Total PV module shipments in the fourth quarter of 2016
increased by 74% to 635.1MW, compared to the third quarter of
2016
BAODING, China, April 13, 2017 /PRNewswire/ -- Yingli Green
Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy"
or the "Company"), one of the world's leading solar panel
manufacturers, known as "Yingli
Solar," today announced its unaudited consolidated financial
results for the quarter and full year ended December 31, 2016.
Fourth Quarter 2016 Consolidated Financial and
Operating Summary
- Total net revenues were RMB2,041.4
million (US$294.0 million),
significantly increased from RMB1,459.6
million in the third quarter of 2016.
- Total photovoltaic ("PV") module shipments1 were
635.1MW, significantly increased from 365.3MW in the third quarter
of 2016.
- Gross profit and gross margin were RMB142.2 million (US$20.5
million) and 7.0% respectively, increased from RMB80.3 million and 5.5% in the third quarter of
2016. Gross margin on sales of PV modules was 8.8%, increased from
6.2% in the third quarter of 2016 and compared to 13.5% in the
fourth quarter of 2015.
- Operating loss was RMB1,743.7
million (US$251.1 million),
including a non-cash impairment loss on long-lived assets
of RMB1,277.4 million (US$184.0
million), compared to RMB226.9
million in the third quarter of 2016.
- On a non-GAAP2 basis, earnings before interest, tax
expenses, depreciation and amortization ("EBITDA") were negative
RMB1,469.2 million (US$211.6 million).
- Net loss3 was RMB1,854.7
million (US$267.1 million) and
loss per American Depositary Share4 (the "ADS") was
RMB102.0 (US$14.7). On an adjusted non-GAAP basis,
adjusted net loss was RMB524.1
million (US$75.5
million).
1 Total PV
module shipments include shipments to the Company's own downstream
PV projects. Revenues were not recognized for internal shipments as
required by U.S. GAAP. The Company has suspended new development
business of downstream PV projects in China since September 2015,
and there were no shipments to its downstream PV projects in the
fourth quarter of 2016.
|
2 All
non-GAAP measures other than EBITDA exclude, as applicable,
share-based compensation, the amortization of the debt discount,
the amortization of intangible assets, impairment of long-lived
assets, provision for reserve for inventory purchase commitments
and provision for prepayments in relation to inventory purchase
commitments. EBITDA excludes interest, tax expenses, depreciation
and amortization. For further details on non-GAAP measures, please
refer to the reconciliation table and a detailed discussion of the
Company's use of non-GAAP information set forth elsewhere in this
press release.
|
3 For
convenience purposes, all references to "net loss/income" in this
press release, unless otherwise specified, represent "net
loss/income attributable to Yingli Green Energy" for all periods
presented.
|
4 On
December 28, 2015, the Company effected a change of the ratio of
its ADSs to ordinary shares from one (1) ADS representing one (1)
ordinary share to one (1) ADS representing ten (10) ordinary
shares. Unless otherwise indicated, ADSs and per ADS amount in this
press have been retroactively adjusted to reflect the change in
ratio for all periods presented.
|
Full Year 2016 Consolidated Financial and Operating
Summary
- Total net revenues were RMB8,376.1
million (US$ 1,206.4
million).
- Total PV module shipments were 2,170.4MW, which was in line
with its previous guidance of 2.1GW to 2.2GW.
- Gross profit was RMB1,151.9
million (US$165.9 million),
representing a gross margin of 13.8%. Gross margin on sales of PV
modules was 14.0%.
- Operating loss was RMB1,625.8
million (US$234.2
million).
- On an adjusted non-GAAP basis, earnings before interest, tax
expenses, depreciation and amortization (EBITDA) were negative
RMB474.8 million (US$68.4 million).
- Net loss was RMB2,038.6 million
(US$293.6 million) and loss per ADS
was RMB112.2 (US$16.2). On an adjusted non-GAAP basis,
adjusted net loss was RMB658.8
million (US$94.9
million).
"Primarily due to the increased demand from China and Japan, I'm pleased to announce that the
Company's PV module shipments in the fourth quarter of 2016
significantly increased by 74% quarter over quarter to 635.1MW,
concluding the full year 2016 with a total PV module shipments of
2.2GW, which is in line with our previous guidance. In addition,
our total revenues in the fourth quarter of 2016 significantly
increased by 40% compared to the third quarter of 2016," commented
Mr. Liansheng Miao, Chairman and
Chief Executive Officer of Yingli Green Energy.
"Geographically, China and
Japan continued to see strong
demands in the quarter and remained as the two largest markets for
us. Our PV module shipments to China in the fourth quarter more than doubled
compared to previous quarter and accounted for 75% of our total PV
module shipments in the quarter. Our PV module shipments to
Japan in the fourth quarter
increased by 11% compared to the third quarter and accounted for
20% of our total shipments in the quarter. Also in this quarter, we
started to deliver approximately 115MW of PV modules for
Japan's largest solar plant with a
total capacity of 230MW and the delivery is expected to be
completed in the second quarter of 2017."
"On the technology side, the Company has been actively promoting
its patented PANDA Bifacial module, which can generate power not
only from the front side, but also from the rear side by leveraging
reflected light in the environment. Therefore, the power yields of
the PANDA Bifacial module can be significantly increased compare to
the situation when it only generates from the front side. In
addition, the Company also completed the development of Smart
Hot-spot Free series of panels in the fourth quarter, which can
eliminate potential safety hazards such as fire and material
degradation and ensure safety and reliability."
