NANJING, China, Nov. 23,
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 second quarter ended June 30,
2015.
Second Quarter 2015 Financial Highlights
- Total revenue was US$87.5
million, a decrease of 4.3% from US$91.5 million in the first quarter of 2015. The
revenue for self-branded products totaled US$86.6 million and the revenue for the products
processed under the OEM arrangement was US$0.9 million.
- Shipments totaled 184.5MW, a decrease of 3.8% (7.4MW)
from 191.9MW in the first quarter of 2015. Module shipments,
including module processed under OEM arrangement of 16.8MW, were
148.9MW. Cell shipments were 35.6MW.
- Average selling price ("ASP") for the Company's modules,
excluding those processed under OEM arrangements, was US$0.58 per watt, unchanged from the previous
quarter.
- Gross profit was US$6.1
million and gross margin was 6.9%, compared with gross
profit of US$10.3 million on gross
margin of 11.3% in the first quarter of 2015.
- Net lossattributable to ordinary shareholders was
US$10.5 million, compared with
US$12.2 million in the first quarter
of 2015.
- Net loss attributable to ordinary shareholders per
ADS was US$0.71, compared with
US$0.82 in the first quarter of
2015.
- Cash, cash equivalents and restricted cash totaled
US$148.5 million as of June 30, 2015.
Second Quarter 2015 Financial Review
Total Revenue and Shipments
For the second quarter of 2015, total revenue was US$87.5 million, compared with US$91.5 million in the first quarter of 2015. The
decrease in revenue was mainly due to lower shipments in OEM
arrangement for solar modules. Revenue from the Company's
self-brand modules and cells business totaled US$86.6 million or 99.0% of the total revenue,
while revenue generated from the modules processed under OEM
arrangement, was US$0.9 million, or
1.0% of total revenue. Since self-branded module and cell
businesses are more profitable than OEM arrangements, and the
Company managed to obtain more self-branded orders in the second
quarter of 2015, the Company actively utilized more capacity for
self-branded modules and cells other than OEM arrangements during
the period.
Total shipments for the second quarter of 2015 were 184.5MW, a
decrease of 3.8% from 191.9MW in the previous quarter. The decrease
in total shipments was primarily resulted from less OEM arrangement
for solar modules. Total module shipments, including modules
processed under OEM arrangement of 16.8MW, were 148.9MW for the
second quarter of 2015. Total self-branded cell shipments were
35.6MW for the second quarter of 2015. The Company did not arrange
OEM orders for solar cells in the second quarter of 2015.
Sales revenue derived from Asian market accounted for 39.3% of
total revenue in the second quarter of 2015 as a result of lower
shipments to China, Japan and India markets, while revenue generated from
American market dramatically increased and accounted for 34.4% of
total revenue. In addition, sales to European market represented
25.2% of total revenue in the quarter ended June 30, 2015.
ASP
ASP for the Company's self-branded modules for the second
quarter of 2015 was US$0.58 per watt,
unchanged from the previous quarter. ASP for the Company's
self-branded cells during the second quarter of 2015 was
US$0.26 per watt, compared with
$0.27 per watt in the previous
quarter.
Wafer and Conversion Costs
Blended wafer costs in the second quarter of 2015 were
US$0.20 per watt, a decrease of
two cents as compared to previous
quarter. Conversion costs of cells and modules manufactured in the
second quarter of 2015 were US$0.14
and US$0.18 per watt, respectively,
compared with US$0.13 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 output.
Gross Profit and Gross Margin
Gross profit for the second quarter of 2015 was US$6.1 million on gross margin of 6.9%, compared
with gross profit of US$10.3 million
on gross margin of 11.3% for the first quarter of 2015. The
decrease in gross profit and gross margin was primarily due to the
decreased average selling price and increased unit cost for the
modules shipped from the Company's plants in mainland China.
Operating Expenses, Operating Income (Loss) and Net
Loss
Operating expenses increased to US$13.9
million in the second quarter of 2015, from US$4.8 million in the first quarter of 2015. The
sequential increase in operating expenses was primarily due to the
increase in selling expenses and general and administration
expenses. During the second quarter of 2015, selling expenses were
US$4.2 million, an increase of
US$1.5 million as compared to
previous quarter. The increase was mainly due to higher shipping
costs occurred at the Company's Turkey plant as a result of its higher
shipments. General and administration expenses were US$8.7 million during the second quarter of 2015,
increased by US$7.3 million as
compared to US$1.4 million in the
first quarter of 2015. The increase was attributable to the
increase in bad debt provision and insurance expenses. The Company
reversed approximately US$4.4 million
of bad debt provision in the first quarter of 2015 caused by the
depreciation of Euro against RMB, which significantly lowered the
total amount of general and administration expenses.
Loss from operations was US$7.8
million in the second quarter of 2015, compared with income
from operations of US$5.5 million in
the first quarter of 2015. In addition, the Company had other
income of US$1.7 million versus other
expenses of US$14.3 million in the
previous quarter, which was primarily due to the foreign exchange
gain incurred from the depreciation of RMB against Euro.
Correspondingly, net loss attributable to ordinary shareholders
was US$10.5 million in the second
quarter of 2015, compared with US$12.2
million in the previous quarter.
Amount Due from/to Related Parties
Amount due from related parties totaled US$90.5 million as of June
30, 2015, an increase of US$1.1
million compared to US$89.4
million as of March 31, 2015.
