Yingli Green Energy Reports Third Quarter 2012 Results

            Yingli Green Energy Reports Third Quarter 2012 Results

Company Reaffirms Shipment Guidance for Full Year 2012

PR Newswire

BAODING, China, Nov. 28, 2012

BAODING, China, Nov. 28, 2012 /PRNewswire/ --Yingli Green Energy Holding
Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a
leading solar energy company and one of the world's largest vertically
integrated photovoltaic manufacturers, which markets its products under the
brand "Yingli Solar," today announced its unaudited consolidated financial
results for the quarter ended September 30, 2012.

(Logo:http://www.prnasia.com/sa/2012/04/01/20120401160439160364.jpg )

Third Quarter 2012 Consolidated Financial and Operating Summary

  oTotal net revenues were RMB 2,237.0 million (US$355.9 million).
  oPV module shipment decreased by 16.9% from the second quarter of 2012.
  oGross loss was RMB 507.8 million (US$80.8 million), representing a gross
    margin of negative 22.7%, which was negatively impacted by non-cash
    charges of an inventory provision and a depreciation expense related to
    underutilized capacity in this quarter and partially offset by a reversal
    of the preliminary U.S. countervailing and anti-dumping duties provision
    that was accrued in the first quarter of 2012. Gross margin of PV modules
    excluding these non-cash charges would be 0.3%.
  oOperating loss was RMB 931.5 million (US$148.2 million), representing an
    operating margin of negative 41.6%.
  oNet loss[1] was RMB 959.2 million (US$152.6 million) and loss per ordinary
    share and per American depositary share ("ADS") was RMB 6.13 (US$0.98). On
    an adjusted non-GAAP[2] basis, net loss was RMB 398.3 million (US$63.4
    million) and loss per ordinary share and per ADS was RMB 2.54 (US$0.40).

[1] For convenience purposes, all references to "net loss/income" in this
press release, unless otherwise specified, represent "net loss/income
attributable to Yingli Green Energy" for all periods presented.
[2] All non-GAAP measures exclude, as applicable, share-based compensation,
interest expenses consisting of changes in the fair value of the interest rate
swap and the amortization of the debt discount, the amortization of intangible
assets arising from purchase price allocation in connection with a series of
acquisitions of equity interests in Baoding Tianwei Yingli New Energy
Resources Co., Ltd. ("Tianwei Yingli"), an operating subsidiary of the
Company, inventory provision and valuation allowance for deferred income tax
assets. For further details on non-GAAP measures, please refer to the
reconciliation table and a detailed discussion of the Company's use of
non-GAAP information set forth elsewhere in this press release.

"We are pleased to see that demand in China has grown rapidly starting in the
third quarter as project construction in all segments accelerated.
Consequently, our revenues from China increased from 14% in the second quarter
to 28% of total net revenues in the third quarter. However, the demand
slowdown in Germany due to the feed in tariff cuts at the end of the second
quarter caused our total module shipment in this quarter to decrease by 16.9%
sequentially. Based on current orders and our expectations of the market
development, we are confident to reaffirm the full year shipment guidance of
2.1 to 2.2 GW," commented Mr. Liansheng Miao, Chairman and Chief Executive
Officer of Yingli Green Energy.

"Our industry leadership continues to solidify as we stay committed to
existing markets and expand our footprint across emerging markets. In the
fourth quarter, we continue to see stable demand from Europe and the U.S. and
rising shipments to rapidly growing markets like China. Despite the trade
cases in the U.S. and Europe, we will continue to provide our high quality
products and services to our loyal customers in these markets. With the series
of new incentive programs in place, we believe the China market will embrace a
very promising future. We'll spare no efforts to support our customers and
enhance our leadership position in China. Furthermore, we expect to deliver
more products to new markets such as Southeast Asia in the fourth quarter."

"In addition to expanding market share, we have continued to improve our cost
structure by working strategically with well-established suppliers, adopting
more technology innovations and enhancing production management. By the end of
this year, we expect to bring our non-silicon cost down to below US$0.50 and
polysilicon cost close to industry average level. Although the solar industry
will continue to face challenges, we're confident that we will be able to
emerge stronger as an industry leader." Mr. Miao concluded.

Third Quarter 2012 Financial Results

Total Net Revenues

Total net revenues were RMB 2,237.0 million (US$355.9 million) in the third
quarter of 2012, compared to RMB 3,103.5 million in the second quarter of 2012
and RMB 4,258.6 million in the third quarter of 2011. PV module shipment in
the third quarter of 2012 decreased by 16.9% from the second quarter of 2012.
The sequential decrease in net revenues was mainly due to the decreased
shipment volume of PV modules and the industry-wide decline in the average
selling price of PV modules in the third quarter.

Gross Profit (Loss) and Gross Margin

Gross loss was RMB 507.8 million (US$80.8 million) in the third quarter of
2012, compared to gross profit of RMB 141.5 million in the second quarter of
2012 and RMB 458.5 million in the third quarter of 2011.