"Looking forward into 2017, we anticipate that China and Japan will continue to be two important
markets for the Company. In China,
the Company will continue to actively participate in the 'Top
Runner' projects, and will pay more attention to distributed
generation projects given the robust growth of the segment. In
Japan, the Company is shifting to
low wattage market with EPC solution due to decreasing number of
mega solar projects and expects to continue to expand into the
residential segment by signing residential partners across the
country. In Americas, we have adjusted our marketing strategy to
include the distributed generation sector which resulted in
substantial growth and we have focused on building strategic
partnerships with our OEM partners for the US and Latin America markets. In Europe, the Company is in the process of
restructuring in order to save operation cost, maintain a healthy
cash flow, and focus on the module sales business. In addition, the
Company will continue to explore other international markets. For
example, we are actively exploring potential business opportunities
with customers across India,
including a mix of small to large size EPC players, project
developers and rooftop clients and have recently completed the
delivery of 13.3 MW of 1500V multi-crystalline solar panels to a
utility scale project in Australia."
"Based on current market conditions, the Company's current
operating conditions, estimated production capacity, and forecasted
customer demand, we expect our PV module shipments in the first
quarter of 2017 would be in the range of 380MW to 400MW, and our PV
module shipments for full year of 2017 would be in the range of
2.1GW to 2.2GW," Mr. Miao concluded.
Fourth Quarter 2016 Financial Results
Total Net Revenues
Total net revenues were RMB2,041.4
million (US$294.0 million),
significantly increased from RMB1,459.6
million in the third quarter of 2016 and compared to
RMB2,110.0 million in the fourth
quarter of 2015. Total PV module shipments were 635.1MW, increased
from 365.3MW in the third quarter of 2016 and 504.5MW in the fourth
quarter of 2015.
The significant increase of total net revenues from the third
quarter of 2016 to the fourth quarter of 2016 was mainly due to the
increase of PV module shipments from 365.3MW to 635.1MW, primarily
due to the significant increase of shipments to China mainly as a result of the strong demand
from China in the fourth quarter
of 2016, which was partially offset by the generally lower average
selling price of the Company's PV modules as a result of the
general decline of PV module selling prices worldwide.
Gross Profit and Gross Margin
Gross profit was RMB142.2 million
(US$20.5 million) in the fourth
quarter of 2016, significantly increased from RMB80.3 million in the third quarter of 2016 and
compared to RMB248.3 million in the
fourth quarter of 2015.
Gross margin was 7.0% in the fourth quarter of 2016, compared to
5.5% in the third quarter of 2016 and 11.8% in the fourth quarter
of 2015. Gross margin on sales of PV modules was 8.8% in the fourth
quarter of 2016, compared to 6.2% in the third quarter of 2016 and
13.5% in the fourth quarter of 2015.
The significant increase in gross profit from the third quarter
of 2016 to the fourth quarter of 2016 was mainly due to the
significant increase of PV module shipments from 365.3MW to
635.1MW. The increase in gross margin from the third quarter of
2016 to the fourth quarter of 2016 was primarily due to the
decrease in unit manufacturing cost as a result of the increase of
utilization rate of production facilities, which was partially
offset by the lower average selling price of the Company's PV
modules in the quarter.
Operating Expenses
Operating expenses were RMB1,885.9
million (US$271.6 million),
increased significantly from RMB307.1
million in the third quarter of 2016 and RMB1,368.6 million in the fourth quarter of 2015.
Operating expenses as a percentage of net revenue was 92.4% in the
fourth quarter of 2016, compared to 21.0% in the third quarter of
2016 and 64.9% in the fourth quarter of 2015.The significant
increase of operating expenses from the third quarter of 2016 to
the fourth quarter of 2016 was mainly due to:
- Impairment of long-lived assets. Mainly due to the lower
than expected utilization rate of production facilities in 2016 and
significant decrease of average selling price in late 2016, the
Company recorded an impairment loss of RMB
1,277.4 million for property, plant and equipment based on
the difference between carrying value and fair value of such
long-lived assets in the fourth quarter of 2016.
- Bad debt provision. The Company recorded RMB232.8 million of loss on bad debts in the
fourth quarter of 2016, including RMB143.0
million of provision on receivables from disposal of land
use right due to its long aging and doubts on collectability,
RMB97.8 million of provision on
prepayment made to a supplier due to its continued failure to
fulfil its delivery obligation under its contracts with the
Company, and RMB8.0 million of
reversal of bad debt provision, while the Company recorded
RMB26.0 million of loss on bad debts
for other doubtful receivables in the third quarter of 2016.
- Provision for reserve for inventory purchase
commitments. The Company made RMB52.8
million of provision for reserve for inventory purchase
commitments in the fourth quarter of 2016 as a result of a foreign
exchange re-measurement due to significant fluctuation in the
foreign exchange rate between the Renminbi and U.S. dollars, while
the Company recorded such provision of RMB9.5 million in the third quarter of 2016.
The increase was partially offset by:
- Provision for prepayments in relation to inventory
purchase commitments. In the third quarter of 2016, the Company
recorded provisions of RMB10.7
million for the prepayments to certain supplier under the
Company's long-term polysilicon supply contracts as a result of the
reassessment of the purchase commitments under those supply
contracts. No such provision was recorded in the fourth quarter of
2016.
Operating Loss and Margin
Operating loss was RMB1,743.7
million (US$251.1 million) in
the fourth quarter of 2016, compared to RMB226.9 million in the third quarter of 2016 and
RMB1,120.3 million in the fourth
quarter of 2015.
Operating margin was negative 85.4% in the fourth quarter of
2016, compared to negative 15.5% in the third quarter of 2016 and
negative 53.1% in the fourth quarter of 2015.
