China Sunergy’s net loss narrows to USD 10.5m in Q2 2015

Solar cell and module maker China Sunergy Co Ltd (NASDAQ:CSUN) on Monday said its attributable net loss has contracted to USD 10.5 million (EUR 9.9m) in the second quarter of 2015 due to foreign exchange gains.

The result compares to a deficit of USD 12.2 million in January-March 2015. Although Sunergy’s operating expenses increased significantly quarter-on-quarter, the depreciation of the Chinese yuan against the euro had a positive impact on its bottom line result.

In year-on-year terms, however, the net loss expanded from USD 5.7 million.

Meanwhile, China Sunergy’s second-quarter gross margin fell to 6.9% from 11.3% in the first quarter of 2015, hurt by lower average selling prices (ASP) and higher unit costs for modules shipped from the company's plants in mainland China.

Revenues for the reporting period dropped to USD 87.5 million from USD 88.5 million a year ago and from USD 91.5 million three months ago. The main reason for the sequential decrease is a 3.8% drop in China Sunergy’s shipments to 184.5 MW on account of fewer original equipment manufacturer (OEM) arrangements for solar modules. The shipments volume included 148.9 MW of modules and 35.6 MW of cells.

In April-June 2015, Asia accounted for 39.3% of the company’s revenues, while the American market brought 34.4%. Europe has a 25.2% share.

(USD 1.0 = EUR 0.941)

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