Yingli posts drop in third-quarter revenue, narrows net loss

Yingli Green Energy’s third-quarter sales fell 7.2% year-on-year to CNY 3.38 billion ($551.5 million) while narrowing its net loss from CNY 235.6 million a year ago to CNY 122.8 million ($20 million).

The company’s operation profit of CNY 199.7 million ($32.5 million) showed a major improvement over its second quarter loss of CNY 85.9 million and CNY 70.3 million loss in the same period last year and marked Yingli’s first profitable quarter since the second quarter of 2011.

Yingli Chairman and CEO Liansheng Miao said the company had “delivered another set of solid results … with a gross margin of 20.9%, well ahead of our previous guidance, and a strong PV module shipment of 903 MW."

Miao added that the company continued to improve its operating profitability through on-going efforts to reduce costs and control operating expenses.

Yingli continued to see strong demand for modules from the key Chinese and Japanese markets as well as emerging territories, Miao said, adding, “In particular, our shipments to new emerging markets in the third quarter increased by approximately 17% quarter over quarter.”

The chief exec pointed out that booming installation of domestic projects in the second half of the year resulted in higher average selling prices and better payment terms for solar panels in the third quarter. The company’s shipments to China increased by 19% compared to the second quarter.

Yingli also benefitted from new policies introduced by China’s National Energy Administration (NEA) in September aimed at accelerating distributed solar generation in the country: Under the new policy, Yingli received approval of an additional 120 MW of distributed solar generation projects in September. In addition, the group saw substantial growth in Japan, where it recently signed a series of agreements to supply more than 100 MW of solar panels in Japan.

Yingli also reported a solid presence in Europe and the United States. The company recently signed an agreement to supply 120 MW of solar panels for a 300 MW project in France, which is expected to be the largest solar park in Europe when completed.

"Despite the slower than expected development of downstream projects in the first half of 2014, we are progressing well in the downstream in the second half of 2014,” Miao added. Yingli began construction of 185 MW of downstream projects in the third quarter, bringing its projects under construction to a total of 340 MW, with internal shipments to these projects having reached to 187 MW. The company expects to begin construction of a further 50 to 60 MW of downstream projects in the fourth quarter.

"Thus we expect to develop approximately 400 MW of downstream projects by ourselves or together with our partners by the end of 2014," Miao said, adding that the group expected to sell about half of these projects upon completion.

Yingli forecasts total PV module shipments for the full year to reach between 3.3 GW and 3.35 GW – an increase of 3% to 4.6% compared to 2013.

The group also announced a supply deal with British solar company Solarcentury for 72 MW of multi and monocrystalline solar panels. Yingli expects to complete the delivery of some 168,000 panels by the end of the year.