Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading solar energy company and one of the world's largest vertically integrated photovoltaic ("PV") manufacturers, which markets its products under the brand "Yingli Solar", today announced its preliminary financial results for the quarter ended September 30, 2012.
Based on preliminary data, the Company currently expects its module shipment in the third quarter of 2012 to decrease by approximately17% from the second quarter. The Company also expects to recognize non-cash charges of an inventory provision and a depreciation expense that related to underutilized capacity which occurred in the third quarter of 2012. In addition, according to the final rulings by the United States International Trade Commission regarding the import of Chinese PV cells and modules to the U.S., the Company expects to reverse the preliminary countervailing and anti-dumping duties provision recognized in the first quarter of 2012. As a result, the Company expects its gross margin in the third quarter of 2012 to be in the range of negative 22% to 24%. Excluding the impact of the non-cash charges and the reversal of duties provision mentioned above, the Company expects its gross margin of PV modules in the third quarter of 2012 to be in the range of 0% to 1%.
"Despite the sequential decrease of module shipment and declining PV module selling prices as we expected due to supply-demand imbalance, we are inspired that our industry leadership continues to be solidified as we quickly expand our market share," said Mr. Bryan Li, Executive Director and Chief Financial Officer of Yingli Green Energy. "In addition, we worked strategically with well-established suppliers and adopted new manufacturing techniques to further improve our cost structure, which has helped and is expected to continue to help us offset the negative impact of the expected decline in PV module price. We are confident that the tireless efforts of all our employees and partners will enable us to bring our non-silicon processing cost down to below US$0.50 per watt by the end of this year."
The Company will hold a conference call and live webcast to discuss its unaudited financial results for the quarter ended September 30, 2012 at 8:00 AM Eastern Standard Time on November 28, 2012, which corresponds to 9:00 PM Beijing/Hong Kong time on the same day.
