Yingli Green Energy, the vertically integrated Chinese tier-1 solar firm, has published today preliminary third quarter (Q3) financials that look set to confirm an expected slump in earnings and shipments.
In a short press release, the Chinese company revealed preliminary data that shows module shipments in the range of 360 MW to 370 MW, which is in line with Q2’s straitened guidance. Yingli’s domestic market of China vastly scaled back its solar installation efforts after Q2 following a sizable cut to its FIT in June, and such reduced shipment figures come as no real surprise.
However, while shipments were largely as expected, gross margin has tumbled way below guidance to 5% to 6% (6% to 7% for module sales). Yingli said that an inventory write-down in Q3 weighed on the firm’s books, while an increase in unit manufacturing costs was unavoidable due to the company’s low utilization rates.
Tumbling module prices globally have also played a significant part in eroding Yingli’s gross margin, which had been expected to come in at around 12.5% to 14%, as reported in Q2.
The full unaudited financial results will be released on Thursday, December 8, Yingli confirmed.