Yingli Green Energy Reports First Quarter 2013 Results

BAODING, China, May 30, 2013 /PRNewswire/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which markets its products under the brand "Yingli Solar," today announced its unaudited consolidated financial results for the quarter ended March 31, 2013.

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First Quarter 2013 Consolidated Financial and Operating Summary

  • Total net revenues were RMB 2,679.3 million (US$431.4 million).
  • PV module shipment decreased by 6.4% from the fourth quarter of 2012.
  • Overall gross profit was RMB 110.9 million (US$17.8 million), representing a gross margin of 4.1%. Gross margin for PV modules was 5.0%.
  • Operating loss was RMB 324.7 million (US$52.3 million), representing an operating margin of negative 12.1%.
  • Net loss[1] was RMB 611.8 million (US$98.5 million) and loss per ordinary share and per American depositary share ("ADS") was RMB 3.91 (US$0.63). On an adjusted non-GAAP[2] basis, net loss was RMB 607.1 million (US$97.7 million) and loss per ordinary share and per ADS was RMB 3.88 (US$0.62).

[1] For convenience purposes, all references to "net loss/income" in this press release, unless otherwise specified, represent "net loss/income attributable to Yingli Green Energy" for all periods presented.

[2] All non-GAAP measures exclude, as applicable, share-based compensation, interest expenses consisting of changes in the fair value of the interest rate swap and the amortization of the debt discount, the amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Baoding Tianwei Yingli New Energy Resources Co., Ltd. ("Tianwei Yingli"), an operating subsidiary of the Company, inventory provision and impairment of long-lived assets. For further details on non-GAAP measures, please refer to the reconciliation table and a detailed discussion of the Company's use of non-GAAP information set forth elsewhere in this press release.

"We are pleased to conclude another quarter with higher than expected shipment volumes and improved gross margin, which we believe further strengthened our leadership position in the global PV market," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.

"Our strong shipment was primarily supported by the strong European and the U.S. markets and the rapid growth of demand in new markets such as Japan. Europe remained strong as a result of the pull-in demand in the first quarter and we continue to see firm demand in Europe in the second quarter. The first quarter of 2013 in the U.S. was our second best quarter ever in terms of shipment volumes and we are going to consolidate our position in all segments of the U.S. market. In this quarter, our shipment to Japan increased significantly due to the vigorous demand before the subsidy adjustment in April. We expect that returns on investments will remain attractive, which will continuously drive demand in Japan."

"The first quarter has historically been slow in China due to seasonality. However, demand picks up quickly as the construction of utility-scale projects accelerates. In addition, we are also actively positioning ourselves for the upcoming opportunities in the distributed generation segment in China. Furthermore, we have achieved important milestones in other new markets and will put more efforts in diversifying our sales geographies. Based on current market conditions and forecasted customer demand, we are confident to accomplish our full year shipment guidance of 3.2 to 3.3 GW."

"In addition to expanding our market share and solidifying our market position, we stay committed to improving our profitability through strategically allocating more products to markets where prices are higher and tirelessly pursue further cost savings. At the same time, as our operating cash flow position is on track to gain improvement, we expect to continuously optimize our balance sheet," Mr. Miao concluded.

First Quarter 2013 Financial Results

Total Net Revenues

Total net revenues were RMB 2,679.3 million (US$431.4 million) in the first quarter of 2013, compared to RMB 2,902.9 million in the fourth quarter of 2012 and RMB 3,148.5 million in the first quarter of 2012. PV module shipments in the first quarter of 2013 decreased by 6.4% from the fourth quarter of 2012. The sequential decrease in net revenues was mainly due to the decreased PV module shipments, which was partially offset by the slightly improved average selling price of PV modules in this quarter.

Gross Profit (Loss) and Gross Margin

Gross profit was RMB 110.9 million (US$17.8 million) in the first quarter of 2013, compared to gross loss of RMB 247.8 million in the fourth quarter of 2012 and gross profit of RMB 245.2 million in the first quarter of 2012.

