Yingli Green Energy Reports Fourth Quarter and Full Year 2009 Results
Fourth Quarter PV Module Shipments Increased by 15.7% Quarter over Quarter
Fourth Quarter Gross Margin Increased to 29.6%
Full Year 2009 PV Module Shipments Reached 525.3 MW
Full Year 2009 PV Module Shipments and Gross Margin Exceeded High End of Guidance
BAODING, China, March 8 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers which holds the brand "Yingli Solar," today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2009.
Fourth Quarter 2009 Consolidated Financial and Operating Highlights
-- Total net revenues were RMB 2,530.9 million (US$370.8 million) and PV
module shipment volume increased by 15.7% quarter over quarter,
reaching a historical high.
-- Gross profit (1) was RMB 750.4 million (US$109.9 million) and gross
margin was 29.6%.
-- Operating income was RMB 111.1 million (US$16.3 million) and operating
margin was 4.4%.
-- Net loss (2) was RMB 44.8 million (US$6.6 million) and diluted loss per
ordinary share and per American depositary share ("ADS") was RMB 0.30
(US$0.04).
-- On an adjusted non-GAAP (3) basis, net income was RMB 137.5 million
(US$20.2 million) and diluted earnings per ordinary share and per ADS
was RMB 0.89 (US$0.13).
Full Year 2009 Consolidated Financial and Operating Highlights
-- Total net revenues were RMB 7,254.9 million (US$1,062.8 million) and PV
module shipments increased by 86.6% year over year to 525.3 MW.
-- Gross profit (4) was RMB 1,714.4 million (US$251.2 million) and gross
margin was 23.6%.
-- Net loss was RMB 459.2 million (US$67.3 million) and fully diluted loss
per ordinary share and per ADS was RMB 3.31 (US$0.48).
-- On an adjusted non-GAAP basis, net income for the full year 2009 was
RMB 364.5 million (US$53.4 million) and fully diluted earnings per
ordinary share and per ADS was RMB 2.53 (US$0.37).
"I am very pleased to close 2009 with a strong fourth quarter," said Mr. Liansheng Miao, Chairman and CEO of Yingli Green Energy, "Our PV module shipments for the fourth quarter increased by 15.7% over the previous quarter, and the fourth quarter gross margin continued to improve, reaching 29.6%, reflecting our continued efforts to balance profitability and market share expansion. Although 2009 was a challenging year for us and the solar industry as a whole, Yingli Green Energy was able to emerge stronger by increasing full year PV module shipments by 86.6% year over year to 525.3 MW. Two main factors contributed to our solid shipment growth. First, by satisfying vigorous demand for our highly bankable and cost-effective products, we have enhanced cooperation with our top existing customers. Second, we were able to attract an influx of orders from new customers with our strong brand, well established reputation and integrated service model."
Mr. Miao continued, "Looking into 2010, in view of the shared anticipation of global industry growth and the robust flow of purchase orders and inquiries that we have already received, we are confident in our ability to achieve our full year PV module shipment guidance of 950 MW to 1 GW. This confidence is further supported by our planned capacity expansion. In spite of the expected cuts in feed-in tariff subsidies in Germany in the middle of the year, which may put pressure on the module price, we expect to experience a sustainable growth in the German market in 2010 by capitalizing on our solid position and extensive customer base in that market. In addition, we are expanding our footprint rapidly in the US, Spain, Italy, China and other emerging markets to further drive our growth. To back up our shipment target and goal of further market share expansion, we are actively implementing a 300 MW strategic capacity expansion plan of high efficiency mono-crystalline silicon-based, vertically integrated production lines at our Baoding headquarters. Combined with the existing 600 MW production capacity in Baoding and the 100 MW capacity under construction in Hainan Province, this new expansion project is expected to bring our total production capacity to 1 GW by the end of 2010. In this expansion project, we will adopt new technologies developed from our PANDA project, through which we have already developed next-generation PV cells with an average efficiency rate of 18% or higher on pilot production lines. We expect that the average efficiency rate of our next-generation PV cells will reach at least 18.5% on the commercial application lines by the end of this year. With this expansion in place, we will be better positioned than ever to solidify our leadership in the global PV market."
