■Total net revenues were RMB1,791.2 million (US$277.1 million), a decrease of 18.4% from 1Q11 and an increase of 2.2% from 2Q10. ■PV module shipments, including module processing services, reached 205.9 MW, a decrease of 17.1% from 248.5 MW in 1Q11 and relatively flat compared with 2Q10. ■Average selling price ("ASP"), excluding module processing services, decreased to RMB10.09 per watt (US$1.56) from RMB11.23 per watt in 1Q11. ■Gross profit decreased 60.8% to RMB139.9 million (US$21.6 million) from RMB356.9 million in 1Q11, and decreased 62.1% from RMB368.8 million in 2Q10. ■Gross margin decreased to 7.8% from 16.3% in 1Q11, primarily due to a combination of a decline in ASP and an increase in the blended cost of goods sold ("COGS") as a result of lower manufacturing utilization. Gross margin in 2Q10 was 21.0%. ■The Company recorded an operating loss of RMB32.3 million (US$5.0 million) compared with an operating profit of RMB253.9 million in 1Q11 and RMB274.3 million in 2Q10. The sequential decrease in operating profit was primarily due to the lower gross profit and higher operating expenses as the Company continued to invest in personnel, management systems, branding and technology, and to one-time severance expenses paid to former management. ■Operating margin was negative 1.8% in 2Q11 as compared to 11.6% in 1Q11 and 15.7% in 2Q10. ■Net loss attributable to shareholders on a non-GAAP basis(1) was RMB64.9 million (US$10.0 million), compared with net income attributable to shareholders of RMB154.4 million in 1Q11 and RMB231.7 million in 2Q10. ■Net loss per basic ADS on a non-GAAP basis(1) was RMB0.77 (US$0.12), compared with net income per basic ADS on a non-GAAP basis of RMB1.84 in 1Q11 and RMB4.00 in 2Q10. ■Net loss attributable to shareholders on a GAAP basis was RMB69.0 million (US$10.7 million), compared with net income attributable to shareholders of RMB149.4 million and RMB272.8 million in 1Q11 and 2Q10, respectively. ■Net loss per basic ADS on a GAAP basis was RMB0.82 (US$0.13), compared with net income per basic ADS on a GAAP basis of RMB1.78 in 1Q11 and RMB4.71 in 2Q10. ■Annualized Return on Equity ("ROE") on a non-GAAP basis(1) was negative 5.2% in 2Q11, compared with 12.6% in 1Q11 and 35.9% in 2Q10. ■Annualized ROE on a GAAP basis was negative 5.2% in 2Q11, compared with 11.3% in 1Q11 and 35.2% in 2Q10.
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