Gross margin was negative 22.7% in the third quarter of 2012, compared to
gross margin of 4.6% in the second quarter of 2012 and 10.8% in the third
quarter of 2011.Gross margin in the third quarter of 2012 was negatively
impacted by non-cash charges of an inventory provision and a depreciation
expense related to underutilized capacity that occurred in this quarter. The
negative gross margin was partially offset by a reversal of the preliminary
U.S. countervailing and anti-dumping duties provision accrued in the first
quarter of 2012. Such reversal was made as a result of the final rulings
issued by the United States International Trade Commission on November 7,
2012.

Excluding the impact of these non-cash charges, gross margin of PV modules in
the third quarter of 2012 would be 0.3%.

The sequential decrease in gross margin was also due to the industry-wide
decline in the average selling price of PV modules, which was partially offset
by a decline in the prices of polysilicon and auxiliary materials and our
continuous efforts in reducing processing cost.

Operating Expenses

Operating expenses were RMB 423.8 million (US$67.4 million) in the third
quarter of 2012, a decrease from RMB 468.2 million in the second quarter of
2012 and RMB 464.1 million in the third quarter of 2011. The sequential
decrease in operating expenses was mainly attributable to the Company's
continuous and effective cost control efforts.

Operating expenses as a percentage of total net revenues were 18.9% in the
third quarter of 2012, compared to 15.1% in the second quarter of 2012 and
10.9% in the third quarter of 2011.

Operating Loss and Margin

Operating loss was RMB 931.5 million (US$148.2 million) in the third quarter
of 2012, compared to RMB 326.7 million in the second quarter of 2012 and RMB
5.5 million in the third quarter of 2011.

Operating margin was negative 41.6% in the third quarter of 2012, compared to
negative 10.5% in the second quarter of 2012 and negative 0.1% in the third
quarter of 2011.

Interest Expense

Interest expense was RMB 256.0 million (US$40.7 million) in the third quarter
of 2012, compared to RMB 229.3 million in the second quarter of 2012 and RMB
156.4 million in the third quarter of 2011. The increase in interest expense
was mainly due to, in an effort to accelerate cash collections, increased
expense related to discounted notes receivable. The weighted average interest
rate for the Company's borrowings was 6.33% in the third quarter of 2012,
compared to 6.34% in the second quarter of 2012.

Foreign Currency Exchange Gain (Loss)

Foreign currency exchange gain was RMB 52.1 million (US$8.3 million) in the
third quarter of 2012, compared to foreign currency exchange loss of RMB 183.7
million in the second quarter of 2012 and foreign currency exchange loss of
RMB 153.2 million in the third quarter of 2011. Given that the Company's
Euro-denominated assets and liabilities are in a net asset position, the
foreign currency exchange gain was mainly due to the appreciation of the Euro
against the RMB.

Income Tax Benefit

Income tax benefit was RMB 97.1 million (US$15.4 million) in the third quarter
of 2012, compared to RMB 102.3 million in the second quarter of 2012 and RMB
34.4 million in the third quarter of 2011. The income tax benefit in the third
quarter of 2012 mainly resulted from a deferred tax benefit recognized in
connection with the net loss in the quarter.

Net Loss

Net loss was RMB 959.2 million (US$152.6 million) in the third quarter of
2012, compared to RMB 573.0 million in the second quarter of 2012 and RMB
180.5 million in the third quarter of 2011. Loss per ordinary share and per
ADS was RMB 6.13 (US$0.98), compared to RMB 3.66 in the second quarter of 2012
and RMB 1.14 in the third quarter of 2011.

On an adjusted non-GAAP basis, net loss was RMB 398.3 million (US$63.4
million) in the third quarter of 2012, compared to RMB 551.2 million in the
second quarter of 2012 and net income of RMB 142.7 million in the third
quarter of 2011. Adjusted non-GAAP loss per ordinary share and per ADS was RMB
2.54 (US$0.40) in the third quarter of 2012, compared to RMB 3.52 in the
second quarter of 2012 and adjusted non-GAAP diluted earnings per ordinary
share and per ADS of RMB 0.89 in the third quarter of 2011.

Balance Sheet Analysis

As of September 30, 2012, the Company had RMB 3,720.5 million (US$592.0
million) in cash and restricted cash, compared to RMB 5,606.4 million as of
June 30, 2012.

As of September 30, 2012, accounts receivable were RMB 3,220.5 million
(US$512.4 million), compared to RMB 3,213.0 million as of June 30, 2012. Days
sales outstanding was 130 days in the third quarter of 2012, an increase from
93 days in the second quarter of 2012.

As of September 30, 2012, accounts payable were RMB 3,670.2 million (US$584.0
million), compared to RMB 4,362.5 million as of June 30, 2012. Days payable
outstanding was 120 days in the third quarter of 2012, a decrease from 133
days in the second quarter of 2012.

As of the date of this press release, the Company had approximately RMB
3,683.3 million in unutilized short-term lines of credit and RMB 2,037.0
million committed long-term facility that can be drawn down in the near
future.

