Yingli Green Energy reports conversion of USD 26.2m convertible notes

(ADPnews) - Nov 5, 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) senior secured convertible notes due 2012.

The conversion was carried out in the third quarter of 2010. Yingli Green Energy issued an aggregate 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 the company's third-quarter GAAP income statement. This non-cash charge will not impact the company's cash flow and will be added back in 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 a mid-20% quarter-on-quarter increase in shipment for the third three-month period, in line with its previous estimates. Based on strong performance in the past three quarters and more clear visibility for the fourth quarter, the company also expects its 2010 gross margin to reach 31% to 32%, compared to the previous estimated range of 28% to 30%.

(USD 1.0 = EUR 0.708; CNY 1.0 = USD 0.150/EUR 0.106)

Choose your newsletter by Renewables Now. Join for free!