Solar cell maker China Sunergy Co., Ltd. (CSUN) reported Wednesday a sharp increase in third-quarter profit, helped chiefly by a gain from changes in fair value of derivatives. On an adjusted basis, the company turned to a loss on sharply lower revenues and weak selling prices, despite an increase in shipments. The company also provided shipment guidance for the fourth quarter and raised its shipment outlook for the full year.
For the third quarter, net income surged to US$7.82 million or US$0.19 per American Depository Share, or ADS, from US$211 thousand or US$0.01 per ADS in the previous year. The results of the latest quarter included a net gain from the change in fair value of derivatives of US$9.7 million, compared to loss of US$848 thousand in the past year. Stock based compensation declined to US$564 thousand from US$925 thousand.
Excluding items, loss for the three month period was US$1.33 million or US$0.03 an ADS, compared to earnings of US$1.98 million or US$0.05 an ADS in the year-ago period.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of US$0.02 per ADS in the third quarter. Analysts' estimate typically excludes special items.
The Nanjing, China-based company's total sales for the quarter declined to US$80.05 million from US$119.04 million. Four analysts were expecting revenue of US$70.30 million in the third quarter.
Sales to third parties dropped to US$58.06 million from US$102.01 million, while sales to related parties climbed to US$21.99 million from US$17.03 million.
Shipments advanced 59.5% to 54.4 MW from the comparable period of 2008. Blended average selling price declined to US$1.32 per watt from US$3.48.
Gross profit decreased to US$8.16 million from US$11.05 million. Blended gross margin was 10.2%, up from 9.3% in the third quarter of 2008 .
General and administrative expenses rose to US$6.18 million from US$4.32 million. The company recorded other income of US$745 thousand, compared to expenses of US$3.73 million in the prior-year quarter.
Looking ahead, for the fourth quarter, the company expects shipments to range from 70 MW to 80 MW. China Sunergy currently sees gross margin to be in low teens given moderate pricing stabilization, lower conversion costs and the strong demand for solar products.
For the full year, the company now projects shipments to range between 190 MW and 200 MW. Earlier, the company had expected shipments to range from 150 MW to 200 MW.
CSUN closed Tuesday's regular trading hours at $4.66 on the NASDAQ.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.