Yingli Green Energy Holding Co Ltd (ADR) (NYSE:YGE) announced its unaudited consolidated financial results for the quarter ended March 31, 2016.

First Quarter 2016 Consolidated Financial and Operating Summary

  • Total net revenues were RMB2,351.1 million (US$364.6 million), compared to RMB2,110.0 millionin the fourth quarter of 2015.
  • Total photovoltaic (“PV”) module shipments1 were 508.1 MW, compared to 504.5MW in the fourth quarter of 2015.
  • Gross profit was RMB469.3 million (US$72.8 million), significantly increased from RMB248.3 million in the fourth quarter of 2015. Gross margin was 20.0%, increased from 11.8% in the fourth quarter of 2015. Gross margin on sales of PV modules was 19.7%.
  • Operating income was RMB186.4 million (US$28.9 million), compared to operating loss ofRMB1,120.3 million in the fourth quarter of 2015.
  • On a non-GAAP2 basis, earnings before interest, tax expenses, depreciation and amortization (“EBITDA”) were RMB482.0 million (US$74.8 million).
  • Net income3 was RMB79.6 million (US$12.3 million) and earnings per American Depositary Share4 (each representing ten ordinary shares of the Company, the “ADS”) was RMB4.4 (US$0.7). On an adjusted non-GAAP basis, adjusted net income was RMB73.3 million (US$11.4 million), and adjusted income per ADS was RMB4.0 (US$0.6).

“We are glad to announce that we achieved profitability in the first quarter of 2016, which was our first profitable quarter since the third quarter of 2011. Our gross profit was RMB469.3 millionin the first quarter, increased approximately 90% quarter over quarter, representing a gross margin of 20.0%, up from 11.8% in the fourth quarter of 2015. Our income from operations and net income reached RMB186.4 million and RMB79.6 million, respectively, in the first quarter while we had loss from operations and net loss in the previous quarter. By now, we have accumulatively shipped over 15GW of PV modules across the world, marking an important milestone in our development,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.

“Internationally, we focused on major PV markets with relatively higher selling prices in the first quarter in order to improve our profitability. Our shipments to Japan continued to increase and shipments to Japan as a percentage of our total shipments increased to approximately 40% in the first quarter of 2016 from approximately 30% in the fourth quarter of 2015. We expect the strong demand from Japan to continue in 2016 before Japan’s announced reduction of subsidies for PV power becomes effective in April 2017. We also had a solid first quarter in the United States with shipments to the U.S. representing approximately 14% of our total shipments in the quarter as compared to approximately 10% in the fourth quarter of 2015, and we expect to maintain our position in the U.S. with orders from a stable base of run rate customers. InChina, we have secured orders of approximately 820MW by the end of May due to robust demand in the first half of 2016.”

“In May 2016, we successfully commercialized our bifacial series of monocrystalline modules, which were installed on a 50MW power plant in Datong, Shanxi province under China’s “Top Runner” program and can generate electricity from both the front and rear sides of the cells, allowing power yields of up to 30% more than traditional monocrystalline modules. We plan to continue to focus on high-end products reflecting technological advancements to improve average module gross margin and enhance our position in the competitive domestic market this year.”

“Despite the challenges we face, we have achieved a remarkable improvement in our financial performance in the first quarter of 2016. We endeavor to make every effort to keep such momentum and maintain a healthy operation,” Mr. Miao concluded. (Original Source)

Shares of Yingli Green Energy Holding closed yesterday at $4.25, up $0.19 or 4.68%. YGE has a 1-year high of $14.05 and a 1-year low of $2.86. The stock’s 50-day moving average is $3.81 and its 200-day moving average is $4.51.

Yingli Green Energy Holding Co. Ltd. manufactures photovoltaic module. The company manufactures photovoltaic value chain, from the production of polysilicon through ingot casting and wafering, to solar cell production and module assembly. It markets its products under the brand Yingli Solar. The company was founded in August 1998 and is headquartered in Baoding, China.