Overall gross margin was 4.1% in the first quarter of 2013, compared to overall gross margin of negative 8.5% in the fourth quarter of 2012 and overall gross margin of 7.8% in the first quarter of 2012.The sequential increase in gross margin in the first quarter of 2013 was primarily attributable to the slightly improved average selling price in this quarter, the Company's continuous efforts in reducing processing cost and a decline in the prices of raw materials.

Operating Expenses

Operating expenses were RMB 435.6 million (US$70.1 million) in the first quarter of 2013, compared to RMB 518.9 million in the fourth quarter of 2012 adjusted to exclude an impairment of long-lived assets, a provision for bad debts and a loss of disposal of certain equipment. Operating expenses were RMB 380.0 million in the first quarter of 2012. The sequential decrease in operating expenses was primarily attributable to the Company's effective cost control efforts.

Operating expenses as a percentage of total net revenues was 16.3% in the first quarter of 2013. Excluding the impairment of long-lived assets, the provision for bad debts, and the loss of disposal of certain equipment mentioned above, operating expenses as a percentage of total net revenues was 17.9% in the fourth quarter of 2012. Operating expenses as a percentage of total net revenues was 12.1% in the first quarter of 2012.

Operating Loss and Margin

Operating loss was RMB 324.7 million (US$52.3 million) in the first quarter of 2013, compared to RMB 1,130.4 million in the fourth quarter of 2012 and RMB 134.7 million in the first quarter of 2012.

Operating margin was negative 12.1% in the first quarter of 2013, compared to negative 38.9% in the fourth quarter of 2012 and negative 4.3% in the first quarter of 2012.

Interest Expense

Interest expense was RMB 221.9 million (US$35.7 million) in the first quarter of 2013, compared to RMB 209.4 million in the fourth quarter of 2012 and RMB 202.4 million in the first quarter of 2012. As of March 31, 2013, the Company had an aggregate of RMB 15.5 billion (US$2.5 billion) of bank borrowings and medium-term notes, compared to RMB 15.5 billion as of December 31, 2012. The weighted average interest rate was 6.34% in the first quarter of 2013, which slightly increased from 6.22% in the fourth quarter of 2012. The increase in interest expense was mainly due to increased weighted average interest rate in this quarter.

Foreign Currency Exchange Loss (Gain)

Foreign currency exchange loss was RMB 92.4 million (US$14.9 million) in the first quarter of 2013, compared to foreign currency exchange gain of RMB 26.7 million in the fourth quarter of 2012 and RMB 26.3 million in the first quarter of 2012. Given that the Company had a net Euro-denominated asset position, the foreign currency exchange loss was mainly due to the depreciation of the Euro against the RMB in this quarter.

Income Tax Expense (Benefit)

Income tax expense was RMB 9.8 million (US$1.6 million) in the first quarter of 2013, compared to income tax expense of RMB 5.0 million in the fourth quarter of 2012 and income tax benefit of RMB 11.4 million in the first quarter of 2012. The income tax expense in the first quarter of 2013 mainly resulted from a valuation allowance of deferred income tax assets.

Net Loss

Net loss was RMB 611.8 million (US$98.5 million) in the first quarter of 2013, compared to RMB 1,249.0 million in the fourth quarter of 2012 and RMB 283.2 million in the first quarter of 2012. Loss per ordinary share and per ADS was RMB 3.91 (US$0.63) in the first quarter of 2013, compared to RMB 7.98 in the fourth quarter of 2012 and RMB 1.82 in the first quarter of 2012.

On an adjusted non-GAAP basis, net loss was RMB 607.1 million (US$97.7 million) in the first quarter of 2013, compared to RMB 908.3 million in the fourth quarter of 2012 and RMB 239.5 million in the first quarter of 2012. Adjusted non-GAAP loss per ordinary share and per ADS was RMB 3.88 (US$0.62) in the first quarter of 2013, compared to RMB 5.80 in the fourth quarter of 2012 and RMB 1.54 in the first quarter of 2012.

