Yingli Green Energy Reports Second Quarter 2013 Results

Solar Company Financial Results for Yingli Green Energy Quarterly Shipments Increased by 23.6% from First Quarter 2013 and Reached a Historical High.


BAODING, China. Yingli Green Energy Holding Company Limited, the world’s largest vertically integrated photovoltaic manufacturer, which markets its products under the brand “Yingli Solar”, announced its unaudited consolidated financial results for the quarter ended June 30, 2013.

Solar Company Financial Results


Second Quarter 2013 Consolidated Financial and Operating Summary

  • Total net revenues were RMB 3,378.3 million (412.66€ million).
  • PV module shipments increased by 23.6% from the first quarter of 2013.
  • Overall gross profit was RMB 397.5 million (48.58€ million), representing a gross margin of 11.8%. Gross margin for PV modules was 12.5%.
  • Operating loss was RMB 129.2 million (15.82€ million), representing an operating margin of negative 3.8%.
  • Net loss[1] was RMB 320.8 million (39.21€ million) and loss per ordinary share and per

American depositary share (“ADS”) was RMB 2.05 (0.25€). On an adjusted non-GAAP[2] basis, net loss was RMB 321.5 million (39.29€ million) and loss per ordinary share and per ADS was RMB 2.05 (0.25€).

[1] For convenience purposes, all references to “net loss/income” in this press release, unless otherwise specified, represent “net loss/income attributable to Yingli Green Energy” for all periods presented.

[2] All non-GAAP measures exclude, as applicable, share-based compensation, interest expenses consisting of changes in the fair value of the interest rate swap and the amortization of the debt discount, the amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Baoding Tianwei Yingli New Energy Resources Co., Ltd. (“Tianwei Yingli”), an operating subsidiary of the Company. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company’s use of non-GAAP information set forth elsewhere in this press release.

“We are pleased to announce another better than expected quarter in terms of market share and profitability, mainly driven by the continuous fundamental improvements of solar market conditions, our well-recognized brand, diversified customer base and unceasing technological innovations,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.

“Our total shipments in the second quarter increased by 23.6% compared to the previous quarter. The growth was primarily attributable to the robust demand from China and the U.S. associated with the traditional peak seasons and the accelerated construction of utility scale projects. In addition to China and the U.S., our revenues from Europe tracked better than expected as a result of pull-in demand despite the regulatory uncertainties. Combined with the continuously increasing selling prices and constant reduction of manufacturing cost, we managed to increase our gross margin to 11.8% from 4.1% in the first quarter. ”

“Supported by a series of favorable policies issued recently, the China market is developing towards a more sound and steady direction of PV applications. We will take full advantage of our current leadership in China to extend our business downstream. The demand in the U.S. remains strong across all segments and geographies since earlier this year, and we expect to double our sales to the utility segment in 2013 while continuing to solidify our position as a leading PV module supplier to the distributed generation segment. Looking forward to the second half of 2013, China, the U.S., Japan and other emerging markets will play an increasingly important role in driving our shipment growth as demands for our products increase in those markets. Based on current customer demand and anticipated market conditions, we are confident to accomplish our module shipments guidance of 3.2-3.3GW for the full year 2013.”

“In addition to expanding our market share, we have continued strengthening our R&D efforts to support continuous technological advancement and cost reduction, which we believe will help us further enhance our leading position in the long run,” Mr. Miao concluded.

Second Quarter 2013 Financial Results

Total Net Revenues

Total net revenues were RMB 3,378.3 million (412.66€ million) in the second quarter of 2013, an increase of 26.1% from RMB 2,679.3 million in the first quarter of 2013 and up from RMB 3,103.5 million in the second quarter of 2012. PV module shipments in the second quarter of 2013 increased by 23.6% from the first quarter of 2013. The significant sequential increase in net revenues from the first quarter of 2013 was mainly due to the increased PV module shipments and the slightly improved average selling price of PV modules in this quarter.

Gross Profit and Gross Margin

Gross profit was RMB 397.5 million (48.58€ million) in the second quarter of 2013, a significant increase of 258.5% from RMB 110.9 million in the first quarter of 2013 and up from RMB 141.5 million in the second quarter of 2012.

Overall gross margin was 11.8% in the second quarter of 2013, which improved from 4.1% in the first quarter of 2013 and 4.6% in the second quarter of 2012.The sequential increase in gross margin in the second quarter of 2013 was primarily attributable to the slightly improved average selling price of PV modules in this quarter and the Company’s continuous efforts in reducing manufacturing cost.

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