BAODING, China (

TheStreet

) -- There's good news and bad news from

Yingli Green Energy's

(YGE)

second-quarter earnings announcement this morning.

The good news is that the China-based solar manufacturer saw shipments rise sequentially in the quarter on signs that demand for modules is improving. The bad news is that Yingli still reported a second-quarter loss thanks to a series of one-time charges.

And investors sent American depositary shares down 71 cents, or 6.1%, to $11.03 in late afternoon trading.

In a press release, the company reported a net loss of 393.7 million yuan ($57.6 million), or $3.03 yuan per ADS (44 cents). In the year-ago quarter, Yingli, known for making photovoltaic modules, reported net income of 203.9 million yuan, or 1.57 yuan per ADS.

After excluding one-timers, though, Yingli said adjusted net income came to 119.8 million yuan ($17.5 million) or 0.91 yuan (14 cents). Yingli noted that a debt extinguishment loss totaling 244.7 million yuan ($35.8 million) and a loss on derivative liabilities totaling 204.2 million ($29.9 million) impacted final results.

Revenues totaled 1.5 billion yuan ($219.5 million), which was down 25% from the year-earlier quarter, but still up 50% sequentially.

Still, Yingli echoed the results of many solar manufacturers during the season in noting a 72% rise in shipments from the first quarter. CEO Liansheng Miao said better project financing and demand helped the boost, with Germany as a chief driver.

Looking ahead, Yingli maintained its 2009 target for PV module shipments, saying the company should send out between 450 megawatts to 500 megawatts. But the company also slashed its gross margin forecast to between 18% to 20% for the year. It previously said gross margins should land between 23% to 25%.

Around the sector,

Trina Solar

(TSL)

,

LDK Solar

(LDK)

and

ReneSola

(SOL) - Get Report

were losing 2.3%, 0.6% and 4.4%, respectively.

First Solar

(FSLR) - Get Report

were losing $2.70 at $130.42 in the late afternoon.

Suntech Power

(STP)

, meanwhile, was just hanging on to gains ahead of its earnings announcement tomorrow. Suntech was bidding at $16.39, up 7 cents.

-- Reported by Sung Moss in New York

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