Yingli net loss worsens in 2017, flags going concern doubts

Yingli solar modules at site. Author: Bob. License: Creative Commons, Attribution 2.0 Generic.

Chinese solar photovoltaic (PV) products manufacturer Yingli Green Energy Holding (NYSE:YGE) saw its net loss widen to CNY 3.32 billion (USD 525m/EUR 430m) in 2017 from CNY 2.1 billion in 2016.

Reporting results today, the company warned that given its financial position, "substantial doubt exists as to the Company's ability to continue as a going concern."

On an adjusted basis, net loss was CNY 1.13 billion, compared to CNY 717.8 million in 2016.

Annual revenues declined slightly to CNY 8.36 billion from CNY 8.38 billion in 2016, in spite of PV module shipments growing 36% to 2,953 MW, above the company's guidance of 2.8 GW-2.9 GW.

Gross margin in 2017 dwindled to 3.6% from 13.8% in 2016, mainly reflecting "significant decrease of market selling price due to fierce competition worldwide." In the fourth quarter of 2017, gross margin was 7.2%.

in CNY	Q4 2017	Q4 2016	2017	2016
Total net revenues	2.27bn	2.04bn	8.36bn	8.38bn
Operating loss	(391.8m)	(1.8bn)	(2.94bn)	(1.68bn)
EBITDA	(256.4m)	(1.53bn)	(2.3bn)	(551.4m)
Net loss	(491.9m)	(1.91bn)	(3.32bn)	(2.1bn)
Adjusted non-GAAP net loss	(286.7m)	(583.1m)	(1.13bn)	(717.8m)

The company shipped 837.9 MW in the final quarter of 2017, up from 597.7 MW in the preceding quarter and 635.1 MW a year ago. Shipments in the first quarter of 2018 are estimated at 400 MW-420 MW.

(CNY 1.0 = USD 0.158/EUR 0.130)

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