NANJING, China, June 12,
2015 /PRNewswire/ -- China Sunergy Co., Ltd. (NASDAQ: CSUN)
("China Sunergy" or "the Company"), a specialized solar cell and
module manufacturer, today announced its financial results for the
third quarter ended September 30,
2014.
Third Quarter 2014 Financial Highlights
- Total revenue was US$63.3
million, a decrease of 28.5% from US$88.5 million in the second quarter of 2014.
The revenue for self-branded products totaled US$60.2 million and the revenue for the products
processed under the OEM arrangement was US$1.5 million.
- Shipments totaled 137.8MW, a decrease of 25.3% (46.7MW)
from 184.5MW in the second quarter of 2014. Module shipments,
including module processed under OEM arrangement of 5.4MW, were
76.2MW. Cell shipments, including cell processed under OEM
arrangements of 11.3MW, were 61.6MW.
- Average selling price ("ASP") for the Company's solar
modules, excluding those processed under OEM arrangements, was
US$0.63 per watt, US$0.03 lower than US$0.66 per watt in the second quarter of
2014.
- Gross losses were US$2.4
million and gross margin was negative 3.8%, compared gross
profit of US$5.5 million on gross
margin of 6.2% in the second quarter of 2014.
- Net loss attributable to ordinary shareholders was
US$25.6 million, compared with
US$5.7 million in the second quarter
of 2014.
- Net loss attributable to ordinary shareholders per
ADS was US$1.73, compared with
US$0.39 in the second quarter of
2014.
- Cash, cash equivalents and restricted cash totaled
US$203.8 million, as of September 30, 2014.
Third Quarter 2014 Financial Review
Total Revenue and Shipments
For the third quarter of 2014, total revenue was US$63.3 million, compared with US$88.5 million in the second quarter of 2014.
The decrease in revenue was mainly due to a combination of lower
total shipments and lower ASP in both cells and modules during the
quarter. Revenue from the Company's self-brand modules and cells
business totaled US$60.2 million or
95.1% of the total revenue, while revenue from the modules and
cells processed under OEM arrangements, was US$1.5 million, or for 2.4% of total revenue.
Total shipments for the third quarter of 2014 were 137.8MW, a
decrease of 25.3% from 184.5MW in the previous quarter. The
decrease in total shipment was primarily due to the lower shipments
to France and India as compared with prior quarter. Total
module shipments, including module processed under OEM arrangement
of 5.4MW, were 76.2MW for the third quarter of 2014. Total cell
shipments, including cell processed under OEM arrangements of
11.3MW, were 61.6MW for the third quarter of 2014.
Asia continued to be the
largest market for the Company, accounting for 71.5% of total
revenue in the third quarter of 2014, of which 50.6% of total
revenue was generated from China
market and 17.1% of total revenue was contributed by Japan. Sales to European markets represented
23.3% of total revenue in the third quarter of 2014, with
France contributing 7.0% of total
revenue.
ASP
ASP for the Company's self-branded modules for the third quarter
was US$0.63 per watt, as compared to
US$0.66 per watt in the previous
quarter. The decrease in module ASP was primarily due to higher
shipments into low-price regions, including China. ASP for the Company's self-branded
cells during the third quarter of 2014 was US$0.31 per watt, compared with $0.32 per watt in the previous quarter.
Wafer and Conversion Costs
Blended wafer costs in the third quarter of 2014 were
US$0.24 per watt, unchanged from the
previous quarter. Conversion costs of cells and modules
manufactured in the third quarter of 2014 were US$0.16 and US$0.21
per watt, respectively, compared with US$0.14 and US$0.19
per watt, respectively, in the previous quarter. The two-cent increase in the Company's conversion
costs was primarily due to the lower shipments and capacity
utilization for this quarter.
Gross Profit and Gross Margin
Gross losses for the third quarter were US$2.4 million on gross margin of negative 3.8%,
compared to gross profit of US$5.5
million on gross margin of 6.2% for the second quarter of
2014. The decrease in gross profit and gross margin was due to a
combination of the decrease in total revenue and the increase of
cost of sales.
Operating Expenses, Operating Loss and Net
Loss
Operating expenses decreased 35.2% to US$9.2 million in the third quarter of 2014, from
US$14.2 million in the second quarter
of 2014.The sequential decrease in operating expenses was primarily
due to a US$4.7 million reduction in
general and administration expenses. During the third quarter of
2014, general and administration expenses were US$5.7 million, the reduction of which was
partially attributable to the reversal of bad debt provision of
US$3.4 million, compared with a bad
debt provision of US$3.2 million
accrued in the previous quarter.