Mr. Miao went on to say, "As a leading solar company, we are not only responsible for our customers but also for our community, environment, and the advancement of science and technology. Attesting to our core values of 'responsibility, trust and innovation' during fiscal year 2009, we became the first Chinese company to obtain the SA 8000 social accountability certification, to join PV CYCLE and to receive the TUV Rheinland 'Power Controlled' certification. Furthermore, as announced earlier this year, we are proud to be supporting the construction of the State Key Laboratory of PV Technology at our manufacturing base in Baoding. The laboratory will serve as a platform to commercialize cutting-edge PV technologies at our fully vertically integrated production lines."
"Throughout 2009, we focused on promoting our 'Yingli Solar' brand. To deepen our relationships with existing customers and reach out to more potential customers, we joined the privileged ranks of official sponsors of the 2010 FIFA World Cup in South Africa. By associating our brand with one of the world's most popular sporting events, we look forward to better communicating our brand and demonstrating our commitment to making solar energy a clean, enduring and cost-effective energy solution for all humankind," Mr. Miao concluded.
Fourth Quarter 2009 Financial Results
Total Net Revenues
Total net revenues were RMB 2,530.9 million (US$370.8 million) in the fourth quarter of 2009, an increase of 13.7% from RMB 2,225.2 million in the third quarter of 2009 and an increase of 43.7% from RMB 1,761.2 million in the fourth quarter of 2008. The increase from the third quarter of 2009 was primarily due to a 15.7% increase in PV module shipment volume over the previous quarter, a result of the increasingly well-recognized 'Yingli Solar' brand, solid and diversified customer base, enhanced sales channels and stronger customer service offerings, as well as the recovery of the solar industry from the global economic recession.
Gross Profit and Gross Margin (1)
Gross profit in the fourth quarter of 2009 was RMB 750.4 million (US$109.9 million), an increase of 50.0% from RMB 500.3 million in the third quarter of 2009 and 187.9% from RMB 260.6 million in the fourth quarter of 2008. Gross margin was 29.6% in the fourth quarter of 2009, up from 22.5% in the third quarter of 2009 and 14.8% in the fourth quarter of 2008. The increase in gross margin was primarily due to the continuous decline in the blended cost of polysilicon, decreasing polysilicon usage per watt, continuous reduction in non-polysilicon cost, and the relatively flattish average selling price in the fourth quarter of 2009.
Operating Expenses
Operating expenses in the fourth quarter of 2009 were RMB 639.3 million (US$93.7 million), compared to RMB 257.5 million in the third quarter of 2009 and RMB 162.8 million in the fourth quarter of 2008. The significant increase in operating expenses from previous quarters was primarily attributable to a non-cash impairment of intangible assets relating to long-term supply agreements of RMB 131.2 million (US$19.2 million) and a non-cash bad debt expense of RMB 184.3 million (US$27.0 million) related to settlements with two particular customers in the fourth quarter.
The impairment of intangible assets relating to long-term supply agreements arose from the purchase price allocation in connection with a series of acquisitions of equity interests in Tianwei Yingli in 2006, 2007 and 2008. As a result of the continuous decrease in the price of polysilicon, the Company has recognized an impairment loss of RMB 131.2 million (US$19.2 million) to reflect the difference between the carrying amount and the fair value of the intangible assets. The impairment of intangible assets and the bad debt expense were non-cash charges and had no impact on the Company's cash flow.
After excluding the two non-cash charges, operating expenses in the fourth quarter of 2009 were RMB 323.8 million (US$47.4 million), compared to RMB 257.5 million in the third quarter of 2009 and RMB 162.8 million in the fourth quarter of 2008. Operating expenses as a percentage of total net revenues was 12.8% in the fourth quarter of 2009, compared to 11.6% in the previous quarter.
Operating Income and Margin
Operating income in the fourth quarter of 2009 was RMB 111.1 million (US$16.3 million), compared to RMB 242.8 million in the third quarter of 2009 and RMB 97.8 million in the fourth quarter of 2008.