Balance Sheet Analysis

As of March 31, 2013, the Company had RMB 2,821.3 million (US$454.3 million) in cash and restricted cash, compared to RMB 3,051.7 million as of December 31, 2012.

As of March 31, 2013, accounts receivable were RMB 4,174.6 million (US$672.2 million), compared to RMB 3,918.7 million as of December 31, 2012. Days sales outstanding was 140 days in the first quarter of 2013, compared to 121 days in the fourth quarter of 2012.

As of March 31, 2013, accounts payable were RMB 4,591.1 million (US$739.2 million), compared to RMB 3,680.3 million as of December 31, 2012. Days payable outstanding was 161 days in the first quarter of 2013, compared to 105 days in the fourth quarter of 2012.

As of the date of this press release, the Company had approximately RMB 4,492.0 million in unutilized short-term lines of credit and RMB 2,094.0 million committed long-term facility that can be drawn down in the near future.

Changes to Executive Officers

Yingli Green Energy announced changes to two of its executive officers. Effective immediately, Mr. Yiyu Wang will serve as the Chief Financial Officer of the Company and cease to be the Company's Chief Strategy Officer. Mr. Wang joined the Company in December 2006 as Financial Controller and was appointed as the Company's Chief Strategic Officer in 2007. Prior to joining the Company, Mr. Wang was a senior audit manager and an audit manager at the accounting firm of PricewaterhouseCoopers from 1996 to 2006.

Mr. Zongwei Li will serve as the Company's Chief Strategy Officer and will cease to be the Company's Chief Financial Officer. In his capacity as Chief Strategy Officer, Mr. Li will oversee the Company's strategic planning with a focus on customized business solutions and value-added services. Mr. Li will continue to serve as a director of the Company and will also be available for assistance during the transition period.

Business Outlook for Full Year 2013

Based on current market and operating conditions, estimated production capacity and forecasted customer demand, the Company reiterates its PV module shipment target to be in the estimated range of 3.2 GW to 3.3 GW for fiscal year 2013, which represents an increase of 39.4% to 43.7% compared to fiscal year 2012.

Non-GAAP Financial Measures

To supplement the financial measures calculated in accordance with GAAP, this press release includes certain non-GAAP financial measures of adjusted net income (loss) and adjusted diluted earnings (loss) per ordinary share and per ADS, each of which is adjusted to exclude, as applicable, items related to share-based compensation, interest expense consisting of changes in the fair value of the interest-rate swap, and the amortization of the debt discount, the amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Tianwei Yingli, inventory provision and impairment of long-lived assets. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's on-going performance as such items are not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release.

Currency Conversion

Solely for the convenience of readers, certain Renminbi amounts have been translated into U.S. dollar amounts at the rate of RMB 6.2108 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board as of March 31, 2013. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized, or settled into U.S. dollar amounts at such rate, or at any other rate. The percentages stated in this press release are calculated based on Renminbi.

Conference Call

Yingli Green Energy will host a conference call and live webcast to discuss the results at 8:00 AM Eastern Daylight Time (EDT) on May 30, 2013, which corresponds to 8:00 PM Beijing / Hong Kong time on the same day.

The dial-in details for the live conference call are as follows:

  • U.S. Toll Free Number: +1-866-519-4004
  • International dial-in number: +1-718-354-1231
  • Passcode: 74428922

A live and archived webcast of the conference call will be available on the Investors section of Yingli Green Energy's website at www.yinglisolar.com. A replay will be available shortly after the call on Yingli Green Energy's website for 90 days.

