China Sunergy lowers shipment and revenue forecast on tightened credit from Chinese banks

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Despite increased shipments and sales reported in its second quarter (FY) results, China Sunergy has been forced to lower quarterly and full-year guidance due Chinese banks tightening credit facilities, restricting the company’s ability to purchase materials and products for production.

Stephen Cai, CEO of China Sunergy said in a statement, “There were many positive takeaways for China Sunergy in the second quarter, in terms of our operations and the improving market environment.  However, during the second quarter, Chinese banks significantly tightened credit facilities to solar companies, which caused us to face a constrained working capital and reduced our ability to procure adequate inventory for subsequent production.  As such, we anticipate lower shipment volume and profitability for the third quarter of 2013, and correspondingly, we also anticipate lower total shipment for full year 2013.”

For the third quarter of 2013, China Sunergy guided total shipments would be approximately 110MW including approximately 20MW of solar module processed under OEM arrangement.

However, the scale of the impact of tightening credit facilities from Chinese banks is highlighted in China Sunergy’s FY 2Q shipments, which included 25.7MW of module shipments processed under OEM arrangements and total module shipments of 125.1MW.

The situation is not expected to improve significantly in its FY Q4 as full-year shipment guidance was revised down to between 440MW to 480MW, from the prior range of 500MW to 550MW. Shipments are to remain flat at around 110MW for the next two quarters.

FY 2Q financials

China Sunergy reported total revenue of US$71.9 million, an increase of 16.5% from US$61.7 million in the first quarter of FY2013.

Gross profit was US$6.7 million, and gross margin was 9.3%, compared with gross profit of US$0.3 million and gross margin of 0.4% in the first quarter of 2013.

Net loss attributable to ordinary shareholders fell to US$1.4 million, from US$22.9 million in the preceding quarter. Net loss attributable to ordinary shareholders per ADS improved to US$0.11, compared to net loss per ADS of US$1.71 in the first quarter of FY2013.

Operating cash inflow was reported at US$6.3million, compared to net cash outflow of US$41.7 million in the first quarter of FY2013.

Cash, cash equivalents and restricted cash totalled US$219.8 million, as of June 30, 2013.

Sales

On a regional basis, Germany became the largest market, accounting for 29.1% of total revenue in the quarter, while France, accounted to 28.4% of total revenue. China and Japan, contributed 10.3% and 7.7% of total revenue, respectively.

The company noted that PV module ASP for the second quarter was US$0.63 per watt, which increased by 6.8% compared with that of the last quarter. The higher ASP was said to have due to an improvement in imbalance of supply and demand due to the anti-dumping legislation in the European Union, as well as increased shipments to high pricing regions, such as Australia and US.

Management noted in a conference call to discuss quarterly results that the company was is in discussions with a number of banks to establish new lines of credit as in September banks were feeling less concerned about financial risks of solar companies after the EU anti-dumping case was settled. However, management noted that banks were checking on the financial performance of companies such as China Sunergy on a monthly basis. 

28 July 2021
LONGi has launched its Hi-MO N module, the company's first bifacial module with N-type TOPCon cells, designed to deliver ultra- high value and lower LCOE to utility-scale PV power plants. This PV TechTalk Product Series webinar will provide an overview of the module’s technology and how the introduction of n-type technologies will provide efficiency and performance gains for solar project developers.
29 July 2021
This free webinar will explore the ongoing opportunities in the UK solar PV market, looking at global technology trends and how they apply to the UK. Join us for an overview of the project pipeline and forecast for deployment over the coming years. We'll be looking at the types of modules available and being used in the UK and presenting a case study on the deployment of bifacial modules in this market.
19 August 2021
The utility-scale PV market is poised for exponential growth and yet the industry still has many fundamental opportunities to improve on standards and best practice. Tracker shade loss has been one of those topics that deserve more attention, but has been typically handled by derate factors rather than trying to accurately forecast the loss over the life of the system. Join Nextracker’s subject matter experts, Aron Dobos and Neelesh Umachandran, and Rounak Kharait, director of solar energy assessments at DNV, for a webinar about why shade modeling matters and recommendations on what the solar industry should do about it.
25 August 2021
Energy Next is a new industry exhibition focusing on the latest renewable energy and energy efficiency technology, which will be held for the first time in 2021 in Sydney, Australia alongside the Clean Energy Council’s Australian Clean Energy Summit, the peak gathering of leaders driving Australia's energy transformation. Organised by the same people behind Australia’s largest clean energy event, All-Energy Australia, Energy Next will give visitors two days of access to key suppliers in the industry, free-to-attend professional development and industry workshops, and networking opportunities to better understand clean energy issues and solutions and learn about the latest developments in this transformational, dynamic sector.
25 August 2021
The Intersolar Summit Brasil Nordeste takes place in Fortaleza, Brazil. It addresses leading local and international experts on solar power and renewable energy in the region. The Summit’s mission is to provide in-depth education, enable high-quality networking opportunities, expand the use of PV technologies at regional and national level and strengthen the local PV industry. The Intersolar Summit Brasil Nordeste is organized by Intersolar South America - Latin America’s largest exhibition and conference for the solar industry: Solar Promotion International GmbH, Pforzheim, Freiburg Management and Marketing International GmbH (FMMI) and Aranda Eventos & Congressos Ltda, São Paulo as co-organizer.
25 August 2021
Join us to hear directly from the CTOs and heads-of-research from the top-20 cell/wafer producers to the PV industry today. The event will focus on predicting the key metrics underpinning the next big shift to n-type with answers to the key questions: When will the transition to n-type happen? Which companies will be first to 10 GW capacity and production? Who will be the key equipment suppliers for the new production lines? Which n-type process flow/architecture will emerge as the front-runner? What will polysilicon purity and wafer thickness levels look like for optimized n-type manufacturing? What will the upstream poly/wafer supply-chain look like in 5 years from now?

Read Next

July 23, 2021
As solar continues to proliferate and spread into new markets, the technology is finding itself operating in tougher climates than ever before. PV Tech talks to research institute QEERI to learn more about the heightened risk of soiling in the desert, the growing prominence of abrasion and some surprising results from temperature coefficient testing.
July 23, 2021
China could install up to 65GW of solar this year, driven largely by a surge in demand for distributed solar installations, while average solar deployment could reach 90GW per year in the years leading up to 2025.
July 23, 2021
EDF has secured a contract to lead the development of a 240MWp floating solar project in Laos that will be co-located with a 1.08GW hydropower plant.
July 23, 2021
Polysilicon manufacturer Daqo New Energy has completed its Initial Public Offering (IPO) of its main operational subsidiary Xinjiang Daqo New Energy on the Shanghai Stock Exchange’s Sci-Tech innovation board.
PV Tech Premium
July 23, 2021
A reduction in deployment costs combined with technology gains mean solar-plus-storage is an increasingly attractive option for off-grid mining operations looking to cut emissions. Jules Scully looks at successful case studies and the opportunity ahead.
July 23, 2021
German solar developer and distributor BayWa r.e. has rebranded Enable Energy, which it acquired in September 2020, as BayWa r.e. Power Solutions

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
July 29, 2021
Webinar
Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021