Yingli posts huge Q3 loss due to impairment charge, lowers 2015 forecast

Solar farm using Yingli panels. Author: greenXmoney. License: Creative Commons, Attribution-NoDerivs 2.0 Generic

China’s Yingli Green Energy (NYSE:YGE) on Wednesday reported a significantly widened third-quarter net loss, reflecting the recognition of a non-cash impairment charge, and once again lowered its full-year solar module shipments forecast.

For July-September 2015, Yingli Green posted a net loss of CNY 3.2 billion (USD 500m/EUR 473m), expanded from CNY 122.8 million in the third quarter of 2014 due to a non-cash impairment charge on long-lived assets totalling CNY 3.8 billion that was just partially offset by a gain from disposal of the land use rights held by Fine Silicon.

On an adjusted non-GAAP basis, its Q3 net loss widened to CNY 423.7 million from CNY 112 million as revenues fell by 34% on the year due to lower shipments.

The following table gives more details about Yingli’s Q3 results.

Results in CNY	Q3 2015	Q3 2014
Net revenues	2.23 billion	3.39 billion
Gross margin	16%	20.9%
Adjusted non-GAAP EBITDA	(2.59 billion)	(486.9 million)
Net loss	3.2 billion	122.8 million
Adjusted non-GAAP net loss	423.7 million	112 million

In July-September 2015, Yingli’s total photovoltaic (PV) module shipments plunged to 460.4 MW from 903.4 MW. For the full 2015, the company now expects total PV module shipments of between 2.35 GW to 2.40 GW, after lowering an already revised guidance for 2.5 GW to 2.8 GW.

(CNY 1.0 = USD 0.156/EUR 0.148)

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