NANJING, China, Jan. 29,
2016 /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,
2015.
Third Quarter 2015 Financial Highlights
- Total revenue was US$111.1
million, an increase of 27.0% from US$87.5 million in the second quarter of 2015.
The revenue for self-branded products totaled US$107.3 million and the revenue for the products
processed under the OEM arrangement was US$2.6 million.
- Shipments totaled 308.9MW, an increase of 67.4%
(124.4MW) from 184.5MW in the second quarter of 2015. Module
shipments, including module processed under OEM arrangement of
54.3MW, were 208.4MW. Cell shipments, including cell processed
under OEM arrangements of 6.1 MW, were 100.5MW.
- Average selling price ("ASP") for the Company's modules,
excluding those processed under OEM arrangements, was US$0.52 per watt, compared with US$0.58 per watt in the second quarter of
2015.
- Gross profit was US$3.3
million and gross margin was 2.9%, compared with gross
profit of US$6.1 million on gross
margin of 6.9% in the second quarter of 2015.
- Net loss attributable to ordinary shareholders was
US$22.0 million, compared with
US$10.5 million in the second quarter
of 2015.
- Net loss attributable to ordinary shareholders per
ADS was US$1.48, compared with
US$0.71 in the second quarter of
2015.
- Cash, cash equivalents and restricted cash totaled
US$120.4 million as of September 30, 2015.
Third Quarter 2015 Financial Review
Total Revenue and Shipments
For the third quarter of 2015, total revenue was US$111.1 million, compared with US$87.5 million in the second quarter of 2015.
The increase in revenue was mainly due to higher shipments in
self-branded solar cells and modules. Revenue from the Company's
self-brand modules and cells business totaled US$107.3 million or 96.5% of the total revenue,
while revenue generated from the modules and cells processed under
OEM arrangement, was US$2.6 million,
or 2.4% of total revenue.
Total shipments for the third quarter of 2015 were 308.9MW, an
increase of 67.4% from 184.5MW in the previous quarter. The
increase in total shipments was primarily resulted from the strong
demand in Chinese market. The total shipments to China increased to 195.5MW in the quarter
ended September 30, 2015, compared
with 48.2MW in the previous quarter. Total module shipments,
including modules processed under OEM arrangement of 54.3MW, were
208.4MW for the third quarter of 2015. Total cell shipments,
including cell processed under OEM arrangements of 6.1 MW, were
100.5MW for the third quarter of 2015.
Sales revenue derived from Asian market accounted for 72.9% of
total revenue in the third quarter of 2015, of which 52.0% of total
revenue was generated from China
and 9.8% of total revenue was derived from India. In addition, sales to European and
American markets represented 17.0% and 8.5% of total revenue in the
quarter ended September 30, 2015.
Sales revenue contributed by Asia,
Europe and America as percentage
of total revenue was 39.3%, 25.2% and 34.4%, respectively in the
quarter ended June 30, 2015.
ASP
ASP for the Company's self-branded modules for the third quarter
of 2015 was US$0.52 per watt,
compared with US$0.58 per watt in the
previous quarter. The decrease of ASP for the third quarter of 2015
was primarily due to higher shipments to lower price regions. ASP
for the Company's self-branded cells during the third quarter of
2015 was US$0.28 per watt, compared
with $0.26 per watt in the previous
quarter.
Wafer and Conversion Costs
Blended wafer costs in the third quarter of 2015 were
US$0.20 per watt and remained flat as
compared to previous quarter. Conversion costs of cells and modules
manufactured in the third quarter of 2015 were US$0.12 and US$0.18
per watt, respectively, compared with US$0.14 and US$0.18
per watt, respectively, in the previous quarter. The two-cent decrease in the conversion costs of
cells was primarily due to the higher output.
