China Sunergy Co Ltd cut its full-year shipment outlook, prompted by lower shipments and selling prices in the second quarter, and the solar cell and module maker said it expects a further drop in the prices in the rest of the year.

China Sunergy's American Depository Shares (ADSs) fell as much as 5 percent to $1.20 -- a near three-week low -- in Friday early trading on Nasdaq. The stock has lost about 73 percent of its value in the last six months.

"From the general look we have, average selling price of modules continue falling down," a company executive said on a conference call with analysts.

Subsidy cuts in Europe and an oversupply of panels has sent prices down and squeezed margins across the industry, prompting several solar companies such as Suntech Power Holdings Co Ltd, SunPower Corp and Trina Solar Ltd to cut their profit outlook.

For the full year, China Sunergy, which started operations in 2004, cut its shipment outlook to 470-500 Megawatt (MW) from 580-600 MW.

The company expects third-quarter shipments to be at 140-160 MW, up from 89.3 MW in the second quarter as it will expects to benefit from emerging solar markets such as India, China and the United States.

April-June net loss widened to $16.9 million, or 42 cents per ADS, from $13.8 million, or 33 cents per ADS, last year.

Revenue rose 22 percent to $144 million.

Analysts on average had expected a loss of 18 cents a share, on revenue of $165 million, according to Thomson Reuters I/B/E/S.

Gross margins of the company dropped to 2.6 percent in the quarter from 10.7 in the first quarter. However, it sees sequentially higher gross margins in the third quarter.