Operating margin was 4.4% in the fourth quarter of 2009, compared to 10.9% in the third quarter of 2009 and 5.6% in the fourth quarter of 2008.
Interest Expense
Interest expense was RMB 80.8 million (US$11.8 million) in the fourth quarter of 2009, compared to RMB 100.6 million in the third quarter of 2009 and RMB 51.7 million (5) in the fourth quarter of 2008.
After excluding non-cash interest expenses, interest expense was RMB 58.7 million (US$8.6 million) in the fourth quarter of 2009, compared to RMB 68.2 million in the third quarter of 2009 and RMB 48.5 million in the fourth quarter of 2008. The weighted average interest rate for the borrowings in the fourth quarter of 2009 was 6.27%, a decrease from 6.66% in the third quarter of 2009, both measured on a basis excluding non-cash interest expenses. The decrease in weighted average interest rate was a result of the Company's efforts to reduce funding costs.
Foreign Currency Exchange Loss (Gain)
Foreign currency exchange loss was RMB 48.5 million (US$7.1 million) in the fourth quarter of 2009, compared to a foreign currency exchange gain of RMB 71.8 million in the third quarter of 2009 and a foreign currency exchange gain of RMB 68.7 million in the fourth quarter of 2008. The foreign currency exchange loss in the fourth quarter of 2009 was primarily due to the depreciation of the Euro against the Renminbi.
Income Tax Benefit (Expense)
Income tax benefit was RMB 1.1 million (US$0.2 million) in the fourth quarter of 2009, compared to an income tax expense of RMB 31.0 million in the third quarter of 2009 and an income tax benefit of RMB 3.1 million in the fourth quarter of 2008. The income tax benefit in the fourth quarter of 2009 was primarily due to the write-off of defer tax liability as a result of intangible assets impairment, netted off by the income tax expense incurred by Tianwei Yingli and Yingli Energy (China) Company Limited ("Yingli China"), a wholly-owned subsidiary of the Company. Under the PRC Enterprise Income Tax Law and the various implementation rules, Tianwei Yingli was subject to an enterprise income tax rate of 0% in 2008 and 12.5% in 2009, and Yingli China was subject to an enterprise income tax rate of 15% in both 2008 and 2009.
Net Loss (Income)
As a result of the factors discussed above, net loss was RMB44.8 million (US$6.6 million) in the fourth quarter of 2009, compared to net income of RMB 120.8 million in the third quarter of 2009 and RMB 82.0 million (6) in the fourth quarter of 2008. Diluted loss per ordinary share and per ADS was RMB 0.30 (US$0.04) in the fourth quarter of 2009, compared to diluted earnings per ordinary share and per ADS of RMB 0.79 in the third quarter of 2009 and RMB 0.64 in the fourth quarter of 2008.
On an adjusted non-GAAP basis, net income was RMB 137.5 million (US$20.2 million) in the fourth quarter of 2009, compared to RMB 184.2 million in the third quarter of 2009 and RMB 111.4 million in the fourth quarter of 2008. Adjusted non-GAAP diluted earnings per ordinary share and per ADS were RMB 0.89 (US$0.13) in the fourth quarter of 2009, compared to RMB 1.20 in the third quarter of 2009 and RMB 0.86 in the fourth quarter of 2008.
Balance Sheet Analysis
As of December 31, 2009, Yingli Green Energy had RMB 3,631.1 million (US$532.0 million) in cash and restricted cash, compared to RMB 2,657.6 million as of September 30, 2009. The increase in cash was primarily a result of positive operating cash flow resulting from the improved collection of accounts receivables.
Working capital was RMB 1,114.9 million (US$163.3 million) as of December 31, 2009, compared to 3,045.3 million as of September 30, 2009. The decrease in working capital was primarily a result of the reclassification of the Company's convertible senior notes of RMB 1,291.8 million (US$189.3 million) due in December 2010.
As of the date of this press release, the Company had approximately RMB 9,962 million in authorized lines of credit, of which RMB 5,799 million had been utilized.
