Yingli profit margin halved in preliminary Q2 financials

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Vertically integrated Chinese solar company Yingli Green Energy has issued preliminary second quarter (Q2) financial results that reveal a 50% drop in gross profit compared to the first quarter (Q1).

Overall sales are expected to generate a gross profit margin of between 6-7%, down from 14.1% in Q1, continuing a trend of falling profits despite increased module shipments.

The scant data published by the Tier-1 solar company revealed that module shipments for Q2 will be in the range of 720 – 730 MW, with a decreased average selling price (ASP) for its modules, allied to increased shipments in lower-cost China, serving to have a negative effect on the company’s bottom line.

In June, Yingli forecast annual module shipments to reach around 3.6 GW – a target for which the company is still on course.

Yingli will report its official Q2 figures on September 8, along with revised guidance for the remainder of the year.