Yingli Green expands Q3 loss, lifts full-year shipments guidance

Yingli Green solar park. Author: greenXmoney. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

Yingli Green Energy Holding (NYSE:YGE) said on Tuesday its net loss in the third quarter (Q3) of 2017 has widened to CNY 2.34 billion (USD 354m/EUR 230m), despite growth in sales and shipment volumes.

The Chinese solar photovoltaic (PV) products manufacturer’s net loss widened from CNY 335.4 million in July-September 2016 and CNY 297.6 million in the second quarter of 2017. On an adjusted basis, net loss was CNY 330 million compared to a loss of CNY 345.3 million in the year-ago period.

The table below gives more details about the company's Q3 results.

Figures (in CNY)	Q3 2017	Q2 2017	Q3 2016
Net revenues	1.68bn	3.17bn	1.46bn
Gross margin (%)	1.6%	1.7%	5.5%
Operating profit (loss)	(2.27bn)	(180.8m)	(226.9m)
EBITDA (loss)	(2.12bn)	(27.4m)	25.7m
Net profit (loss)	(2.34bn)	(297.6m)	(335.4m)
Adjusted non-GAAP net profit (loss)	(330m)	(322.8m)	(345.3m)

In July-September, Yingli Green shipped 597.7 MW of PV modules, up from 365.3 MW in the year-ago period but lower than the record 1,146.6 MW booked in the second quarter. The company explained that the drop in shipments in quarterly terms came due to falling market demand in China after the reduction of feed-in tariffs (FiTs), as well as a decrease in the average selling prices of PV modules.

"In Q3, with the decline of demand in China after June 30, 2017, the Company delivered 597.7 MW of PV modules in Q3 under the premise of striking a balance between operating cash flow and shipment volume," said chairman and CEO Liansheng Miao. He added that distributed generation (DG) projects were the main driver on the domestic market.

In spite of the slow-down in the Chinese market, Yingli Green lifted its full-year shipments guidance to 2.8 GW-2.9 GW from 2.5 GW-2.8 GW, saying the increased forecast is based on current market conditions, the company’s current operating conditions, estimated production capacity and demand projections. In the fourth quarter alone, shipments are seen to range between 700 MW and 800 MW.

(CNY 1.0 = USD 0.151/EUR 0.128)

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