Loss from operations was US$11.6
million in the third quarter of 2014, compared with
US$8.7 million in the second quarter
of 2014. In addition, the Company had other expense of US$9.5 million, which was primarily due to the
foreign exchange loss from the depreciation of Euro against RMB,
while the Company generated other operating income of US$10.2 million during the second quarter of 2014
due to the disposal of one idle subsidiary of the Company.
Correspondingly, net loss attributable to ordinary shareholders
was US$25.6 million in the third
quarter of 2014, compared with US$5.7
million in the previous quarter.
Amount Due from/to Related Parties
Amount due from related parties totaled US$74.0 million as of September 30, 2014, a decrease of US$3.2 million compared to US$77.2 million as of June30, 2014. Amount due to
related parties totaled US$9.1
million as of September 30,
2014, an increase of US$0.5
million compared to US$8.6
million as of June30, 2014.
Inventory
Inventories at the end of the third quarter of 2014 totaled
US$69.6 million, an increase of
US$13.7 million from US$55.9 at the end of June
30 2014, which is mainly due to lower shipment during the
quarter.
Cash Position
As of September 30, 2014, the
Company had cash and cash equivalents of US$21.5 million, and restricted cash of
US$182.3 million.
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. (NASDAQ:CSUN) designs, manufactures and
delivers high efficiency solar cells and modules to the world from
its production centers based in China and Turkey. China Sunergy also invests in high
potential solar projects. Founded in 2004, China Sunergy is well
known for its advanced solar cell technology, reliable product
quality, and excellent customer service.
For more information, please visit
http://www.csun-solar.com.
Investor and Media Contacts:
|
China Sunergy Co.,
Ltd.
|
|
ZhuoWang
|
|
Phone: + 86 25 5276
6696
|
|
Email:
IR@chinasunergy.com
|
|
|
Asia Bridge Group
Limited
|
|
Wendy Sun
|
|
Phone: + 86 10 8556
9033
|
|
Email:
wendy.sun@asiabridgegroup.com
|
Safe Harbor Statement
This announcement may contain forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical facts in this announcement are forward-looking
statements. These forward-looking statements are based on current
expectations, assumptions, estimates and projections about the
Company and the industry, and involve known and unknown risks and
uncertainties, including but not limited to, the Company's failure
to maintain its listing qualification due to, among other things,
volatility in the Company's ADS price; the Company's ability to
raise additional capital or renew existing bank borrowings as they
become due to finance the Company's activities; the Company's
customers' financial condition and creditworthiness, and their
ability to settle accounts receivables; the effectiveness,
profitability, and the marketability of its products; litigations
and other legal proceedings, including any decisions by the US
International Trade Committee and Department of Commerce on the
petitions filed; the economic slowdown in China and elsewhere and its impact on the
Company's operations; demand for and selling prices of the
Company's products, execution of our strategy to expand into
downstream solar power businesses, the future trading of the common
stock of the Company; the ability of the Company to operate as a
public company; the Company's ability in maintaining its liquidity;
the period of time for which its current liquidity will enable the
Company to fund its operations; the Company's ability to protect
its proprietary information; general economic and business
conditions; 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; future shortage or availability of the supply of raw
materials; impact on cost-competitiveness as a result of entering
into long-term arrangements with raw material suppliers and other
risks detailed in the Company's filings with the Securities and
Exchange Commission. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events
or circumstances, or to 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 its expectations will turn
out to be correct, and investors are cautioned that actual results
may differ materially from the anticipated results.
The following financial information is extracted from the
Company's condensed consolidated financial statements for the
respective periods.