Full Year 2009 Results
Total Net Revenues
Total net revenues for the full year 2009 were RMB 7,254.9 million (US$1,062.8 million), compared to RMB 7,553.0 million for the full year 2008. PV module shipment volume for the full year 2009 was 525.3 MW, an increase of 86.6% from 281.5 MW for the full year 2008. The increase in total shipments was primarily due to the Company's increasingly well-recognized brand, solid and diversified customer base, enhanced sales channels and stronger customer service offerings, and was supported by the completion of an additional 200 MW of total production capacity for each of polysilicon ingots and wafers, PV cells and PV modules in July 2009. The decrease in net revenues despite the 86.6% shipment increase was primarily due to a significant reduction in the average selling price for PV modules, which was caused by the rationalization of profitability across each stage along the solar value chain catalyzed by the recent global financial crisis and the depreciation of the Euro against the Renminbi.
Gross Profit and Margin (4)
Gross profit for the full year 2009 was RMB 1,714.4 million (US$251.2 million), compared to RMB 1,767.2 million for 2008. Gross margin was 23.6% for the full year 2009, compared to 23.4% in 2008.
The slight increase in gross margin for the full year 2009 was primarily a result of our continuous efforts in reducing blended cost of polysilicon and non-polysilicon processing cost, despite of the sharp decrease in the average selling price for PV modules.
Operating Expenses
Operating expenses for the full year 2009 were RMB 1,233.3 million (US$180.7 million), compared to RMB 613.9 million in 2008.
After excluding the two non-cash charges with a total amount of RMB 315.5 million (US$46.2 million) in the fourth quarter, operating expenses were RMB 917.8 million (US$134.5 million) for the full year of 2009, compared to RMB 613.9 million in 2008. Operating expenses as a percentage of net revenues was 12.7% in the full year 2009, compared to 8.1% in 2008. The increase in operating expenses was primarily attributable to the Company's expanded scale of operations, increased marketing and promotional activities in both existing and emerging solar markets, and increased research and development expenses in connection with the launch of a series of new initiatives, including Project PANDA.
Interest Expense
Interest expense for the full year 2009 was RMB 376.3 million (US$55.1 million), compared to RMB 162.1 million in 2008. The interest expense for the full year 2009 included non-cash interest expenses of RMB 98.1 million (US$14.4 million), compared to RMB 10.4 million in 2008. Such non-cash interest expenses were related to the derivative liabilities bifurcated from the Company's convertible notes issued in January 2009, the beneficial conversion feature of the convertible notes issued in July 2009, the freestanding warrants issued in connection with a loan facility provided by ADM Capital in April 2009, and the equity component bifurcated from the Company's convertible notes issued in December 2007.
After excluding the non-cash interest expenses, interest expense was RMB 278.3 million (US$40.8 million), compared to RMB 151.8 million in 2008. The increase in interest expense was consistent with the increase in short-term borrowings from RMB 2,044.2 million as of December 31, 2008 to RMB 3,501.0 million (US$512.9 million) as of December 31, 2009 and the increase in long-term bank borrowings from RMB 663.0 million as of December 31, 2008 to RMB 752.8 million (US$110.3 million) as of December 31, 2009. The weighted average interest rate for these borrowings in 2009 was 7.07%, which slightly increased from 6.93% in 2008.
Foreign Currency Exchange Gain (Loss)
Foreign currency exchange gain was RMB 38.4 million (US$5.6 million) for the full year 2009, compared to a foreign currency exchange loss of RMB 66.3 million for the full year 2008. The foreign currency exchange gain for the full year 2009 was primarily due to the appreciation of the Euro against the Renminbi during the second and third quarters of 2009.
Loss on Debt Extinguishment
Loss on debt extinguishment of RMB 244.7 million (US$35.8 million) was a one-time, non-cash charge recognized in the second quarter of 2009, which was a result of the early full repayment of the US$50 million three-year loan facility provided by ADM Capital in January 2009. The loss represents the difference between the amount repaid and the carrying value of the loan on the date of the debt repayment which had no impact on the Company's cash flow.
