 million), compared
    with an operating loss of RMB128.2 million in 1Q13 and an operating loss
    of RMB82.8 million in 2Q12. Operating margin increased to negative 10.3%
    from negative 11.5% in 1Q13, compared to negative 7.7% in 2Q12.
  oOperating expenses as a percentage of total net revenues were 15.8% in
    2Q13, compared with 14.1% in 1Q13 and 14.0% in 2Q12.The increase in
    operating expenses is primarily due to an increase in sales commission and
    freight, which is a reflection of the increase in shipments this quarter.
  oInterest expense was RMB73.3 million (US$11.9 million), compared with
    RMB75.8 million in 1Q13 and RMB76.6 million in 2Q12.
  oThe Company recorded a net gain of RMB47.2 million (US$7.7 million), which
    included a foreign exchange gain and a gain from the change in fair value
    of derivatives in hedging activities. The Company recorded a net loss of
    RMB23.8 million in 1Q13 and a net loss of RMB34.3 million in 2Q12 for the
    foreign exchange loss and the gain from change in fair value of
    derivatives in hedging activities.
  oLoss from the change in fair value of the conversion feature of the
    Company's convertible bonds was RMB11.2 million (US$1.8 million), compared
    with a gain of RMB2.1 million in 1Q13 and a gain of RMB1.2 million in
    2Q12. The fluctuations were primarily due to changes in the Company's ADS
    price during the quarter. This line item has fluctuated, and is expected
    to continue to fluctuate quarter-to-quarter. The Company has no direct
    control over the fluctuations.
  oIncome tax expense in 2Q13 was RMB3.1 million (US$0.5 million), compared
    with an income tax expense of RMB0.5 million in 1Q13 and RMB77.8 million
    in 2Q12.
  oNet loss attributable to shareholders on a non-GAAP basis^1 was RMB130.0
    million (US$21.2 million), compared with a net loss attributable to
    shareholders of RMB202.9 million in 1Q13 and a net loss attributable to
    shareholders of RMB245.9 million in 2Q12.
  oNet loss per basic ADS on a non-GAAP basis was RMB1.54 (US$0.25), compared
    with net loss per basic ADS on a non-GAAP basis of RMB2.40 in 1Q13 and net
    loss per basic ADS on a non-GAAP basis of RMB2.91 in 2Q12.
  oNet loss attributable to shareholders on a GAAP basis was RMB166.0 million
    (US$27.0 million), compared with net loss attributable to shareholders of
    RMB225.9 million in 1Q13 and net loss attributable to shareholders of
    RMB266.7 million in 2Q12.
  oNet loss per basic ADS on a GAAP basis was RMB1.96 (US$0.32), compared
    with net loss per basic ADS of RMB2.67 in 1Q13 and net loss per basic ADS
    of RMB3.16 in 2Q12.
  oAnnualized ROE on a non-GAAP basis was negative 25.1% in 2Q13, compared
    with negative 36.2% in 1Q12 and negative 28.8% in 2Q12.
  oAnnualized ROE on a GAAP basis was negative 27.2% in 2Q13, compared with
    negative 34.3% in 1Q13 and negative 27.6% in 2Q12.

[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, 2013, the Company had cash and cash equivalents of RMB1,418.6
million (US$231.1 million) and net working capital of RMB884.2 million
(US$144.1 million), compared with cash and cash equivalents of RMB1,005.0
million and net working capital of RMB345.7 million as of March 31, 2013.
Total short-term bank borrowings (including the current portion of long-term
bank borrowings) were RMB1,175.1 million (US$191.5 million) as of June 30,
2013, compared with RMB1,776.9 million as of March 31, 2013. 

As of June 30, 2013, the Company had total long-term debt of RMB3,683.9
million (US$600.2 million), which is comprised of long-term bank borrowings,
long-term notes payable and convertible bonds. The Company's long-term bank
borrowings are to be repaid in installments until their maturities ranging
from 2 to 4 years. The Company's notes payable are to be repaid in 3
years.Holders of the convertible bonds have the option to require the Company
to redeem the notes beginning on January 15, 2015.

The Company returned to positive operating cash flow as net cash provided in
operating activities in 2Q13 was RMB494.8 million (US$80.6 million), compared
with net cash used in operating activities of RMB54.4 million in 1Q13 and net
cash used in operating activities of RMB335.5 million in 2Q12.