Amount due to related parties totaled US$3.6
million as of June 30, 2015, a
decrease of US$3.5 million compared
to US$7.1 million as of March 31, 2015.
Inventory
Inventories at the end of the second quarter of 2015 totaled
US$85.9 million, an increase of
US$5.5 million from US$80.4 million at the end of March 31, 2015, which is mainly due to lower
shipment during the quarter.
Cash Position
As of June 30, 2015, the Company
had cash and cash equivalents of US$38.5
million, and restricted cash of US$110.0 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.
Zhuo
Wang
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
|
|
Jun 30,
2015
|
Mar 31,
2015
|
Jun 30,
2014
|
|
|
|
|
Total
sales
|
87,504
|
91,469
|
88,461
|
Cost of goods
sold
|
(81,439)
|
(81,146)
|
(82,961)
|
Gross
profit
|
6,065
|
10,323
|
5,500
|
Operating
expenses:
|
|
|
|
Selling
expenses
|
(4,224)
|
(2,717)
|
(3,224)
|
General and
administrative expenses
|
(8,745)
|
(1,386)
|
(10,403)
|
Research and
development expenses
|
(897)
|
(738)
|
(568)
|
Total operating
expenses
|
(13,867)
|
(4,841)
|
(14,195)
|
Income (loss) from
operations
|
(7,801)
|
5,482
|
(8,695)
|
Interest
expense
|
(5,660)
|
(6,338)
|
(7,172)
|
Interest
income
|
1,414
|
1,500
|
1,476
|
Other
income/(expenses), net
|
1,666
|
(14,319)
|
10,179
|
Changes in fair value
of derivatives
|
-
|
-
|
0
|
Income (loss)
before income tax
|
(10,381)
|
(13,675)
|
(4,212)
|
Income tax benefit
(expense)
|
(112)
|
819
|
(1,131)
|
Net income
(loss)
|
(10,493)
|
(12,856)
|
(5,343)
|
Less: non-controlling
interest
|
21
|
(653)
|
383
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
(10,514)
|
(12,203)
|
(5,726)
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
per ADS
|
|
|
|
Basic
|
($0.71)
|
($0.82)
|
($0.39)
|
Diluted
|
($0.71)
|
($0.82)
|
($0.39)
|
|
|
|
|
Weighted average
ADS outstanding
|
|
|
|
Basic
|
14,849,292
|
14,849,292
|
14,849,292
|
Diluted
|
14,849,292
|
14,849,292
|
14,849,292
|
China Sunergy Co.,
Ltd
|
Unaudited
Condensed Consolidated Balance Sheet Information
|
(In
US$'000)
|
|
|
Jun 30,
2015
|
Mar 31,
2015
|
Jun 30,
2014
|
Assets
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
38,476
|
32,421
|
30,792
|
Restricted
cash
|
109,984
|
147,400
|
201,914
|
Accounts receivable,
net
|
64,634
|
61,028
|
72,874
|
Other receivable,
net
|
30,255
|
22,647
|
25,423
|
Project
assets
|
54
|
-
|
10,460
|
Inventories,
net
|
85,945
|
80,375
|
55,878
|
Advance to suppliers,
net
|
8,701
|
7,401
|
6,401
|
Amount due from
related parties
|
90,518
|
89,373
|
77,156
|
Current deferred tax
assets
|
1,613
|
1,554
|
1,239
|
Total current
assets
|
430,180
|
442,199
|
482,137
|
Property, plant and
equipment, net
|
214,886
|
216,913
|
229,121
|
Prepaid land use
rights
|
23,087
|
23,230
|
23,659
|
Deferred tax
assets
|
10,135
|
9,698
|
7,399
|
Long-term
investment
|
1
|
1
|
1
|
Intangible
assets
|
6
|
1
|
-
|
Other long-term
assets
|
4,930
|
5,021
|
5,267
|
Total
assets
|
683,225
|
697,063
|
747,584
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities
|
|
|
|
Short-term bank
borrowings
|
310,634
|
341,447
|
375,212
|
Accounts
payable
|
147,894
|
122,015
|
88,926
|
Notes
payable
|
4,364
|
9,384
|
18,634
|
Accrued expenses and
other current liabilities
|
26,249
|
21,948
|
16,604
|
Income tax
payable
|
4,818
|
4,257
|
3,767
|
Amount due to related
parties
|
3,563
|
7,077
|
8,644
|
Total current
liabilities
|
497,522
|
506,128
|
511,787
|
Long-term
debt
|
271,238
|
272,092
|
264,029
|
Long-term
payables
|
-
|
-
|
603
|
Accrued warranty
costs
|
23,356
|
22,795
|
20,855
|
Other
liabilities
|
15,614
|
14,610
|
14,790
|
Total
liabilities
|
807,730
|
815,625
|
812,064
|
|
|
|
|
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)
|
(344,011)
|
(333,496)
|
(285,653)
|
Accumulated other
comprehensive income
|
34,654
|
30,548
|
35,898
|
Total equity
attributable to China Sunergy Co. Ltd.
|
(123,963)
|
(117,554)
|
(64,361)
|
Non-controlling
interests
|
(542)
|
(1,008)
|
(119)
|
Total
equity
|
(124,505)
|
(118,562)
|
(64,480)
|
Total liabilities
and equity
|
683,225
|
697,063
|
747,584
|
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SOURCE China Sunergy Co., Ltd.