Loss on Derivative Liabilities
Loss on derivative liabilities of RMB 231.3 million (US$33.9 million) was primarily due to changes in the fair value of the derivative liabilities relating to the embedded conversion feature of the US$20 million convertible notes issued to Trustbridge Partners II, L.P. in January 2009 and warrants issued to ADM Capital in connection with the US$50 million loan facility. The loss on derivative liabilities was a one-time, non-cash charge which had no impact on the Company's cash flow.
Income Tax Expense (Benefit)
Income tax expense was RMB 32.9 million (US$4.8 million) for the full year 2009, compared to an income tax benefit of RMB 5.6 million for the full year 2008. The income tax expense for 2009 was primarily attributable to the net operating income generated by Tianwei Yingli and Yingli China, netted off by the write-off of defer tax liability as a result of intangible assets impairment, while the income tax benefit in 2008 was mainly due to an increase in defer tax assets related to accrued warranty.
Net Loss (Income)
Net loss was RMB 459.2 million (US$67.3 million) and fully diluted loss per ordinary share and per ADS was RMB 3.31 (US$0.48) for the full year 2009.
On an adjusted non-GAAP basis, net income was RMB 364.5 million (US$53.4 million) for the full year 2009. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS was RMB 2.53 (US$0.37) for the full year 2009.
Business Outlook for Full Year 2010
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, the Company expects its PV module shipment target to be in the estimated range of 950 MW to 1 GW for fiscal year 2010, which represents an increase of 80.8% to 90.4% compared to fiscal year 2009.
In addition, after taking into consideration the Company's estimated blended cost of polysilicon in 2010, the expected average selling price of PV modules and forecasted exchange rates of the Euro and U.S. Dollar against the Renminbi, the Company currently expects that its gross margin target for fiscal year 2010 to be in the estimated range of 27% to 29%.
Non-GAAP Financial Measures
To supplement the financial measures calculated in accordance with GAAP, this press release includes certain non-GAAP financial measures of adjusted net income (loss) and adjusted diluted earnings (loss) per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation, the non-cash interest expense, the non-cash loss on debt extinguishment resulting from the early full repayment of ADM Capital loan, the non-cash expense due to the changes in the fair value of the derivative liabilities, and the amortization and impairment of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interests in Tianwei Yingli. 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 core operating results as such items are not directly attributable to the underlying performance of the Company's business operations and 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 RMB 6.8259 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, 2009. No representation is intended to imply that the 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.
Conference Call
Yingli Green Energy will host a conference call and live webcast to discuss the results on March 8, 2010 at 8:00 AM Eastern Standard Time (EST), which corresponds to the same day at 9:00 PM Beijing/Hong Kong time.
The dial-in details for the live conference call are as follows:
-- U.S. Toll Free Number: +1-866-356-4281
-- International dial-in number: +1-617-597-5395
-- Passcode: 50414803#
A live and archived webcast of the conference call will be available on the Investor Relations section of Yingli Green Energy's website at http://www.yinglisolar.com for three months.
A replay of the conference call will be available until March 22, 2010 by dialing:
-- U.S. Toll Free Number: + 1-888-286-8010
-- International dial-in number: + 1-617-801-6888
-- Passcode: 90317348#
About Yingli Green Energy
Yingli Green Energy Holding Company Limited (NYSE: YGE), which holds the brand Yingli Solar, is a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers. Yingli Green Energy's manufacturing covers the entire photovoltaic value chain, from the production of polysilicon through ingot casting and wafering, to solar cell production and module assembly. As of today, Yingli Green Energy maintains a balanced production capacity of over 600 MW per year. Two capacity expansion projects of 300 MW and 100 MW are under construction in Baoding and Hainan, respectively, and are expected to bring Yingli Green Energy's total capacity to 1 GW by the end of 2010. Yingli Green Energy distributes its photovoltaic modules to a wide range of markets, including Germany, Spain, Italy, Greece, France, South Korea, China and the United States. Headquartered in Baoding, China, Yingli Green Energy has more than 6,000 employees and more than 10 subsidiaries and branch offices worldwide. Yingli Green Energy is publicly listed on the New York Stock Exchange (NYSE: YGE). For more information, please visit http://www.yinglisolar.com .
