Dec. 5, 2013 - China Sunergy today announced its financial results for the third quarter ended September 30, 2013.
Mr. Stephen Cai, CEO of China Sunergy, commented, "As anticipated, our third quarter shipment volume slowed and gross margin decreased sequentially, due to the Company's temporarily constrained working capital that required us to take on more OEM business."
"Encouragingly, the tightened credit environment in China has improved in the fourth quarter, and we are once again able to secure additional working capital for operations and other initiatives. Additionally, we are glad to see a continuing positive momentum in the global markets, especially in Asia where favorable government policies and plans fuel strong demand growth."
Third Quarter 2013 Financial Highlights
Total revenue was US$57.1 million, a decrease of 20.6% from US$71.9 million in the second quarter of 2013.
Shipments totaled 112.7MW, a decrease of 10.8% (13.7MW) from 126.4MW in the second quarter of 2013. Module shipments including 21.8MW module processed under OEM arrangements were 112.2MW, or 99.6% of total shipments.
Average selling price ("ASP") for the Company's solar modules, excluding those processed under OEM arrangements, was US$0.62 per watt, a decrease of 1.6% from US$0.63 in the second quarter of 2013.
Conversion cost for cells was US$0.15 per watt, unchanged from the prior quarter. Conversion cost for modules was US$0.22 per watt, an increase of two cents from US$0.20 in the second quarter of 2013.
Gross profit was US$1.7 million, and gross margin was 3.0%, compared with gross profit of US$6.7 million and gross margin of 9.3% in the second quarter of 2013. Non-GAAP[1]gross profit was US$2.6 million, and Non-GAAP gross margin was 4.6%.
Net loss attributable to ordinary shareholders was US$13.2 million, compared with US$1.4 million in the second quarter of 2013. Non-GAAP net loss attributable to ordinary shareholders was US$11.0 million.
Net loss attributable to ordinary shareholders per ADS was US$0.99, compared with US$0.11 in the second quarter of 2013. Non-GAAP net loss attributable to ordinary shareholders per ADS was US$0.83.
Operating cash inflow was US$16.4 million, compared to net cash inflow of US$6.3 million in the second quarter of 2013.
Cash, cash equivalents and restricted cash totaled US$216.4 million, as of September 30, 2013.