Chinese solar company Yingli Green Energy Holding Company Limited (NYSE: YGE) announced its unaudited financial results for 2Q08 showing major increases in both revenue and profit.
Net revenues increased 24.6% over 1Q08 and 120.5% over 2Q07 to RMB 1,987.0 million (US$289.7 million).
Net income was RMB 207.2 million (US$30.2 million) and fully diluted earnings per ordinary share and per American depositary share (ADS) were RMB 1.60 (US$0.23) in 2Q08.
Gross margin increased to 25.8% from 24.6% in 1Q08 and 22.7% in 2Q07.
Total PV module shipments increased 24.9% over 1Q08 and 119.3% over 2Q07 to 68.2 megawatts (MW).
Operating income increased 40.0% over 1Q08 and 168.1% over 2Q07 to RMB 395.7 million (US$57.7 million). Operating margin increased to 19.9% from 17.7% in 1Q08 and 16.4% in 2Q07.
On an adjusted non-GAAP1 basis, net income was RMB 234.5 million (US$34.2 million) and fully diluted earnings per ordinary share and per ADS were RMB 1.81 (US$0.26) in 2Q08.
Liansheng Miao, Chairman and CEO of Yingli Green Energy, said, "During the second quarter, our total PV module shipments increased significantly, largely as a result of improvements in throughput and operational efficiency at the existing facilities attributable to our R&D efforts carried out at each stage along our vertically integrated manufacturing process, the production of thinner, 180-micron wafers throughout the quarter, higher yields resulting from reduced breakage rates, and higher cell conversion efficiency rates."
"As of today, substantially all of our estimated production output in the second half of 2008 has been contractually secured. With solid demand from existing PV markets and growing demand from emerging PV markets, we have also further expanded our sales in emerging PV markets including Korea, Italy, France, Belgium, the United States and China."
"Additionally, as previously reported, our expansion projects remain on track. We are expecting total production capacity to reach 400 MW in late 2008 and 600 MW towards the middle of 2009."
The company revised upwards its expected PV module shipments and net revenue targets for the full year 2008.
PV module shipments are expected to be approximately 270 MW to 280 MW, which represents an increase of 89.5% to 96.5% compared to 2007. This compares to the Company’s previous guidance of 255 MW to 265 MW.
Net revenues are expected to be approximately US$1,053 million to US$1,106 million, which represents an increase of 89.2% to 98.7% compared to 2007. This compares to the Company’s previous guidance of US$969 million to US$1,020 million.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is a vertically integrated PV product manufacturer. Through the Company’s principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by mid-2009.
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