Yingli announces second quarter losses; debt paring

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Yingli Green Energy has announced its “unaudited consolidated financial results” for the second quarter ended June 30.

The tier-1 Chinese solar company, which has been struggling with debt, has reported loss in the quarter.

Yingli’s operating loss was RMB178.3 million ($28.8million), which represents negative operating margin of 6.6 percent; and the net loss was RMB598.1 million ($96.5 million). Loss per ordinary share and per American depositary share was RMB3.29 ($0.53) compared with RMB2 in the previous quarter and RMB1.64 in Q2, 2014.

Net loss was RMB598.1 million ($96.5 million) compared with RMB363.2 million in the first quarter and RMB285.2 million in Q2, 2014.

One key reason the company has attributed for the reduction in cash flows is the repayment of debt to the tune of RMB1.2 billion three-year unsecured medium-term notes which was due in May.

Yingli has reported that its shipments to China and the US grew significantly by 110 percent and 35 percent respectively in the quarter compared with Q1, 2015.

It has also made progress in emerging markets, such as Northern and Southern Africa, Central and Southern Asia, Middle East and Latin America.

The company is also focusing on repayment of another RMB1 billion in five-year unsecured medium-term notes when they become due this October, the official report notes.

Yingli has stated that it has also been exploring financing options such as liquidation of idle assets, introduction of strategic investors and potential new cooperation model with its business partners.

Q2,2015, has seen the net revenues of Yingli fall from RMB2,905.8 million in Q1, 2015, to RMB2,716.1 million ($438.1 million). The net revenues in Q2, 2014, was RMB3,408.9 million.

The decrease has been attributed to reduced PV module shipments in the second quarter and a decline in the average selling price of PV modules.

In terms of module shipments, Q2, 2015, has seen a drop from 754.2 MW in Q1, 2015, to 727.9MW, including 43.2MW of shipments for downstream PV projects. In Q2, 2014, the figure was 887.9MW.

For the ongoing quarter ending September 30, the company expects its PV module shipments to be in the estimated range of 550 MW to 580 MW.

And for the fiscal year ending December 31, the projected shipments figure ranges between 2.5 GW and 2.8 GW.

Ajith Kumar S

editor@greentechlead.com

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