Yingli Green Energy Holding, the sixth-biggest silicon-based solar module maker, said it expects shipments to rise as much as 56 per cent this year after a slump in the fourth quarter when the market was oversupplied.
The company forecast module shipments of 2.4 gigawatts to 2.5 gigawatts this year, compared to 1.6 gigawatts during 2011, according to a statement. Shipments in the fourth quarter were down 30 per cent from the third quarter as gross margins slipped to 3 per cent from 10.8 per cent.
Yingli posted a net loss of $509.8 million for the full year even as it increased shipments by 51 per cent from 2010. The industry experienced “tremendous” pressure on margins as manufacturers boosted supply while European nations that are the biggest solar markets cut incentives for the technology.
“The potential risks are mitigated by the clear increase in PV applications globally as solar electricity has become much more affordable,” said Yingli Chairman Liansheng Miao. “We are confident that we will continue to gain market share.”
China growth
Yingli, based in Baoding, increased its sales in China, the country it sees as one of the most promising markets. The company’s sales there rose to 22 per cent of its output, compared to 6 per cent a year ago, and are forecast to reach 35 per cent this year.
“China is expected to sustain its strong growth momentum supported by the boom of the utility segment and the steady growth of the roof-top segment,” Miao said.
In a conference call with investors, Chief Financial Officer Bryan Li said sales to China will amount to 15 per cent to 17 per cent of the country’s 5,000-megawatt market this year. Germany will amount to about 25 per cent of output and the US about 20 per cent, he said.
Total module shipments are forecast to rise 30 per cent in the first quarter and gross margins will reach about 10 per cent, according to Li. Average selling prices will fall by a percentage in the “mid-teens” range compared to the last quarter of 2011 and will continue falling during the year, he said.
After its 750-megawatt expansion, Yingli’s total manufacturing capacity will reach 2,450 megawatts this year.
