Trina Solar Limited today announced its unaudited financial results for the quarter ended March 31, 2016.
First Quarter 2016 Financial and Operating Highlights
- Total module shipments were 1,423.3MW, consisting of 1,370.4MW of external shipments and 52.9MW of shipments to the Company's own downstream power projects. Total module shipments decreased 19.9% sequentially and increased 38.7% year-over-year.
- Net revenues were $816.9 million, a decrease of 15.1% from the fourth quarter of 2015 and an increase of 46.4% from the first quarter of 2015.
- Gross profit was $139.7 million, a decrease of 23.8% from the fourth quarter of 2015 and an increase of 39.2% from the first quarter of 2015.
- Gross margin was 17.1%, compared with 19.1% in the fourth quarter of 2015 and 18.0% in the first quarter of 2015.
- Operating income was $44.8 million, a decrease of 44.9% from the fourth quarter of 2015 and an increase of 53.7% from the first quarter of 2015.
- Net income attributable to Trina Solar's ordinary shareholders was $26.6 million, a decrease of 36.1% from the fourth quarter of 2015 and an increase of 91.3% from the first quarter of 2015.
- Earnings per fully diluted American Depositary Share ("ADS" with each ADS representing 50 of the Company's ordinary shares) were $0.29, compared with earnings per fully diluted ADS of $0.43 in the fourth quarter of 2015 and earnings per fully diluted ADS of $0.16 in the first quarter of 2015.
Mr. Jifan Gao, Chairman and CEO of Trina Solar, commented, "This quarter was a good start to the year. We posted strong year-over-year growth in major financial and operational metrics, particularly with revenue and net income up 46.4% and 91.3%, respectively. Total module shipments during the quarter increased 38.7% year-over-year to 1.42GW, which was largely driven by demand from our key markets in the U.S., China, and India. Our shipments in Europe were up two-fold sequentially as a result of our strategic shift in Europe.
"Our downstream business continued to expand in the global market. We connected a total of 101.7MW of utility projects to the grid during the quarter, bringing the total of grid-connected operating projects to near 1GW. We successfully commissioned five new solar projects in the UK, totaling 24.3MW, and further expanded our presence in Japan by partnering with GE to invest in a 14MW DC utility-scale project, for which we were also awarded a contract to provide engineering, procurement and construction ("EPC") management services, demonstrating our experienced end-to-end capabilities.
"During the quarter we continued expanding our overseas manufacturing capacity in select markets to meet global demand, especially from the US and Europe. This capacity expansion strategy ensures we retain and grow our competitive position in the PV industry as we focus on improving our profitability. In the first quarter, we acquired a cell factory in the Netherlands and also brought our facility in Thailand online as scheduled, using our 'Honey' state-of-the-art high-efficiency assembly line method.
"As a leading innovator of PV technology, we are committed to developing high-efficiency cells and delivering high-quality products. Our R&D team recently achieved a new world record of 23.5% for IBC (Interdigitated Back Contact) cells, raising the total number of world records held by Trina Solar to 13. In addition, we have commercialized our advanced PERC (Passivated Emitter and Rear Cell) technology for high efficiency cells, and our PERC annualized capacity in the quarter has already reached 200MW.
"We are proud of these achievements attained so far in 2016. However, we have no plans to rest. We remain focused on improving our products and business along with developing exciting new technologies, as we continue to strategically position Trina Solar for sustainable long term growth."