China Sunergy Co. Ltd. Announced unaudited consolidated earnings and production results for the second quarter ended June 30, 2012. For the second quarter, the company reported total sales of USD 110,384,000 against USD 144,019,000 a year ago. Loss from operations was USD 17,271,000 against USD 11,341,000 a year ago. Loss before income tax was USD 33,423,000 against USD 16,989,000 a year ago. Net loss was USD 30,282,000 against USD 16,917,000 a year ago. Diluted loss per share was USD 2.26 against USD 1.27 a year ago. Capital expenditures were USD 10,700,000 for the second quarter of 2012 and were primarily for the purchase of new cell and module lines and further investment in the R&D Center. Operating cash outflow was USD 55,900,000 for the second quarter of 2012 compared to the operating cash inflow of USD 85,000,000 for the first quarter of 2012, The outflow for this quarter was mainly for the increase in accounts receivable and payable and other receivables. The quarterly increase in revenue was driven by an increase in sales to several markets such as Italy, Germany and Denmark.

For the second quarter, the company shipments totaled 150.3 megawatts (144.5 megawatts of which were module shipments), increasing by 88.1% over the first quarter of 2012 and 68.3% over the second quarter of 2011. This was consistent with the company's shipment guidance of between 145 megawatts and 155 megawatts.

The company provided earnings guidance for the third quarter of fiscal year 2012 and revised production guidance for the full year 2012. For the quarter, the company expects that third quarter shipments will be in the range of 80 megawatts to 85 megawatts. The company expects its gross margin to be at the breakeven level and forecasts a net loss in the third quarter of 2012. Such guidance is based on the average Euro-US dollar exchange rate in June.

For the full year 2012, the company revises its estimated yearly total shipments to approximately 400 megawatts to 420 megawatts.