Yingli Green Energy Holding Co (YGE) Reports 3rd Quarter Results, May Buy Cyber Power

Yingli Green Energy released its 3rd quarter results last week. Net revenue went up quite a bit, increasing to RMB 2,209.8 million (USD $325.5 million) from RMB 1,987 million in the 2nd quarter of 2008 and RMB 1,276.5 million in the 3rd quarter of last year. However, due to the depreciation of the euro against the Renminbi, gross profits actually declined from the 2nd quarter. Gross profit came in at RMB 492.6 million (USD $72.6 million), compared to RMB 511.8 million in the 2nd quarter of this year. This number still represents an increase of 62.7% from this time last year, when the company reported gross profits of RMV 302.9 million.

Net income (non-GAAP) was also down. coming in at RMB 175.3 million, compared to 234.5 million last quarter. Non-GAAP earnings per share were RMB 1.35 per share, or $ .20 per share, down from RMB 1.81 last quarter.

Liansheng Miao, Yingli’s Chairman and CEO, commented on the results and the company’s plans for the future:

"The Company’s business operations continued to be strong during the third quarter of 2008. Net revenues continued to grow with increased PV module shipments and output, which benefited from our broad customer base and well-recognized brand name. The total shipments for the first three quarters of 2008 were on track, accounting for 75.1% to 72.4% of our shipment guidance of 270 MW to 280 MW for 2008. Looking forward, we believe Germany will remain a major growth driver of the global PV market while the PV market in the United States has gained additional visibility with the extension of the Investment Tax Credit in early October 2008. In addition to these two markets, we plan to further expand our sales in emerging PV markets including South Korea, Italy, France, Belgium and China. We believe our existing position and continued efforts in these markets will help us improve our brand recognition globally and further solidify our well-balanced geographical and customer sales portfolio. To date, the Company has signed sales contracts for delivery of approximately 120 MW of PV modules in 2009. In addition, we are in negotiations with customers for another 350 MW which we expect to finalize by the end of 2008 or early 2009."

"Moreover, we believe that economies of scale enhanced by the successful ramp-up to 400 MW of production capacity, together with higher yield rates, advanced equipment and technologies and our ongoing research and development initiatives, will further strengthen our position as a leading PV product manufacturer with one of the lowest non-polysilicon manufacturing cost structures in the industry. With our increased operational scale and efficiency and a stable long-term customer base, we believe we are well- positioned for the challenges and opportunities ahead in this difficult macro- economic environment," Mr. Miao added.

In addition, the company is also planning to acquire Cyber Power Group Ltd. The move will cost Yingli between $70 million and $80 million, but the company believes that the deal will provide them "a more secure and stable supply of polysilicon, while further integrating its manufacturing processes."

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