China Sunergy publishes belated Q1 results

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The major challenges facing CSun have not abated, with the latest delayed quarterly report showing the company is continuing to record losses along with decreasing revenues. CSun’s Q1 2015 financials, reported today, show a loss of $12.2 million, an increase on $10 million recorded in Q4 2014.

Revenues were also down for CSun in Q1 2015, down 27.8% Q/Q on shipments of 191.9 MW, itself down 37.2% Q/Q.

While some Chinese producers are adding production capacity, CSun appears to be decreasing output, with total shipments down 37.2% Q/Q. CSun attributes the decline to reduced shipments to Europe and China. Asia remains the company’s largest market, accounting for 78.3% of total Q1 revenues, with key national markets being China (32.6%), India (23%) and Japan (21.8%).

In August CSun announced it would supply 260 MW of modules to the China Power Investment Corporation, under a 12-month deal.

CSun is involved in both OEM and branded production of PV modules, with the company shipping 161.6 MW in the quarter, of which 30.6 MW were on an OEM basis. CSun operates module assembly facilities in both China and Turkey. It was one of the first Chinese companies to move operations overseas, in what is today a much larger trend. The producer sold 30.3 MW of cells in Q1.

CSun reports that it ended Q1 2015 with cash and cash equivalents of $32.4 million, and restricted cash of $147.4 million.

Average selling prices for CSun also declined, albeit only slightly, in Q1 2015. Modules were sold at an average of $0.58/W, down $0.01/W, with cells averaging $0.27, down $0.03/W. Unfortunately for CSun production costs have not followed suit, and increased slightly due to lower utilization.

In a bright spot, CSun was able to decrease operating expenses in Q1, down 40% to $4.8 million, from $8 million in Q4 2014.

Towards the end of 2014, CSun went through a number of major changes, with CEO Stephan Zhifang Cai and CFO Yongfei Chen resigning. Company founder and chairman Tingxiu Lu returned as CEO. On reassuming the role Tingxiu Lu appointed a new auditor, to which the delayed publishing of quarterly results has been attributed.