EBITDA
On a non-GAAP basis, earnings before interest, tax expenses,
depreciation and amortization ("EBITDA") were negative RMB1,469.2 million (US$211.6 million), compared to RMB42.8 million in the third quarter of 2016 and
negative RMB824.4 million in the
fourth quarter of 2015.
Interest Expense
Interest expense was RMB168.8
million (US$24.3 million) in
the fourth quarter of 2016, compared to RMB159.7 million in the third quarter of 2016 and
RMB246.1 million in the fourth
quarter of 2015. The Company's average interest rate was 5.31% in
the fourth quarter of 2016, compared to 5.35% in the third quarter
of 2016 and 6.92% in the fourth quarter of 2015.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange loss was RMB104.0 million (US$15.0
million) in the fourth quarter of 2016, compared to foreign
currency exchange gain of RMB27.6
million in the third quarter of 2016 and foreign currency
exchange loss of RMB29.5 million in
the fourth quarter of 2015. The foreign currency exchange loss in
the fourth quarter of 2016 was mainly due to the depreciation of
Renminbi against US dollar because the Company had a net balance of
financial liabilities denominated in US dollar, which was partially
offset by the appreciation of Renminbi against Japanese Yen and
Euro in the fourth quarter of 2016 and the Company had a net
balance of financial assets denominated in Japanese Yen and Euro,
while the foreign currency exchange gain in third quarter of 2016
was mainly due to the depreciation of Renminbi against Japanese Yen
and Euro.
Income Tax Benefit (Expense)
Income tax expense was RMB11.2
million (US$1.6 million) in
the fourth quarter of 2016, compared to income tax benefit of
RMB13.4 million in the third quarter
of 2016 and income tax expense of RMB132.7
million in the fourth quarter of 2015. The income tax
benefit recognized in the third quarter of 2016 was mainly due to
the reversal of the income tax expense accrued by the Company's
certain subsidiary in previous quarter, as a result of the actual
loss being recognized in the third quarter of 2016, while the
income tax expense recognized in the fourth quarter of 2016 was
mainly due to the reversal of the deferred income tax assets for
the Company's certain subsidiary and the Company's certain
subsidiaries' net profits recorded in the fourth quarter of
2016.
Net Loss
Net loss was RMB1,854.7 million
(US$267.1 million) in the fourth
quarter of 2016, compared to RMB335.4
million in the third quarter of 2016 and RMB1,439.0 million in the fourth quarter of 2015.
Loss per ADS was RMB102.0
(US$14.7) in the fourth quarter of
2016, compared to RMB18.5 in the
third quarter of 2016 and RMB79.2 in
the fourth quarter of 2015.
On an adjusted non-GAAP basis, adjusted net loss was
RMB524.1 million (US$75.5 million), compared to RMB314.8 million in the third quarter of 2016 and
RMB874.1 million in the fourth
quarter of 2015; adjusted loss per ADS was RMB28.8 (US$4.2) in
the fourth quarter of 2016, compared to RMB17.3 in the third quarter of 2016 and
RMB48.1 in the fourth quarter of
2015.
Financial Position
As of December 31, 2016, the
Company had RMB506.6 million
(US$73.0 million) in cash and cash
equivalents, compared to RMB672.2
million as of September 30,
2016.
As of December 31, 2016, the
Company had RMB361.8 million
(US$52.1 million) in restricted cash,
compared to RMB293.8 million as of
September 30, 2016.
As of December 31, 2016, the
Company's accounts receivable had decreased to RMB2,634.8 million (US$379.5 million) from RMB2,697.2 million as of September 30, 2016. Days sales outstanding were
116 days in the fourth quarter of 2016, decreased from 166 days in
the third quarter of 2016 mainly due to the significant increase of
total net revenues in the fourth quarter while the average accounts
receivable decreased slightly during the fourth quarter as a result
of the Company's continued focus on account receivables management
in the domestic market.
As of December 31, 2016, the
Company's accounts payable had decreased to RMB 2,471.8 million (US$356.0 million) from RMB
2,862.1 million as of September 30,
2016. Days payable outstanding were 117 days in the fourth
quarter of 2016, decreased from 187 days in the third quarter of
2016. Accounts payable and days payable outstanding decreased from
the third quarter of 2016 to the fourth quarter of 2016 mainly
because the Company continued to pay off some of its over-due
accounts payables in the fourth quarter of 2016.
As of December 31, 2016, the
Company's inventory had decreased to RMB1,314.8 million (US$189.4 million) from RMB1,657.5 million as of September 30, 2016, which was mainly due to the
increase of PV module shipments from the third quarter of 2016 to
the fourth quarter of 2016. Inventory turnover days were 62 days in
the fourth quarter of 2016, compared to 108 days in the third
quarter of 2016.
Full Year 2016 Financial Results
Total Net Revenues
Total net revenues in 2016 were RMB8,376.1 million (US$1,206.4 million), compared to RMB9,965.8 million in 2015. Total PV module
shipments in 2016 were 2,170.4MW, compared to 2,447.0MW in 2015.
The decrease in total net revenues year-over-year was mainly due to
the decline of average selling price of the Company's PV modules
and the decreased PV module shipments as a result of the lower
utilization rate of production capacity caused by tight cash flow
starting from the middle of 2015.
Gross Profit and Gross Margin
Gross profit and gross margin in 2016 were RMB1,151.9 million (US$165.9 million) and 13.8%, compared to
RMB1,187.3 million and 11.9% in
2015.
