Yingli Green Energy (Yingli Solar) announced its preliminary financial results for third quarter of 2015. The company sees net revenue increased from the second quarter. The gross margin in 3Q15 was also raised from in 2Q15 due to higher average selling price and decrease in costs of PV modules. However, Yingli Solar expects lower PV module shipment than its guidance because of lower-than-expected utilization of production capacities.
Based upon preliminary data, the Company expects that its total net revenues in the third quarter of 2015 were in the range of US$340 million to US$350 million, in line with the management's previous estimation. In addition, the Company estimates that its overall gross margin in the third quarter of 2015 was in the range of 8% to 9%, increased from 6.3% in the second quarter, as a result of increase in average selling price and decrease in unit cost of PV modules.
Meanwhile, the Company estimates that its PV module shipments (excluding OEM production for third parties) in the third quarter of 2015 were in the range of 450MW to 460 MW, compared to its previous guidance of 550MW to 580MW. The lower-than-expected shipments were due to a lower-than-expected utilization of production facilities for in-house PV module.
Further to the Company's announcement on September 8, 2015, the Company expects to recognize a non-cash impairment charge on long lived assets totaling RMB3,694.2 million (US$581.3 million) in the third quarter of 2015, which was mainly due to the lower-than-expected utilization of certain production facilities of the Company in 2015.
These preliminary, unaudited third quarter results are based on management's preliminary review of operations for the third quarter of 2015 and remain subject to change based on management's ongoing review of the third quarter results.
In order to help investor learn more about its unaudited financial results for third quarter 2015, the Company will hold a conference call and live webcast to discuss the results at 8:00 AM U.S. Eastern Time on December 2, 2015, which corresponds to 9:00 PM Beijing/Hong Kong time on the same day.
