China Sunergy posts USD-13.2m Q3 loss

Dec 5, 2013 - Solar cell and module maker China Sunergy Co Ltd (NASDAQ:CSUN) today said its third-quarter 2013 net loss had expanded to USD 13.2 million (EUR 9.7m) from USD 1.4 million in the preceding quarter.

A year ago the net result was a deficit of USD 23.2 million.

The company explained that its shipments and gross margin for the July-September period of 2013 have declined, as expected, as it faced constrained working capital and was unable to procure adequate inventory for subsequent production. For that reason the company had to relay more on its original equipment manufacturer (OEM) operations. “Encouragingly, the tightened credit environment in China has improved in the fourth quarter, and we are once again able to secure additional working capital for operations and other initiatives,” said chief executive Stephen Cai. Market conditions are also improving, especially in Asia.

Gross margin for the reporting quarter fell to 3% from 9.3% in April-June 2013.

China Sunergy’s revenues went down by 20.6% quarter-on-quarter to USD 57.1 million mainly as a result of a decrease in shipments and lower average selling prices. A year earlier the top line result was USD 59.5 million. Shipments stood at 112.7 MW, down by 10.8% from the second quarter. Asia accounted for 63.2% of all shipments, including modules processed under OEM deals. India, China and Japan were the other three most important markets for China Sunergy with shares of total shipments standing at 24%, 23.1% and 16.1%, respectively.

At the end of September, the company has USD 31.5 million in cash and cash equivalents and USD 184.9 million in restricted cash.

(USD 1 = EUR 0.736)

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