Gross Profit and Gross Margin
Gross profit for the third quarter of 2015 was US$3.3 million on gross margin of 2.9%, compared
with gross profit of US$6.1 million
on gross margin of 6.9% for the second quarter of 2015. The
decrease in gross profit and gross margin was primarily due to a
faster rate of decline in average selling price for self-branded
solar modules as compared to the decrease in the products' unit
cost. In addition, a change in geographical mix resulted from
higher shipments to lower-margin markets, combined with gross loss
for the sales of self-branded solar cells contributed to the margin
decrease in the quarter ended September 30,
2015. During the quarter, the unit purchasing price for
wafer increased by approximately 5.6% compared with previous
quarter, which heightened the unit cost of solar cells.
Operating Expenses, Operating Income (Loss) and Net
Loss
Operating expenses increased to US$16.3
million in the third quarter of 2015, from US$13.9 million in the second quarter of 2015.
The sequential increase in operating expenses was primarily due to
the increase in general and administration expenses. During the
third quarter of 2015, general and administration expenses were
US$11.4 million during the third
quarter of 2015, increased by US$2.7
million as compared to US$8.7
million in the second quarter of 2015. The increase was
partly attributable to the increase in bad debt provision of
approximately US$1.6 million.
Loss from operations was US$13.0
million in the third quarter of 2015, compared with loss
from operations of US$7.8 million in
the second quarter of 2015. In addition, the Company had other
expenses of US$1.3 million versus
other income of US$1.7 million in the
previous quarter, which was primarily due to the foreign exchange
loss incurred from the depreciation of RMB against U.S dollar.
Correspondingly, net loss attributable to ordinary shareholders
was US$21.7 million in the third
quarter of 2015, compared with US$10.5
million in the previous quarter.
Amount Due from/to Related Parties
Amount due from related parties totaled US$88.9 million as of September 30, 2015, a decrease of US$1.6 million compared to US$90.5 million as of June
30, 2015. Amount due to related parties totaled US$4.7 million as of September 30, 2015, an increase of US$1.1 million compared to US$3.6 million as of June
30, 2015.
Inventory
Inventories at the end of the third quarter of 2015 totaled
US$72.2 million, a decrease of
US$13.7 million from US$85.9 million at the end of the second quarter
of 2015, which was mainly due to higher shipments during the
quarter.
Advance to suppliers
Advance to suppliers totaled US$20.6
million at the end of the third quarter of 2015, an increase
of US$11.9 million from US$8.7 million at the end of the second quarter
of 2015. The increase was mainly driven by the higher shipments and
strong demand for solar modules.
Accrued expenses and other current liabilities
As of September 30, 2015, accrued
expenses and other current liabilities increased to US$41.2 million from US$26.2 million as of June
30, 2015. The increase in accrued expenses was primarily
resulted from the increase in the accrual of interest expenses of
approximately US$2.2 million. The
increase in other current liabilities was mainly due to the
increased advance from clients of US$12.8
million.
Cash Position
As of September 30, 2015, the
Company had cash and cash equivalents of US$30.9 million, and restricted cash of
US$89.5 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
|
|
Sep 30,
2015
|
Jun 30,
2015
|
Sep 30,
2014
|
|
|
|
|
|
Total
sales
|
111,129
|
87,504
