China Sunergy Provides Updated Guidance for Second Quarter 2011 and Full Year 2011
By China Sunergy Co. Ltd., PRNEThursday, June 16, 2011
NANJING, China, June 17, 2011 -
- Expresses
Confidence in Ability to Recover
China Sunergy Co., Ltd. (Nasdaq: CSUN) (”China Sunergy” or “The
Company”), a specialized solar cell and module manufacturer, 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%.
The lowered margin guidance reflects a number of short-term
factors, including a higher proportion of higher-cost inventory in
projected second quarter shipments, an increase in non-silicon
costs due to an increase in the cost of silver paste, and a faster
than expected drop in solar module average selling price (ASP).
The outlook for the second quarter and full year of 2011
reflects the Company’s current estimates based on the conditions
and trends known to the Company as of the date of this press
release. Results are subject to changes based on further review by
management and future changes in market and operating
conditions.
Mr. Stephen Cai, the Chief Executive Officer of CSUN, commented,
“In the interest of transparency and best practices, we wanted to
give the market ample notice that our second quarter results will
be substantially lower than previously forecasted. However, the
sales we will not realize in Q2 will be realized in Q3. We are in
this business for the long run and we believe in the long-term
market growth for our products. Our procurement strategy has a
great deal of flexibility built into it and we will do our best to
deal with any volatility in the industry.”
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. is a specialized manufacturer of solar
cell and module products in China. China Sunergy manufactures solar
cells from silicon wafers, which utilize crystalline silicon solar
cell technology to convert sunlight directly into electricity
through a process known as the photovoltaic effect, and assembles
solar cells into solar modules. China Sunergy sells these solar
products to Chinese and overseas module manufacturers, system
integrators, and solar power systems for use in various markets.
For more information, please visit our website at
Investor and Media Contacts:
China Sunergy Co., Ltd.
Elaine Li
Phone: +86-25-5276-6696
Email: Elaine.li@chinasunergy.com
Brunswick Group
Hong Kong Hong Kong
Ginny Wilmerding Xiaoxiao Nina Zhan
Phone: +852-3512-5000 Phone: +852-3512-5000
Email: csun@brunswickgroup.com Email: csun@brunswickgroup.com
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical facts in this announcement are forward-looking
statements. These forward-looking statements are based on current
expectations, assumptions, estimates and projections about the
Company and the industry, and involve known and unknown risks and
uncertainties, including but not limited to, the Company’s ability
to raise additional capital to finance the Company’s activities;
the effectiveness, profitability, and the marketability of its
products; litigations and other legal proceedings; the economic
slowdown in China and elsewhere and its impact on the Company’s
operations; demand for and selling prices of the Company’s
products, the future trading of the common stock of the Company;
the ability of the Company to operate as a public Company; the
period of time for which its current liquidity will enable the
Company to fund its operations; the Company’s ability to protect
its proprietary information; general economic and business
conditions; the volatility of the Company’s operating results and
financial condition; the Company’s ability to attract or retain
qualified senior management personnel and research and development
staff; future shortage or availability of the supply of raw
materials; impact on cost-competitiveness as a result of entering
into long-term arrangements with raw material suppliers and other
risks detailed in the Company’s filings with the Securities and
Exchange Commission. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events
or circumstances, or to changes in its expectations, except as may
be required by law. Although the Company believes that the
expectations expressed in these forward looking statements are
reasonable, they cannot assure you that their expectations will
turn out to be correct, and investors are cautioned that actual
results may differ materially from the anticipated results.
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Tags: China, China Sunergy Co. Ltd., June 17, Nanjing
