Before I turn the call over to Stephen may I remind all the listeners that management prepared remarks include forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risk and uncertainties. As such, our results may be materially different from the views expressed here today.A number of potential risks and uncertainties are outlined in our public filings with the SEC. China Sunergy does not undertake any obligation to update any forward-looking statements, except as required under applicable law. As a reminder again, this conference is being recorded. Now I would like to turn the call over to Mr. Stephen Cai, China Sunenergy CEO. Stephen. Stephen Cai Thank you Elaine and let me thank everyone for taking the time to join us today. Particularly since we know there are some other companies reporting at the same time. As you aware, the second quarter of this year was very challenging for the Solar PV industry. Sun solar module makers including our self, we should revise guidance before the call ended and finally reported disappointing results. At the same time, we and others are forecasting a rebound in the demand in the second half of this year. Today, we’re not explain our result, but also why we are optimistic about the future. And believe this is beginning of the turning point for China Sunergy. Please refer to the slide six. In the second quarter of this year, we shipped a total of 89.3 megawatts, 98% of which were more modules. Nearly 70% of which were made with the cells produced inhouse. Our total shipment volume of 89.3 megawatts is significant less than our latest guidance of 100 to 110 megawatts. However, a short fall can be explained by the fact that 11.2 megawatts of the module shipments were shipped in June, but remaining shipped at end of this quarter. These sales were recognized in July. Total revenue for the quarter were $144 million, a 22.4% increase year-on-year but at 13.1% sequential decline. The average just selling price for our solar modules was $1.64. However, it is common knowledge that ASP continues to fall. Our gross margin in the second quarter was 2.6% higher than the recent guidance of 1% but still far from ideal. We incurred a loss in the quarter of $16.9 million. This resulted in a net loss for ADS of $0.42.
On surplus; it won't be easy to jump to the conclusion that our business is in a declining chain, but we believe our long-term prospects for gaining global market share are bright and we know our margins will improve. As we are making investment proposition, we believe our stock offers good value for long-term investors. However second quarter results do not yet capture and that we have actually diversified beyond our traditional markets in Europe to develop new business in United States and India.In addition, our home country of China is starting to present promising opportunities for solar modules. Until recently, the market for our products in all three of these markets has been modest. However, potential demand from these three populous countries is huge and the market will reward the companies who are well prepared and are ready to act with high turns. Now, please refer to slide seven which describes our growth strategy. In our view, there are three critical elements for long-term success in solar PV market. Number one is the ability to manage cost in the time of low prices. Clearly, solar module prices has to be low enough to drive, sustained long-term demand and then naturally, raw material prices will also have to drop before low prices can be sustained and they may fluctuate widely before stabilizing. For this reason, it will be imperative that we minimize the cost of the wafer and the non-silicon cost and also that we optimize our capacity utilization. We’re very focused on this course. Read the rest of this transcript for free on seekingalpha.com