Vertically integrated photovoltaic product manufacturer Yingli Green Energy Holding Company Ltd. (YGE) reported Friday a decline in third-quarter profit, primarily on higher expenses, despite a slight increase in revenues and Euro appreciations compared to the prior year. The adjusted earnings, however, improved year-over-year.
For the third quarter, net income attributable to Yingli Green dropped to RMB 120.85 million or RMB 0.79 per ordinary share and per American Depository Shares, or ADS, from RMB 147.63 million or RMB 1.14 per ordinary share and per ADS in the previous year. In dollar terms, earnings were $17.70 million or $0.12 per ordinary share and per ADS.
Weighted average shares and ADS outstanding increased year-over-year to 153.66 million from 129.41 million a year earlier.
The results of the latest quarter included share-based compensation of RMB 15.99 million or US$ 2.34 million, compared to RMB 10.85 million in the past year. Amortization of intangible assets rose to RMB 15.06 million or US$ 2.21 million from RMB 13.64 million, and non-cash interest expenses shot up to RMB 32.35 million or US$ 4.74 million from RMB 3.18 million in the three month period of fiscal 2008.
On appreciation of Euro in comparison with Renminbi, the company gained RMB 71.8 million or US$ 10.5 million compared to a foreign exchange loss of RMB 133.1 million last year.
Excluding items, earnings increased to RMB 184.24 million or RMB 1.20 per ordinary share and per ADS from RMB 175.31 million or RMB 1.34 per ordinary share and per ADS in the year-ago period. In dollar currency, non-GAAP earnings was US$ 26.99 million or US$ 0.18 per ordinary share and per ADS.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per ADS in the third quarter. Analysts' estimate typically excludes special items.
Earnings attributable to the non-controlling interests increased to RMB 66.57 million or $9.75 million from RMB 64.54 million in the year-ago quarter.
Income from operations dropped 35.6% year-over-year to RMB 242.81 million or US$35.57 million,from RMB 377.13 million.
Total net revenues for the period increased to RMB 2.22 billion or US$ 325.98 million from RMB 2.21 billion in the third quarter of the prior fiscal year. Fifteen analysts were expecting revenue of US$ 328.64 million in the third quarter.
Total operating expenses increased to RMB 204.77 million from RMB 115.51 million, as general and administrative expenses were higher at RMB 101.90 million compared with RMB 60.46 million, and research and development costs surged to RMB 54.88 million from RMB 19.70 million in the past year.
Gross profit in the third quarter of 2009 dipped 9.1% to RMB 447.6 million or US$65.6 million from RMB 492.6 million in the same period last year. Gross margin slid to 20.1% from 22.3%.
Interest expense soared to RMB 100.6 million or US$14.7 million from RMB 34.8 million prior-year quarter.
Looking ahead, for fiscal year 2009, and referring to the third quarter results and greater visibility into market demand for the fourth quarter, the company raised it annual PV module shipment target to range between 490 MW and 500 MW from the earlier range of 450 MW - 500 MW.
YGE closed Thursday's regular trading hours at $12.03 on the NASDAQ.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.