Operating Expenses
Operating expenses in 2016 were RMB2,777.7 million (US$400.1 million), compared to RMB5,415.4 million in 2015. Operating expenses as
a percentage of net revenue was 33.2% in 2016, compared to 54.3% in
2015. The change in operating expenses from 2015 to 2016 was mainly
due to:
- Impairment of long-lived assets. Mainly due to the lower
utilization rate of production facilities, the Company recorded an
impairment loss of RMB 3.8 billion
for property, plant and equipment based on the difference between
carrying value and fair value of such long-lived assets in 2015,
while the Company recorded such impairment loss of RMB1.3 billion in 2016.
- Gain on disposal of long-lived assets and land use
rights. In 2015, Fine Silicon, one of the Company's
subsidiaries in China, disposed
its long-lived assets and land use rights and the Company
recognized a disposal gain of RMB 1.2
billion while the Company did not recognize such gain in
2016.
- Provision for prepayments in relation to inventory
purchase commitments. In 2015, the Company recorded provisions
of RMB 522.1 million for the
prepayments to certain supplier under the Company's long-term
polysilicon supply contracts as a result of the reassessment of the
purchase commitments under those supply contracts, while the
Company recorded such provision of RMB10.7
million in 2016.
- Bad debt provision. The Company made a total bad debt
provision of RMB400.7 million in 2015
for the doubtful receivables related to certain customers, while
the Company made a total bad debt provision of RMB261.0 million in 2016, including RMB143.0 million of provision on receivables from
disposal of land use right due to its long aging and doubts on
collectability, RMB97.8 million of
provision on prepayment made to a supplier due to its continued
failure to fulfil its delivery obligation under its contracts with
the Company, and RMB20.2 million of
provision for doubtful receivables. Such provision was included in
the Company's general and administrative expenses.
- Provision for reserve for inventory purchase
commitments. In 2015, the Company recorded provision for
reserve for inventory purchase commitments of RMB77.7 million as a result of a foreign exchange
re-measurement due to significant fluctuation in the foreign
exchange rate between the Renminbi and U.S. dollars, while the
Company recorded such provision of RMB90.3
million in 2016.
- Selling expenses. The Company's selling expenses were
RMB630.9 million in 2016, decreased
from RMB854.3 million in 2015. The
decrease was primarily due to a lower freight and insurance costs
as a result of decreased total PV module shipments.
- General and administrative expenses. Excluding the bad
debts provisions, the Company's general and administrative expenses
decreased to RMB360.6 million in 2016
from RMB526.8 million in 2015 mainly
as a result of more strict and effective control on general and
administrative expenses.
- Research and development expenses. Our research and
development expenses decreased to RMB146.9
million in 2016 from RMB397.0
million in 2015. The decrease in research and development
expenses from 2016 to 2015 was mainly due to our enhanced control
of research and development projects as a result of our tight cash
flow.
EBITDA
On an adjusted non-GAAP basis, earnings before interest, tax
expenses, depreciation and amortization (EBITDA) were negative
RMB474.8 million (US$68.4 million) in 2016, compared to negative
RMB3,020.3 million in 2015.
Interest Expense
Interest expense in 2016 was RMB663.2
million (US$95.5 million),
compared to RMB 977.2 million in
2015. As of December 31, 2016, the
Company had an aggregate of RMB11.5
billion (US$1.7 billion) of
borrowings and medium-term notes outstanding, compared to
RMB 11.8 billion as of December 31, 2015. The weighted average interest
rate for the Company's borrowings in 2016 was 5.59%, which
decreased from 6.39% in 2015.
Foreign Currency Exchange Gain/Loss
Foreign currency exchange gain was RMB6.0
million (US$0.9 million) in
2016, compared to foreign currency exchange loss of RMB132.7 million in 2015. The Company recorded
the foreign currency exchange gain in 2016 mainly because Japanese
Yen and Euro appreciated against Renminbi in 2016 and the Company
had a net balance of financial assets denominated in Japanese Yen
and Euro, which was substantially offset by the currency exchange
loss caused by the depreciation of Renminbi against US dollar in
2016 because the Company had a net balance of financial liabilities
denominated in US dollar. The foreign exchange loss in 2015 was
mainly due to the depreciation of Renminbi against US dollar.
Income Tax Expense
Income tax expense was RMB12.9
million (US$1.9 million) in
2016, compared to income tax expense of RMB731.2 million in 2015. The significant amount
incurred in 2015 was primarily due to assessment on recovery of
deferred income tax assets which resulting in an additional
valuation allowance of deferred income tax assets as well as the
realization of deferred tax assets upon the disposal of Fine
Silicon land use rights.
Net Loss
Net loss was RMB2,038.6 million
(US$293.6 million) and loss per ADS
was RMB112.2 (US$16.2) in 2016, compared to net loss of
RMB5,600.5 million and loss per ADS
of RMB308.1 in 2015. On an adjusted
non-GAAP basis, adjusted net loss was RMB658.8 million (US$94.9
million) and adjusted loss per ADS was RMB36.2 (US$5.2) in
2016, compared to adjusted net loss of RMB2,352.0 million and adjusted loss per ADS of
RMB129.4 in 2015.
