Major PV manufacturer Yingli Green Energy has reported record module shipments in the second quarter of 2017, although increased losses continued to weigh on the struggling company. 

Yingli Green reported record module shipments of 1,146.6MW in the second quarter of 2017, meeting the high-end of guidance. As a result, the company raised full-year guidance to be in a range of 2.5GW to 2.8GW. However, third quarter shipment guidance was guided to be in the range of 550MW to 600MW, indicating a slowdown in demand in China as the company has depended on domestic sales, due to its financial troubles. 

Module shipments in the first quarter of 2017 were 370.9MW. 

Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy said, "Driven by the surging demand from China due to the expected feed-in-tariff ("FiT") reduction after June 30, 2017, the Company's PV module shipments reached a record high of 1,146.6 MW in a single quarter in the second quarter of 2017, increasing by 209% over the first quarter of 2017, and exceeded previous guidance. Geographically, shipments to China increased from 243MW in the first quarter of 2017 to 992MW and accounted for 86.5% of our total PV module shipments in the second quarter of 2017, as a result of successful cooperation with different types of customers.”

The company noted that the record quarterly shipments were also driven by the delivery of more than 200MW of modules to a utility scale project in Hebei Province in the second quarter of 2017 as well as delivery of about half of a 230MW module order for large PV power plant project in Japan.

Module inventory decreased to US$153.4 million in the quarter, due to higher shipments, down from US$225.6 million in the previous quarter.

Financial results

Yingli Green reported second quarter 2017 revenue of US$468.1 million, compared to US$179.9 million in the previous quarter.

Gross profit was US$7.9 million in the second quarter of 2017, compared to US$8.9 million in the previous quarter. Gross margin was 1.7% in the second quarter of 2017, compared to 5.0% in the first quarter of 2017. Gross margin on sales of PV modules was 3.9% in the second quarter of 2017, compared to 8.8% in the first quarter of 2017. Average selling price (ASP) declines were cited as the reason for the margin declines.

The company said that it also made further inventory provisions as a result of the ASP declines. 

Operating expenses in the second quarter were US$34.6 million, compared to US$24.0 million in the previous quarter. Operating expenses as a percentage of net revenue was 7.4 % in the second quarter of 2017, compared to 13.3% in the first quarter of 2017. The increase was due to higher shipments, due to freight cost increases and other selling expenses related to the higher shipments. 

Despite the record shipments, Yingli Green reported an operating loss in the quarter of US$26.7 million, compared to an operating loss of US$15.0 million in the previous quarter. Operating margin was negative 5.7% in the second quarter of 2017, compared to negative 8.4% in the first quarter of 2017.

Net loss was US$43.9 million in the second quarter of 2017, compared to a net loss of US$26.8 million in the previous quarter. The company did not give reasons for the increase in losses. 

Yingli Green reported it had US$97.1million in cash and cash equivalents at the end of second quarter of 2017. The company ended 2016 with cash and cash equivalents of US$72.9 million.