NANJING, China, Sept. 28,
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 first quarter ended March 31,
2015.
First Quarter 2015 Financial Highlights
- Total revenue was US$91.5
million, a decrease of 27.8% from US$126.7 million in the fourth quarter of 2014.
The revenue for self-branded products totaled US$84.3 million and the revenue for the products
processed under the OEM arrangement was US$6.6 million.
- Shipments totaled 191.9 MW, a decrease of 37.2%
(113.5MW) from 305.4 MW in the fourth quarter of 2014. Module
shipments, including module processed under OEM arrangement of 30.6
MW, were 161.6 MW. Cell shipments, including cell processed under
OEM arrangements of 0.4 MW, were 30.3 MW.
- Average selling price ("ASP") for the Company's solar
modules, excluding those processed under OEM arrangements, was
US$0.58 per watt, US$0.01 lower than US$0.59 per watt in the fourth quarter of
2014.
- Gross profit was US$10.3
million and gross margin was 11.3%, compared with gross
profit of US$5.2 million on gross
margin of 4.1% in the fourth quarter of 2014.
- Net lossattributable to ordinary shareholders was
US$12.2 million, compared with
US$10.0 million in the fourth quarter
of 2014.
- Net loss attributable to ordinary shareholders per
ADS was US$0.82, compared with
US$0.67 in the fourth quarter of
2014.
- Cash, cash equivalents and restricted cash totaled
US$179.8 million, as of March 31, 2015.
First Quarter 2015 Financial Review
Total Revenue and Shipments
For the first quarter of 2015, total revenue was US$91.5 million, compared with US$126.7 million in the fourth quarter of 2014.
The decrease in revenue was mainly due to lower total shipments in
both cells and modules during the quarter. Revenue from the
Company's self-brand modules and cells business totaled
US$84.3 million or 92.1% of the total
revenue, while revenue from the modules and cells processed under
OEM arrangements, was US$6.6 million,
or for 7.2% of total revenue.
Total shipments for the first quarter of 2015 were 191.9 MW, a
decrease of 37.2% from 305.4MW in the previous quarter. The
decrease in total shipments was primarily due to the lower
shipments to Chinese and European market as compared with prior
quarter. Total module shipments, including module processed under
OEM arrangement of 30.6 MW, were 161.6 MW for the first quarter of
2015. Total cell shipments, including cell processed under OEM
arrangements of 0.4 MW, were 30.3MW for the first quarter of
2015.
Asia continued to be the
largest market for the Company, accounting for 78.3% of total
revenue in the first quarter of 2015, of which 32.6%, 21.8%, and
23% of total revenue were generated from China, Japan
and India, respectively. Sales to
European and North American markets represented 12.1% and 10% of
total revenue in the first quarter of 2015, respectively.
ASP
ASP for the Company's self-branded modules for the first quarter
was US$0.58 per watt, as compared to
US$0.59 per watt in the previous
quarter. ASP for the Company's self-branded cells during the first
quarter of 2015 was US$0.27 per watt,
compared with $0.31 per watt in the
previous quarter. The decrease in ASP for self-branded cells was
mainly resulted from the weak market condition and the Company's
disposal of some lower conversion rate cells.
Wafer and Conversion Costs
Blended wafer costs in the first quarter of 2015 were
US$0.22 per watt, unchanged from the
previous quarter. Conversion costs of cells and modules
manufactured in the first quarter of 2015 were US$0.13 and US$0.18
per watt, respectively, compared with US$0.12 and US$0.18
per watt, respectively, in the previous quarter. The one-cent increase in the conversion costs of
cells was primarily due to the lower shipments for this
quarter.
Gross Profit and Gross Margin
Gross profit for the first quarter of 2015 was US$10.3 million on gross margin of 11.3%,
compared to gross profit of US$5.2
million on gross margin of 4.1% for the fourth quarter of
2014. The increase in gross profit and gross margin was primarily
due to higher shipments of self-branded modules and lower material
costs. During the quarter, the sales revenue derived from
self-branded modules accounted for 83.4% of total revenue as
compared to 72.9% in the fourth quarter of 2014.