Liquidity and alternative financing plans
As of December 31, 2016, the
Company had a total deficit attributable to the Company of
RMB15.4 billion (US$2.2 billion) and a deficit in working capital
of RMB7.4 billion (US$1.1 billion), which raise substantial doubt
about the Company's ability to continue as a going concern. The
liquidity of the Company is primarily dependent on its ability to
maintain adequate cash flows from operations, to renew or rollover
its short-term borrowings and to obtain adequate external
financings to support its working capital and meet its obligations
and commitments when they become due. The Company and its
subsidiaries are exploring financing options to continue to manage
the Company and its subsidiaries' liquidity and to enhance their
financial flexibility. The Company's board of directors has also
formed a special committee comprised solely of independent
directors to assess the Company's operating and financial situation
and evaluate, develop and recommend one or more strategic
alternatives and financing plans potentially available to the
Company in order to improve its debt structure. Such debt
restructuring, strategic alternatives and financing plans, if
successfully completed, are expected to increase the liquidity of
the Company and improve its debt-to-equity ratio. There can be no
assurance, however, that such debt restructuring, strategic
alternatives and financing plans will be successfully completed on
terms acceptable to the Company, or effectively implemented before
any specific date, or when implemented, it will mitigate the
relevant conditions or events that raise substantial doubt about
the Company's ability to continue as a going concern.
Updates on Repayment of Medium-Term Notes
As of the date of this press release, the Company's subsidiaries
had medium-term notes, or MTNs, of RMB2,057.0 million outstanding, including
RMB357.0 million of the MTNs issued
in 2010 (the "2010 MTNs"), which became due on October 13, 2015; RMB1.4
billion of the MTNs issued in 2011 (the "2011 MTNs"), which
became due on May 12, 2016; and
RMB300.0 million of the MTNs issued
in 2012 (the "2012 MTNs"), which will become due on May 3, 2017. The 2010 MTNs and 2011 MTNs were
issued by Tianwei Yingli, one of the Company's subsidiaries. As
such, Tianwei Yingli is currently in payment default of the 2010
MTNs and 2011 MTNs. The Company has continued its negotiation with
the holders of the 2010 MTNs and 2011 MTNs about revisions to the
repayment schedules of the MTNs. As of the date of this press
release, the Company has not reached any agreement with the holders
of the 2010 MTNs and 2011 MTNs or any other party with respect to
any concrete financing plan or plan for repayment of the 2010 MTNs
and 2011 MTNs yet. In addition, the Company has been actively
negotiating with holders of the 2012 MTNs for potential solutions
regarding the repayment of the 2012 MTNs.
Business Outlook for First Quarter and Full year 2017
Based on current market conditions, the Company's current
operating conditions, estimated production capacity and forecasted
customer demand, the Company expects its PV module shipments to be
in the estimated range of 380MW to 400MW for the first quarter of
2017 and 2.1GW to 2.2GW for the fiscal year of 2017.
Non-GAAP Financial Measures
To supplement the financial measures calculated in accordance
with GAAP, this press release may include certain non-GAAP
financial measures of adjusted gross profit, adjusted gross margin,
adjusted operating expenses adjusted operating profit or loss,
adjusted operating margin, adjusted net income (loss), adjusted
diluted earnings (loss) per ordinary share and per ADS and EBITDA,
each of which (other than EBITDA) is adjusted to exclude, as
applicable, items related to share-based compensation, interest
expense related to the changes in the fair value of the
interest-rate swap and the amortization of the debt discount, the
amortization of intangible assets, inventory provision, impairment
charge on long-lived assets, gain on disposal of long lived assets
and land use rights, provision for prepayments in relation to
inventory purchase commitments, and provision for reserve for
inventory purchase commitments. EBITDA excludes interest, tax
expenses, depreciation and amortization. The Company believes
excluding these items from its non-GAAP financial measures is
useful for its management and investors to assess and analyze the
Company's on-going performance as such items are not directly
attributable to the underlying performance of the Company's
business operations and/or do not impact its cash earnings. The
Company also believes these non-GAAP financial measures are
important to help investors understand the Company's current
financial performance and future prospects and compare business
trends among different reporting periods on a consistent basis.
These non-GAAP financial measures should be considered in addition
to financial measures presented in accordance with GAAP, but should
not be considered as a substitute for, or superior to, financial
measures presented in accordance with GAAP. For a reconciliation of
each of these non-GAAP financial measures to the most directly
comparable GAAP financial measure, please see the financial
information included elsewhere in this press release.
Currency Conversion
Solely for the convenience of readers, certain Renminbi amounts
have been translated into U.S. dollar amounts at the rate of
RMB6.9430 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi per
U.S. dollar as set forth in the H.10 weekly statistical release of
the Federal Reserve Board as of December 31,
2016. No representation is intended to imply that these
translated Renminbi amounts could have been, or could be,
converted, realized or settled into U.S. dollar amounts at such
rate, or at any other rate. The percentages stated in this press
release are calculated based on Renminbi amounts.
Conference Call
Yingli Green Energy will host a conference call and live webcast
to discuss the results at 8:00 AM Eastern Daylight Time on
April 13, 2017, which corresponds to
8:00 PM Beijing/Hong Kong time on the same day.
The dial-in details for the live conference call are as
follows:
U.S. Toll Free Number: +1-866-519-4004
International Dial-in Number: +65 6713 5090
Passcode: 94958584
A live and archived webcast of the conference call will be
available on the Investors section of Yingli Green Energy's website
at 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
April 21, 2017 by dialing:
U.S. Toll Free Number: +1-855-452-5696
International Dial-in Number: +61 2 8199 0299
Passcode: 94958584
About Yingli Green Energy
Yingli Green Energy Holding Company Limited (NYSE: YGE), known
as "Yingli Solar", is one of the
world's leading photovoltaic (PV) module manufacturers. Yingli
Green Energy's manufacturing covers the photovoltaic value chain
from ingot casting and wafering through solar cell production and
PV module assembly. Headquartered in Baoding, China, Yingli Green Energy has more than
regional subsidiaries and branch offices and has distributed more
than 17 GW solar panels to customers worldwide. For more
information, please visit www.yinglisolar.com and join the
conversation on Facebook, Twitter and Weibo.
