Yingli posts second-quarter net loss of $46 million

Share

Yingli Green Energy on Wednesday posted a second-quarter net loss of CNY 285.2 million ($46 million), narrowing its deficit by 11% year on year, while revenue inched just 1% to CNY 3.4 billion ($549.5 million).

The Chinese company’s total PV module shipments increased some 41% from the first quarter to 887.9 MW, which included 71.8 MW shipments to the company’s own downstream power plants in China.

Citing current market and operating conditions, estimated production capacity and forecasted customer demand, however, Yingli lowered its projected module shipment target for the year from between 4 GW and 4.2 GW to 3.6 GW and 3.8 GW — nevertheless still an increase of between 11.3% and 17.5% over last year.

Yingli Chairman and CEO Liansheng Miao said the results were in line with the group’s previous guidance, adding that he was pleased with the overall gross margin of 15.6%.

Miao stressed that Yingli was focused on returning to net profitability by improving its operating efficiency, reducing manufacturing costs and optimizing its geographical footprints.

Yingli reduced its second-quarter operating loss CNY 129.2 million a year ago to CNY 85.9 million ($13.9 million).

"In the second quarter, we saw increased demand for Yingli Solar modules from our key markets, such as China, Japan, United Kingdom and other new emerging markets," he said.

In particular, Yingli’s shipments to new emerging markets in the second quarter increased by approximately 18% quarter on quarter while its customer base doubled compared with the second quarter of 2013, Miao said, adding that shipments to Japan in the first half of 2014 exceeded its total shipments to the country in 2013.

The company developed a combined 155 MW of downstream projects in the first half of the year, some of which are under construction and expected to be further developed with partners such as China National Nuclear Corporation, Shanghai Sailing Capital Investment Fund and Datong Coal Mine Group Co., Ltd. In the third quarter, the company expects to start construction of a total of 168 MW of downstream projects across China.

Miao added that the group saw large potential for distributed generation in China’s domestic market in the second half of 2014, but added that growth in demand was slower than expected in the first half of the year.

China’s National Energy Administration has called for a strengthening of supportive polices for distributed PV projects and announced the goal of achieving at least 13 GW of grid-connected PV capacity this year. "We expect that the demand for PV modules in China market will accelerate in the second half of 2014," Miao said.