Trina Solar Announces Second Quarter 2014 Results

Veröffentlicht auf 27.08.2014
Trina Solar 
August 26, 2014 - Trina Solar Limited today announced its unaudited financial results for the second quarter of 2014.

Second Quarter 2014 Financial and Operating Highlights

- Solar module shipments were 943.3MW during the second quarter of 2014, compared to 558.0MW in the first quarter of 2014, an increase of 69.1%

- Net revenues were $519.4 million, an increase of 16.8% from the first quarter of 2014

- Cost of revenues was $439.2 million, an increase of 24.3% from the first quarter of 2014

- Gross profit was $80.2 million, a decrease of 12.3% from the first quarter of 2014

- Gross margin was 15.4%, compared to 20.6% in the first quarter of 2014

- Operating income was $15.7 million, a decrease of 59.0% from the first quarter of 2014

- Operating margin was 3.0%, compared to 8.6% in the first quarter of 2014

- Net income was $10.3 million, a decrease of 61.1% from the first quarter of 2014

- Earnings per fully diluted American Depositary Share ("ADS" and each ADS represents 50 of the Company's ordinary shares) was $0.14, compared to $0.37 in the first quarter of 2014

Mr. Jifan Gao, Chairman and Chief Executive Officer of Trina Solar, commented, "It is my pleasure to report that we delivered a solid set of results in the second quarter of 2014. Our global sales network and strong brand allow us to capitalize on commercial opportunities across the multiple markets where we have a presence, which has helped us to achieve strong sequential shipment growth in our core module business. At the same time, our growth strategy of focusing on developing our downstream business is progressing well.

"In our module business, demand from both the China and overseas markets has picked up dramatically. Notably, we continue to see robust demand for our products from our many valued long-term customers in the U.S., thanks to Trina Solar's established market position and superior product offerings. Following a relatively weak first quarter in China, we saw strong growth in demand for Trina Solar's products in the second quarter.

"We are excited about the potential we see in our downstream business and will continue to invest in building a mature pipeline of projects. We have seen a steady flow of new opportunities in the key markets we are targeting for investment. In the second quarter of 2014, we commenced construction on schedule of a 90MW power plant in China's Xinjiang province. Further, we have completed a number of Distributed Generation ("DG") projects in China, with a number of new projects currently being developed. In August, we acquired a 49.9MW project in the United Kingdom. We believe the United Kingdom is a good target country for investment due to its well-established market and mature investment environment. Looking ahead, we are optimistic that our growth will continue, particularly in our downstream business. We expect to see more DG projects come online in China throughout the remainder of 2014.

"To support these initiatives and to capitalize on available growth opportunities, we recently raised $222.7 million in net proceeds through a successful follow-on public offering of American Depositary Shares and a concurrent offering of convertible senior notes. This funding provides additional flexibility to accelerate growth in downstream and strategically expands our module production capacity.

"Finally, in relation to the recent U.S. antidumping and countervailing duty ("AD" and "CVD") preliminary rulings and our strategy in the U.S. market, we believe Trina Solar will continue to play an important role and maintain our leading market position in the U.S. thanks to our solid and long-standing reputation for high quality products and services, our competitive cost structure, strong manufacturing capacity, and the fact that Trina has the lowest 2014 and 2012 AD and CVD tariffs among all Chinese solar products manufacturers."

Second Quarter 2014 Results

Net Revenues

Net revenues in the second quarter of 2014 were $519.4 million, an increase of 16.8% sequentially and an increase of 17.9% year-over-year. Total shipments were 943.3MW, of which 148.7MW were shipped to the Company's own downstream power plants in China and the UK, compared to total shipments of 558.0MW in the first quarter of 2014 and 646.6MW in the second quarter of 2013. Revenues were not recognized for 148.7MW of internal shipments as required by U.S. Generally Accepted Accounting Principles (U.S. GAAP). The sequential increase in revenues and shipments was primarily due to an increase in demand from China and the U.S. The year-over-year increase in shipments and revenues was driven largely by rising shipment volumes due to growing demand from key geographical regions, particularly China, Japan and the U.S.

Gross Profit and Margin

Gross profit in the second quarter of 2014 was $80.2 million, compared to $91.5 million in the first quarter of 2014 and $51.2 million in the second quarter of 2013.

Gross margin was 15.4% in the second quarter of 2014, compared to 20.6% in the first quarter of 2014 and 11.6% in the second quarter of 2013. The sequential decrease was primarily due to a decrease in ASP as a result of greater sales to China, in comparison to other relatively higher priced markets, as well as a slight increase in polysilicon cost on a per watt basis. In addition, compared to the first quarter, insignificant revenues and gross profit contribution from our downstream business, also partially resulted in an anticipated margin decrease. The year-over-year increase in gross margin was primarily due to an increase in ASP.

Operating Expense, Income (Loss) and Margin

Operating expenses in the second quarter of 2014 were $64.5 million, an increase of 21.2% sequentially and a decrease of 14.0% year-over-year. The sequential increase was primarily due to an increase in selling expenses, particularly higher shipping expenses resulting from an increase in shipment volumes. The Company's operating expenses represented 12.4% of its second quarter net revenues, an increase from 12.0% in the first quarter and a decrease from 17.0% in the second quarter of 2013. Operating expenses included a reversal of accounts receivable provision of $0.9 million in the second quarter of 2014, compared to an accounts receivable provision of $1.2 million in the first quarter of 2014 and $8.7 million in the second quarter of 2013 respectively.

