Yingli Green Energy halves losses and posts 26.1% growth in second quarter

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Yingli Green Energy’s second quarter results for 2013 have been announced, with the headline figure a 26.1% increase in revenue – which relates to $550.4 million – compared to the first quarter.

The world’s largest vertically integrated PV manufacturer also halved its losses this second quarter, posting a net loss of $52.3 million, representing a healthy recovery on the estimated $100 million losses from the previous quarter.

Quarterly shipments of PV products grew by 23.6% for 2Q13, helping to achieve an overall gross margin for the company of 11.8% (gross profit: $64.8 million) – up from 4.6% on last year’s second quarter, and a 7% increase on 1Q13.

The second quarter of 2013 saw Yingli Green Energy post a negative operating margin of 3.8%, which represented an operating loss of $21.1 million – an improvement on the 12.1% operating loss recorded in the first three months of the year.

"We are pleased to announce another better than expected quarter in terms of market share and profitability, mainly driven by the continuous fundamental improvements of solar market conditions, our well-recognized brand, diversified customer base and unceasing technological innovations," said Liansheng Miao, CEO and Chairman of Yingli Green Energy.

"Our total shipments in the second quarter increased by 23.6% compared to the previous quarter. The growth was primarily attributable to the robust demand from China and the U.S. associated with the traditional peak seasons and the accelerated construction of utility scale projects.

"In addition to China and the U.S., our revenues from Europe tracked better than expected as a result of pull-in demand despite the regulatory uncertainties. Combined with the continuously increasing selling prices and constant reduction of manufacturing cost, we managed to increase our gross margin to 11.8% from 4.1% in the first quarter."

Looking ahead to the remainder of 2013, Miao remarked that the company expects to double its sales in the utility segment while "continuing to solidify our position as a leading PV module supplier to the distributed generation segment.

"China, the U.S., Japan and other emerging markets will play an increasingly important role in driving our shipment growth as demand for our products increases in those markets," he added.

The company expects to accomplish its module shipments guidance of 3.2–3.3 GW for the full 12 months of 2013, which will represent an increase of 39.4% to 43.7% compared to fiscal year 2012.