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Yingli Green Energy Reports Second Quarter 2009 Results
PR Newswire
Aug 19, 2009
BAODING, China,
Second Quarter 2009 Consolidated Financial and Operating Highlights
-- Total net revenues were RMB 1,498.9 million (US$219.5 million) with a
PV module shipment volume increase of 72.3% quarter over quarter.
-- Gross profit was RMB 273.8 million (US$40.1 million), with a gross
margin of 18.3%.
-- Operating income was RMB 106.8 million (US$15.6 million), with an
operating margin of 7.1%.
-- Net loss(1) was RMB 393.7 million (US$57.6 million) and diluted loss
per ordinary share and per American depositary share ("ADS") was RMB
3.03 (US$0.44) as a result of loss on debt extinguishment of RMB 244.7
million (US$35.8 million) and loss on derivative liabilities of RMB
204.2 million (US$29.9 million) in the quarter, both of which were
non-recurring, non-cash charges and had no impact on the Company's cash
flow.
-- On an adjusted non-U.S. Generally Accepted Accounting Principles
("GAAP")(2) basis, net income was RMB 119.8 million (US$17.5 million)
and diluted earnings per ordinary share and per ADS was RMB 0.91
(US$0.14).
-- Received net proceeds of US$227.4 million through the follow-on
offering of 18,390,000 ADSs.
"I am pleased to announce that during the second quarter of 2009 we
increased our PV module shipments substantially, with growth of 72.3% over the
first quarter, allowing us to achieve quarterly net revenue growth of 49.9%,"
said Mr.
Mr. Miao continued, "In order to take full advantage of new opportunities,
we have been focusing on building a more prominent presence in emerging solar
markets around the world. In the U.S., we have established offices in
"The recent announcement of our Project PANDA, which was established to develop high efficiency solar cells, reaffirmed our continuing commitment to our world class research and development initiatives. Project PANDA is progressing smoothly as scheduled, and we believe our efforts on this front will significantly improve the conversion efficiency of crystalline silicon cells from their current levels."
Mr. Miao continued, "Also during the quarter, we further improved our capital structure and strengthened our balance sheet through a recent follow-on equity offering and the early repayment of the ADM Capital loan facility. We also successfully completed an additional 200 MW capacity expansion project in July, bringing our total annual production capacity to 600 MW to support the growing demand for our products. We plan to ramp-up production of our in-house polysilicon plant, Fine Silicon, in late 2009 and expect to see an increasing contribution from our in-house polysilicon manufacturing beginning in 2010. This should help us further expand our cost advantage and strengthen our industry leadership position for the long run."
Mr. Miao concluded, "As we continue to gain the trust of consumers by proving Yingli Green Energy is a leading manufacturer of reliable, bankable products, with a firm commitment to quality and service, we are confident that our global market share will continue to expand in the coming quarters."
Second Quarter 2009 Financial Results
Total Net Revenues
Total net revenues were
Gross Profit and Gross Margin
Gross profit in the second quarter of 2009 was
Operating Expenses
Operating expenses in the second quarter of 2009 were
Operating Income and Margin
Operating income in the second quarter of 2009 was
Interest Expense
Interest expense was
After excluding non-cash interest expenses, interest expense was
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was
Loss on Debt Extinguishment
Loss on debt extinguishment of
Loss on Derivative Liabilities
Loss on derivative liabilities was
Income Tax Expense (Benefit)
Income tax expense was
Net Loss (Income)
As a result of the factors discussed above, net loss was
On an adjusted non-GAAP basis, net income was
Balance Sheet Analysis
As of
Long-term bank borrowings increased to
In the second quarter of 2009, the Company substantially improved its
capital structure through the follow-on equity offering, early repayment in
full of the ADM Capital loan and the restructuring of short-term bank loans
into long-term loan facilities. As of the date of this press release, the
Company had approximately
Second Quarter 2009 and Recent Business Highlights
Continued Improvement of Capital Structure
-- Received the net proceeds of US$227.4 from Yingli Green Energy's
follow-on offering of 18,390,000 ADSs.
-- Received two credit facilities, with principal amounts of US$100
million and RMB 300 million, respectively, from Bank of Communications
Co., Ltd.
-- Made an early repayment of the full principal amount of US$50 million,
together with related accrued interest and fees, to ADM Capital.
