On February 21st, 2012 Yingli Green Energy Holding Company Ltd. (Baoding, China) released selected preliminary results for its fourth quarter and full year 2011, estimating a near 30% quarter-to-quarter decline in module shipments and a gross margin of 3% during the fourth quarter.

Yingli had expected a "low to middle 20's percent" decrease in module shipments in the fourth quarter, and a gross margin of roughly 10%. The company has re-affirmed its full year 2011 PV module shipment guidance of 1.58 GW to 1.63 GW.

Drop in polysilicon prices to affect financial results

Yingli notes that its gross margin has been negatively impacted by a non-cash inventory provision, and that without the provision it would have achieved a gross margin of roughly 12%.

The company expects to recognize an impairment of assets at polysilicon subsidiary Fine Silicon Company Ltd. (Baoding, China) of USD 361 million, as well as a USD 43 million impairment of goodwill in the fourth quarter and full year 2011, citing heavy declines in spot prices for polysilicon.

Finally, Yingli expects to provide a USD 135 million provision on its inventory purchase commitment under long-term polysilicon supply contracts, also due to the decline in prices for the material. The company states it is continuing to negotiate with its suppliers to amend the prices under these long-term contracts.

Yingli notes that all the estimates that it has offered are preliminary, unaudited and subject to further adjustments. The company will release unaudited fourth quarter and full year 2011 financial results on February 29th, 2012.

2012-02-23| Courtesy: Yingli Green Energy Holding Company | solarserver.com © Heindl Server GmbH

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