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:
In China:
Qing Miao
Director, Investor Relations
Yingli Green Energy Holding Company Limited
Tel: +86-312-3100-502
Email: [email protected]
Courtney Shike
Brunswick Group LLC
Tel: +86-10-6566-2256
Email: [email protected]
In the United States:
Katie Cralle
Brunswick Group LLC
Tel: +1-212-333-3810
Email: [email protected]
YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
As of December 31 As of December 31
2008 2009
(As adjusted)(2)(5)
RMB RMB US$
ASSETS
Current assets:
Cash and restricted cash 1,218,148 3,463,278 507,373
Accounts receivable, net 1,464,973 1,958,613 286,940
Inventories 2,040,731 1,665,021 243,927
Prepayments to suppliers 774,014 360,846 52,864
Prepaid expenses and other current
assets 563,267 606,481 88,850
Total current assets 6,061,133 8,054,239 1,179,954
Prepayments to supplier 674,164 678,311 99,373
Property, plant and equipment, net 3,385,682 6,573,851 963,075
Land use rights 63,022 354,560 51,943
Goodwill and intangible assets, net 666,429 481,492 70,539
Investment in and advances to
affiliates, including an acquisition
deposit 192,537 20,674 3,028
Long-term restricted cash -- 167,774 24,579
Other assets 24,829 23,968 3,511
Total assets 11,067,796 16,354,869 2,396,002
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings, including
current portion of long-term bank
borrowings 2,044,200 3,501,027 512,903
Convertible senior notes -- 1,291,843 189,256
Accounts payable 628,903 1,852,216 271,351
Other current liabilities and accrued
expenses 84,563 232,610 34,078
Advances from customers 51,933 30,554 4,476
Dividend payable 10,956 10,956 1,605
Other amounts due to related parties 8,864 20,182 2,957
Total current liabilities 2,829,419 6,939,388 1,016,626
Convertible senior notes 1,214,814 - -
Senior secured convertible notes - 100,139 14,670
Long-term bank borrowings, excluding
current portion 662,956 752,809 110,287
Accrued warranty cost, excluding
current portion 114,691 174,444 25,556
Other liabilities 73,646 104,466 15,305
Total liabilities 4,895,526 8,071,246 1,182,444
Shareholders' equity:
Ordinary shares 9,922 11,363 1,665
Additional paid-in capital 3,724,358 6,169,475 903,833
Accumulated other comprehensive income 31,206 12,784 1,873
Retained earnings 1,011,633 552,392 80,926
Total Yingli Green Energy shareholders'
equity 4,777,119 6,746,014 988,297
Noncontrolling interests 1,395,151 1,537,609 225,261
Total shareholders' equity 6,172,270 8,283,623 1,213,558
Total liabilities and shareholders'
equity 11,067,796 16,354,869 2,396,002
YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except for share, ADS, per share and per ADS data)
Three months ended
31-Dec-08 30-Sep-09 31-Dec-09
(As adjusted)
(1)(2)(5)
RMB RMB RMB US$
Net revenues:
Sales of PV
modules 1,716,180 2,210,404 2,489,313 364,686
Sales of PV systems 19,940 1,303 16,077 2,355
Other revenues 25,079 13,499 25,471 3,732
Total net revenues 1,761,199 2,225,206 2,530,861 370,773
Cost of revenues(1):
Cost of PV modules
sales (1,475,604) (1,712,539) (1,745,031) (255,648)
Cost of PV systems
sales (14,145) (946) (12,263) (1,796)
Cost of other revenues (10,853) (11,390) (23,191) (3,398)
Total cost of revenues (1,500,602) (1,724,875) (1,780,485) (260,842)
Gross profit 260,597 500,331 750,376 109,931
Selling expenses(1) (63,177) (100,742) (138,903) (20,350)
General and
administrative
expenses (76,381) (101,903) (311,650) (45,657)
Research and development
expenses (23,243) (54,880) (57,567) (8,434)
Impairment of intangible
assets -- -- (131,177) (19,217)
Total operating
expenses (162,801) (257,525) (639,297) (93,658)
Income from operations 97,796 242,806 111,079 16,273
Other income (expense):
