China Sunergy reported a net loss, lower total revenues and lower shipments for the first quarter of this year.
The specialized solar cell and module manufacturer and solar developer revealed a net loss of US$9.6 million and the net margin was negative 14.0%, but said both were significantly better than the previous quarter.
Total revenues came to US$68.5 million, a drop of 38.2% compared with the fourth quarter of 2011. Gross profit was US$0.7 million, and gross margin was 1.1%.
Shipments totaled 79.9MW (75.2MW of which were module shipments) in the first quarter, representing a 31.6% decrease over the fourth quarter of 2011. This was at the high end of the company's shipment guidance of between 70MW and 80MW.
Despite the lower figures, the results reflect strong demand in Germany, Australia and Bulgaria, and an overall increase in demand from emerging markets.
Conversion costs of cells and modules realized substantial decreases in the first quarter of 2012 to US$0.19 per watt (down 4 cents, or 17.4%) and US$0.25 per watt (down 2 cents, or 7.4%) compared to the fourth quarter of 2011, respectively.
Stephen Cai, CEO of China Sunergy, said the company’s first quarter results were as expected, and its gross margins are beginning to recover.
“New markets are emerging, and we are positioning the company for a gradual shift in demand from West to East. Despite the fact that oversupply is still a significant problem, global demand is still expected to rise this year.
“In 2012 we will aim to improve the bottom line by optimizing supply chain costs, reducing expenses, and pursuing further technological innovation, and we will expand our investment in downstream projects. We will strive to maintain our position in Western and Eastern Europe and expand our market share in high-potential markets including China, the U.S., Australia, India, Japan and Indonesia."
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