Leading PV manufacturer, Yingli Green Energy has slashed full-year module shipment guidance that indicates almost zero shipment growth for 2014.
The company reported third quarter net revenue of US$551.5 million, compared to revenue of US$549.5 million in the previous quarter.
Total module shipments were 903.4MW, compared to 887.9MW in the second quarter of 2014 and just inside the lower range of previous guidance for the quarter.
However, the significant figure was the drastic downward revision in full-year module shipments. Yingli Green guided shipments to be in the range of 3.30GW to 3.35GW, down from last quarter downward revised guidance of shipments of 3.6GW to 3.8GW.
As a result Yingli Green’s 2014 shipment growth is only 3% to 4.6% compared to 2013. Yingli Green had started the year with full-year shipment guidance of 4.0GW to 4.2GW.
“In order to seek a balance between our shipment volume and profitability, we decide to revise our shipment guidance for full year of 2014 to 3.3-3.35 GW,” said Liansheng Miao, chairman and Chief Executive Officer of Yingli Green Energy.
The company also reported a gross profit of US$115.0 million, representing a gross margin of 20.9% in the third quarter. Operating income was US$32.5 million, representing an operating margin of 5.9%.
However, the company remains loss making, reporting a net loss in the third quarter of US$20 million, down from a net loss of US$46 million in the second quarter and further decrease from a net loss of US$55 million in the first quarter of 2014.
“Despite the slower than expected development of downstream projects in the first half of 2014, we are progressing well in the downstream in the second half of 2014,” added Miao. “In the third quarter, we began to construct 185 MW of downstream projects, bringing our projects under construction to a total of 340MW, with internal shipments to these projects having reached to 187MW. In the fourth quarter, we expect to start the construction of 50 to 60MW of downstream projects in total. Thus we expect to develop approximately 400MW of downstream projects by ourselves or together with our partners by the end of 2014.”
Yingli Green had previously guided 400MW to 600MW of completed downstream PV projects for 2014.