A replay of the conference call will be available until June 10, 2013 by dialing:

  • U.S. Toll Free Number: +1-855-452-5696
  • International dial-in number: +1-646-254-3697
  • Passcode: 74428922

About Yingli Green Energy

Yingli Green Energy Holding Company Limited (NYSE: YGE), which markets its products under the brand "Yingli Solar," is a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers. Yingli Green Energy's manufacturing covers the entire photovoltaic value chain, from ingot casting and wafering, to solar cell production and module assembly. Yingli Green Energy currently maintains a balanced vertically integrated production capacity of 2,450 MW per year at its production facilities located in Baoding, Haikou, Tianjin, and Hengshui. Yingli Green Energy distributes its photovoltaic modules to a wide range of markets, including Germany, Spain, Italy, Greece, France, South Korea, China, and the United States. Headquartered in Baoding, China, Yingli Green Energy has more than 20 subsidiaries and branch offices worldwide. Yingli Green Energy is publicly listed on the New York Stock Exchange (NYSE: YGE). For more information, please visit www.yinglisolar.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute ¡°forward-looking¡± statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as ¡°will,¡± ¡°expects,¡± ¡°anticipates,¡± ¡°future,¡± ¡°intends,¡± ¡°plans,¡± ¡°believes,¡± ¡°estimates,¡± ¡°target¡± and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy's control, which may cause Yingli Green Energy's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy's filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For further information, please contact:


Qing Miao

Vice President of Corporate Communications

Yingli Green Energy Holding Company Limited

Tel: +86 312 8929787

Email: ir@yinglisolar.com

 

YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands)




December 31, 2012


March 31, 2013



RMB


RMB


US$








ASSETS







Current assets:







Cash and restricted cash


3,051,743


2,821,286


454,255

Accounts receivable, net


3,918,666


4,174,610


672,153

Inventories


2,523,550


2,893,368


465,861

Prepayments to suppliers


239,912


281,253


45,285

Prepaid expenses and other current assets


1,379,003


1,517,133


244,273

Total current assets


11,112,874


11,687,650


1,881,827








Long-term prepayments to suppliers


1,280,131


1,168,728


188,177

Property, plant and equipment, net


13,218,200


13,137,902


2,115,332

Land use rights


710,183


708,595


114,091

Intangible assets, net


62,812


61,746


9,942

Other assets


769,386


789,923


127,184

Total assets


27,153,586


27,554,544


4,436,553








LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities:







Short-term bank borrowings, including current
       portion of long-term debt


7,526,015


7,588,907


1,221,889

Accounts payable


3,680,259


4,591,116


739,215

Other current liabilities and accrued expenses


1,734,695


1,785,006


287,404

Total current liabilities


12,940,969


13,965,029


2,248,508








Long-term debt, excluding current portion


4,076,456


4,004,571


644,775

Medium-term notes


3,911,907


3,913,338


630,086

Accrued warranty cost, excluding current portion


519,539


544,078


87,602

Other liabilities


1,487,944


1,524,424


245,447

Total liabilities


22,936,815


23,951,440


3,856,418








Shareholders' equity:







Ordinary shares


12,241


12,241


1,971

Additional paid-in capital


6,654,082


6,657,070


1,071,854

Treasury stock


(127,331)


(127,331)


(20,502)

Accumulated other comprehensive income


237,384


262,556


42,274

Accumulated deficit


(4,406,510)


(5,018,291)


(807,994)

Total equity attributable to Yingli Green Energy


2,369,866


1,786,245


287,603

Noncontrolling interests


1,846,905


1,816,859


292,532

Total shareholders' equity


4,216,771


3,603,104


580,135

Total liabilities and shareholders' equity


27,153,586


27,554,544


4,436,553

 

YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES

Unaudited Condensed Statements of Comprehensive Income

(In thousands, except for share, ADS, per share and per ADS data)




Three months ended



March 31, 2012


December 31, 2012


March 31, 2013



RMB


RMB


RMB


US$

Net revenues:









