Though a pick-up in demand was seen late in the third quarter, weak demand, pricing pressure and inventory build have impacted China Sunergy. Revised guidance puts module shipments down by as much as 55MW compared to previous guidance, while gross margins are expected to be negative to the tune of around 14%.
China Sunergy reported revised module shipments to be in the range of 115MW, compared to previous guidance of between 140MW and 160MW.
Gross margin was previously expected to be in the range of 4% to 5%.
‘Industry-wide pressure on average selling prices (ASPs) and high level inventory at quarter end led to higher than expected inventory provisions and gross margins being significantly lower than previous guidance,’ said in a statement.