Interest expense (51,658) (100,565) (80,843) (11,844)
Interest income 3,747 1,303 2,836 415
Foreign currency
exchange gain (loss) 68,664 71,788 (48,474) (7,100)
Other income (expense) 414 3,113 (3,321) (487)
Earnings before
income taxes 118,963 218,445 (18,723) (2,743)
Income tax
benefit (expense) 3,051 (31,031) 1,123 165
Net income 122,014 187,414 (17,600) (2,578)
Less:
Earnings attributable
to the noncontrolling
interests (39,976) (66,568) (27,241) (3,991)
Net income
(loss)attributable
to Yingli Green Energy 82,038 120,846 (44,841) (6,569)
Weighted average
shares and ADSs
outstanding
Basic 127,447,821 148,379,700 148,416,746 148,416,746
Diluted 128,119,081 153,660,518 148,416,746 148,416,746
Earnings (loss) per
share and per ADS
Basic 0.64 0.81 (0.3) (0.04)
Diluted 0.64 0.79 (0.3) (0.04)
Reconciliation of Non-GAAP measures to GAAP measures
31-Dec-08 30-Sep-09 31-Dec-09
RMB RMB RMB US$
Non-GAAP income
attributable to
Yingli Green Energy 111,385 184,241 137,539 20,150
Share-based compensation
attributable to Yingli
Green Energy (12,880) (15,990) (16,242) (2,380)
Amortization of intangible
assets attributable to
Yingli Green Energy (13,286) (15,058) (12,846) (1,882)
Impairment of intangible
assets attributable to
Yingli Green Energy -- -- (131,177) (19,217)
No-cash interest expenses
attributable to
Yingli Green Energy (3,181) (32,347) (22,115) (3,240)
Net income (loss)
attributable to
Yingli Green Energy 82,038 120,846 (44,841) (6,569)
Non-GAAP diluted earnings
per share and per ADS 0.86 1.2 0.89 0.13
Diluted earnings (loss)
per share and per ADS 0.64 0.79 (0.3) (0.04)
YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except for share, ADS, per share and per ADS data)
Year ended
31-Dec-08 31-Dec-09
(As adjusted)
RMB RMB US$
Net revenues:
Sales of PV modules 7,445,790 7,158,441 1,048,717
Sales of PV systems 27,584 50,197 7,354
Other revenues 79,641 46,231 6,773
Total net revenues 7,553,015 7,254,869 1,062,844
Cost of revenues(4):
Cost of PV modules sales (5,713,605) (5,458,284) (799,643)
Cost of PV systems sales (19,241) (39,851) (5,838)
Cost of other revenues (52,953) (42,361) (6,206)
Total cost of revenues (5,785,799) (5,540,496) (811,687)
Gross profit 1,767,216 1,714,373 251,157
Selling expenses(4) (294,895) (347,545) (50,916)
General and administrative expenses (261,772) (570,256) (83,543)
Research and development expenses (57,249) (184,332) (27,005)
Impairment of intangible assets -- (131,177) (19,217)
Total operating expenses (613,916) (1,233,310) (180,681)
Income from operations 1,153,300 481,063 70,476
Other income (expense):
Interest expense (162,132) (376,336) (55,133)
Interest income 12,741 6,321 926
Foreign currency exchange gain
(loss) (66,286) 38,389 5,624
Loss on debt extinguishment -- (231,345) (33,892)
Loss on derivative liabilities -- (244,744) (35,855)
Other income (expense) 3,916 4,604 673
Earnings (loss) before income taxes 941,539 (322,048) (47,181)
Income tax benefit (expense) 5,587 (32,918) (4,822)
Net income (loss) 947,126 (354,966) (52,003)
Less: Earnings attributable to the
noncontrolling interests (293,300) (104,274) (15,276)
Net income (loss) attributable to
Yingli Green Energy 653,826 (459,240) (67,279)
Weighted average shares and ADSs
outstanding
Basic 127,419,040 138,759,177 138,759,177
Diluted 129,494,385 138,759,177 138,759,177
Earnings (loss) per share and per
ADS
Basic 5.13 (3.31) (0.48)
Diluted 5.05 (3.31) (0.48)
Reconciliation of Non-GAAP measures to GAAP measures
Year ended
31-Dec-08 31-Dec-09
RMB RMB US$
Non-GAAP income attributable to
Yingli Green Energy 764,835 364,458 53,393
Share-based compensation attributable
to Yingli Green Energy (43,971) (62,306) (9,128)
