China Sunergy released its Q1 2012 results for which the company saw an expected net loss and shipments reaching the high end of previous guidance. Revenue for the quarter was US$68.5 million, a 38.2% drop from Q4 2011 results. The company noted that the decrease in revenue was due to a combination of falling ASP’s and shipments.
Sales from modules totalled US$64.7 million, accounting for 94.5% of its total revenue. Shipments for the quarter were 79.9MW, which included 75.2MW of solar modules. Although module shipments were finalized as being in the high end of the company’s previous guidance, the numbers still reflect a 31.6% decrease over Q4. China Sunergy noted that the European market made up for the greatest part of its revenue. Italy led the way accounting for 22% of sales, followed by Australia (18%), Bulgaria (14%) and Germany (12%).
Gross profit for Q1 was US$0.7 million, an increase from Q4’s US$0.5 million. Gross margin also fell within the company’s previously stated guidance and was finalized at 1.1%. China Sunergy advised that its net loss was US$9.6 million while its net margin was -14%, both numbers representing an improvement from Q4 figures.
Stephen Cai, CEO of China Sunergy, commented, “China Sunergy's first quarter results were just as expected, and our 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 US, Australia, India, Japan and Indonesia.”
China Sunergy anticipates that weak market demand and industry oversupply will continue in Q2, and beyond, affecting its business for the first half of the year. Its guidance for Q2 2012 sees it anticipating shipments between 145MW and 155MW while gross margin is anticipated to be in the mid-single-digit level of around 5%. A net loss is once again forecasted for Q2. In regards to the full year, China Sunergy reiterated its estimate of total shipments between 500MW and 550MW.