China Sunergy Co., Ltd.

CIK:0001396247|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues	$ 441,827,352	$ 341,107,697	$ 316,185,694
Cost of revenues	(418,251,221)	(330,485,778)	(300,973,705)
Gross profit	23,576,131	10,621,919	15,211,989
Selling and marketing expenses	(16,942,979)	(13,168,297)	(16,416,359)
General and administrative expenses	(44,089,092)	(25,246,986)	(30,010,529)
Research and development expenses	(3,076,900)	(3,169,975)	(6,022,357)
Total operating expenses	(64,108,971)	(41,585,258)	(52,449,245)
Loss from operations	(40,532,840)	(30,963,339)	(37,237,256)
Interest expense	(26,443,126)	(27,918,904)	(28,805,652)
Interest income	4,152,540	5,606,718	6,586,276
Other income (expense), net	(15,793,010)	(2,605,310)	8,974,787
Loss before income taxes	(78,616,436)	(55,880,835)	(50,481,845)
Income tax expense	(1,372,266)	(614,285)	(1,127,627)
Net loss	(79,988,702)	(56,495,120)	(51,609,472)
Less: Net loss attributable to Non-controlling interest	508,594	(398,754)	(1,000,391)
Net loss attributable to ordinary shareholders of China Sunergy Co., Ltd.	$ (80,497,296)	$ (56,096,366)	$ (50,609,081)
Net loss per share:
Basic and diluted	$ (0.30)	$ (0.21)	$ (0.20)
Share used in calculating basic and diluted loss per share	267,287,253	267,287,253	255,102,003
Third parties [Member]
Revenues	$ 430,869,262	$ 331,039,143	$ 306,334,566
Cost of revenues	(407,877,860)	(319,890,205)	(291,372,403)
Related parties [Member]
Revenues	10,958,090	10,068,554	9,851,128
Cost of revenues	$ (10,373,361)	$ (10,595,573)	$ (9,601,302)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Operating activities:

Net loss

$ (79,988,702)

$ (56,495,120)

$ (51,609,472)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

19,001,572

20,054,717

22,663,879

Bad debt provision (reversal)

12,030,757

(4,799,411)

500,329

Loss from disposal of property, plant and equipment

675,054

156,593

Project assets impairment

1,608,505

Inventory write-down

192,058

1,353,770

1,663,051

Amortization of convertible senior notes issuance cost and Share Lending Agreement

15,934

Gain (loss) on disposal of subsidiaries

^[1]

848,527

(9,150,952)

(2,196,198)

Others

187,638

166,414

112,339

Changes in operating assets and liabilities:

Accounts receivable and notes receivable

7,298,383

27,714,858

(6,891,374)

Amounts due from related parties

(2,105,795)

2,732,663

(16,980,025)

Advance to suppliers

(23,050,556)

1,311,308

(1,873,321)

Inventories

(8,876,574)

(10,004,326)

37,534,916

Project assets

8,148,598

(5,393,761)

Prepaid expenses and other current assets and VAT receivable

9,815,501

2,187,345

7,046,015

Other long-term assets

255,411

428,760

(2,798,282)

Deferred tax assets

712,146

(342,620)

(2,735,317)

Accounts payable and notes payable

21,833,723

(37,589,057)

(27,101,093)

Amount due to related parties

(2,799,719)

(2,676,738)

(58,784,951)

Accrued expenses and other liabilities and Advance from suppliers

47,741,203

245,646

495,461

Income tax payable

866,956

76,775

3,030,065

Net cash used in operating activities

12,111,127

(62,502,409)

(103,145,212)

Investing activities:

Purchases of property, plant and equipment

(3,066,360)

(20,193,342)

(40,901,214)

Subsidy received from local government to purchase plant and equipment

950,166

4,718,080

6,418,016

Proceeds from disposal of property, plant and equipment

1,769,693

1,171,638

Proceeds from disposal of subsidiaries

22,202

6,793,288

4,264,462

Change in restricted cash

103,294,585

14,799,992

32,415,250

Net cash provided by (used in) investing activities

102,970,286

7,289,656

2,196,514

Financing activities:

Capital injection from non-controlling interest

412,712

659,945

318,984

Repurchase of convertible senior notes

(1,500,000)

Proceeds from short-term bank borrowings

184,386,322

494,568,328

614,276,765

Proceeds from long-term bank borrowings

1,759,826

81,503,071

62,370,160

Repayment of bank borrowings

(277,684,489)

(527,074,770)

(706,361,235)

Net cash provided by (used in) financing activities

(91,125,629)

49,656,574

(30,895,326)

Effect of exchange rate changes on cash and cash equivalents

(37,614,535)

(6,660,410)

2,827,184

Net increase (decrease) in cash and cash equivalents

(13,658,751)

(12,216,589)

(129,016,840)

Cash and cash equivalents at the beginning of the year

42,078,988

54,295,577

183,312,417

Cash and cash equivalents at the end of the year

28,420,237

42,078,988

54,295,577

Supplemental disclosure of cash flow information:

Interest paid

22,785,338

29,790,059

27,501,427

Income taxes paid

558,017

832,879

Supplemental disclosure of non-cash investing activities:

Restricted cash collateral received (paid) in connection with Share Lending Agreement

(2,097,340)

Purchase of property, plant and equipment included in accounts payable

$ 13,839,178

$ 23,262,943

$ 19,159,892

[1]

