UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2014

 

Commission File Number: 001-33195

 

TRINA SOLAR LIMITED

 

No. 2 Tian He Road

Electronics Park, New District

Changzhou, Jiangsu 213031

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F  x            Form 40-F  o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  o

 

 

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

TRINA SOLAR LIMITED

 

 

 

 

 

By:

/s/ Jifan Gao

 

 

 

 

Name:

Jifan Gao

 

 

 

 

Title:

Chairman and Chief Executive Officer

 

Date: August 27, 2014

 

[Signature Page to Form 6-K]

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

3


 


Exhibit 99.1

 

 

Trina Solar Announces Second Quarter 2014 Results

 

CHANGZHOU, China, August 26, 2014 — Trina Solar Limited (NYSE: TSL) (“Trina Solar” or the “Company”), a global leader in photovoltaic (“PV”) modules, solutions, and services, today announced its unaudited financial results for the second quarter of 2014.

 

Second Quarter 2014 Financial and Operating Highlights

 

·                  Solar module shipments were 943.3 MW during the second quarter of 2014, compared to 558.0 MW 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 90 MW 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 49.9 MW 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.”

 

1



 

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 943.3 MW, of which 148.7 MW were shipped to the Company’s own downstream power plants in China and the UK, compared to total shipments of 558.0 MW in the first quarter of 2014 and 646.6 MW in the second quarter of 2013. Revenues were not recognized for 148.7 MW 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.

 

2



 

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 90 MW 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 1 GW will be built in multiple phases.

 

The Company started construction of a 120 MW 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 13 MW 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 7.4 MW 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.

 

3



 

International Projects

 

In the UK, the Company intends to sell two PV power plants with a total capacity of 23.8 MW 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 49.9 MW 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 2.0 GW and 1.6 GW respectively, and PV cell and module capacity of approximately 2.7 GW and 3.6 GW, respectively.

 

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

 

Third Quarter and Fiscal Year 2014 Guidance

 

In the third quarter of 2014 the Company expects to ship between 1,060 MW and 1,120 MW of PV modules, of which 130 MW to 150 MW 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 3.6 GW and 3.8 GW, of which 400 MW to 500 MW 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 400 MW and 500 MW for the year of 2014.

 

Conference Call

 

The Company will host a conference call on Tuesday, August 26, 2014 at 8:00 a.m. U.S. Eastern Daylight Time (EDT) (8:00 p.m. Beijing / Hong Kong, August 26, 2014), to discuss results for the second quarter 2014.

 

Joining Jifan Gao, Chairman and CEO of Trina Solar, on the call will be Teresa Tan, Chief Financial Officer, Zhiguo Zhu, Module Business Unit President, and Yvonne Young, Investor Relations Director. The Company plans to distribute its earnings announcement before the call.

 

To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time +1(800)884-2382. International callers should dial +1(660)422-4933. The conference ID for the call is 8857-2157.

 

If you are unable to participate in the call at this time, a replay will be available from 11:30 a.m. EST on August 26th, 2014 through 11:59 p.m. EST on September 12th, 2014. To access the replay, please dial +1(855)859-2056, international callers should dial +1(404)537-3406, and enter the conference ID 8857-2157.

 

4



 

This conference call will be broadcast live over the Internet and can be accessed by all interested parties on Trina Solar’s website www.trinasolar.com. To listen to the live webcast, please go to Trina Solar’s website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Trina Solar’s website for 90 days.

 

About Trina Solar Limited

 

Trina Solar Limited (NYSE:  TSL) is a global leader in PV modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company’s industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words such as “will,” “may,” “expect,” “anticipate,” “aim,” “intend,” “plan,” “believe,” “estimate,” “potential,” “continue,” and other similar statements. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to raise additional capital to finance its activities; the effectiveness, profitability and marketability of its products; our expectations regarding the expansion of the Company’s manufacturing capacities; the Company’s future business development; the Company’s downstream project development and pipeline; the Company’s beliefs regarding its production output and production outlook; the future trading of the securities of the Company; the period of time for which the Company’s current liquidity will enable the Company to fund its operations; general economic and business conditions; demand in various markets for solar products; the volatility of the Company’s operating results and financial condition; the Company’s ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

 

For further information, please contact:

 

Trina Solar Limited

Teresa Tan, CFO

Email: teresa.tan@trinasolar.com

Brunswick Group

Ilse Schache

Email: trina@brunswickgroup.com

Phone: + (86) 10-5960-8600 (Beijing)

Yvonne Young

Head of Investor Relations

Phone: + (86) 519-8517-6878 (Changzhou)

Email: ir@trinasolar.com

 

 

5



 

Trina Solar Limited

Unaudited Condensed Consolidated Statements of Operations

(US dollars in thousands, except ADS and share data)

 

 

 

For the Three Months Ended

 

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

 

 

2014

 

2014

 

2013

 

Net revenues

 

$

519,425

 

$

444,811

 

$

440,725

 

Cost of revenues

 

439,190

 

353,298

 

389,507

 

Gross profit

 

80,235

 

91,513

 

51,218

 

Operating expenses

 

 

 

 

 

 

 

Selling expenses

 

34,275

 

24,186

 

37,279

 

