Yingli Green Energy
Yingli Green Energy is a vertically integrated photovoltaic (PV) manufacturer that makes polysilicon wafers and ingots that it uses to create PV cells and modules, which it incorporates into solar energy systems that turn sunlight into clean energy. The company, with an annual production capacity of 200 megawatts of polysilicon ingots and wafers, 200 megawatts of PV cells, and 200 megawatts of PV modules, is one of the few companies in China involved in all stages of PV manufacturing, sales, and installation. Yingli Green Energy gets more than 90% of its sales in Europe, primarily from Germany and Spain.
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Yingli Green Energy to second quarter profit
Solar energy company Yingli Green Energy (NYSE: YGE) has announced its second quarter results, posting net revenues of USD $398.1 million, an 80.1% year-over-year increase, and profits of $32.1 million, compared to a net loss of approximately $579.5 million in the second quarter of 2009. The company has benefited from a mid teen growth rate in its PV module shipment volume quarter over quarter, it said.
The company`s gross profit was $133.5 million, up 205.4% from last year, representing a record high gross margin of 33.5%, compared to 19.8% in the second quarter of 2009, due largely to the better than expected average selling price and continuous decline in the blended cost of polysilicon, decreasing polysilicon usage per watt and continuous reduction in non-polysilicon cost.
Yingli saw many developments during the quarter. The company completed its 2010 FIFA World Cup sponsorship project, which boosted its brand both within and outside the conventional solar community and lead to increasing demand, said Yingli.
The company also commenced initial production of 300 MW PANDA high efficiency solar cells in July. It managed to enhance the PANDA cell conversion efficiency rate to 19% on the pilot line, and has kicked off collaboration with Innovalight to boost the average efficiency of its multicrystalline silicon based solar cells.
In addition, Fine Silicone, the company`s polysilicon manufacturing facility designed with an annual production capacity of 3,000 metric tons, began commercial operations earlier this month.
"In Europe, we are fully stretched to satisfy our existing customer base and to continue to attract new customers in high growth emerging markets such as France, Italy, Czech Republic, Greece and the United Kingdom. In North America, our sales network has expanded into 18 states in the U.S., as well as Canada and the Caribbean, and we have become the leading supplier of PV modules in New Jersey and California," said chairman and CEO Mr. Liansheng Miao.
Indeed, the company has reaffirmed its PV module shipment target to be in the estimated range of 950 MW to 1 GW for fiscal year 2010, which represents an increase of 80.8% to 90.4% compared to fiscal year 2009. Based on the strong gross margin performance in the first half of 2010 and other factors, the solar company has actually raised its gross margin target to the estimated range of 28% to 30% from the previous estimated range of 27% to 29% for fiscal year 2010.
Yingli is not the only solar company that is encouraged by its results, as yesterday major solar player Suntech decided to increase its target PV cell production capacity to achieve 1.8GW by the end of this year. It also raised its 2010 annual shipment target from 1.3GW to 1.5GW. The US government`s recent $2 billion commitment to the sector has also helped the solar market overall.
The company`s diluted earnings per ordinary share and per ADS was $0.21 for Q2 2010 versus a diluted loss of 0.45 in Q2 2009. As of June 30, 2010, Yingli had $601.5 million in cash, restricted cash and long-term restricted cash and working capital $89.9 million.
Yingli`s stock was down 2.8% to $10.93 by noon trading today in the midst of a wider market sell-off.
Other Yingli Green Energy news
- Yingli Green Energy beats Q2 estimates
2011-08-19 - Yingli Green Energy to post disappointing first quarter shipments, gross margin
2011-05-11 - Yingli signs RMB1.2bn solar production agreement in Hainan province
2009-07-21 - Piper Jaffray reiterates "Buy" rating on Yingli Green Energy
2009-06-30 - Yingli Green Energy subsidiaries receive RMB420m loans
2009-03-07
