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Call Start: 08:03

Call End: 09:01

Yingli Green Energy Holding Company Ltd. (YGE)

Q1 2012 Earnings Results Conference

May 30, 2012 08:00 am ET


Miao Liansheng - Chairman & CEO

Zongwei (Bryan) Li - Executive Director & CFO

Darren Thompson - Managing Director, Yingli Green Energy, Europe

Robert Petrina - Managing Director, Yingli Green Energy Americas

Zhuo Arthur Chen - Director, Legal Affairs

Yiyu Wang - Chief Strategy Officer

Miao Qing - Director, Investor Relations


Susie Min - Deutsche Bank

Satya Kumar - Credit Suisse

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Hello, ladies and gentlemen, this is Susan. I will be the operator for this conference call. I would like to welcome everyone to Yingli Green Energy Holding Company Limited First Quarter 2012 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After today’s presentation, there will be a question-and-answer session. Please follow the instructions given at that time if you’d like to ask a question.

Now I’d like to transfer the call to the host for today’s call, Arthur Chen, Director of Legal Affairs of Yingli Green Energy. Arthur please proceed.

Arthur Chen

Thank you, operator and thank you everyone for joining us today for Yingli’s first quarter 2012 financial results conference call. The first quarter 2012 earnings release was issued earlier today and available on the Company’s website at We have already provided a supplemental presentation for today’s earnings call, which can also be found on our IR website. I hope you all had a chance to review it by now.

On the call today from Yingli Green Energy are Mr. Miao Liansheng, Chairman and Chief Executive Officer; Mr. Bryan Li, Executive Director and Chief Financial Officer; Mr. Wang Yiyu, Chief Strategy Officer; Ms. Miao Qing, Director of Investor Relations; Mr. Darren Thompson, Managing Director of Yingli Green Energy, Europe; Mr. Robert Petrina, Managing Director of Yingli Green Energy Americas.

The call today will feature a presentation from Mr. Miao, covering business and operational developments. Mr. Thompson and Mr. Petrina will talk about the developments of the European and American markets respectively. 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 the audience.

Before beginning, Yingli Green Energy’s management team would like to remind the 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 terminologies such as will, expect, anticipate, 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 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'd now like to return the call over to Mr. Miao Liansheng. Please begin.

Miao Liansheng

Hello, everyone. Thank you for joining us today. In the first quarter as we stayed committed to existing market and expanded further its new and emerging market, our PV module shipments reached a new historical high, with a increase of 44.4% over the previous quarter.

During the first quarter, module price had continuously driving down by a series of negative factors, such as excessive module supply, subsidy adjustment in Europe and AD/CVD investigations in U.S. Despite of continuously downgrade – downward module price, we maintained overall gross margin at 7.8% by leveraging our notable cost reduction efforts in premium brand.

We experienced exceptionally strong demand in Germany and in the U.S. in the first quarter. These two countries accounted for approximately 80% of our total revenues. Our remarkable sales performance was partially benefited from our R&D and after sales service center in Madrid, Spain, which has enabled us to provide customers with more efficient and comprehensive services.

China market after the installation rush in the second half of 2011, entered an adjustment period. In earlier 2012, majority utility companies were mainly busy with connecting their completed projects to grid and planning for new projects. In recent two months we have actively involved in the bidding for mainly ground mounted projects. We expect that China – we expected the demand in China market to surge in second and third quarter as the constructions of utility scale will gradually begin in Western China.

Earlier this month the China government announced a total of 1,709 megawatts Golden Sun Program for 2012, while the number was only 689 megawatts in 2011. In addition, we expect promising demand from the public and family use-sector, especially independent off-grid systems in remote area may be also encouraged by the Chinese government.

We will fully utilize our domestic sales and service networks to bid for the projects and target to provide more customers with Yingli modules. We expect approximately 30% of our revenue to come from Chinese customers this year, by leveraging our solid customer relations and pioneer position in China.

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