The gain on disposal of subsidiaries for the year ended December 31, 2013 arose from disposal of the Company’s wholly owned subsidiaries, Jinchang New Sunshine Solar Power Co., Ltd. (“Jinchang New Sunshine”) and HamiHuiteng Solar Power Co., Ltd (“HamiHuiteng”). Jinchang New Sunshine and HamiHuiteng were mainly engaged in the photovoltaic project’s engineering and sales, and were on their pre-operating stage. During the year of 2014, the Company entered into sale agreements with Changzhou Guangyu New Energy Co., Ltd. and Changzhou Dinghui New Energy Co., Ltd. to dispose of its 100% equity interest in Jinchang New Sunshine and HamiHuiteng, respectively. The disposals were completed on December 10, 2014. The amount of the consideration for disposal of Jinchang New Sunshine was $1.9 million, of which $1.6 million has been collected. The carrying amount of net assets on the date of disposal was $0.4 million. The Company recorded a disposal gain of $1.5 million in other (expense) income, net. The amount of the consideration for disposal of HamiHuiteng was $4.3 million, of which $2.7 million has been collected. The carrying amount of net assets on the date of disposal was $3.6 million. The Company recorded a disposal gain of $0.7 million in other (expense) income, net. The disposal did not constitute discontinued operations as the Company will continuously be the sole material provider of Jinchang New Sunshine and HamiHuiteng, for the construction of the photovoltaic projects, and therefore, significant cash inflows are expected to be received by the Company as a result of such continuation of activities with Jinchang New Sunshine and HamiHuiteng after the disposal transaction. The gain on disposal of subsidiary for the year ended December 31, 2014 arose from disposal of the Company’s wholly owned subsidiary, China Sunergy (Shanghai) Co., Ltd. (“Sunergy Shanghai”). Sunergy Shanghai was mainly engaged in Solar cells manufacturing, and was not in operation due to the over-capacity of the Solar cells manufacturing according to the best market estimation from the management. During the current year, the Company entered into a sale agreement with China Electric Equipment Group Co., Ltd. to dispose of its 100% equity interest in Sunergy Shanghai. The disposal was completed on April 3, 2014. The amount of the consideration for disposal of Sunergy Shanghai was $37.6 million and $24.6 million was settled through forgiveness of the amount due from the Group by Sunergy Shanghai and the Group expected to receive the net cash consideration of $13.0 million, of which $ 6.8 million has been collected. The carrying amount of net assets on the date of disposal was $28.4 million. The Company recorded a disposal gain of US$9.2 million in other (expense) income, net. The disposal did not constitute discontinued operation as the Company disposed Sunergy Shanghai to a related party and the Company intends to have continuation of activities with Sunergy Shanghai, such as significant business and in and out cash-flows, after the disposal transaction. The gain on disposal of subsidiary for the year ended December 31, 2015 arose from disposal of the Company’s wholly owned subsidiary, AEE Renewable UK 7 Limited. (“AEE7”). AEE7 was mainly engaged in the photovoltaic project’s engineering and sales, and were on their pre-operating stage. During the year of 2015, the Company entered into sale agreements with SPOWER HOLDINGS (UK) LIMITED to dispose of its 100% equity interest in AEE7. The disposals were completed on 16 January 2015. The amount of the consideration for disposal of AEE7 was $80.86 million and the carrying amount of net assets on the date of disposal was $81.69 million. The Company recorded a disposal loss of US$0.83 million in other (expense) income, net.

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 28,420,237	$ 42,078,988
Restricted cash	76,101,057	179,395,642
Accounts receivable, net of allowance for doubtful accounts of $59,049,747 and $67,194,973 in 2014 and 2015, respectively	44,536,321	60,321,806
Notes receivable	341,876	0
Advance to suppliers	28,932,915	5,882,359
Amounts due from related parties	18,188,948	88,047,478
Inventories	61,567,740	52,883,224
Project assets	51,127	8,221,927
Deferred tax assets	2,095,990	2,075,802
VAT receivable	4,334,710	8,646,992
Prepaid expense and other current assets	4,501,081	10,662,715
Total current assets	269,072,002	458,216,933
Property, plant and equipment, net	202,625,663	226,799,680
Prepaid land use rights	22,933,574	23,375,126
Amounts due from related parties	71,964,325	0
Deferred tax assets	6,724,032	7,491,580
Other long-term assets	4,565,501	5,008,550
TOTAL ASSETS	577,885,097	720,891,869
Current liabilities:
Short-term bank borrowings	271,760,735	356,793,246
Current portion of long-term debt	185,365,999	20,412,210
Accounts payable	115,378,813	90,162,387
Notes payable	474,366	13,280,834
Amounts due to related parties	6,321,062	9,120,781
Accrued payroll and welfare	2,880,919	2,460,743
Advance from customers	44,858,094	4,622,795
Accrued expenses and other current liabilities	14,230,916	11,230,670
Income tax payable	4,312,005	3,445,049
Total current liabilities	645,582,909	511,528,715
Long-term debt	76,709,560	272,348,001
Deferred tax liability	227,712	262,926
Accrued warranty cost	23,498,201	22,417,835
Other liabilities	14,254,305	14,825,487
Total liabilities	760,272,687	821,382,964
Commitments and contingencies (Note 16)
Equity (deficit):
Ordinary shares (par value $0.0001; 463,247,600 shares Authorized, 240,701,253 shares issued and outstanding as of December 31, 2014 and December 31, 2015)	24,070	24,070
Additional paid-in capital	185,367,042	185,367,042
Treasury shares (at par value of $0.0001)	2,659	2,659
Accumulated deficit	(401,789,812)	(321,292,516)
Accumulated other comprehensive income	33,410,242	35,908,829
Total deficit attributable to China Sunergy Co., Ltd.	(182,985,799)	(99,989,916)
Non-controlling interest	598,209	(501,179)
Total deficit	(182,387,590)	(100,491,095)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$ 577,885,097	$ 720,891,869