Amortization of intangible assets
attributable to Yingli Green Energy (56,688) (56,066) (8,214)
Loss on derivative liabilities
attributable to Yingli Green Energy -- (231,345) (33,892)
Loss on debt extinguishment
attributable to Yingli Green Energy -- (244,744) (35,855)
Impairment of intangible assets
attributable to Yingli Green Energy -- (131,177) (19,217)
Non-cash interest expenses
attributable to Yingli Green Energy (10,350) (98,060) (14,366)
Net income (loss) attributable to
Yingli Green Energy 653,826 (459,240) (67,279)
Non-GAAP diluted earnings per share
and per ADS 5.91 2.53 0.37
Diluted earnings (loss) per share and
per ADS 5.05 (3.31) (0.48)
(1) Our previously reported unaudited fourth quarter 2008 and third
quarter 2009 financial results have been revised to reflect a
reclassification of warranty and shipping cost of RMB 27.7 million in
the fourth quarter 2008 and RMB 52.8 million in the third quarter 2009
from cost of revenues to selling expenses in order to better reflect
the selling related nature of these expenses and to increase the
comparability of information with our major competitors.
(2) Upon adoption of Accounting Standard Codification ("ASC") 810,
formerly referred to as FASB Statement 160, Noncontrolling Interests
in Consolidated Financial Statements, an amendment of ARB No. 51,
effective January 1, 2009, net income (loss) has been adjusted to
include net income (loss) attributable to non-controlling interests
and Yingli Green Energy. For convenience purposes, all references to
"net income (loss)" in this press release, unless otherwise specified,
represent "net income (loss) attributable to Yingli Green Energy" for
all periods presented.
(3) All non-GAAP measures exclude share-based compensation, the non-cash
interest expenses, the non-cash loss on debt extinguishment resulting
from the early full repayment of the ADM Capital loan, the non-cash
expense due to the changes in the fair value of the derivative
liabilities, and the amortization and impairment of intangible assets
arising from purchase price allocation in connection with a series of
acquisitions of equity interests in Baoding Tianwei Yingli New Energy
Resources Co., Ltd. ("Tianwei Yingli"), an operating subsidiary of the
Company. 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.
(4) Our previously reported full year 2008 financial results have been
revised to reflect a reclassification of warranty and shipping cost of
RMB 137.6 million from cost of revenues to selling expenses in order
to better reflect the selling related nature of these expenses and to
increase the comparability of information with our major competitors.
(5) The Company's previously reported unaudited fourth quarter 2008
financial results have been revised to reflect an increase in interest
expense from RMB 48.5 million to RMB 51.7 million in the fourth
quarter of 2008 due to the adoption and retroactive application of ASC
470-20, formerly referred to as Financial Accounting Standards Board
Staff Position Accounting Principles Board 14-1, "Accounting for
Convertible Debt Instruments That May Be Settled in Cash upon
Conversion (Including Partial Cash Settlement)."
(6) The Company's previously reported unaudited fourth quarter 2008
financial results have been revised to reflect a decrease in net
income from RMB 85.2 million to RMB 82.0 million in the fourth quarter
of 2008 due to the adoption and retroactive application of ASC 470-20,
"Accounting for Convertible Debt Instruments That May Be Settled in
Cash upon Conversion (Including Partial Cash Settlement)."
SOURCE Yingli Green Energy Holding Company Limited
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