-- Renewed RMB 1 billion credit facility with the Export-Import Bank of
China and restructured a total of RMB 800 million working capital loans
into a long-term bank facility.
Expanded Footprint in Emerging PV Markets
-- Entered into a strategic sales agreement with Recurrent Energy to
supply crystalline PV modules through 2012 for expected use in
Recurrent Energy's distributed solar projects, typically ranging from 2
to 20 MW, in the U.S., Canada, Europe and other emerging markets.
-- Signed a sales agreement with the Shanxi subsidiary of China Mobile for
an off-grid PV system in Shanxi Province.
-- Selected by Huawei Technologies Co. Ltd. to supply PV modules for its
base stations.
-- Selected by SDIC Huajing as the PV module supplier for its 10 MW on-
grid solar plant in Dunhuang, Gansu Province.
-- Formed strategic alliance with a subsidiary of China Guangdong Nuclear
Power Holding Co., Ltd. to develop on-grid solar projects both in China
and abroad.
-- Opened two U.S. regional headquarters in New York City and San
Francisco.
-- Entered into an agreement with Hainan Provincial Development Holding
Company Limited ("Hainan Development") to form a joint venture, in
which Yingli China will hold a controlling stake, to build
manufacturing facilities with annual production capacity of 100 MW in
each of polysilicon ingots and wafers, PV cells and PV modules in
Haikou, Hainan Province.
-- Entered into an agreement with Hainan Development and Hainan Provincial
Water Conservancy & Power Group Company Limited to form a joint venture,
in which Yingli China will hold a minority stake, to develop and
operate up to 300 MW on-grid solar projects in Hainan Province from
2009 to 2011.
Commitment to the Investment in World Class Research and Development
-- Formed partnerships with the Energy Research Centre of the Netherlands
and Amtech Systems, Inc. to develop technologies for manufacturing the
next generation of high efficiency solar cells, known as Project PANDA.
Others
-- Signed a sales contract with Elecor, S.A.U. ("Elecor"), a Spanish PV
system integrator, to supply 9 MW of PV modules from September through
November 2009.
Business Outlook for Full Year 2009
Given the strong second quarter results and the visibility into the second half of 2009 and based on the current market and operating conditions, the Company reaffirms its PV module shipment target to be in the estimated range of 450 MW to 500 MW for fiscal year 2009, which represents an increase of 59.9% to 77.6% compared to fiscal year 2008.
In addition, by leveraging its competitive cost structure and achieving its market share expansion targets and based on the current market and operating conditions, the Company now is updating its gross margin target for fiscal year 2009 to be in the estimated range of 18% to 20%.
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 items related to share-based
compensation, accretion of the non-cash interest expense resulting from the
derivative liabilities bifurcated from the Company's convertible notes issued
in
Currency Convenience Translation
Solely for the convenience of readers, certain Renminbi amounts have been
translated into U.S. dollar amounts at the rate of
Conference Call
Yingli Green Energy will host a conference call and live webcast to
discuss the results at
The dial-in details for the live conference call are as follows:
-- U.S. Toll Free Number: +1-866-383-8009
-- International Dial-in Number: +1-617-597-5342
-- Passcode: 30071998
A live and archived webcast of the conference call will be available under the Investor Relations section of Yingli Green Energy's website at http://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
-- U.S. Toll Free Number: +1-888-286-8010
-- International Dial-in Number: +1-617-801-6888
-- Passcode: 95462550
About Yingli Green Energy
Yingli Green Energy Holding Company Limited (NYSE: YGE) is one of the
world's leading vertically integrated PV product manufacturers. Yingli Green
Energy designs, manufactures and sells PV modules and designs, assembles,
sells and installs PV systems that are connected to an electricity
transmission grid or operate on a stand-alone basis. Based in Baoding, China,
Yingli Green Energy sells its PV modules to system integrators and
distributors located in various markets around the world, including
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.
(1) Upon adoption of FASB Statement 160 ("SFAS 160"), effective January
1, 2009, net income (loss) has been adjusted to include net income
(loss) attributed to non-controlling interests and Yingli Green Energy.
For convenience purposes, all references to "net income (loss)" in
this press release, unless otherwise specified, represent "net income
(loss) attributable to Yingli Green Energy" for all periods presented.
