Yingli Green Energy Holding Company is eyeing a strong second half after a solid performance in the second quarter. The Chinese photovoltaic manufacturer saw gross profit triple from 296.3 million yuan ($43.46 million) to 905.1 million yuan, while gross margin significantly went up from 19.8 percent to 33.5 percent.
Net revenues climbed by 80.1 percent in the quarter, generating 2.69 billion Chinese yuan ($398.1 million) compared with 1.49 billion yuan from the same period in 2009. The company saw its operating income rise from 106.8 million yuan to 565.4 million yuan. Yingli (NYSE:YGE) said the results were propelled by the mid-teen quarter-on-quarter growth rate it achieved in PV module shipment.
The company has reaffirmed its PV module shipment target this year to be in the range of 950 megawatts to 1 gigawatt for fiscal year 2010, which represents an increase of 80.8 percent to 90.4 percent compared with 2009.
The increase in gross margin was attributed to better-than-expected average selling price and continuous decline in the blended cost of polysilicon, decreasing polysilicon usage per watt and continuous reduction in nonpolysilicon cost.
The company has raised its gross margin target to the estimated range of 28 percent to 30 percent from the previous estimated range of 27 percent to 29 percent for the year.
The raised target is partly based on the estimated ramp-up cost of its new 400-MW production capacity that started operating in July, and the exchange rates of the euro and the dollar against the renminbi.
“Fine Silicon, our polysilicon manufacturing facility with a designed annual production capacity of 3,000 metric tons has successfully commenced commercial operation since earlier this month,” said Liansheng Miao, Yingli’s chairman and chief executive.