Operating Expenses, Operating Income (Loss) and Net
Loss
Operating expenses decreased 40.0% to US$4.8 million in the first quarter of 2015, from
US$8.0 million in the fourth quarter
of 2014.The sequential decrease in operating expenses was primarily
due to the decrease in selling expenses, general and administration
expenses, and research and development expenses. During the first
quarter of 2015, selling expenses were US$2.7 million, a decrease of US$1.3 million as compared to previous quarter.
The decrease was mainly due to lower shipping costs as a result of
lower total shipments. General and administration expenses were
US$1.4 million during the first
quarter of 2015, decreased by US$1.4
million as compared to US$2.8
million in the fourth quarter of 2014. The reduction was
attributable to the decrease in depreciation expenses and insurance
expenses. Research and development expenses were US$0.7 million, decreased by US$0.5 million compared with US$1.2 million in the fourth quarter of 2014, and
the decrease in research and development expenses was primarily due
to the reduction in the R&D-related material
expenses.
Income from operations was US$5.5
million in the first quarter of 2015, compared with loss
from operations of US$2.8 million in
the fourth quarter of 2014. In addition, the Company had other
expense of US$14.3 million, which was
primarily due to the foreign exchange loss incurred from the
depreciation of RMB against US dollar, Euro against US dollar and
Turkish Lila against US dollar. During the quarter, the foreign
exchange loss resulted from the Company's Turkey based plant was approximately
US$4.3 million. Also, there was
approximately US$10.5 million of
foreign exchange loss contributed by the Company's plants in
mainland China.
Correspondingly, net loss attributable to ordinary shareholders
was US$12.2 million in the first
quarter of 2015, compared with US$10.0
million in the previous quarter.
Amount Due from/to Related Parties
Amount due from related parties totaled US$89.4 million as of March 31, 2015, an increase of US$1.4 million compared to US$88.0 million as of December 31, 2014. Amount due to related parties
totaled US$7.1 million as of
March 31, 2015, a decrease of
US$2.0 million compared to
US$9.1 million as of December 31, 2014.
Inventory
Inventories at the end of the first quarter of 2015 totaled
US$80.4 million, an increase of
US$27.5 million from US$52.9 at the end of December 31, 2014, which is mainly due to lower
shipment during the quarter.
Cash Position
As of March 31, 2015, the Company
had cash and cash equivalents of US$32.4
million, and restricted cash of US$147.4 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.
Contact Information:
China Sunergy Co.,
Ltd.
ZhuoWang
Phone: + 86 25 5276
6696
Email: IR@chinasunergy.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 3 months
ended
|
|
Mar 31, 2015
|
Dec 31, 2014
|
Mar 31, 2014
|
|
|
|
|
Total
sales
|
91,469
|
126,651
|
62,744
|
Cost of goods
sold
|
(81,146)
|
(121,444)
|
(60,432)
|
Gross
profit
|
10,323
|
5,207
|
2,312
|
Operating
expenses:
|
|
|
|
Selling
expenses
|
(2,717)
|
(4,011)
|
(3,209)
|
General and
administrative expenses
|
(1,386)
|
(2,788)
|
(6,398)
|
Research and
development expenses
|
(738)
|
(1,232)
|
(515)
|
Total operating
expenses
|
(4,841)
|
(8,031)
|
(10,122)
|
Income (loss) from
operations
|
5,482
|
(2,824)
|
(7,810)
