Q2 results signal “turning point” for China Sunergy

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Another poor financial report has been posted, this time from China, however in announcing an operating loss China Sunergy has announced that the results mark a turning point as the company diversifies its marketing and sales operations into new regions.

China Sunergy is looking to future growth in demand from North American and Indian markets and Q2’s increased operating expenses, or $15.1 million, were in part attributed to marketing and sales expansions in these markets. Last month, China Sunergy launched its US offices in San Francisco and appointed a US CEO.

Q2 also saw the company sign its first Indian contract. The 13 MW supply contract was with Visual Percept Solar Projects Private Limited, which will pursue projects under India’s National Soalr Mission.

In other quarterly highlights, China Sunergy also announced it would expand its solar cell operations in Yangzhou, Jiangsu Province by one gigawatt. The first 500 MW line is expected to be in operation in the first half of 2012. The plant will produce China Sunergy’s Quasar cells which has recorded a highest batch efficiency of 18.6 percent.

Third quarter guidance

China Sunergy expects to ship between 140 MW and 160 MW in quarter three which will represent a gross margin between four and five percent. Full year expectations stand between 470MW and 500MW.

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