China Sunergy Lowers Q2 Overall Gross Margin Expectations from 7.5%-8.5% to 1%

China Sunergy Co., Ltd. CSUN today announced updates to its guidance for the second quarter of 2011 and full year 2011. China Sunergy expects its solar module shipments in the second quarter to be between 100 and 110 MW, compared to the Company's previous guidance of between 120MW and 130MW. The Company delayed some of its shipments to July, in line with the Company's credit control policy, as a result of delays in the approval of project loans to some of Company's customers in Europe. For the full year 2011, the Company now expects its solar module shipments to be between 580MW and 600MW, compared to the Company's previous guidance of between 670MW and 690MW. The more conservative guidance reflects that financing delays are becoming more common and may even result in some order cancellations, and therefore the Company may not be able to complete as many transactions as it had forecasted, despite robust demand. For the second quarter of 2011, the Company expects its overall gross margin to be approximately 1%, compared to Company's previous guidance of between 7.5% and 8.5%; gross margin relating to the Company's in-house module production is expected to be approximately 3%, compared to Company's previous guidance of between 12% and 13%.