(2) All non-GAAP measures exclude share-based compensation, accretion of
non-cash interest expenses resulting from the derivative liabilities
bifurcated from the Company's convertible notes issued in January 2009,
from the freestanding warrants issued in connection with a loan
facility provided by a fund managed by Asia Debt Management Hong Kong
Limited ("ADM Capital") in April 2009, and from the equity component
bifurcated from the Company's convertible notes issued in December
2007 upon the adoption and retroactive application of Financial
Accounting Standards Board Staff Position Accounting Principles Board
14-1 ("FSP APB14-1"), "Accounting for Convertible Debt Instruments
That May Be Settled in Cash upon Conversion (Including Partial Cash
Settlement)", the non-cash interest in connection with the conversion
of the Company's convertible notes issued in January 2009, the non-
cash loss on debt extinguishment resulting from the early full
repayment of the ADM Capital loan, the subsequent non-cash expense in
the fair value of the derivative liabilities and 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. 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.
(3) The Company's previously reported unaudited second quarter 2008
financial results have been revised to reflect an increase in interest
expense from RMB 35 million to RMB 38 million in the second quarter of
2008 due to the adoption and retroactive application of FSP APB 14-1,
"Accounting for Convertible Debt Instruments That May Be Settled in
Cash upon Conversion (Including Partial Cash Settlement)."
For further information, please contact:
In China:
Qing Miao
Director, Investor Relations
Yingli Green Energy Holding Company Limited
Tel: +86-312-3100-502
Email: ir@yinglisolar.com
Courtney Shike
Brunswick Group LLC
Tel: +86-10-6566-2256
Email: cshike@brunswickgroup.com
In the United States:
Katie Cralle
Brunswick Group LLC
Tel: +1-212-333-3810
Email: kcralle@brunswickgroup.com
YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
December 31, 2008
(As adjusted)(1) June 30, 2009
RMB RMB US$
ASSETS
Current assets:
Cash and restricted cash 1,218,148 2,620,633 383,683
Accounts receivable, net 1,464,973 2,048,410 299,905
Inventories 2,040,731 1,903,774 278,729
Prepayments to suppliers 774,014 455,719 66,721
Prepaid expenses and other
current assets 563,267 502,272 73,537
Total current assets 6,061,133 7,530,808 1,102,575
Prepayments to suppliers 674,164 684,466 100,212
Property, plant and
equipment, net 3,385,682 5,325,405 779,685
Land use rights 63,022 268,934 39,374
Goodwill and intangible
assets, net 666,429 640,589 93,788
Investment in and advances to
affiliates, including an
acquisition deposit 192,537 15,758 2,307
Other assets 24,829 21,727 3,181
Total assets 11,067,796 14,487,687 2,121,122
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Short-term bank borrowings,
including current portion
of long-term bank borrowings 2,044,200 1,817,453 266,091
Accounts payable 628,903 1,040,993 152,410
Other current liabilities and
accrued expenses 84,563 168,209 24,627
Advances from customers 51,933 27,389 4,010
Dividend payable 10,956 10,956 1,604
Other amounts due to related
parties, including an
entrusted loan 8,864 109,456 16,026
Total current liabilities 2,829,419 3,174,456 464,768
Convertible senior notes 1,214,814 1,253,438 183,514
Senior secured convertible notes -- 41,329 6,051
Long-term bank borrowings,
excluding current portion 662,956 1,971,940 288,709
Accrued warranty cost,
excluding current portion 114,691 135,350 19,816
Other liabilities 73,646 65,846 9,640
Total liabilities 4,895,526 6,642,359 972,498
Shareholders' equity:
Ordinary shares 9,922 11,353 1,662
Additional paid-in capital 3,724,358 5,930,435 868,267
Accumulated other
comprehensive income 31,206 20,468 2,997
Retained earnings 1,011,633 476,387 69,747
Total Yingli Green Energy
shareholders' equity 4,777,119 6,438,643 942,673
Noncontrolling interests 1,395,151 1,406,685 205,951
Total shareholders' equity 6,172,270 7,845,328 1,148,624
Total liabilities and
shareholders' equity 11,067,796 14,487,687 2,121,122
(1) Reflects retrospective application of SFAS 160, "Noncontrolling
Interests in Consolidated Financial Statements-an amendment of ARB
No.51." and retrospective application of FSP APB 14-1, "Accounting for
Convertible Debt Instruments that May be Settled in Cash upon
Conversion (Including Partial Cash Settlement)."
YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except for share, ADS, per share and per ADS data)
Three months ended
June 30, March 31, June 30, 2009
2008 2009
(As adjusted)(1)
RMB RMB RMB US$
Net revenues:
Sales of PV modules 1,964,151 998,009 1,460,715 213,861
Sales of PV systems 4,288 4 32,813 4,804
Other revenues 18,555 1,886 5,374 787
Total net revenues 1,986,994 999,899 1,498,902 219,452
Cost of revenues:
Cost of PV modules
sales (1,454,266) (844,706) (1,193,400) (174,724)
Cost of PV systems
sales (2,779) (16) (26,626) (3,898)
Cost of other
revenues (18,180) (2,690) (5,089) (745)
Total cost of
revenues (1,475,225) (847,412) (1,225,115) (179,367)
Gross profit 511,769 152,487 273,787 40,085
Selling expenses (49,912) (30,881) (39,626) (5,802)
General and
administrative
expenses (60,441) (75,470) (81,233) (11,893)
Research and
development
expenses (5,706) (25,756) (46,130) (6,754)
Total operating
expenses (116,059) (132,107) (166,989) (24,449)
Income from operations 395,710 20,380 106,798 15,636
Other income
(expense):
Interest expense (37,994) (79,005) (115,923) (16,972)
Interest income 1,735 1,352 830 122
Foreign currency
exchange
gain (loss) (68,210) (93,635) 108,710 15,916
Loss on debt
extinguishment -- -- (244,745) (35,833)
Loss on derivative
liabilities -- (27,099) (204,246) (29,903)
Other income 884 3,976 836 122
Earnings (loss)
before income taxes 292,125 (174,031) (347,740) (50,912)
Income tax benefit
(expense) 1,651 12,989 (15,998) (2,342)
Net income (loss) 293,776 (161,042) (363,738) (53,254)
Less: loss
(earnings)
attributable to the
noncontrolling
interests (89,831) 19,477 (29,943) (4,384)
Net income (loss)
attributable to
Yingli Green Energy 203,945 (141,565) (393,681) (57,638)
Weighted average
shares and
ADSs outstanding
Basic 127,442,975 127,864,391 130,044,300 130,044,300
Diluted 129,606,059 127,864,391 130,044,300 130,044,300
Earnings (loss) per
share and per ADS
Basic 1.60 (1.11) (3.03) (0.44)
Diluted 1.57 (1.11) (3.03) (0.44)
Reconciliation of Non-GAAP measures to GAAP measures
Three months ended
June 30, March 31, June 30, 2009
2008 2009
RMB RMB RMB US$
Non-GAAP income (loss)
attributable to Yingli
Green Energy 234,522 (77,116) 119,794 17,539
Share-based
compensation
attributable to
Yingli Green Energy (10,788) (15,352) (14,721) (2,155)
Amortization of
intangible assets
attributable to
Yingli Green Energy (16,550) (15,191) (12,971) (1,899)
Loss on derivative
liabilities
attributable to
Yingli Green Energy -- (27,100) (204,246) (29,903)
Loss on debt
extinguishment
attributable to
Yingli Green Energy -- -- (244,745) (35,833)
Non-cash interest
expenses attributable
to Yingli Green
Energy (3,239) (6,806) (36,792) (5,387)
Net income (loss)
attributable to
Yingli Green Energy 203,945 (141,565) (393,681) (57,638)
Non-GAAP diluted
earnings (loss) per
share and per ADS 1.81 (0.61) 0.91 0.14
Share-based
compensation per
share and per ADS (0.08) (0.12) (0.11) (0.02)
Amortization of
intangible assets
per share and per ADS (0.13) (0.12) (0.10) (0.01)
Loss on derivative
liabilities per
share and per ADS -- (0.21) (1.57) (0.23)
Loss on debt
extinguishment per
share and per ADS -- --- (1.88) (0.27)
Non-cash interest
expenses per
share and per ADS (0.03) (0.05) (0.28) (0.05)
Diluted earnings
(loss) per share
and per ADS 1.57 (1.11) (3.03) (0.44)
SOURCE Yingli Green Energy Holding Company Limited
Copyright (2009) PR Newswire. All Rights Reserved.
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