China Sunergy cuts Q2 loss to USD 1.4m

Nov 7, 2013 - Solar cell and module maker China Sunergy Co Ltd (NASDAQ:CSUN) today reported a net loss of USD 1.4 million (EUR 1m) for the second quarter of 2013, narrowing from USD 30.3 million a year ago.

Non-GAAP loss contracted to USD 3.4 million from USD 26.8 million. Chief executive Stephen Cai said that performance for the period improved thanks to higher revenues and shipments as well as the stabilising average selling prices (ASPs) for wafers and modules and revived demand. The company expects to further bolster its sales in Europe and emerging markets thanks to its factory in Turkey.

China Sunergy’s gross margin arrived at 9.3%, compared to only 0.4% in the first quarter of this year. This sequential jump was the result of higher ASPs, reduced inventory provisions and cost-cutting efforts at the manufacturing level. Selling prices gained 6.8% from the first to the second quarter reaching USD 0.63/watt.

Revenue fell to USD 71.9 million from USD 110.4 million a year ago, but grew 16.5% quarter-on-quarter. Of the total, 29.1% came from Germany, while France was the company’s second most important market with a share in total sales of 28.4%. China and Japan followed with 10.3% and 7.7%, respectively.

Total April-June shipments for China Sunergy amounted to 126.4 MW.

(USD 1 = EUR 0.740)

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