Yingli Green posts US$90.2 million net loss; lowers full-year shipment guidance

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

More losses were reported by Yingli Green, despite module shipment volumes increasing by 13.7%, to a new historical high on sales of US$488.5 million dollars, down from over US$500 million in the prior quarter. Declining ASPs were behind the losses that climbed to US$90.2 million in the second quarter. The company revised down its PV module shipment target to be in the range of 2.1GW-2.2GW, representing an increase of up to 37.2% year over but significantly down from previous guidance of shipments reaching as much as 2.5GW.

Strong demand and claimed market share gains in Europe and in particular, Germany were behind the sales increase in the second quarter. However, sales in the US fell markedly from 26% of revenue in the first quarter of 2012 to only 9% in the second quarter.

A significant drop-off in demand from Germany as a result of the pull-in of demand before FiT changes and demand pick-up in China, which isn’t expected to provide meaningful revenue until the fourth quarter means shipments in the third quarter are expected to decline by 15%.

“Despite the continued challenging market conditions in the second quarter, we managed to keep our growing momentum as we increased module shipment volumes by 13.7% over the previous quarter and achieved a gross margin of 4.6%,” commented Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.

The gross margin declined to 4.6%, compared to 7.8% in the first quarter, which was said to have been due primarily to module ASP declines, though these were partially offset by a polysilicon and auxiliary materials price decline. Continued manufacturing cost reduction also contributed but could not fully offset module ASP erosion, suggesting ASP declines were higher than expected compared to managements expectation at the end of the first quarter.

Inventory overhang

Despite market share gains as the company attracted more installers and distributors, concerned about other supplier’s financial health, industry overcapacity meant that falling ASPs continued to fuel challenging market conditions. Yingli Green said that inventories increased by approximately US$85.5 million to US$601.5 million in the second quarter. Approximately 60% of inventories were in finished goods in the quarter.

Concerns were also raised over accounts payable, which increased from US$629.3 million to US$686.7 million and days payable outstanding increased by 10-days to 133 days.

Production update


With inventory levels creating a problem, Yingli said that it would address working capital needs by adjusting manufacturing utilization rates in the third quarter. Utilization rates were said to be in the range of 80% to 85% for the next quarter but could improve in the fourth quarter to 85% to 90%, depending on the expected market rebound, especially from demand in China.

Despite non-optimum utilization rates, non-polysilicon costs were said to have declined ‘moderately’ from US$0.57 to US$0.55/W, which kept the company highly competitive on production costs levels. Blended polysilicon costs were nothing to shout home about at US$30/kg, the purchase of polysilicon on the spot market is expected to lower costs sufficiently to support production cost declines for several quarters ahead.

Management also highlighted that enhanced ingot casting techniques had supported wafer quality improvements as well as improving solar cell conversion efficiencies.

Overall, non-poly processing costs were expected to fall by US$0.04 to US$0.05 per watt in the remaining quarters of the year. However, several other comments in the conference call highlighted problems currently faced by other tier-1 manufacturers. Firstly, management noted that it had halted previously planned capacity expansion plans, though about half of the projected capacity increase had been completed.

Secondly, management noted that its advanced cell and module technology under its ‘PANDA’ nameplate had seen shipments of around 120MW in the first-half of the year. Yet that figure wouldn’t increase in the second-half of the year.

Following an industry pattern was the lack of capital spending. Management inferred that capital spending was more dictated by previous order commitments than actual need to expand or make technology migrations.

The US$60 to US$70 million quarterly CapEx run-rate, included approximately US$10 million to US$15 million in maintenance costs, according to the company. Although the CapEx figures remain low, relative to many other PV manufacturers the spending level remains relatively high.

New market leader

Despite the reduction in its shipment forecast for the full-year, Yingli Green is expected to surpass major rival, Suntech as the number 1 module manufacturer (on a MW shipment basis) for 2012, while potentially set ting a new industry record for shipments of over 2GW in a given year. 

21 September 2021
C&I consumers currently source only about 7% of their power requirement directly from renewables. Indian corporate renewable market has grown rapidly and holds huge growth potential as companies look to reduce power purchase costs and cut carbon emissions. BRIDGE TO INDIA has built significant expertise in the corporate renewable business by working on over 30 consulting assignments and various research reports. We are organizing this conference to bring all stakeholders together and delve deeper into various market aspects. The conference will be held on a virtual platform with excellent networking opportunities for all participants.
22 September 2021
To commemorate the World Energy Storage Day(WESD) on 22 September, being recognized worldwide, Customized Energy Solutions (CES) and India Energy Storage Alliance (IESA) is organising the 5th global conference and virtual expo, which will be held virtually on 22 September 2021. WESD is a global movement initiated by various apex trade bodies working to promote and adopt energy storage, e-mobility & green hydrogen technologies for a sustainable future. The forthcoming edition of WESD is expected to attract global participation with an intent to facilitate bi-lateral trade, market development and new research and innovation, which will invite 100+ countries, 100+ regulators & policy makers, 100+ International speakers,1000+ organisations, 100+ partners & exhibitors and 20,000+ global delegates.
28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.

Read Next

September 20, 2021
Mining company Rio Tinto has revealed plans for a new solar project and battery energy storage system that will help to decarbonise an off-grid mine in the Australian state of Queensland.
September 20, 2021
The US solar policy landscape is shifting at breakneck speed, with new incentives and trade tariffs promising to alter the shape of the industry for the coming decade. Luckily Andy Colthorpe and Liam Stoker are here to decipher the changes in the September 2021 episode of the Solar Media Podcast.
September 17, 2021
BP, Abu Dhabi National Oil Company (ADNOC) and Masdar have partnered up to develop low carbon hydrogen hubs and create decarbonised air travel corridors between the UK and UAE in a deal that will see “billions” of dollars of investment.
September 17, 2021
US utility company Dominion Energy Virginia has proposed 15 new energy projects totalling 1GW of power for the state, which Dominion Energy claimed was the largest group of projects to be submitted to the Virginia State Corporation Commission (SCC)
September 17, 2021
Renewables developer Ørsted has promoted Neil O'Donovan to CEO of its onshore business unit following the resignation of his predecessor in August.
September 17, 2021
A 58.5MW floating PV plant in Thailand, said to be the largest install of its kind in the country, has been connected to the grid, according to inverter and floating solutions supplier Sungrow.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021