Sales of PV modules


3,109,426


2,684,571


2,524,574


406,481

Sales of PV systems


10,025


119,147


21,930


3,531

Other revenues


29,070


99,213


132,769


21,377

Total net revenues


3,148,521


2,902,931


2,679,273


431,389

Cost of revenues:







Cost of PV modules sales


(2,860,336)


(2,900,192)


(2,399,451)


(386,335)

Cost of PV systems sales


(5,745)


(119,413)


(19,829)


(3,193)

Cost of other revenues


(37,192)


(131,145)


(149,112)


(24,008)

Total cost of revenues


(2,903,273)


(3,150,750)


(2,568,392)


(413,536)

Gross profit (loss)


245,248


(247,819)


110,881


17,853

Selling expenses


(199,190)


(242,210)


(214,847)


(34,593)

General and administrative expenses


(146,626)


(386,869)


(177,503)


(28,580)

Research and development expenses


(34,147)


(52,977)


(43,235)


(6,961)

Impairment of long-lived assets and goodwill


-


(200,497)


-


-

Total operating expenses


(379,963)


(882,553)


(435,585)


(70,134)

Loss from operations


(134,715)


(1,130,372)


(324,704)


(52,281)

Other income (expense):









Interest expense


(202,420)


(209,368)


(221,904)


(35,729)

Interest income


13,682


11,220


2,674


431

Foreign currency exchange gains (losses)


26,276


26,659


(92,376)


(14,873)

Other income


5,568


21,160


4,224


680

Loss before income taxes


(291,609)


(1,280,701)


(632,086)


(101,772)

Income tax benefit (expense)


11,365


(5,015)


(9,819)


(1,581)

Net loss


(280,244)


(1,285,716)


(641,905)


(103,353)

Less: (Earning) loss attributable to the
    noncontrolling interests


 

(2,941)


36,692


30,124


4,850

Net loss attributable to Yingli Green Energy


(283,185)


(1,249,024)


(611,781)


(98,503)

Weighted average shares and ADSs outstanding









Basic and diluted


155,914,205


156,585,020


156,585,020


156,585,020










Loss per share and per ADS
Basic and diluted


(1.82)


(7.98)


(3.91)


(0.63)










Net loss


(280,244)


(1,285,716)


(641,905)


(103,353)

Other comprehensive income (loss)









Foreign currency exchange translation
    adjustment, net of nil tax


27,096


5,020


12,097


1,948

Cash flow hedging derivatives, net of nil tax


(2,954)


1,134


14,060


2,264

Comprehensive loss


(256,102)


(1,279,562)


(615,748)


(99,141)

Less: Comprehensive (income) loss attributable
    to the noncontrolling interest


(9,714)


29,366


29,139


4,691

Comprehensive loss attributable to Yingli
    Green Energy


(265,816)


(1,250,196)


(586,609)


(94,450)

 

Reconciliation of Non-GAAP measures to GAAP measures



Three months ended



March 31, 2012


December 31, 2012


March 31, 2013



RMB


RMB


RMB


US$

Non-GAAP loss attributable to Yingli Green Energy


(239,492)


(908,259)


(607,088)


(97,748)

Share-based compensation


(9,487)


(8,499)


(3,895)


(627)

Amortization of intangible assets


(11,967)


(10,821)


(833)


(134)

Inventory provision


(21,207)


(121,005)


-


-

Impairment of long-lived assets


-


(200,497)


-


-

Interest expenses consisting of changes in
    fair value of the interest rate swap and
    the amortization of the debt discount


(1,032)


57


35


6

Net loss attributable to Yingli Green
    Energy


(283,185)


(1,249,024)


(611,781)


(98,503)

Non-GAAP diluted loss per share and per
    ADS


(1.54)


(5.80)


(3.88)


(0.62)

Diluted loss per share and per ADS


(1.82)


(7.98)


(3.91)


(0.63)

 

 


 

SOURCE Yingli Green Energy Holding Company Limited



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