Chinese photovoltaic (PV) manufacturer Hanwa SolarOne has become the latest solar company to announce significant losses for 2011.
The company made an operating loss of RMB1bn ($174.2m) for the year, after having recorded a profit of RMB1.2bn ($187m) in 2010.
Its operating margin for the year was a negative 17.1 per cent, compared to a positive 15.7 per cent in the previous year.
Net revenue in 2011 stood at RMB6.4bn ($1bn), a decrease of 15 per cent from 2010's figure of RMB7.5bn ($1.2bn).
The company shipped PV modules with a combined capacity of 844.4MW in 2011, a 5.8 per cent increase from the previous year's volume of 797.7MW.
Ki-Joon Hong, chairman and CEO of Hanwha SolarOne, said, 'The year 2011 was a period of adjustment and consolidation for the industry. Excess capacity throughout the solar value chain, combined with incentive reductions in key markets, drove selling prices down at a rate faster than input costs, resulting in pressure on profitability.
'The business environment will remain challenging for much, if not all, of 2012. Our balance sheet is strong and our access to additional capital remains in place. Looking forward, we believe that lower prices will drive additional demand, the industry will consolidate at an accelerated pace, and we will exit this downturn in a strong competitive position.'
Earlier this month, JinkoSolar announced that it had barely made a profit in 2011 and Suntech revealed a $1bn loss for the year.