As of June 30, 2013, accounts receivable were RMB1,163.6 million (US$189.6
million), compared with RMB1,131.6 million as of March 31, 2013 and RMB802.9
million as of June 30, 2012.Days sales outstanding ("DSO") decreased to 124
days in 2Q13 from 127 days in 1Q13, compared with 77 days in 2Q12. The
increase in receivables from 1Q13 to 2Q13 reflects higher shipments and
revenues. As of June 30, 2013, inventories decreased to RMB686.8 million
(US$111.9 million) from RMB776.9 million as of March 31, 2013, and increased
from RMB684.9 million as of June 30, 2012. Day's inventory was 59 days in 2Q13
compared with 67 days in 1Q13 and 60 days in 2Q12.

Capital expenditures were RMB58.0 million (US$9.5 million) in 2Q13.

The Company has from time to time been buying back its convertible bonds since
January 1, 2012 and may do so in the future, subject to market conditions and
other factors. The Company has repurchased convertible bonds to the value of
approximately $72 million out of US$172.5 million in face value as of June 30,
2013.

CAPACITY EXPANSION

As of June 30, 2013, the Company had production capacities of 800 MW for ingot
and wafer, 1.3 GW for cell and 1.5 GW for module. The Company currently has no
near-term plan to add additional capacities. Management will review expansion
needs in the future in line with changes in overall market demand.

BUSINESS OUTLOOK

  oThe Company provides the following guidance based on current operating
    trends and market conditions.

For the third quarter 2013 the Company expects:

  oModule shipments of 300-325MW.

For the full year 2013, the Company expects:

  oModule shipments between 1.2-1.4GW of which about 30-35% will be for PV
    module processing services.
  oCapital expenditures of $75 million depending on demand and other market
    conditions.

CONFERENCE CALL

The Company will host a conference call to discuss the first quarter results
at 9:00 AM Eastern Time (9:00 PM Shanghai Time) on September 9, 2013.

Mr. Ki-Joon HONG, Chairman and CEO; Mr. Min-Su KIM, President; 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:

  oU.S. Toll Free Number: 18665194004
  oU.S. New York local number: +1 8456750437
  oInternational dial-in number: +65 67239381
  oChina Toll Free Number: 8008190121 / 4006208038

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:

  oU.S. Toll Free Number: 18554525696
  oInternational dial-in number: +61 2 8199 0299

Conference ID 40762003

Encore Dates: 10/09/2013 12:00 ET - 17/09/2013 9:59 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
28, 2013, which was RMB6.1374 to US$1.00, except for the conversion of
Renminbi into U.S. dollars for 1Q13 which is based on the exchange rate of
RMB6.2108 to US$1.00 as set forth in the H.10 statistical release of the
Federal Reserve Board as of March 29, 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, 2013 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 2013 estimates for PV product shipments, ASPs,
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
plans to produce polysilicon in the future. For more information, please
visit: http://www.hanwha-solarone.com.



