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 companys 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.