Yingli sees Q1 improvement despite dumping tariffs


In comparison to its Chinese manufacturing peers, Trina Solar and Suntech, which both posted paltry Q1 2012 financial figures, Yingli has seen its business positively developing.

For instance, while an operating loss of RMB 134.7 million (US$21.4 million) was recorded in Q1 2012, the figures improved significantly from the loss of RMB 3.8 billion in Q4 2011. It still fell short of the RMB 568.2 million worth of operating income reaped in in Q1 2011, however. Operating margin also improved from negative 147.4 percent in Q4 2011, to reach negative 4.3 percent (Q1 2011: 16.5 percent).

In terms of net revenues, Q1 2012 achieved RMB 3.2 billion ($500 million), up from RMB 2.6 billion in Q4 2011, but slightly down from RMB 3.5 billion in Q1 2011. Net loss, on the other hand, was RMB 283.2 million ($45 million), compared to RMB 3.8 billion in Q4 2011 and an income of RMB 368.3 million in Q1 2011. Operating expenses were RMB 380 million (US$60.3 million), a decrease from RMB 461.4 million in Q4 2011, but up on the RMB 375.5 million in Q1 2011.

Q1 2012 gross profit was RMB 245.2 million ($38.9 million), again up from RMB 77.3 million in Q4 2011, but significantly down from the RMB 943.7 million recorded in Q1 2011. Gross margin, meanwhile, was 7.8 percent. Had a non-cash inventory provision of RMB 21.2 million and a provision for preliminary U.S. countervailing and anti-dumping duties of RMB 86.3 million not been applied, gross margin would have been be 11.5 percent. This compares to a gross margin of just three percent in Q4 2011 and 27.3 percent in Q1 2011.

While it declined to provide specific figures, Yingli says Q1 2012 photovoltaic module shipments sequentially increased by 44.4 percent.

Overall, it says it saw "exceptionally strong demand" in the German and U.S. markets, which together accounted for around 80 percent of Q1 2012 revenues. Although shipments to China were "seasonally slow", they are expected to pick up throughout the rest of the year, and should account for approximately 30 percent of revenues.

Looking ahead, the Chinese manufacturer expects to ship between 2.4 and 2.5 gigawatts worth of photovoltaic modules. It declined to issue any further financial guidance.