Hanwha SolarOne Co., Ltd.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
              December31 March 31    June 30       June 30
              2012        2013        2013          2013
              (Audited)   (Unaudited) (Unaudited) (Unaudited)
              RMB'000   RMB'000   RMB'000     US$'000
ASSETS
Current
assets
Cash and cash 676,476     1,004,954   1,418,559     231,134
equivalents
Restricted    150,462     161,649     116,171       18,928
cash
Derivative    -           4,020       4,050         660
contracts
Accounts
receivable -  956,969     1,131,593   1,163,606     189,593
net
Notes         2,681       550         50            8
receivable
Inventories - 838,727     776,865     686,570       111,867
net
Advance to
suppliers,    166,838     178,684     181,160       29,517
net
Other current 356,784     268,670     295,363       48,125
assets - net
Deferred tax  150,297     139,179     136,205       22,193
assets - net
Amount due
from related  420,610     418,798     347,379       56,600
parties - net
Total
current       3,719,844   4,084,962   4,349,113     708,625
assets
Non-current
assets
Fixed assets  4,779,873   4,728,164   4,655,408     758,531
– net
Intangible    335,047     333,274     275,390       44,871
assets – net
Deferred tax  107,304     125,742     127,209       20,727
assets - net
Long-term
deferred      25,200      21,743      17,415        2,838
expenses
Long-term     184,065     172,150     154,278       25,137
prepayment
Total
non-current   5,431,489   5,381,073   5,229,700     852,104
assets
TOTAL ASSETS  9,151,333   9,466,035   9,578,813     1,560,729
LIABILITIES
Current
liabilities
Derivative    17,311      7,845       11,141        1,815
contracts
Short-term
bank          1,162,372   1,279,312   1,063,858     173,340
borrowings
Long-term
bank
borrowings,   467,204     497,605     111,217       18,121
current
portion
Accounts      1,061,723   942,143     1,139,431     185,654
payable
Notes payable 314,517     294,642     422,275       68,804
Accrued
expenses and  400,537     355,737     400,878       65,317
other
liabilities
Customer      36,314      26,995      51,531        8,396
deposits
Unrecognized  143,473     143,473     143,473       23,377
tax benefit
Amount due to
related       72,045      191,473     121,158       19,741
parties
Total
current       3,675,496   3,739,225   3,464,962     564,565
liabilities
Non-current
liabilities
Long-term
bank          2,285,106   2,112,483   2,632,126     428,867
borrowings
Long-term     -           627,821     630,722       102,767
notes payable
Convertible   368,590     390,594     421,018       68,599
bonds
Long term     50,000      50,000      50,000        8,147
payable
Deferred tax  24,798      24,651      24,504        3,993
liabilities
Total
non-current   2,728,494   3,205,549   3,758,370     612,373
liabilities
TOTAL         6,403,990   6,944,774   7,223,332     1,176,938
LIABILITIES
Redeemable
ordinary      24          24          24            4
shares
EQUITY
Shareholders'
equity
Ordinary      316         316         316           51
shares
Additional
paid-in       4,004,199   4,004,639   4,005,732     652,676
capital
Statutory     174,456     174,456     174,456       28,425
reserves
Accumulated   (1,430,433) (1,656,346) (1,822,340)   (296,924)
deficit
Accumulated
other         (1,219)     (1,828)     (2,707)       (441)
comprehensive
loss
Total
shareholders' 2,747,319   2,521,237   2,355,457     383,787
equity
TOTAL EQUITY  2,747,343   2,521,261   2,355,481     383,791
TOTAL
LIABILITIES,
REDEEMABLE
ORDINARY      9,151,333   9,466,035   9,578,813     1,560,729

SHARES AND
SHAREHOLDERS'
EQUITY



Hanwha SolarOne Co., Ltd.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),
except for number of shares (ADS) and per share (ADS) data
                             For the three months ended
                             June 30     March 31  June 30       June 30
                             2012        2013        2013          2013
                             (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                             RMB'000     RMB'000     RMB'000     US$'000
Net revenues                 1,071,715   1,112,898   1,182,799     192,720
Cost of revenues             (1,004,179) (1,083,999) (1,117,479)   (182,077)
Gross profit                67,536      28,899      65,320        10,643
Operating expenses
Selling expenses             (75,888)    (82,122)    (95,466)      (15,555)
G&A expenses                 (56,918)    (55,070)    (69,422)      (11,311)
R&D expenses                 (17,514)    (19,927)    (22,573)      (3,678)
 Total operating expenses (150,320)   (157,119)   (187,461)     (30,544)
                             -
Operating loss               (82,784)    (128,220)   (122,141)     (19,901)
Interest expenses            (76,601)    (75,755)    (73,321)      (11,947)
Interest income              4,447       2,337       6,123         998
Exchange gain / (loss)       (41,207)    (28,800)    36,709        5,982
Gain on change in fair value 6,939       5,021       10,491        1,709
of derivative
Gain / (loss) on change in
conversion feature fair
value                        1,150       2,113       (11,253)      (1,834)

