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Yingli forecasts dismal Q3 results, $579m writedown on production assets

Yingli expects to record net revenue of $340m to $350m in the third quarter, down sharply from 2.7bn yuan ($422.7m) in the April-June period, and will likely book a non-cash impairment charge of 3.7bn yuan, primarily because some of its factories have been operating below full capacity.

The troubled Chinese manufacturer estimates that it shipped 450MW to 460MW of solar panels in the three months to 30 September, not including PV kit produced under OEM arrangements, according to preliminary results.

The forecast is significantly lower than the 728MW of solar modules it delivered in the second quarter, and below its initial third-quarter guidance for 550MW to 580MW of shipments.

The Baoding-based company said in an online statement that it will likely post a gross margin of 8% to 9%, from 6.3% in the second quarter, partly due to higher average selling prices (ASPs) for its PV modules.

It did not comment on its ongoing efforts to rein in more than $2bn in debt, amid questions about its ongoing profitability.

In mid-October, it reported that its holding subsidiary, Baoding Tianwei Yingli New Energy, had repaid $110m of five-year, unsecured mid-term notes, primarily by liquidating idle land holdings and shutting down the production facilities of its Fine Silicon unit.

Yingli's NYSE-listed stock closed up 6.06% on Tuesday at $0.70, from $2.98 a year earlier.

It will discuss its third-quarter results in a conference call on 2 December.

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