This figure should increase to 1,000 MW by the end of this year, according to company chairman and chief executive officer, Mr. Liansheng Miao.
Following positive third quarter financial results, where the company saw "sustainable profitability", it has additionally raised its PV module shipment target to the estimated range of 1,020 MW to 1,040 MW, from its previously estimated range of 950 MW to 1,000 MW for fiscal year 2010. This represents an increase of 94.2 percent to 98.0 percent compared to fiscal year 2009. The net revenue for the full year 2010 is estimated to be in the range of USD$1,780 million to USD$1,810 million.
Yingli went on to say that it has raised its gross margin target to the estimated range of 32.0 percent to 32.5 percent, from its recently raised estimated range of 31 percent to 32 percent for fiscal year 2010. This is due to the strong gross margin performance in the first three quarters of this year, the estimated ramp-up cost of Fine Silicon and the 400 MW of new production lines, the expected average selling price of PV modules and forecasted exchange rates of the euro and U.S. dollar against the Renminbi.
Sustainable progress
In terms of its third quarter financial results, the companys total revenues reached RMB 3,284.2 million (USD$490.9 million) in the third quarter, an increase of 21.7 percent from RMB 2,699.6 million in the second quarter and 47.6 percent from RMB 2,225.2 million in the third quarter of 2009.
It attributes this growth to a 25.2 percent increase in PV module shipments quarter over quarter, which mainly resulted from "robust" market demand and broader brand recognition, supported by the expanded manufacturing capacity from the companys new 400 megawatt (MW) production lines.
For third quarter gross profit, Yingli hit RMB 1,094.5 million (USD$163.6 million), an increase of 20.9 percent from RMB 905.1 million in the second quarter and 118.8 percent from RMB 500.3 million in the third quarter of 2009. Gross margin, on the other hand, was 33.3 percent in the third quarter of 2010, compared to 33.5 percent in the second quarter and 22.5 percent in the third quarter of 2009. This, says the company, was primarily a result of the "firm" average selling price and "continuous cost reduction efforts".
Moreover, operating expenses in the third quarter were RMB 358.7 million (USD$53.6 million), compared to RMB 339.7 million in the second quarter and RMB 257.5 million in the third quarter of 2009. The increase in operating expenses in this quarter was attributed to Yinglis expanded scale of operations.
Operating expenses as a percentage of total net revenues however, were 10.9 percent in the third quarter, which represents a decrease from 12.6 percent in the second quarter and 11.6 percent in the third quarter of 2009. The decrease resulted from economies of scale and tighter cost controls, says Yingli.
As a result of the foregoing, operating income in the third quarter of 2010 was RMB 735.8 million (USD$110.0 million), an increase of 30.1 percent from RMB 565.4 million in the second quarter and 203.0 percent from RMB 242.8 million in the third quarter of 2009. Operating margin was 22.4 percent in the third quarter, an increase from 20.9 percent in the second quarter and 10.9 percent in the third quarter of 2009.
Finally, net income was RMB 456.1 million (USD$68.2 million) in the third quarter, an increase of 109.4 percent from RMB 217.8 million in the second quarter and 277.5 percent from RMB 120.8 million in the third quarter of 2009.
"The third quarter was another exciting period for us with strong operating results," commented Miao. "The demand for our ‘Yingli Solar' modules continues to grow rapidly in the global market. Especially, we see robust demand momentum for the Yingli Solar Panda Module as a result of its higher performance compared with traditional modules with P-type cells.
"Operationally, the newly added 400 MW vertically integrated production lines and our in-house polysilicon plant, Fine Silicon, have been running smoothly. In order to meet the growing market demand and the increasing interest in our products, we have recently launched a total of 700 MW of new capacity expansion projects, which are expected to start initial production in the middle of 2011 and increase our nameplate capacity to 1.7 GW in late 2011.
"To support the financing needs of the fast expansion, I'm delighted that, through one of our operating subsidiaries in China, we have become the first China-based solar company to have completed a successful registration of RMB 2.4 billion and issuance of RMB 1 billion medium-term notes on the PRC inter-bank debenture market."
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