of convertible bonds
Loss on extinguishment of    2,455       -           -             -
debt
Other income                 2,367       1,517       1,616         263
Other expenses               (5,651)     (3,587)     (11,148)      (1,816)
Net loss before income tax   (188,885)   (225,374)   (162,924)     (26,546)
Income tax expenses          (77,772)    (539)       (3,070)       (500)
Net loss                     (266,657)   (225,913)   (165,994)     (27,046)
Net loss attributable
to shareholders              (266,657)   (225,913)   (165,994)     (27,046)
Other comprehensive income /
(loss), net of tax
Foreign currency translation 6           (609)       (879)         (143)
adjustment
Comprehensive loss
atributable to ordinary      (266,651)   (226,522)   (166,873)     (27,189)

shareholders
Net loss per share
Basic                        (0.63)      (0.53)      (0.39)        (0.06)
Diluted                      (0.63)      (0.53)      (0.39)        (0.06)
Shares used in computation
Basic                        422,023,107 422,857,465 423,111,372   423,111,372
Diluted                      422,023,107 422,857,465 423,111,372   423,111,372
Net loss per ADS
Basic                        (3.16)      (2.67)      (1.96)        (0.32)
Diluted                      (3.16)      (2.67)      (1.96)        (0.32)
ADSs used in computation
Basic                        84,404,621  84,571,493  84,622,274    84,622,274
Diluted                      84,404,621  84,571,493  84,622,274    84,622,274



Hanwha SolarOne Co., Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$")
                      June30,2012 March31,2013 June30,2013 June30,2013
                      (Unaudited)   (Unaudited)   (Unaudited)  (Unaudited)
                      RMB'000       RMB'000       RMB'000      US$'000
Cash flow from
operating activities
 Net loss             (266,657)     (225,913)      (165,994)     (27,046)
 Adjustments to
 reconcile net loss
 to net cash

 provided by
 (used in) operating
 activities:
  Unrealised loss /
  (gain) from         27            (13,486)       3,266         532
  derivative
  contracts
  Amortization of
  convertible bonds   23,728        24,117         19,171        3,124
  discount
  Changes in fair
  value of conversion (1,140)       (2,113)        11,253        1,834
  feature of
  convertiblebonds
  Loss on
  extinguishment of   (2,455)       -              -             -
  debt
  Loss from disposal  3,884         1,161          7,394         1,205
  of fixed assets
  Gain from disposal  -             -              (342)         (56)
  of intangible asset
  Depreciation and    88,299        106,477        108,209       17,631
  amortization
  Amortization of
  long-term deferred  11,015        4,656          8,409         1,370
  expenses
  Reversal of
  doubtful debt for   -             -              (7,980)       (1,300)
  amount due from
  related parties
  Write down of       20,395        35,171         37,043        6,036
  inventories
  Stock compensation  1,737         440            1,093         178
  expense
  Warranty provision  9,812         10,023         10,875        1,772
  Warranty reversal   (686)         (1,277)        (2,918)       (475)
  Deferred tax        76,477        (7,467)        1,360         221
  benefit / (expense)
 Changes in operating
 assets and
 liabilities
  Restricted cash     (40,184)      2,758          (23,970)      (3,906)
  Inventory           (46,166)      26,691         53,252        8,677
  Account and notes   (198,484)     (173,102)      (32,392)      (5,278)
  receivables
  Advance to
  suppliers and       173,510       69             15,396        2,508
  long-term
  prepayments
  Long-term deferred  (1,484)       -              (505)         (82)
  expenses
  Intangible assets   -             -              56,677        9,235
  Other current       31,340        90,543         (23,719)      (3,865)
  assets
  Amount due from     (227,260)     1,812          79,399        12,937
  related parties
  Accounts and notes  (40,690)      15,824         333,477       54,335
  payable
  Accrued expenses
  and other           (7,603)       (52,764)       43,977        7,165
  liabilities
  Customer deposits   25,906        (9,319)        24,536        3,998
  Amount due to       31,230        111,274        (62,161)      (10,128)
  related parties
Net cash provided by
(used in) operating   (335,449)     (54,425)       494,806       80,622
activities
Cash flows from
investing activities
  Acquisition of      (39,615)      (201,281)      (58,008)      (9,452)
  fixed assets
  Change of           15,989        (2,202)        4,550         741
  restricted cash
Net cash used in      (23,626)      (203,483)      (53,458)      (8,711)
investing activities
Cash flows from
financing activities
  Change of           (361,121)     (11,743)       64,898        10,574
  restricted cash
  Proceeds from
  short-term bank     495,694       826,398        374,417       61,006
  borrowings
  Proceeds from
  long-term bank      1,258,676     -              617,970       100,689
  borrowings
  Proceeds from
  long-term notes     -             627,821        2,901         473
  payable
  Payment of short
  term bank           (1,078,660)   (709,458)      (589,871)     (96,111)
  borrowings
  Payment for long
  term bank           (61,605)      (142,222)      (484,715)     (78,977)
  borrowings
  Payment of
  arrangement fee of
  long-term loans and (10,571)      (2,638)        (10,514)      (1,713)