General and administrative expenses

 

25,116

 

24,308

 

33,709

 

Research and development expenses

 

5,145

 

4,774

 

4,085

 

Total operating expenses

 

64,536

 

53,268

 

75,073

 

Operating income (loss)

 

15,699

 

38,245

 

(23,855

)

Foreign exchange gain (loss)

 

2,166

 

1,576

 

(2,626

)

Interest expenses

 

(8,770

)

(9,139

)

(11,507

)

Interest income

 

664

 

460

 

466

 

Gain (loss) on change in fair value of derivative

 

1,168

 

(815

)

451

 

Other income, net

 

1,545

 

2,557

 

2,528

 

Income (loss) before income taxes

 

12,472

 

32,884

 

(34,543

)

Income tax (expense) benefit

 

(2,168

)

(6,411

)

893

 

Net income (loss)

 

10,304

 

26,473

 

(33,650

)

Loss attributable to the noncontrolling interests

 

424

 

35

 

 

Net income (loss) attributable to Trina Solar Limited

 

$

10,728

 

$

26,508

 

$

(33,650

)

Earnings (loss) per ADS*

 

 

 

 

 

 

 

Basic

 

$

0.15

 

$

0.37

 

$

(0.47

)

Diluted

 

$

0.14

 

$

0.37

 

$

(0.47

)

Weighted average ADS outstanding*

 

 

 

 

 

 

 

Basic

 

73,361,347

 

71,180,980

 

70,873,548

 

Diluted

 

76,707,976

 

72,562,435

 

70,873,548

 

 


* “ADS” refers to any of our American depository shares, each representing 50 ordinary shares.

 

6



 

Trina Solar Limited

Unaudited Condensed Consolidated Statements of Comprehensive Income

(US dollars in thousands)

 

 

 

For the Three Months Ended

 

 

 

Jun. 30,

 

Mar. 31,

 

Jun. 30,

 

 

 

2014

 

2014

 

2013

 

Net income (loss)

 

$

10,304

 

$

26,473

 

$

(33,650

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

(746

)

(2,292

)

(172

)

Comprehensive income (loss)

 

9,558

 

24,181

 

(33,822

)

Comprehensive loss attributable to non-controlling interests

 

421

 

112

 

 

Comprehensive income (loss) attributable to Trina Solar Limited

 

$

9,979

 

$

24,293

 

$

(33,822

)

 

7



 

Trina Solar Limited

Unaudited Condensed Consolidated Balance Sheets

(US dollars in thousands)

 

 

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

 

 

2014

 

2014

 

2013

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

452,156

 

$

463,511

 

$

486,686

 

Restricted cash

 

110,517

 

114,190

 

74,720

 

Inventories

 

451,218

 

426,683

 

244,532

 

Project assets, current portion

 

47,164

 

39,640

 

73,305

 

Accounts receivable, net

 

457,812

 

347,439

 

435,092

 

Current portion of advances to suppliers, net

 

58,771

 

63,911

 

68,253

 

Prepaid expenses and other current assets, net

 

132,985

 

117,576

 

139,113

 

Total current assets

 

1,710,623

 

1,572,950

 

1,521,701

 

Property, plant and equipment, net

 

1,019,506

 

898,197

 

889,752

 

Project assets, net of current portion

 

1,980

 

5,730

 

6,097

 

Land use rights, net

 

48,532

 

48,821

 

43,287

 

Advances to suppliers, net of current portion

 

35,041

 

39,966

 

41,908

 

Investment in equity affiliates

 

11,620

 

11,770

 

11,770

 

Deferred income tax assets, net

 

47,188

 

46,343

 

50,901

 

Other noncurrent assets

 

5,645

 

1,223

 

1,813

 

TOTAL ASSETS

 

$

2,880,135

 

$

2,625,000

 

$

2,567,229

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Short-term borrowings, including current portion of long-term borrowings

 

$

669,472

 

$

877,138

 

$

935,590

 

Accounts payable

 

728,730

 

536,862

 

476,533

 

Accrued expenses and other current liabilities

 

161,517

 

135,186

 

128,420

 

Total current liabilities

 

$

1,559,719

 

1,549,186

 

1,540,543

 

Long-term bank borrowings, excluding current portion

 

105,223

 

105,405

 

100,502

 

Convertible senior notes

 

172,500

 

 

 

Accrued warranty costs

 

89,977

 

85,079

 

81,743

 

Other noncurrent liabilities

 

20,201

 

20,945

 

21,962

 

Total liabilities

 

1,947,620

 

1,760,615

 

1,744,750

 

Ordinary shares

 

41

 

36

 

36

 

Additional paid-in capital

 

719,814

 

664,922

 

663,388

 

Retained earnings

 

180,605

 

169,877

 

143,369

 

Accumulated other comprehensive income

 

12,440

 

13,189

 

15,403

 

Total Trina Solar Limited shareholders’ equity

 

912,900

 

848,024

 

822,196

 

Non-controlling interests

 

19,615

 

16,361

 

283

 

Total equity

 

932,515

 

864,385

 

822,479

 

TOTAL LIABILITIES AND EQUITY

 

$

2,880,135

 

$

2,625,000

 

$

2,567,229

 

 

8