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.
For further information, please contact:
Eric Pan
Investor Relations
Yingli Green Energy Holding Company Limited
Tel: +86 312 8929787
Email: ir@yingli.com
YINGLI GREEN
ENERGY HOLDINGS COMPANY LIMITED AND SUBSIDIARIES
|
Unaudited
Condensed Consolidated Balance Sheets
|
(In
thousands)
|
|
|
As of December 31,
2015
|
As of September
30, 2016
|
As of December 31,
2016
|
|
RMB
|
RMB
|
RMB
|
US$
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and restricted
cash
|
1,587,675
|
966,026
|
868,439
|
125,081
|
Accounts receivable,
net
|
2,922,479
|
2,697,237
|
2,634,805
|
379,491
|
Inventories
|
1,484,314
|
1,657,515
|
1,314,834
|
189,375
|
Prepayment to
suppliers
|
426,718
|
574,296
|
475,347
|
68,465
|
Prepaid expenses and
other current assets
|
1,982,196
|
1,572,256
|
1,336,288
|
192,465
|
Total current
assets
|
8,403,382
|
7,467,330
|
6,629,713
|
954,877
|
Long-term prepayment
to suppliers
|
555,520
|
353,822
|
343,591
|
49,487
|
Land, property, plant
and equipment, net
|
6,846,482
|
6,334,342
|
4,879,086
|
702,734
|
Project
assets
|
720,286
|
734,159
|
672,045
|
96,795
|
Land use
rights
|
411,732
|
405,000
|
402,680
|
57,998
|
Intangible assets,
net
|
58,360
|
58,172
|
58,110
|
8,370
|
Investments in
affiliated companies
|
459,721
|
442,894
|
355,192
|
51,158
|
Other
assets
|
184,799
|
183,612
|
159,397
|
22,959
|
Total
assets
|
17,640,282
|
15,979,331
|
13,499,814
|
1,944,378
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY/(DEFICIT)
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term borrowings,
including current portion of
medium-term notes and long-term debt
|
9,124,183
|
8,870,402
|
9,010,205
|
1,297,739
|
Accounts
payable
|
3,960,458
|
2,862,132
|
2,471,812
|
356,015
|
Other current
liabilities and accrued expenses
|
2,576,076
|
2,581,169
|
2,560,250
|
368,753
|
Total current
liabilities
|
15,660,717
|
14,313,703
|
14,042,267
|
2,022,507
|
Long-term debt,
excluding current portion
|
2,405,898
|
2,569,955
|
2,523,621
|
363,477
|
Medium-term
notes
|
300,000
|
-
|
-
|
-
|
Accrued warranty
liability, excluding current portion
|
753,270
|
809,331
|
804,344
|
115,850
|
Other
liabilities
|
3,232,548
|
3,299,588
|
3,262,759
|
469,935
|
Total
liabilities
|
22,352,433
|
20,992,577
|
20,632,991
|
2,971,769
|
Shareholders'
deficit:
|
|
|
|
|
Ordinary
shares
|
13,791
|
13,791
|
13,791
|
1,986
|
Additional paid-in
capital
|
7,246,760
|
7,247,794
|
7,248,240
|
1,043,964
|
Accumulated other
comprehensive income (loss)
|
180,025
|
71,752
|
(54,651)
|
(7,871)
|
Treasury
stock
|
(127,331)
|
(127,331)
|
(127,331)
|
(18,339)
|
Accumulated
deficit
|
(13,252,929)
|
(13,436,893)
|
(15,369,404)
|
(2,213,655)
|
Total Yingli Green
Energy shareholders' deficit
|
(5,939,684)
|
(6,230,887)
|
(8,289,355)
|
(1,193,915)
|
Non-controlling
interests
|
1,227,533
|
1,217,641
|
1,156,178
|
166,524
|
Total
shareholders' deficit
|
(4,712,151)
|
(5,013,246)
|
(7,133,177)
|
(1,027,391)
|
Total liabilities
and shareholders' deficit
|
17,640,282
|
15,979,331
|
13,499,814
|
1,944,378
|
YINGLI GREEN
ENERGY HOLDINGS COMPANY LIMITED AND SUBSIDIARIES
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income
|
(In thousands,
except for ordinary shares, per ordinary share and per ADS
data)
|
|
|
For the three
month ended
|
|
December 31,
2015
|
September 30,
2016
|
December 31,
2016
|
|
RMB
|
RMB
|
RMB
|
US$
|
Net
revenues:
|
|
|
|
|
Sales of PV modules
|
1,727,375
|
1,240,818
|
1,828,521
|
263,362
|
Other revenues
|
382,669
|
218,769
|
212,886
|
30,662
|
Total net
revenues
|
2,110,044
|
1,459,587
|
2,041,407
|
294,024
|
Cost of
revenues:
|
|
|
|
|
Cost of PV modules sales
|
(1,493,587)
|
(1,164,464)
|
(1,668,479)
|
(240,311)
|
Cost of other revenues
|
(368,175)
|
(214,858)
|
(230,725)
|
(33,232)
|
Total cost of
revenues
|
(1,861,762)
|
(1,379,322)
|
(1,899,204)
|
(273,543)
|
Gross
profit
|
248,282
|
80,265
|
142,203
|
20,481
|
Selling expenses
|
(234,916)
|
(144,450)
|
(149,013)
|
(21,462)
|