  long-term notes
  payable
  Payment of
  arrangement fee of  (2,932)       (1,772)        (2,829)       (461)
  short-term loans
Net cash provided by
(used in) financing   239,481       586,386        (27,743)      (4,520)
activities
Unrealised foreign
exchange gain/loss
Net increase
(decrease) in cash    (119,594)     328,478        413,605       67,391
and cash equivalents
Cash and cash
equivalents at the    1,908,859     676,476        1,004,954     163,743
beginning of period
Cash and cash
equivalents at the    1,789,265     1,004,954      1,418,559     231,134
end of period
Supplemental
disclosure of cash
flow information:
 Interest paid        47,116        46,594         29,838        4,862
 Income tax paid /    30,610        362            (18,728)      (3,051)
 (refunded)
 Realized gain /
 (loss) from          6,967         (8,465)        13,757        2,242
 derivative contracts
Supplemental schedule
of non-cash
activities:
 Acquisition of fixed
 assets included in
 accounts payable,    (19,837)      (147,125)      (16,710)      (2,723)

 accrued expenses and
 other liabilities

             For the three months ended
             June 30,   March 31,  June 30,   June 30,
             2012       2013       2013       2013
             (RMB       (RMB       (RMB       (US$
             million)   million)   million)   milllion)
Non-GAAP net (245.9)    (202.9)    (130.0)    (21.2)
loss
Fair value
changes of
the
conversion
features     1.1        2.1        (11.3)     (1.8)

of the
Convertible
bonds
Accretion of
interest of
the          (21.9)     (25.1)     (24.7)     (4.0)
Convertible
bonds
GAAP net     (266.7)    (225.9)    (166.0)    (27.0)
loss
             For the three months ended
             June 30,   March 31,  June 30,   June 30,
             2012       2013       2013       2013
             (RMB)      (RMB)      (RMB)      (US$)
Non GAAP net
loss per ADS (2.91)     (2.40)     (1.54)     (0.25)
- Basic
Fair value
changes of
the
conversion
features     0.01       0.03       (0.13)     (0.02)

of the
Convertible
bonds
Accretion of
interest of
the          (0.26)     (0.30)     (0.29)     (0.05)
Convertible
bonds
Net loss
contributed
to
shareholders (3.16)     (2.67)     (1.96)     (0.32)
per ADS -

Basic
ADS (Basic)  84,404,621 84,571,493 84,622,274 84,622,274
             For three months ended                      Annualized for the
                                                         three months ended
             June 30,   March 31,  June 30,              June    March   June
             2012       2013       2013                  30,     31,     30,
                                                         2012    2013    2013
Non-GAAP
Return on    -7.21%     -9.06%     -6.27%                -28.84% -36.24% -25.08%
Equity
Fair value
changes of
the
conversion
features     0.89%      1.43%      0.47%                 3.56%   5.72%   1.88%

of the
Convertible
bonds
Accretion of
interest of
the          -0.57%     -0.95%     -1.01%                -2.28%  -3.80%  -4.04%
Convertible
bonds
GAAP Return  -6.89%     -8.58%     -6.81%                -27.56% -34.32% -27.24%
on equity



SOURCE Hanwha SolarOne Co., Ltd.

Website: http://www.hanwha-solarone.com
Contact: Hanwha SolarOne Co., Ltd., Investor Contact: Paul Combs, V.P.
Investor Relations, 6th Floor, Yongda International Tower, 2277 Longyang Road,
Shanghai, PRC 201204, P. R. China, +86 21 3852 1533, +86 138 1612 2768,
paul.combs@hanwha-solarone.com
 
Press spacebar to pause and continue. Press esc to stop.