Chinese Yingli Green Energy converts USD 26.2m of notes

(ADPnews) - Nov 8, 2010 - Chinese photovoltaic (PV) equipment maker Yingli Green Energy (FRA:YG11) said on Wednesday Trustbridge Partners II had converted USD 26.2 million (EUR 18.4m) of senior secured convertible notes due 2012.

The conversion was carried out in the third quarter of 2010. Yingli Green Energy issued an aggregate of 6 million ordinary shares to Trustbridge and recorded an additional non-cash accounting charge of CNY 50.9 million (USD 7.6m/EUR 5.4m) in its third-quarter GAAP income statement.

This charge will not impact the company's cash flow and will be added back in the its non-GAAP net income for the third quarter of 2010.

"We expect the conversion of the convertible notes to further improve our liquidity by reducing our debt level and future interest expense," said Zongwei Li, director and CFO of Yingli Green Energy.

Li also said that the company expects to book a mid-20% quarter-on-quarter increase in shipment in the third quarter of 2010, in line with its previous estimates. "With better than expected average selling price and improving operating efficiency of our new 400 MW production lines, we are confident in achieving a 31% to 32% gross margin in the third quarter of 2010, compared to previous estimated range of 28% to 30%," he added.

Based on strong performance in the past three quarters and better visibility for the fourth quarter, the company also expects its 2010 gross margin to reach 31% to 32%, compared with the previous estimated range of 28% to 30%.

(USD 1.0 = EUR 0.704)
(CNY 1.0 = USD 0.15/EUR 0.106)

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