|
China Sunergy Co.,
Ltd
|
|
Unaudited
Condensed Consolidated Income Statement Information
|
|
(In US$'000,
except ADS and per ADS data)
|
|
|
|
For the three months
ended
|
|
Sep 30,
2014
|
Jun 30,
2014
|
Sep 30,
2013
|
|
Total
sales
|
63,252
|
88,461
|
57,084
|
|
Cost of goods
sold
|
(65,649)
|
(82,961)
|
(55,358)
|
|
Gross
profit
|
(2,397)
|
5,500
|
1,726
|
|
Operating
expenses:
|
|
|
|
|
Selling
expenses
|
(2,725)
|
(3,224)
|
(4,841)
|
|
General and
administrative expenses
|
(5,657)
|
(10,403)
|
(8,419)
|
|
Research and
development expenses
|
(855)
|
(568)
|
(1,518)
|
|
Total operating
expenses
|
(9,237)
|
(14,195)
|
(14,778)
|
|
Income(loss) from
operations
|
(11,634)
|
(8,695)
|
(13,052)
|
|
Interest
expense
|
(7,082)
|
(7,172)
|
(7,086)
|
|
Interest
income
|
1,668
|
1,476
|
1,723
|
|
Other
income/(expenses), net
|
(9,478)
|
10,179
|
3,577
|
|
Income(loss)
before income tax
|
(26,526)
|
(4,212)
|
(14,838)
|
|
Income tax
benefit(expense)
|
190
|
(1,131)
|
1,249
|
|
Net
income(loss)
|
(26,336)
|
(5,343)
|
(13,589)
|
|
Less: non-controlling
interest
|
(696)
|
383
|
(413)
|
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
(25,640)
|
(5,726)
|
(13,176)
|
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
per ADS
|
|
|
|
|
Basic
|
($1.73)
|
($0.39)
|
($0.99)
|
|
Diluted
|
($1.73)
|
($0.39)
|
($0.99)
|
|
|
|
|
|
Weighted average
ADS outstanding
|
|
|
|
|
Basic
|
14,849,292
|
14,849,292
|
13,372,292
|
|
Diluted
|
14,849,292
|
14,849,292
|
13,372,292
|
|
China Sunergy Co.,
Ltd
|
|
Unaudited
Condensed Consolidated Balance Sheet Information
|
|
(In
US$'000)
|
|
|
|
Sep 30,
2014
|
Jun 30,
2014
|
Sept 30,
2013
|
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
21,462
|
30,792
|
31,485
|
|
Restricted
cash
|
182,347
|
201,914
|
184,943
|
|
Accounts receivable,
net
|
58,089
|
72,874
|
67,556
|
|
Other receivable,
net
|
24,793
|
25,423
|
18,081
|
|
Project
assets
|
8,628
|
10,460
|
19,744
|
|
Inventories,
net
|
69,593
|
55,878
|
65,622
|
|
Advance to suppliers,
net
|
6,922
|
6,401
|
10,596
|
|
Amount due from
related parties
|
74,025
|
77,156
|
99,791
|
|
Current deferred tax
assets
|
2,411
|
1,239
|
1,816
|
|
|
|
|
|
Total current
assets
|
448,270
|
482,137
|
499,634
|
|
Property, plant and
equipment, net
|
228,105
|
229,121
|
219,786
|
|
Prepaid land use
rights
|
23,516
|
23,659
|
27,870
|
|
Deferred tax
assets
|
6,781
|
7,399
|
7,147
|
|
Long-term
Investment
|
1
|
1
|
413
|
|
Other long-term
assets
|
5,123
|
5,267
|
1,634
|
|
Total
assets
|
711,796
|
747,584
|
756,484
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term bank
borrowings
|
356,826
|
375,212
|
422,010
|
|
Accounts
payable
|
94,586
|
88,926
|
127,383
|
|
Notes
payable
|
9,483
|
18,634
|
36,499
|
|
Accrued expenses and
other current liabilities
|
22,858
|
16,604
|
26,113
|
|
Income tax
payable
|
3,929
|
3,767
|
2,629
|
|
Amount due to related
parties
|
9,116
|
8,644
|
12,487
|
|
Current deferred tax
liability
|
0
|
0
|
60
|
|
Total current
liabilities
|
496,799
|
511,787
|
627,181
|
|
Long-term
debt
|
268,529
|
264,029
|
131,935
|
|
Long-term
payables
|
365
|
603
|
|
|
Accrued warranty
costs
|
21,285
|
20,855
|
19,533
|
|
Other
liabilities
|
14,757
|
14,790
|
9,686
|
|
Total
liabilities
|
801,735
|
812,064
|
788,335
|
|
|
|
|
|
Equity:
|
|
|
|
|
Ordinary shares: par
value $0.0001; 463,247,600 shares
authorized, 267,287,253 shares issued and outstanding
as of
September 30, 2013 and 240,701,253 issued and
outstanding as of June 30, 2014 and September 30,
2014
|
24
|
24
|
27
|
|
Additional paid-in
capital
|
185,367
|
185,367
|
185,367
|
|
Treasury shares (at
par value)
|
3
|
3
|
0
|
|
Accumulated
profit(deficit)
|
(311,295)
|
(285,653)
|
(252,033)
|
|
Accumulated other
comprehensive income
|
36,511
|
35,898
|
35,301
|
|
Total equity
attributable to China Sunergy Co. Ltd.
|
(89,390)
|
(64,361)
|
(31,338)
|
|
Non-controlling
interests
|
(549)
|
(119)
|
(513)
|
|
Total
equity
|
(89,939)
|
(64,480)
|
(31,851)
|
|
Total liabilities
and equity
|
711,796
|
747,584
|
756,484
|
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visit:http://www.prnewswire.com/news-releases/china-sunergy-announces-third-quarter-2014-financial-results-300098304.html
SOURCE China Sunergy Co., Ltd.