Yingli Solar announced its unaudited consolidated financial results for the quarter ended March 31, 2016. The company’s net income climbed to RMB79.6 million, representing the return to profit after nearly five years.
Financial highlights
In 1Q16, Yingli’s total net revenues were RMB2,351.1 million, up from RMB2,110.0 million in 4Q15 and down from RMB2,905.8 million in 1Q15. Total PV module shipments were 508.1MW in the quarter, compared to 504.5MW in 4Q15 and 754.2MW in 1Q15.
The sequentially net revenues increase were mainly due to increase of PV cell sales and higher ASP of Yingli’s PV modules in overseas markets such as Japan.
The gross profit was RMB469.3 million, significantly increased from RMB248.3 million in 4Q15 and RMB410.8 million in 1Q15. The gross margin of 20% was up from 11.8% in 4Q15 and 14.1% in 1Q15. Gross margin on sales of PV modules reached 19.7% in 1Q16.
Higher ASP of PV module sold to overseas markets was also the explanation of the increased gross profit and gross margin. In addition, the gross profit of RMB496.3 million represented approximately 90% Q-o-Q increase.
It is noticeable that operating expenses significantly decreased from RMB1,368.6 million in 4Q15 and from RMB477.2 million in 1Q15 to RMB282.8 million in 1Q16. Operating expenses as a percentage of total net revenues were lowered from 64.9% in 4Q15 and 16.4% in 1Q15 to 12.0% in 1Q16.
Yingli explained the significant decline of operating expenses as a result of several provisions and effective control on administration. The control on administration involves administrative expenses, the adjustments of marketing and sales strategies, and the decrease of research and development activities in this quarter. However, selling and R&D expenses may increase in future according to Yingli’s strategy.
Net income was RMB79.6 million in 1Q16, compared to net loss of RMB1,439.0 million in 4Q15 and net loss of RMB363.2 million in 1Q15. This is the first net income since the third quarter of 2011.
Yingli aims to increase PV module shipment ratio to global market such as Japan and USA in the future.