|
Interest
expense
|
(6,338)
|
(6,854)
|
(6,811)
|
Interest
income
|
1,500
|
1,208
|
1,252
|
Other
income/(expenses), net
|
(14,319)
|
(2,061)
|
(1,244)
|
Income (loss) before
income tax
|
(13,675)
|
(10,531)
|
(14,613)
|
Income tax
benefit (expense)
|
819
|
445
|
(119)
|
Net
income (loss)
|
(12,856)
|
(10,086)
|
(14,732)
|
Less: non-controlling
interest
|
(653)
|
(88)
|
1
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
(12,203)
|
(9,998)
|
(14,733)
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders per ADS
|
|
|
|
Basic
|
($0.82)
|
($0.67)
|
($0.99)
|
Diluted
|
($0.82)
|
($0.67)
|
($0.99)
|
|
|
|
|
Weighted average
ADS outstanding
|
|
|
|
Basic
|
14,849,292
|
14,849,292
|
14,849,292
|
Diluted
|
14,849,292
|
14,849,292
|
14,849,292
|
China Sunergy Co.,
Ltd
|
Unaudited
Condensed Consolidated Balance Sheet Information
|
(In
US$'000)
|
|
Mar 31, 2015
|
Dec 31, 2014
|
Mar 31, 2014
|
Assets
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
32,421
|
42,079
|
30,132
|
Restricted
cash
|
147,400
|
179,396
|
200,267
|
Accounts receivable,
net
|
61,028
|
60,322
|
68,795
|
Other receivable,
net
|
22,647
|
19,310
|
27,762
|
Project
assets
|
-
|
8,222
|
10,343
|
Inventories,
net
|
80,375
|
52,883
|
64,094
|
Advance to suppliers,
net
|
7,401
|
5,882
|
6,411
|
Amount due from
related parties
|
89,373
|
88,048
|
67,549
|
Current deferred tax
assets
|
1,554
|
2,076
|
1,735
|
Assets held for
sale
|
-
|
-
|
28,904
|
Total current
assets
|
442,199
|
458,218
|
505,992
|
Property, plant and
equipment, net
|
216,913
|
226,800
|
228,768
|
Prepaid land use
rights
|
23,230
|
23,374
|
23,803
|
Deferred tax
assets
|
9,698
|
7,492
|
7,831
|
Long-term
investment
|
1
|
1
|
-
|
Other long-term
assets
|
5,022
|
5,007
|
5,410
|
Total
assets
|
697,063
|
720,892
|
771,804
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities
|
|
|
|
Short-term bank
borrowings
|
341,447
|
377,205
|
365,414
|
Accounts
payable
|
122,015
|
90,162
|
86,032
|
Notes
payable
|
9,384
|
13,281
|
27,779
|
Accrued expenses and
other current liabilities
|
21,948
|
18,315
|
17,858
|
Income tax
payable
|
4,257
|
3,445
|
3,718
|
Amount due to related
parties
|
7,077
|
9,121
|
32,988
|
Liability held for
sale
|
-
|
-
|
44
|
Current deferred tax
liability
|
-
|
-
|
7
|
Total current
liabilities
|
506,128
|
511,529
|
533,840
|
Long-term
debt
|
272,092
|
272,348
|
265,340
|
Long-term
payables
|
-
|
367
|
838
|
Accrued warranty
costs
|
22,795
|
22,418
|
20,244
|
Other
liabilities
|
14,610
|
14,721
|
10,308
|
Total
liabilities
|
815,625
|
821,383
|
830,570
|
|
|
|
|
Equity:
|
|
|
|
Ordinary shares: par
value $0.0001; 463,247,600 shares authorized, 267,287,253 shares
issued and outstanding as of December 31, 2013 and 240,701,253
issued and outstanding as of September 30, 2014 and December 31,
2014
|
24
|
24
|
24
|
Additional paid-in
capital
|
185,367
|
185,367
|
185,367
|
Treasury shares (at
par value)
|
3
|
3
|
3
|
Accumulated
profit (deficit)
|
(333,496)
|
(321,293)
|
(279,929)
|
Accumulated other
comprehensive income
|
30,548
|
35,909
|
36,414
|
Total equity
attributable to China Sunergy Co. Ltd.
|
(117,554)
|
(99,990)
|
(58,121)
|
Non-controlling
interests
|
(1,008)
|
(501)
|
(645)
|
Total
equity
|
(118,562)
|
(100,491)
|
(58,766)
|
Total liabilities
and equity
|
697,063
|
720,892
|
771,804
|
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SOURCE China Sunergy Co., Ltd.