China Sunergy posted their financial statements for their third quarter and showed an impressive increase in revenues and gross profit. Revenue for 2010’s third quarter totaled US$125.8 million, which are 57.1% higher than 2009’s third quarter results and 7% higher than 2010’s second quarter. Revenue for solar cell sales during 2010’s third quarter were US$117.8 million; a 72% leap up from third quarter 2009.
China Sunergy’s gross profit also saw an upgrade, finishing the third quarter at US$25.0 million compared to US$8.2 million in 2009’s third quarter and US$23.3 million in the second quarter 2010. Furthermore, the company’s net income for the 2010 third quarter was US$15.4 million, up from US$7.7 million in 2009’s third quarter and US$13.8 million 2010’s second quarter.
Sales from solar cells credited to 93.7% of the company’s total revenue this third quarter, with modules and other sales producing 5.2% and 1.1% of total revenues, respectively. Shipments saw a large acceleration, with China Sunergy posting 87.7MW in shipments for the third quarter 2010, with 3.4MW coming from module sales. During 2009’s third quarter, China Sunergy shipped 54.4MW and 87.3MW during the 2010 second quarter. Their quarter-on-quarter sales for solar power products grew 61.4% when compared with results from third quarter 2009.
China Sunergy did acknowledge that its blended wafer costs were raised from US$0.83 per watt in the second quarter 2010 to US$0.88 per watt in this third quarter. Looking forward though, the company anticipates that during the fourth quarter of 2010, its solar product shipments will post between 102MW and 108MW. Additionally, for the whole of 2010, China Sunergy expects shipments to fall between 350MW and 359MW for their solar products.
Moreover, in what it deems a response to growing industry demand, China Sunergy is predicting that it will reach 400MW of solar cell capacity by the end of 2010 and 680MW of module capacity by the end of 2011’s first quarter.
Stephen Zhifang Cai, CEO of China Sunergy, (pictured) commented, “Two weeks ago, China Sunergy successfully completed the acquisition of the two module manufacturers, demonstrating China Sunergy's significant strategic move to be a fully vertically-integrated manufacturer. The two companies' constant focus on product quality, efforts to strengthen sales and market capabilities, and concentration on massive end-users, enables them to maintain a diversified sales channel as well as a pricing premium in certain markets. Additionally, we continue to see healthy demand in the fourth quarter and beyond, and believe China Sunergy will continue its improvement in 2011.”