Yingli Green Energy, also known as Yingli Solar, published its second quarter earnings report this week, and its again good news mixed with bad, with record shipments of 1,146.6 megawatts but increasing its net and operating losses.
Yingli Solar can’t seem to really catch a break these days and has seen its interests go from bad to worse while making irregular stops at impressive. In February the company revealed that it was facing delisting from the New York Stock Exchange because the company’s market capitalization had fallen below prescribed standards. In April, the company reported a net loss of $293.6 million for the full-year 2016 and predicted an uncertain 2017. A few months later and the company announced that it was forming a special committee which will consider potential debt repayment solutions.
And that’s just been 2017.
On Tuesday, Yingli Solar published its second quarter earnings report and the good news/bad news continued, with significantly increased net revenues and solar PV shipments, but similarly increased net and operating losses.
First, the good news. Yingli Solar managed a very impressive second quarter and saw its revenue reach RMB3,173.6 million ($468.1 million), well up on the RMB1,238.3 million recorded in the first quarter of 2017. This was due to solar PV module shipments reaching a record high of 1,146.6 megawatts (MW) for the quarter — up a staggering 290% on the 370.9 MW made during the first quarter.
“Driven by the surging demand from China due to the expected feed-in-tariff (“FiT”) reduction after June 30, 2017, the Company’s PV module shipments reached a record high of 1,146.6 MW in a single quarter in the second quarter of 2017, increasing by 209% over the first quarter of 2017, and exceeded previous guidance,” said Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “Geographically, shipments to China increased from 243 MW in the first quarter of 2017 to 992 MW and accounted for 86.5% of our total PV module shipments in the second quarter of 2017, as a result of successful cooperation with different types of customers.”
However, the company’s underlying financial issues continue to plague it and the company reported an operating loss for the second quarter of RMB180.8 million ($26.7 million), up on the operating loss of RMB103.5 million recorded in the first quarter of 2017. Similarly, the company’s net loss for the quarter was also up, from RMB184.4 million in the first quarter to RMB297.6 million ($43.9 million) in the second quarter.
Looking forward, Yingli Solar is predicting PV module shipments in the range of 550 MW to 600 MW for the third quarter of 2017, and has subsequently revised its shipments guidance for the full-year 2017 from between 2.1 to 2.2 gigawatts (GW) to in the range of 2.5 to 2.8 GW.