System and module orders abound as Yingli signs two Chinese supply deals

Yingli Green Energy has bolstered its presence in China with the signing of two deals, one sales agreement for an off-grid PV system with the Shanxi subsidiary of China Mobile, the other for the supply of PV modules for Huawei Technologies’ base stations.

The off-grid PV system supply will involve Yingli delivering a video monitoring system with 269 off-grid PV system units, totalling 0.47MW. China Mobile’s aim is to build a video monitoring system for forest fire prevention in Shanxi Province and is hoped to cover 11 cities and 113 counties in Shanxi Province.

Supplying an undisclosed amount of PV modules in the second part of Yingli’s news, the company will deliver the modules to Huawei, a next generation telecommunications network solutions provider, for installation in its base stations in the second half of 2009.

"We are very pleased to continue to enhance our business relationships with China Mobile and Huawei," commented Mr. Liansheng Miao, chairman and chief executive officer of Yingli Green Energy. "As one of the first solar companies in China, we established business relationships with China Mobile in 2003 and with Huawei in 2004. These recent wins further demonstrate our solid position as a qualified PV module and system supplier in China."

Outlining the compnay’s expectations for the coming year, Mr. Miao continued: "We have experienced a substantial increase in demand since the start of the year and expect to see at least a 70% increase in shipments in the second quarter over our shipments in the first quarter.

“In addition, our competitive cost structure, combined with lower prices of polysilicon in the spot market and under our long-term polysilicon supply contracts, gives us confidence in our ability to achieve the previously stated second quarter gross margin target, which is in the estimated range of 18% to 20%".