China Sunergy has reported falling revenues and shipments in its delayed Q2 2015 results, as it pivots away from OEM production towards shipments of branded cells and modules. The company has seen good revenue growth from North America and strong sales in Europe, while its Asian shipments have decreased.
CSun shipped 184.5 MW of PV products in Q2, down 3.8% on Q1 2015 results, with revenues also falling to $87.5 million, down 4.3% Q/Q. CSun branded module ASPs did not change Q/Q, however cell ASPs fell by $0.01 Q/Q.
CSun has attributed the fall in revenues to reduced OEM shipments, with only 1% ($900,000) of total revenue coming from OEM module production, while it shipped no OEM cells in the quarter. The company shipped 148.9 MW of CSun modules in Q2, and 35.6 MW in cells.
Geographically, Asia remained CSuns largest market in Q2, accounting for 39.3% of its revenues, while the American market attributed 34.4% of revenues in Q2 and Europe 25.2%. CSun operates was one of the first Chinese manufacturers to move into production outside of China, therefore circumventing some tariffs and duties in place on exports from China to the U.S. and Europe.
In terms of costs, CSun has reported falling wafer production costs, down $0.02/wafer Q/Q to $0.20, while cell costs rose by the same amount to $0.14 and module production remained steady at $0.18.
Increasing selling and general administration expenses increased markedly Q/Q to $13.9 million in Q2, up from $4.8 million. CSun has attributed to this partly to increased shipping costs from its Turkey module assembly and an increase of $7.3 million in costs related to bad debt provision and insurance expenses.
CSun closed the quarter with inventories worth $85.9 million, up by $5.5 million Q/Q. It had cash and cash equivalents of $38.5 million and restricted cash of $110 million. CSun carried debt of $90.5 million as of June 30.