The once troubled China-based solar manufacturer Yingli Solar has confirmed its predicted “positive momentum” in its second solid series of quarterly financials in a row.
Yingli Solar, also known as Yingli Green, announced earlier this year that its Q1’16 financial results were its first profitable quarter in nearly five years. The company backed that up earlier this month by predicting that it would continue its “positive momentum” by posting another successful quarter when it announced its second quarter financial results for 2016.
Published this week, Yingli Solar has done just that, returning revenue for the quarter of RMB2,524.1 million — or about $379.8 million. That’s not the world’s greatest growth — the company returned total net revenues in the first quarter of this year of RMB2,351.1 million — but considering the company’s long term trends, any upward trend is a good trend.
Yingli Solar also shipped 662 MW of solar PV modules, compared to 508.1 MW in the first quarter — again, a solid if not extravagant growth.
“We are delighted to report another solid quarter with a net profit of RMB71.8 million in the second quarter of 2016,” said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “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.”
Yingli Solar also posted a gross profit of RMB460.1 million (or around $69.2 million) and a gross margin of 18.2% for the second quarter. EBITDA for the quarter was RMB469.5 million (US$70.6 million).
Beyond the company’s own mild growth — which didn’t thrill investors this week — the mild growth the company experienced this quarter does fly in the face of several other big name solar PV manufacturers and suppliers, which are beginning to feel the pinch in a market which is expecting a slowdown in the US and in China. Mr Miao mentioned these same challenges in his letter to shareholders:
“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 US. 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.”
As such, Yingli Solar is only expecting to ship between 300 MW to 400 MW during the third quarter of 2016, with a gross margin in the range of 12.5% to 14%.