Nov 20 2007
China Sunergy Announces Financial Results for the Third Quarter 2007
China Sunergy Co., Ltd. (Nasdaq: CSUN), a specialized solar cell manufacturer based in Nanjing, China, announced today its financial results for the third quarter 2007.
Quarterly Results:
-- Revenues grew 33.1% on a year-over-year basis, and declined 12.9%
sequentially to US$49.0 million; although core cell revenue increased
15.5% sequentially from US$40.1 million to US$46.3 million.
-- Gross profit and gross margin were US$1.0 million and 2.1%,
respectively.
-- Quarterly net loss was US$4.4 million.
-- GAAP basic and diluted net loss attributable to holders of ordinary
shares was $0.11 per ADS.
-- Shipments amounted to approximately 16.6 megawatts (MW), representing a
48.5% increase year-over-year and an 8% increase sequentially.
-- Quarterly production of 17.8 MW of solar cells represented a 39%
increase on a year-over-year basis and a decline of 11% sequentially.
"China Sunergy continued to face a tight polysilicon supply environment during the quarter, and despite proactive efforts to address these challenges, our results were still negatively impacted," remarked Mr. Tingxiu Lu, Chairman of China Sunergy. "While we made important progress for the long-term by solidifying our supply chain and diversifying our customer base geographically, we do expect short-term pressures to remain."
Third Quarter and Recent Operational Highlights:
-- Mass commercial production of high-efficiency selective emitter cells
commenced in mid-November.
-- Average selective emitter efficiency continued to improve from 16.5% in
the third quarter to 17.1% in October and 17.5% for the month-to-date
November 2007.
-- A maximum conversion efficiency of 18.2% was achieved on pilot runs of
selective emitter cells during November 2007.
-- A 68MW wafer supply agreement and a 106 metric ton (MT) virgin
polysilicon supply contract were signed for the remainder of 2007, 2008
and 2009;
-- A 30MW solar cell sales agreement was signed for 2008; and
-- Significant progress made developing sales in overseas markets,
particularly Europe.
"Although I am largely not satisfied with our financial performance during the third quarter, I am excited with the important advances with our selective emitter technology and the significant steps taken to strengthen our company for the future, such as the signing of supply and sales agreements. I believe all these initiatives form a solid foundation for 2008 and beyond," commented Allen Wang, CEO of China Sunergy.
For further information, please contact:
China Sunergy
Fischer Chen
Email: fischer.chen@chinasunergy.com
Financial Dynamics
Julian Wilson
Tel: +86-10-5811-1902
Email: julian.wilson@fd.com
Michael Polyviou
Tel: +1-212-850-5748
Email: michael.polyviou@fd.com