General and administrative expenses
|
(483,069)
|
(101,505)
|
(364,081)
|
(52,438)
|
Research and development expenses
|
(84,858)
|
(40,999)
|
(42,638)
|
(6,141)
|
Impairment of
long-lived assets
|
-
|
-
|
(1,277,373)
|
(183,980)
|
Provision for
prepayments in relation to inventory
purchase commitments
|
(488,023)
|
(10,672)
|
-
|
-
|
Provision for reserve
for inventory purchase
commitments
|
(77,705)
|
(9,490)
|
(52,787)
|
(7,603)
|
Total operating
expenses
|
(1,368,571)
|
(307,116)
|
(1,885,892)
|
(271,624)
|
Loss from
operations
|
(1,120,289)
|
(226,851)
|
(1,743,689)
|
(251,143)
|
Interest
expense
|
(246,120)
|
(159,735)
|
(168,782)
|
(24,310)
|
Interest
income
|
5,553
|
1,984
|
2,525
|
364
|
Foreign currency
exchange gain (loss)
|
(29,473)
|
27,567
|
(104,012)
|
(14,981)
|
Other
income
|
40,765
|
19,600
|
162,966
|
23,472
|
Loss before income
taxes
|
(1,349,564)
|
(337,435)
|
(1,850,992)
|
(266,598)
|
Income tax benefit
(expenses)
|
(132,716)
|
13,353
|
(11,196)
|
(1,612)
|
Equity in
income/(loss) of affiliates, net
|
(3,328)
|
(17,087)
|
(318)
|
(46)
|
Net
loss
|
(1,485,608)
|
(341,169)
|
(1,862,506)
|
(268,257)
|
Less : Loss
attributable to the non-controlling interests
|
46,611
|
5,813
|
7,839
|
1,129
|
Net loss
attributable to Yingli Green Energy
|
(1,438,997)
|
(335,356)
|
(1,854,667)
|
(267,128)
|
Weighted average
ordinary shares outstanding
|
|
|
|
|
Basic
|
181,763,770
|
181,763,770
|
181,763,770
|
181,763,770
|
Diluted
|
181,763,770
|
181,763,770
|
181,763,770
|
181,763,770
|
Income (loss) per
ordinary share
|
|
|
|
|
Basic
|
(7.92)
|
(1.85)
|
(10.20)
|
(1.47)
|
Diluted
|
(7.92)
|
(1.85)
|
(10.20)
|
(1.47)
|
Loss per
ADS
|
|
|
|
|
Basic
|
(79.2)
|
(18.5)
|
(102.0)
|
(14.7)
|
Diluted
|
(79.2)
|
(18.5)
|
(102.0)
|
(14.7)
|
Net
loss
|
(1,485,608)
|
(341,169)
|
(1,862,506)
|
(268,256)
|
Other
comprehensive loss
|
|
|
|
|
Foreign Currency
exchange translation adjustment, net
of nil tax
|
(53,999)
|
(26,415)
|
(119,490)
|
(17,210)
|
Cash flow hedging
derivatives, net of nil tax
|
(1,180)
|
-
|
-
|
-
|
Comprehensive
loss
|
(1,540,787)
|
(367,584)
|
(1,981,996)
|
(285,466)
|
Less : Comprehensive
loss attributable to the non-controlling interest
|
43,554
|
4,658
|
926
|
133
|
Comprehensive loss
attributable to Yingli Green Energy
|
(1,497,233)
|
(362,926)
|
(1,981,070)
|
(285,333)
|
Reconciliation of
Non-GAAP measures to GAAP measures
|
|
|
|
For the three
month ended
|
|
December 31,
2015
|
September 30,
2016
|
December 31,
2016
|
|
RMB
|
RMB
|
RMB
|
US$
|
Net loss
attributable to Yingli Green Energy
|
(1,438,997)
|
(335,356)
|
(1,854,667)
|
(267,127)
|
Share-based
compensation
|
787
|
(435)
|
(446)
|
(64)
|
Impairment of
long-lived assets
|
-
|
|
(1,277,373)
|
(183,980)
|
Provision for reserve
for inventory purchase commitments
|
(77,705)
|
(9,490)
|
(52,787)
|
(7,603)
|
Provision for
prepayment in relation to inventory
purchase commitments
|
(488,023)
|
(10,672)
|
-
|
-
|
Non-GAAP loss
|
(874,056)
|
(314,759)
|
(524,061)
|
(75,480)
|
Non-GAAP diluted
earnings per share and per
ADS
|
(48.1)
|
(17.3)
|
(28.8)
|
(4.2)
|
Reconciliation of
EBITDA measures to loss before income tax & minority interest
measures
|
Loss before income
taxes and non-controlling interest
|
(1,349,564)
|
(337,435)
|
(1,850,992)
|
(266,598)
|
Interest
expense
|
(246,120)
|
(159,735)
|
(168,782)
|
(24,310)
|
Interest
income
|
5,553
|
1,984
|
2,525
|
364
|
Depreciation
|
(280,597)
|
(219,881)
|
(213,459)
|
(30,744)
|
Amortization for land
use rights and intangible assets
|
(3,987)
|
(2,593)
|
(2,047)
|
(296)
|
EBITDA
|
(824,413)
|
42,790
|
(1,469,229)
|
(211,612)
|
YINGLI GREEN
ENERGY HOLDINGS COMPANY LIMITED AND SUBSIDIARIES
|
Unaudited
Condensed Consolidated Statements of Operations
|
(In thousands,
except for ordinary shares, per share and per ADS
data)
|
|
|
|
For the year
ended
|
|
December 31,
2015
|
December 31,
2016
|
|
RMB
|
RMB
|
US$
|
Net
revenues:
|
|
|
|
Sales of PV modules
|
8,464,779
|
7,026,074
|
1,011,965
|
Other revenues
|
1,501,007