|
63,252
|
|
Cost of goods
sold
|
(107,871)
|
(81,439)
|
(65,649)
|
|
Gross
profit
|
3,258
|
6,065
|
(2,397)
|
|
Operating
expenses:
|
|
|
|
|
Selling
expenses
|
(4,077)
|
(4,224)
|
(2,725)
|
|
General and
administrative expenses
|
(11,425)
|
(8,745)
|
(5,657)
|
|
Research and
development expenses
|
(800)
|
(897)
|
(855)
|
|
Total operating
expenses
|
(16,302)
|
(13,867)
|
(9,237)
|
|
Income(loss) from
operations
|
(13,044)
|
(7,801)
|
(11,634)
|
|
Interest
expense
|
(7,358)
|
(5,660)
|
(7,082)
|
|
Interest
income
|
541
|
1,414
|
1,668
|
|
Other
income/(expenses), net
|
(1,265)
|
1,666
|
(9,478)
|
|
Income(loss)
before income tax
|
(21,126)
|
(10,381)
|
(26,526)
|
|
Income tax
benefit(expense)
|
(568)
|
(112)
|
190
|
|
Net
income(loss)
|
(21,694)
|
(10,493)
|
(26,336)
|
|
Less: non-controlling
interest
|
288
|
21
|
(696)
|
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
(21,982)
|
(10,514)
|
(25,640)
|
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders per ADS
|
|
|
|
|
Basic
|
($1.48)
|
($0.71)
|
($1.73)
|
|
Diluted
|
($1.48)
|
($0.71)
|
($1.73)
|
|
|
|
|
|
Weighted average
ADS outstanding
|
|
|
|
|
Basic
|
14,849,292
|
14,849,292
|
14,849,292
|
|
Diluted
|
14,849,292
|
14,849,292
|
14,849,292
|
|
China Sunergy Co.,
Ltd
|
|
Unaudited
Condensed Consolidated Balance Sheet Information
|
|
(In
US$'000)
|
|
|
|
|
|
Sep 30,
2015
|
Jun 30,
2015
|
Sep 30,
2014
|
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
30,889
|
38,476
|
21,462
|
|
Restricted
cash
|
89,478
|
109,984
|
182,347
|
|
Accounts receivable,
net
|
71,530
|
64,634
|
58,089
|
|
Other receivable,
net
|
13,266
|
30,255
|
24,793
|
|
Project
assets
|
52
|
54
|
8,628
|
|
Inventories,
net
|
72,221
|
85,945
|
69,593
|
|
Advance to suppliers,
net
|
20,565
|
8,701
|
6,922
|
|
Amount due from
related parties
|
88,860
|
90,518
|
74,025
|
|
Current deferred tax
assets
|
1,914
|
1,613
|
2,411
|
|
-
|
-
|
-
|
|
Total current
assets
|
388,775
|
430,180
|
448,270
|
|
Property, plant and
equipment, net
|
207,714
|
214,886
|
228,105
|
|
Prepaid land use
rights
|
22,947
|
23,087
|
23,516
|
|
Deferred tax
assets
|
9,713
|
10,135
|
6,781
|
|
Long-term
investment
|
1
|
1
|
1
|
|
Intangible
assets
|
6
|
6
|
-
|
|
Other long-term
assets
|
4,699
|
4,930
|
5,123
|
|
Total
assets
|
633,855
|
683,225
|
711,796
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term bank
borrowings
|
283,809
|
310,634
|
356,826
|
|
Accounts
payable
|
135,133
|
147,894
|
94,586
|
|
Notes
payable
|
1,063
|
4,364
|
9,483
|
|
Accrued expenses and
other current liabilities
|
41,203
|
26,249
|
22,859
|
|
Income tax
payable
|
4,660
|
4,818
|
3,929
|
|
Amount due to related
parties
|
4,733
|
3,563
|
9,116
|
|
|
|
|
|
Total current
liabilities
|
470,601
|
497,522
|
496,799
|
|
Long-term
debt
|
267,339
|
271,238
|
268,529
|
|
Long-term
payables
|
-
|
-
|
365
|
|
Accrued warranty
costs
|
23,104
|
23,356
|
21,285
|
|
Other
liabilities
|
14,899
|
15,614
|
14,757
|
|
Total
liabilities
|
775,943
|
807,730
|
801,735
|
|
|
|
|
|
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)
|
(366,022)
|
(344,011)
|
(311,295)
|
|
Accumulated other
comprehensive income
|
38,795
|
34,654
|
36,511
|
|
Total equity
attributable to China Sunergy Co. Ltd.
|
(141,833)
|
(123,963)
|
(89,390)
|
|
Non-controlling
interests
|
(255)
|
(542)
|
(549)
|
|
Total
equity
|
(142,088)
|
(124,505)
|
(89,939)
|
|
Total liabilities
and equity
|
633,855
|
683,225
|
711,796
|
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visit:http://www.prnewswire.com/news-releases/china-sunergy-announces-third-quarter-2015-financial-results-300212060.html
SOURCE China Sunergy Co., Ltd.