China's Yingli Green cuts Q2 loss to USD 46m

Aug 27, 2014 - Chinese photovoltaics (PV) maker Yingli Green Energy Holding Co Ltd (NYSE:YGE) said today it had narrowed its second-quarter net loss to CNY 285.2 million (USD 46m/EUR 35m) from CNY 320.8 million a year earlier.

The adjusted non-GAAP result was a loss of CNY 275 million, reduced from CNY 321.5 million in the second quarter of 2013. "We remain focused on returning to net profitability by improving our operating efficiency, reducing manufacturing costs and optimizing our geographical footprints,” said chairman and CEO, Liansheng Miao.

The solar module supplier booked adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of CNY 288.5 million against a loss of CNY 198.9 million a year back. Gross margin went up to 15.6% from 11.8%.

Net revenues climbed to CNY 3.41 billion from CNY 3.38 billion in 2013’s second quarter. Total PV module shipments jumped by 40.8% quarter-on-quarter to 887.9 MW thanks to stronger demand in China, the UK and new emerging markets. The total volume includes 71.8 MW shipped to the company’s own downstream power plants in China, for which revenues were not recognised.

The company noted it had revised its PV module shipment target for fiscal 2014 and now expects the total volume to range from 3,600 MW to 3,800 MW. This would represent an annual rise of 11.3% to 17.5%, respectively.

Yingli’s current PV project pipeline, including schemes at different approval stages throughout China, stands at about 1,400 MW. During the third quarter, the company intends to commence construction of 168 MW of solar projects in the Hebei, Ningxia, Shanxi, Guangdong and Shandong provinces. It expects to develop between 400 MW and 600 MW of PV schemes by the end of the year, based on the current project development status.

(CNY 1.0 = USD 0.163/EUR 0.123)

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