As a result, operating income in the second quarter of 2014 was $15.7 million, compared to $38.2 million in the first quarter of 2014 and an operating loss of $23.9 million in the second quarter of 2013. Operating margin was 3.0% in the second quarter of 2014, compared to 8.6% in the first quarter of 2014 and negative 5.4% in the second quarter of 2013.

Net Interest Expense

Net interest expense in the second quarter of 2014 was $8.1 million, compared to $8.7 million in the first quarter of 2014 and $11.0 million in the second quarter of 2013. The sequential decrease in net interest expense was due to a decrease in bank borrowings in the second quarter of 2014.

Foreign Currency Exchange Gain (Loss)

The Company had a foreign currency exchange gain of $3.3 million in the second quarter of 2014, which included a gain on change in fair value of foreign exchange derivative instruments of $1.2 million, compared to a net gain of $0.8 million in the first quarter of 2014 and a net loss of $2.2 million in the second quarter of 2013.

Income Tax Expense (Benefit)

Income tax expense was $2.2 million in the second quarter of 2014, compared to $6.4 million in the first quarter of 2014 and an income tax benefit of $0.9 million in the second quarter of 2013.

Net Income (Loss) and Earnings (Loss) per ADS

Consequently, net income was $10.3 million in the second quarter of 2014, compared to $26.5 million in the first quarter of 2014 and a net loss of $33.7 million in the second quarter of 2013.

Net margin was 2.0% in the second quarter of 2014, compared to 6.0% in the first quarter of 2014 and negative 7.6% in the second quarter of 2013.

Earnings per fully diluted ADS were $0.14 in the second quarter of 2014, compared to $0.37 in the first quarter of 2014 and loss per fully diluted ADS of $0.47 in the second quarter of 2013.

Financial Condition

As of June 30, 2014, the Company had $562.7 million in cash and cash equivalents and restricted cash. Total bank borrowings were $774.7 million, of which $669.5 million were short-term borrowings, including current portion of long-term borrowings.

Accounts receivable, net of the allowance for doubtful accounts, at the end of the second quarter of 2014 were $457.8 million, compared to $347.4 million at the end of the first quarter of 2014.

As of June 30, 2014, the Company's working capital balance was $150.9 million, compared to $23.8 million as of March 31, 2014.

Shareholders' equity was $912.9 million as of June 30, 2014, an increase from $848.0 million at the end of the first quarter of 2014.

Project Development

Projects in China

Utilities

In June, the Company commenced construction of a 90MW solar power plant in Xinjiang province, China on schedule. This marks the first phase of construction under a four-year investment framework agreement signed with the local government of Turpan Prefecture in December 2013. Under the agreement, the planned solar power plants with a total capacity of 1GW will be built in multiple phases.

The Company started construction of a 120MW utility scale solar project in Jiangsu province in China in the second quarter and expects to complete construction towards the end of this year.

Distributed Generation

The Company has signed an Energy Management Contract with a company to install 13MW solar panels on its carport in Hunan province, China. The Company expects to commence construction of this project in November 2014.

The Company has signed two 25-year DG Energy Management Contracts ("EMC") with two companies in Changzhou, Jiangsu province to invest and install total 7.4MW of solar panels on the rooftop of the two companies' manufacturing facilities in Changzhou. The Company expects to commence construction of both projects in September this year.

International Projects

In the UK, the Company intends to sell two PV power plants with a total capacity of 23.8MW in the third quarter of 2014, which were connected to the grid at the end of March 2014. The Company is also developing additional projects in Europe, as well as projects in other regions. For example, the Company recently announced that it planned to develop a 49.9MW utility-scale power project in the UK. The Company expects to commence construction of this project in the third quarter of 2014 and complete grid connection in March 2015.

Trina Solar continues to develop projects in and outside of China. As the Company evaluates risk factors related to new solar power projects, it will continue to carefully consider a number of factors including location, local policies and regulatory environment, the availability of financing for both the Company and prospective purchasers, and the potential internal rate of return. The commencement and grid-connection of a project is subject to a number of factors, some of which are beyond the Company's control, such as the availability of network transmission and interconnection facilities, as well as the attainment of project permissions by relevant regulatory authorities.

Operations and Business Development and Outlook

2014 Manufacturing Capacity

As of June 30, 2014, the Company had annualized in-house ingot and wafer production capacity of 2.0GW and 1.6GW respectively, and PV cell and module capacity of approximately 2.7GW and 3.6GW, respectively.

The Company expects that as of December 31, 2014, it will have annualized in-house ingot production capacity of 2.2GW, wafer capacity of 1.7GW, PV cell capacity of approximately 3.0GW, and module capacity of approximately 3.8GW.

Third Quarter and Fiscal Year 2014 Guidance

In the third quarter of 2014 the Company expects to ship between 1,060MW and 1,120MW of PV modules, of which 130MW to 150MW will be shipped to its downstream PV projects. Revenues will not be recognized for the modules shipped to its own developed projects as required by U.S. GAAP. The Company expects its blended gross margin for 2014 to be at mid-teens in percentage terms with slightly lower gross margin expected for the third quarter of 2014.

The Company reiterates its 2014 guidance of total PV module shipments between 3.6GW and 3.8GW, of which 400MW to 500MW of PV modules will be shipped to the Company's own downstream projects. Revenues will not be recognized for the modules shipped to its own projects as required by U.S. GAAP. The Company maintains its guidance of completed downstream PV projects of between 400MW and 500MW for the year of 2014.


ENF Profile von in diesem Artikel genannten Unternehmen

Trina Solar (Komponenten): https://de.enfsolar.com/trina-solar-1
Trina Solar (Solarmodule): https://de.enfsolar.com/trina-solar-1
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