Stock Update (NYSE:YGE): Yingli Green Energy Holding Co Ltd (ADR) Reports Second Quarter 2016 Results

Yingli Green Energy Holding Co Ltd (ADR) (NYSE:YGE), one of the world’s leading solar panel manufacturers, known as “Yingli Solar,” today announced its unaudited consolidated financial results for the quarter ended June 30, 2016.

Second Quarter 2016 Consolidated Financial and Operating Summary

  • Total net revenues were RMB2,524.1 million (US$379.8 million), compared to RMB2,351.1 millionin the first quarter of 2016.
  • Total photovoltaic (“PV”) module shipments1 were 662.0MW, compared to 508.1MW in the first quarter of 2016.
  • Gross profit and gross margin were RMB460.1 million (US$69.2 million) and 18.2% respectively, compared to RMB469.3 million and 20% in the first quarter of 2016. Gross margin on sales of PV modules was 18.1%.
  • Operating income was RMB158.3 million (US$23.8 million), compared to RMB186.4 million in the first quarter of 2016.
  • On a non-GAAP2 basis, earnings before interest, tax expenses, depreciation and amortization (“EBITDA”) were RMB469.5 million (US$70.6 million).
  • Net income3 was RMB71.8 million (US$10.8 million) and earnings per American Depositary Share4 (each representing ten ordinary shares of the Company, the “ADS”) was RMB4.0 (US$0.6). On an adjusted non-GAAP basis, adjusted net income was RMB106.8 million (US$16.1 million), and adjusted income per ADS was RMB5.9 (US$0.9).

“We are delighted to report another solid quarter with a net profit of RMB71.8 million in the second quarter of 2016. Our total PV module shipments, including shipments to our own downstream PV projects, reached 662.0MW in the second quarter, representing an increase of approximately 30% from the first quarter of 2016,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.

“In the second quarter, we maintained a positive momentum and our overall gross margin was 18.2% even though the average selling price of our PV modules was lower in the quarter than the first quarter of 2016 mainly as a result of higher proportion of shipments to China, where the selling price of PV modules generally is lower than that in other markets.”

“We saw robust demand from China in the second quarter of 2016 as PV projects that were operational before June 30, 2016 are entitled to a higher feed-in tariff, and we increased our PV module shipments to China by more than 100% from the first quarter of 2016 by leveraging our cooperative relationships with certain large clients such as state-owned enterprises controlled by central and local governments in China as well as influential privately owned enterprises with strong financial background. Internationally, Japan continued to be the most important international market for us and our shipments to Japan accounted for more than 20% of our total PV module shipments in the second quarter of 2016, which was the seventh straight quarter that our shipments to Japan exceeded 120 MW. As the extension of ITC policy, the U.S. continued to see a stable demand and continued to be important international market for us. We continued to supply PV modules for utility scale projects in western U.S. in the second quarter of 2016.”

“Looking forward to the second half of 2016, we expect to face various challenges, such as the downward trend of average selling price of PV module as a result of increasing competition in various markets and higher anti-dumping and countervailing duty tariff in U.S. To deal with such challenges, we will continue to make every effort to reduce production cost, control operating expenses, and adjust our marketing strategies as necessary in order to keep a positive momentum and maintain a healthy operation,” Mr. Miao concluded. (Original Source)

Shares of Yingli Green closed yesterday at $4.30, down $0.10 or -2.27%. YGE has a 1-year high of $9.49 and a 1-year low of $2.86. The stock’s 50-day moving average is $4.01 and its 200-day moving average is $4.19.

On the ratings front, Roth Capital analyst Philip Shen maintained a Sell rating on YGE, in a report issued on July 22. According to, Shen has a yearly average return of -16.4%, a 24.9% success rate, and is ranked #4014 out of 4122 analysts.

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. 


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