Yingli Green Energy (YGE) Misses Q2 EPS by 55c, Sales Beat

Yingli Green Energy (NYSE: YGE) reported Q2 EPS of ($2.60), $0.55 worse than the analyst estimate of ($2.05). Revenue for the quarter came in at $468.1 million versus the consensus estimate of $415 million.

Total photovoltaic module shipments were 1,146.6MW, compared to 370.9MW in the first quarter of 2017.

"Driven by the surging demand from China due to the expected feed-in-tariff ("FiT") reduction after June 30, 2017, the Company's PV module shipments reached a record high of 1,146.6 MW in a single quarter in the second quarter of 2017, increasing by 209% over the first quarter of 2017, and exceeded previous guidance," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.

"Geographically, shipments to China increased from 243MW in the first quarter of 2017 to 992MW and accounted for 86.5% of our total PV module shipments in the second quarter of 2017, as a result of successful cooperation with different types of customers. For example, the Company completed the delivery of more than 200 MW modules to a utility scale project in Hebei Province in the second quarter, which was a great contribution to the increase in shipments. The Company also enhanced its partnerships with distributors who focused on distributed generation systems, which brought considerable and relatively stable PV module shipments each month. The Company expects the Top Runner program, PV Poverty Alleviation projects and distributed generation projects in China will be the major driving forces for the Company\'s PV module shipments in China in the second half of 2017. In other markets, shipments to Europe, Japan, and United States all increased compared to the first quarter of 2017. In Japan, the Company successfully completed the delivery of about half of the 230MW modules ordered by the Japan's largest solar plant in the second quarter."

"On the technology side, the Company started to utilize diamond wire sawing technology in the second quarter of 2017 and plans to increase its application in the second half of 2017. This technology is expected to reduce unit production cost of PV modules by about 5%. The Company also launched a PANDA Bifacial half-cell module which could achieve over 300W of single-sided power output and 335W of double-sided power output. In addition, the Company put the Smart Hotspot Free and multi-crystalline black silicon modules in mass production in the second quarter of 2017, which further diversified the Company's product portfolio."

"Based on current market conditions, the Company\'s current operating conditions, estimated production capacity and forecasted customer demand, we expect the PV module shipments to be in the range of 550 MW to 600 MW for the third quarter of 2017, and we revise our shipments guidance for full year of 2017 to 2.5 GW to 2.8 GW," Mr. Miao concluded.

For earnings history and earnings-related data on Yingli Green Energy (YGE) click here.

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