Yingli Green Energy Reports Third Quarter 2014 Results -

Yingli Green Energy Reports Third Quarter 2014 Results

Nov 25, 2014Jeremy ParkinsonEntertainment0

BAODING, China, Nov. 25, 2014 /PRNewswire/ — Yingli Green Energy Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”), the world’s largest vertically integrated solar panel manufacturer, known as “Yingli Solar,” today announced its unaudited consolidated financial results for the quarter ended September 30, 2014.

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Third Quarter 2014 Consolidated Financial and Operating Summary

Total net revenues were RMB 3,385.2 million (US$551.5 million).

Total PV module shipments (including shipments for PV systems) were 903.4 MW.

Gross profit was RMB 706.1 million (US$115.0 million), representing a gross margin of 20.9%.

Operating income was RMB 199.7 million (US$32.5 million), representing an operating margin of 5.9%.

On an adjusted non-GAAP basis, earnings before interest, tax expenses, depreciation and amortization (EBITDA) were RMB 495.7 million (US$80.8 million).

Net loss[1] was RMB 122.8 million (US$20.0 million) and loss per ordinary share and per American depositary share (“ADS”) wasRMB 0.68 (US$0.11). On an adjusted non-GAAP[2] basis, net loss was RMB 112.0 million (US$18.2 million) and loss per ordinary share and per ADS was RMB 0.62 (US$0.10).

[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 other than EBITDA exclude, as applicable, share-based compensation, interest expenses related to the changes in the fair value of the interest rate swap and the amortization of the debt discount, the amortization of intangible assets, inventory provision, impairment of long-lived assets and non-cash provision for inventory purchase commitments. EBITDA excludes interest, tax expenses, depreciation and amortization. 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.

“I’m very pleased to report that we delivered another set of solid results in the third quarter of 2014 with a gross margin of 20.9%, well ahead of our previous guidance, and a strong PV module shipment of 903 MW,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “We continue to successfully improve our operating profitability through on-going efforts on cost reduction and effective operating expenses control. The operating income in the third quarter of 2014 turned into positive for the first time since the second quarter of 2011.”

“In the third quarter, we continued to see a remarkable demand for Yingli Solar modules from key markets, such as China, Japan and other new emerging markets. In particular, our shipments to new emerging markets in the third quarter increased by approximately 17% quarter over quarter. With the booming installation for domestic projects in the second half of 2014, the third quarter witnessed comparatively higher average selling prices and better payment terms for solar panels. Shipments to China have increased by approximately 19% compared to the second quarter. In September 2014, China’s National Energy Administration (“NEA”) published new policies to accelerate distributed solar generation. Under this new policy, we had received approval of additional 120 MW of distributed solar generation projects in September 2014. In addition, we saw substantial growth in Japan with an over 30% quarterly increase in the third quarter. Recently, we signed a series of agreements to supply over 100 MW of polycrystalline solar panels inJapan. Due to our long-standing reputation for high quality products and services and our large and loyal customer base, our presence in traditional markets such as Europe and the U.S. has remained solid. We have signed a landmark agreement to supply 120 MW of solar panels for one project in France, which will be the largest solar power park in Europe upon its completion.”

“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. In the third quarter, we began to construct 185 MW of downstream projects, bringing our projects under construction to a total of 340 MW, with internal shipments to these projects having reached to 187 MW. In the fourth quarter, we expect to start the construction of 50 to 60 MW of downstream projects in total. Thus we expect to develop approximately 400 MW of downstream projects by ourselves or together with our partners by the end of 2014. We expect to sell about half of these projects upon completion of the construction. Among them, a 15 MW solar project in Hebei has been substantially completed and transferred to a renewable fund jointly established by the Company and Shanghai Sailing Capital Investment Fund.”