China Sunergy reports strong growth

This is due to a market demand, which will continue to grow in the coming quarters, says the company.

In terms of its third quarter financial results, it reported that shipments of its solar power products hit 87.8 MW, which represents an increase of 61.4 percent year-on-year. Revenues grew by 51 percent compared to the third quarter of 2009, to reach USD$125.8 million, while solar cell sales hit USD$117.8 million – a 72.0 percent increase compared to the third quarter of 2009.

Gross profit, on the other hand, was USD$25.0 million compared to a gross profit of USD$8.2 million and USD$23.3 million during the third quarter of 2009 and the second quarter of 2010, respectively. Meanwhile, gross margin was 19.9 percent, compared to 10.2 percent during the third quarter of 2009, and net income was USD$15.4 million, compared to the USD$7.7 million seen in the third quarter of last year.

Commenting, Mr. Stephen Zhifang Cai, CEO of China Sunergy remarked:"Supported by continued strong solar market fundamentals, we are pleased with our solid results in the third quarter as we experienced operational and financial progress, and achieved record shipments, revenues and gross margin in the quarter.

"Two weeks ago, China Sunergy successfully completed the acquisition of the two module manufacturers, demonstrating China Sunergy’s significant strategic move to be a fully vertically-integrated manufacturer. The two companies’ constant focus on product quality, efforts to strengthen sales and market capabilities, and concentration on massive end-users, enables them to maintain a diversified sales channel as well as a pricing premium in certain markets. Additionally, we continue to see healthy demand in the fourth quarter and beyond, and believe China Sunergy will continue its improvement in 2011."

In terms of the fourth quarter of this year, the company anticipates that solar product shipments will be between 102 MW to 108 MW, with a gross margin ranging between 15 percent – 16.5 percent. For the full year 2010, it says it now expects to ship between 350 MW and 359 MW of solar products.