Struggling PV module manufacturer China Sunergy (CSUN) has reported a first quarter 2015 net loss of US$12.2 million as revenue fell 27.8% and shipments declined 37.2% from the prior quarter.
Despite a positive operating income of US$5.5 million in the first quarter, compared with loss from operations of US$2.8 million in the fourth quarter of 2014, CSUN was also impacted by the depreciation of RMB against US dollar, Euro against US dollar and Turkish Lila against US dollar to the tune of a US$14.3 million expense.
The foreign exchange loss related to its Turkey-based cell/module plant was approximately US$4.3 million and around US$10.5 million at its mainland China facilities.
CSUN exited the first quarter of 2015 with cash and cash equivalents of US$32.4 million and restricted cash of US$147.4 million but has approximately US$377.2 million in borrowings that fall due within 2015. The company raised going concern issues in its 2014 annual report.
CSUN had revenue of US$91.5 million in the first quarter of 2015, compared with US$126.7 million in the prior quarter due to lower shipments to customers in China and Europe.
Revenue from self-brand modules and cells business totalled US$84.3 million in the quarter, accounting for 92.1% of the total revenue, while revenue from the modules and cells processed under OEM arrangements were US$6.6 million, or for 7.2% of total revenue.
Despite the declines, own module ASPs were US$0.58/W, down from US$0.59/W in the prior quarter, though ASPs for the full-year 2014 stood at US$0.63/W.
Gross profit for the first quarter was US$10.3 million on gross margin of 11.3%, compared to gross profit of US$5.2 million on gross margin of 4.1% for the fourth quarter of 2014. The increase in gross profit and gross margin was said to be primarily due to higher shipments of self-branded modules and lower material costs as well as R&D costs.
The company did provide guidance for the second quarter or update on debt repayments looming. CSUN is also facing another NASDAQ de-listing notice.