Yingli Green Energy Holding Co. Ltd. (YGE)

Q4 2010 Earnings Call

February 18, 2011 8:00 AM ET


Arthur Chen – Legal Counsel

Miao Liansheng – Chairman and CEO

Bryan Li – Director and CFO

Qing Miao – Director of IR

Yiyu Wang – CSO


Jesse Pichel – Piper Jaffray

Dan Ries – Collins Stewart

Vishal Shah – Barclays Capital

Lu Yeung – UBS

Satya Kumar – Credit Suisse

Sanjay Shrestha – Lazard Capital

Tim Arcuri – Citi

Nick Xue – Goldman Sachs

Sunil Gupta – Morgan Stanley



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Hello ladies and gentlemen, this is Tanya. I will be the operator for this conference call. I would like to welcome everyone to Yingli Green Energy Holdings Company Limited fourth quarter and full year 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, Arthur Chen, In-house Legal Counsel of Yingli Green Energy. Arthur, please proceed.

Arthur Chen

Thank you, operator. And thank you, everyone, for joining us today for Yingli’s fourth quarter and full year 2010 financial results conference call.

The fourth quarter and full year 2010 earnings release was issued earlier today and is available on the company’s website at www.yinglisolar.com. We have already provided supplemental presentation for today’s earnings call, which can also be found on our IR website. I hope you all had the chance to review it by now.

On the call today from Yingli Green Energy are Mr. Miao Liansheng, Chairman and Chief Executive Officer; Mr. Xiaoqiang Zheng, Vice president; Mr. Bryan Li, Executive Director, Vice President 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; and Ms. Miao Qing, IR Director.

In the call today, we have feature and opening remarks by Mr. Miao and a presentation from Mr. Zheng covering business and operational developments. Then Mr. Li, will take you through a discussion of the company’s financial performance. After that we will open up the floor to questions from the audience.

Before beginning, Yingli Green Energy’s management team would 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 a mandate and as defined in the US Private Securities Litigation Reform Act of 1995. This forward-looking statement can be identified by terminologies such as will, expect, 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 this and other risks, uncertainties or factors is included in Yingli Green Energy’s filings with the US 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.

Miao Liansheng

[Interpreted] Hello, everyone. Thank you for joining us today. In China, we just celebrated the Lunar New Year. I would like to take this opportunity to wish you a wonderful year of rabbits.

First, Mr. (inaudible) our Vice President will discuss some quarterly and yearly business highlights and achievements before handling the call over to Bryan Li our CFO, who will take you through the fourth quarter and the fiscal year 2010 financial results. Mr. (inaudible) joined us in 2004 and has been overseeing the company’s operation for eight years. Okay, (inaudible) will begin.

Hello everyone and welcome, for today, I will discuss some business highlights and achievements in fourth quarter and full year 2010. I’m pleased to report that we concluded a successful 2010, punctuated by another strong quarter of sustainable profitability. In the fourth quarter PV shipment volumes increased by 21.6% and our gross margins reached 22.9%. Full year 2010 shipment volume reached to 1061.6 megawatt beating our previous guidance of 1020 megawatts to 1040 megawatts. Our success was primarily driven by the continuously robust market demand, our competitive cost structure, diversified customer base and well-established Yingli Solar brand.

The European market continued to provide the largest demand for PV products and approximately 60-80% of our global sales were made in Europe in 2010. In 2011, we expect to continue to generate about around 60% of our global sales in Europe

In addition to the strengthening our position in 50 European markets, we have also achieved great success in fast growing markets such as Italy, France, Greece, and the UK. In Italy, we have built high-profile customer base including large utility companies such as ACEA and (Edison).

In lieu of strong growth momentum in Italy in 2011, we will further enhance our corporation with these customers to expand our market share. In 2010, we were selected to provide solar modules to a 33 megawatts project currently under construction in France, which we expect to be the largest PV Solar power plants in the country.

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