|
1,350,025
|
194,444
|
Total net
revenues
|
9,965,786
|
8,376,099
|
1,206,409
|
Cost of
revenues:
|
|
|
|
Cost of PV modules sales
|
(7,329,306)
|
(6,044,193)
|
(870,545)
|
Cost of other revenues
|
(1,449,150)
|
(1,180,033)
|
(169,961)
|
Total cost of
revenues
|
(8,778,456)
|
(7,224,226)
|
(1,040,505)
|
Gross
profit
|
1,187,330
|
1,151,873
|
165,904
|
Selling expenses
|
(854,315)
|
(630,873)
|
(90,865)
|
General and administrative expenses
|
(927,495)
|
(621,648)
|
(89,535)
|
Research and development expenses
|
(396,991)
|
(146,850)
|
(21,151)
|
Impairment of long-lived assets
|
(3,804,116)
|
(1,277,373)
|
(183,980)
|
Disposal gain from
long-lived assets and land use right in relation
to a subsidiary
|
1,167,317
|
-
|
-
|
Provision for
prepayments in relation to inventory purchase
commitments
|
(522,050)
|
(10,672)
|
(1,537)
|
Provision for reserve
for inventory purchase commitments
|
(77,705)
|
(90,300)
|
(13,006)
|
Total operating
expenses
|
(5,415,355)
|
(2,777,716)
|
(400,074)
|
Loss from
operations
|
(4,228,025)
|
(1,625,843)
|
(234,171)
|
Interest expense
|
(977,176)
|
(663,217)
|
(95,523)
|
Interest income
|
22,632
|
6,595
|
950
|
Foreign currency exchange gain (loss)
|
(132,709)
|
6,000
|
864
|
Other income
|
148,462
|
246,967
|
35,571
|
Loss before income
taxes
|
(5,166,816)
|
(2,029,498)
|
(292,309)
|
Income tax
expense
|
(731,191)
|
(12,895)
|
(1,857)
|
Equity in
income/(loss) of affiliates, net
|
(829)
|
(17,554)
|
(2,528)
|
Net
loss
|
(5,898,836)
|
(2,059,947)
|
(296,694)
|
Less: Loss
attributable to the non-controlling interests
|
298,310
|
21,315
|
3,070
|
Net loss
attributable to Yingli Green Energy
|
(5,600,526)
|
(2,038,632)
|
(293,624)
|
Weighted average
ordinary shares
|
|
|
|
Basic
|
181,763,770
|
181,763,770
|
181,763,770
|
Diluted
|
181,763,770
|
181,763,770
|
181,763,770
|
Loss per ordinary
share
|
|
|
|
Basic
|
(30.81)
|
(11.22)
|
(1.62)
|
Diluted
|
(30.81)
|
(11.22)
|
(1.62)
|
Loss per
ADS
|
|
|
|
Basic
|
(308.1)
|
(112.2)
|
(16.2)
|
Diluted
|
(308.1)
|
(112.2)
|
(16.2)
|
Net
loss
|
(5,898,836)
|
(2,059,947)
|
(296,695)
|
Other
comprehensive loss
|
|
|
|
Foreign Currency
exchange translation adjustment, net of nil tax
|
(121,215)
|
(223,436)
|
(32,181)
|
Cash flow hedging
derivatives, net of nil tax
|
(749)
|
-
|
-
|
Comprehensive
loss
|
(6,020,800)
|
(2,283,383)
|
(328,876)
|
Less: Comprehensive
loss attributable to the non-controlling interest
|
288,189
|
10,076
|
1,450
|
Comprehensive loss
attributable to Yingli Green Energy
|
(5,732,611)
|
(2,273,307)
|
(327,426)
|
Reconciliation of
Non-GAAP measures to GAAP measures
|
|
|
|
|
December 31,
2015
|
December 31,
2016
|
|
RMB
|
RMB
|
US$
|
Net loss attributable
to Yingli Green Energy
|
(5,600,526)
|
(2,038,632)
|
(293,625)
|
Share-based
compensation
|
(11,950)
|
(1,480)
|
(213)
|
Impairment of
long-lived assets
|
(3,804,116)
|
(1,277,373)
|
(183,980)
|
Provision for reserve
for inventory purchase commitments
|
(77,705)
|
(90,300)
|
(13,006)
|
Provision for
prepayment in relation to inventory purchase commitments
|
(522,050)
|
(10,672)
|
(1,537)
|
Disposal gain from
long-lived assets and land use right in
relation to a subsidiary
|
1,167,317
|
-
|
-
|
Non-GAAP
loss
|
(2,352,022)
|
(658,807)
|
(94,889)
|
Non-GAAP diluted
earnings per share and per
ADS
|
(129.4)
|
(36.2)
|
(5.2)
|
Reconciliation of
EBITDA and adjusted EBITDA measures to loss before income tax &
minority interest measures
|
Loss before income
taxes and non-controlling interest
|
(5,166,816)
|
(2,029,498)
|
(292,309)
|
Interest
expense
|
(977,176)
|
(663,217)
|
(95,523)
|
Interest
income
|
22,632
|
6,595
|
950
|
Depreciation
|
(1,174,705)
|
(887,392)
|
(127,811)
|
Amortization for land
use rights and intangible assets
|
(17,227)
|
(10,697)
|
(1,542)
|
EBITDA
|
(3,020,340)
|
(474,787)
|
(68,383)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/yingli-green-energy-reports-fourth-quarter-and-full-year-2016-results-300439297.html
SOURCE Yingli Green Energy Holding Company Limited