Yingli Green Energy Holding Co. Ltd. (YGE)
Q2 2010 Earnings Call
August 19, 2010 8:00 AM ET
Arthur Chen – Legal Counsel
Miao Liansheng – Chairman and CEO
Bryan Li – Director and CFO
Wang Yiyu – Chief Strategy Officer
Stuart Brannigan – Managing Director, Yingli Green Energy Europe
Robert Petrina – Managing Director, Yingli Green Energy Americas
Miao Qing – IR Director.
Jesse Pichel – Jefferies
Vishal Shah – Barclays Capital
Lu Yeung – UBS
Dan Ries – Collins Stewart
Sunil Gupta – Morgan Stanley
Sanjay Shrestha – Lazard Capital Markets
Gary Hsueh – Oppenheimer & Co.
Kelly Dougherty – Macquarie
Burt Chao – Simmons & Company
Sam Dubinsky – Wells Fargo
Previous Statements by YGE
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Hello, ladies and gentlemen. This is Erica. I will be the operator for this conference call. I would like to welcome everyone to Yingli Green Energy Holding Company Limited Second Quarter 2010 Financial Results Conference Call. All lines have been placed on mute to prevent background noise. After today’s presentation, there will be a question-and-answer session. Please follow the instructions given at that time, if you would like to ask a question.
Now, I would like to transfer the call to the host for today’s call, Arthur Chen of Yingli Green Energy. Arthur, please proceed.
Thank you, Operator. And thank you everyone for joining us today for Yingli’s second quarter 2010 financial results conference call. A few hours ago, Yingli issued its second quarter 2010 earning release, which can be found on the company’s website at www.yinglisolar.com. I trust you all had a chance to review it by now.
On call today from Yingli Green Energy are Mr. Miao Liansheng, Chairman and Chief Executive Officer; Mr. Bryan Li, Director and Chief Financial Officer; Mr. Wang Yiyu, Chief Strategy Officer; Mr. Stuart Brannigan, Managing Director of Yingli Green Energy Europe; Mr. Robert Petrina, Managing Director of Yingli Green Energy Americas; Ms. Miao Qing, IR Director.
The call today will feature a short presentation from Mr. Miao covering business and operational developments. And then Mr. Li will take you through a discussion of the company’s financial performance. After that, we will open the floor to questions from audience.
Before beginning, Yingli Green Energy’s management teams will like to remind audience that this presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, and similar phrases.
Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy’s control, which may cause Yingli Green Energy’s actual results, performance or achievements to differ materially from those in the forward-looking statements.
Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy’s filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.
I would now like to turn the call over to Mr. Miao Liansheng. Please begin.
Hello everyone thanks for joining us today. I will first discuss business highlights from the second quarter of 2010 before handing the call over to Mr. Bryan Li, our CFO, who will take you through our financial results.
I’m pleased to announce that in the second quarter of 2010, we achieved continuous growth in PV module shipment volume and reached new record high gross margin of 33.5%.
Firstly, I would like to highlight our assets and achievements and finding in marketing. As you know, we became official sponsor of the 2010 FIFA World Cup in South Africa on February 3rd this year. This sponsorship accompanied by a series of marketing activities has largely boosted our brand awareness among media, industry, players, customers and stakeholders.
For example, according to a statistic prepared by our marketing advisors, from the beginning of February to the end of July, Yingli was covered by 2,000 news reports including 807 from Chinese media and 1,193 from overseas media.
As the market of distributed electricity generation is expanding in major solar markets, the power of influencing and deciding the future of solar industries is profitably providing to the general public. As the leading PV product manufacturer, we believe that accelerating our brand building effort [is greater] to maintain our long-term competitive advantages.
Our success in this marketing campaign is expected to effectively enhance our competitive advantages in this new era by differentiating Yingli Solar from all other PV products and manufacturers. Supported by our reliable products and services, we expect to enjoy the higher price premium and receive a stronger demand as a rebound of our ever increasing brand equity.
Secondly, on the research and technology front, our 300 MW PANDA high efficiency solar cell lines started commercial production in July 2010, only 13 months after conceptualizing this product in June 2009. The rapid speed demonstrated our strong research and development capabilities. The recently introduced Yingli Solar PANDA module has attracted great interest from our customers. We expect the higher cell efficiency of PANDA module to help our customers further reduce the balance of system cost.