Chinese photovoltaics (PV) maker Yingli Green Energy Holding Co Ltd (NYSE:YGE) saw its second-quarter 2015 net loss expand to CNY 598.1 million (USD 94m/EUR 84m) from CNY 285.2 million a year earlier.
After earlier in 2015 the Chinese solar module supplier warned that it might not be able to meet payment obligations under its debt instruments, now it announced that it had already dealt with part of them and is preparing for the next. For the repayment of the CNY 1 billion of five-year unsecured medium-term notes due October, Yingli Green is mulling several financing options, such as liquidating of idle assets, introduction of strategic investors and a potential new cooperation model with its business partners.
Some key indicators of Yingli Green’s April-June performance are available in the table below:
| (in CNY) |
Q2 2015 |
Q1 2015 |
Q2 2014 |
| Non-GAAP loss |
596.9 million |
352.9 million |
275 million |
| Gross margin |
6.3% |
14.1% |
15.6% |
| Operating loss |
178.3 million |
66.4 million |
85.9 million |
| Adjusted EBITDA |
198.8 million |
199.8 million |
279.3 million |
In the reporting period, Yingli Green’s net revenues went down to CNY 2.71 billion from CNY 3.41 billion in 2014’s second quarter, hurt by lower average selling prices (ASP) for PV modules, resulting from more shipments to China and the depreciation of the euro and the Japanese yen against the Chinese yuan. Total PV module shipments also fell to 727.9 MW from 887.9 MW in annual terms, meeting the projections for the three months under review.
Taking into account the current market and operating conditions, as well as estimated production and demand, the company once again revised down its solar module sales guidance for 2015 to between 2.5 GW and 2.8 GW. The initial projection was for up to 3.9 GW. As for the third quarter, Yingli Green expects to sell between 550 MW and 580 MW of modules.
As for the downstream business, Yingli Green’s PV project pipeline surpassed 400 MW across a dozen Chinese provinces at the end of June. “For our downstream project development business, we have adopted and will follow a core principle of 'less investment, and quicker turnover' in order to maintain a stable cash flow,” chairman and CEO, Liansheng Miao, noted. This way the firm will enhance its cash position and gradually improve its balance sheet, he added.
(CNY 1.0 = USD 0.157/EUR 0.141)
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Solar panels. Author: David Goehring. License: Creative Commons, Attribution 2.0 Generic
