Either way they crushed the analysts expectations for earnings (part of it was currency exchange of course), but since they only guided "in line" for the future in terms of revenue perhaps that is leading to the see saw action this AM. Who ever really knows; it makes little sense to me. The key (to me) is maintaining gross margins and profitability - on both those counts Yingli scored very well. Also nice to see some new markets open up, France and South Korea (the United States is still nowhere to be found as we are too busy promoting corn ethanol) I have cut back this position for now as its now full of speculators and daytraders, and I was able to lock in some very good profits, and moved on to other fare in the sector with better value. But I'll rebuild this position on the next selloff.
- Total net revenues were RMB 1,595.0 million (US$227.5 million), an increase of 9.8% from RMB 1,453.2 million in the fourth quarter of 2007 and an increase of 272.2% from RMB 428.6 million in the first quarter of 2007.
- Gross profit was RMB 392.3 million (US$55.9 million), an increase of 9.1% from RMB 359.6 million in the fourth quarter of 2007 and an increase of 337.8% from RMB 89.6 million in the first quarter of 2007.
- Gross margin was 24.6% in the first quarter of 2008, in line with 24.7% in the fourth quarter of 2007 and an increase from 20.9% in the first quarter of 2007.
- Net income was RMB 223.5 million (US$31.9 million), an increase of 61.5% from RMB 138.4 million in the fourth quarter of 2007 and an increase of 2,580.5% from RMB 8.3 million in the first quarter of 2007. Fully diluted earnings per ordinary share and per American depositary share (“ADS”) were RMB 1.73 (US$0.25), compared to RMB 1.07 in the fourth quarter of 2007.
- “Our results largely demonstrated the successful execution of our vertically integrated strategy at the operating level and growing demand for our products in our end markets, including Spain, Germany, the United States and Italy, as well as new and emerging solar markets such as Korea and France.
- Our commercialization of 180 micron wafers at the beginning of February 2008 illustrates our strong capabilities in R&D.” (this is key, down from 200)
- “I am also very pleased that our expansion plan remains on track and that we currently expect to be able to achieve production capacity of 600 MW before mid-2009, ahead of schedule.
- As a result of a higher average selling price compared to the fourth quarter of 2007, the lower polysilicon usage per watt resulted from successful research and development efforts and the lower processing cost attributable to continuous improvement in operational efficiency of the Company’s vertically integrated business model, the Company was able to maintain its gross margin despite an increase in the average cost of polysilicon in the first quarter of 2008.
- PV module shipments in the estimated range of approximately 255 MW to 265 MW, which represents a 78.9% to 86.0% increase compared to 2007.
- Net revenues in the estimated range of approximately US$969 million and US$1,020 million, which represents a 74.1% to 83.3% increase compared to 2007.
Long Yingli Green Energy in fund; no personal position
