Low utilization at Yingli results in $581 million Q3 write down

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While module-producers’ Q3 results have generally been positive in 2015, Yingli looks set to book a major write down, as shipments and margins remain flat. Yingli released its Q3 2015 preliminary financial results today, in which it anticipates revenues between $340 to $350 million for the quarter, with a gross margin of only 8% to 9%, an increase on 6.3% in Q2.

Excluding OEM production, Yingli shipped between 450 MW 460 MW of modules in Q3, significantly below its previous guidance of 550 MW to 580 MW. As a result of its weak preliminary shipment figures, Yingli will book the significant asset write down.

Yingli’s Q3 shipments are a decrease on 727 MW in Q2 and 754.2 MW in Q1. Despite global PV module supply and demand coming back into balance in 2015, Yingli’s gross margin is also falling, having come in at 17.3% in 2014 and 10.9% in 2013.

By comparison, Chinese rivals Trina Solar shipped 1.7 GW of modules in Q3 and JinkoSolar 1.345 GW. Both have registered sequential and Y/Y module shipment increases in 2015.

Yingli will host a conference call on December 2 to discuss its preliminary Q3 2015 results.

At the company’s 2014 AGM held yesterday, Yingli shareholders re-elected Xiangdong Wang and Zheng Xue as company directors.