Photon News | Chinese solar manufacturer Yingli Green Energy Holding Co. Ltd. successfully reduced its losses in the third quarter of 2014 despite recording a drop in revenue. Revenue for the latest quarter came to 3,385.2 million CNY ($550.9 million), with the majority of total revenue, 3,180.8 million CNY, coming from the sale of PV modules.
Yingli recorded total revenue of 3,649.4 CNY for the third quarter of 2013. Total PV module shipments during the latest quarter came to 903.4 MW, including 109.0 MW for PV systems used in the company’s own downstream power plants in China. Revenue was not recognized for the 109.0 MW of internal shipments.
Gross margin was 20.9% in the third quarter of 2014, substantially improved from 15.6% in the second quarter of 2014 and 13.7% in the third quarter of 2013.
The significant increase of gross margin was primarily due to the decreased cost of PV modules as a result of the company’s efforts to reduce production costs for all stages of module manufacturing.
Operating income for the latest quarter was 199.7 million CNY, a significant improvement over the 70.3 million CNY loss Yingli recorded for the third quarter of 2013.
Net loss was reduced to 122.8 million CNY from a loss of 235.6 million CNY a year earlier. Yingli CEO Liansheng Miao noted that operating income for the third quarter of 2014 was positive for the first time since the second quarter of 2011. Yingli has revised its module shipment target for full year 2014.
The company now expects 2014 shipments in the range of 3.30 to 3.35 GW (including 200 to 240 MW for PV systems), which represents an increase of 3.0% to 4.6% compared to fiscal year 2013. Yingli has been expanding into the development business in recent quarters. The company’s PV project pipeline currently stands at about 1.4 GW.
These projects are at various stages in the approval process and are located across a dozen provinces in China. During the third quarter, the company started construction on approximately 185 MW of PV projects, and as of Sept. 30, the company had 340 MW of projects under construction. In the fourth quarter, the company plans to start constructions on 50 to 60 MW of additional PV projects.