Business Outlook for Full Year 2012

Based on current market and operating conditions, estimated production
capacity and forecasted customer demand, the Company reaffirms its PV module
shipment target to be in the estimated range of 2,100 MW to 2,200 MW for
fiscal year 2012, which represents an increase of 30.9% to 37.2% compared to
fiscal year 2011.

Non-GAAP Financial Measures

To supplement the financial measures calculated in accordance with GAAP, this
press release includes certain non-GAAP financial measures of adjusted net
income (loss) and adjusted diluted earnings (loss) per ordinary share and per
ADS, each of which is adjusted to exclude, as applicable, items related to
share-based compensation, interest expense consisting of changes in the fair
value of the interest-rate swap and the amortization of the debt discount, the
amortization of intangible assets arising from purchase price allocation in
connection with a series of acquisitions of equity interests in Tianwei
Yingli, inventory provision and valuation allowance for deferred income tax
assets. The Company believes excluding these items from its non-GAAP financial
measures is useful for its management and investors to assess and analyze the
Company's on-going performance as such items are not directly attributable to
the underlying performance of the Company's business operations and do not
impact its cash earnings. The Company also believes these non-GAAP financial
measures are important to help investors understand the Company's current
financial performance and future prospects and compare business trends among
different reporting periods on a consistent basis. These non-GAAP financial
measures should be considered in addition to financial measures presented in
accordance with GAAP, but should not be considered as a substitute for, or
superior to, financial measures presented in accordance with GAAP. For a
reconciliation of each of these non-GAAP financial measures to the most
directly comparable GAAP financial measure, please see the financial
information included elsewhere in this press release.

Currency Conversion

Solely for the convenience of readers, certain Renminbi amounts have been
translated into U.S. dollar amounts at the rate of RMB 6.2848 to US$1.00, the
noon buying rate in New York for cable transfers of Renminbi per U.S. dollar
as set forth in the H.10 weekly statistical release of the Federal Reserve
Board as of September 30, 2012. No representation is intended to imply that
the Renminbi amounts could have been, or could be, converted, realized or
settled into U.S. dollar amounts at such rate, or at any other rate. The
percentages stated in this press release are calculated based on Renminbi.

Conference Call

Yingli Green Energy will host a conference call and live webcast to discuss
the results at 8:00 AM Eastern Standard Time (EST) on November 28, 2012, which
corresponds to 9:00 PM Beijing/Hong Kong time on the same day.

The dial-in details for the live conference call are as follows:

 -- U.S. Toll Free Number: +1-866-519-4004
 -- International dial-in number: +1-718-354-1231
 -- Passcode: 69505989

A live and archived webcast of the conference call will be available on the
Investors section of Yingli Green Energy's website at www.yinglisolar.com. A
replay will be available shortly after the call on Yingli Green Energy's
website for 90 days.

A replay of the conference call will be available until December 5, 2012 by
dialing:

 -- U.S. Toll Free Number: +1-855-452-5696
 -- International dial-in number: +1-646-254-3697
 -- Passcode: 69505989

About Yingli Green Energy (TBD)

Yingli Green Energy Holding Company Limited (NYSE: YGE), which markets its
products under the brand "Yingli Solar," is a leading solar energy company and
one of the world's largest vertically integrated photovoltaic manufacturers.
Yingli Green Energy's manufacturing covers the entire photovoltaic value
chain, from the production of polysilicon through ingot casting and wafering,
to solar cell production and module assembly. In August 2012, Yingli Green
Energy reached a balanced vertically integrated production capacity of 2,450
MW per year at its production facilities located in Baoding, Haikou, Tianjin
and Hengshui, respectively. Yingli Green Energy distributes its photovoltaic
modules to a wide range of markets, including Germany, Spain, Italy, Greece,
France, South Korea, China and the United States. Headquartered in Baoding,
China, Yingli Green Energy has more than 20 subsidiaries and branch offices
worldwide. Yingli Green Energy is publicly listed on the New York Stock
Exchange (NYSE: YGE). For more information, please visit www.yinglisolar.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements
constitute "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," "target"
and similar statements. 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 statement as a result
of new information, future events or otherwise, except as required under
applicable law.

For further information, please contact:

Qing Miao
Vice President of Corporate Communications
Yingli Green Energy Holding Company Limited
Tel: +86 312 8929787
Email: ir@yinglisolar.com





YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands)


                                                                                                                  December31,2011  September30,2012
                                                                                                                  RMB                RMB          US$
ASSETS
Current assets:
Cash and restricted cash                                                                                          5,613,320          3,720,522    591,987
Accounts receivable, net                                                                                          2,411,886          3,220,480    512,424
Inventories                                                                                                       2,670,919          2,901,918    461,736
Prepayments to suppliers                                                                                          386,939            392,205      62,405
Prepaid expenses and other current assets                                                                         1,655,231          1,768,544    281,400
Total current assets                                                                                              12,738,295         12,003,669   1,909,952
Long-term prepayments to suppliers                                                                                1,322,714          1,275,468    202,945
Property, plant and equipment, net                                                                                12,389,184         13,382,644   2,129,367
Land use rights                                                                                                   523,219            710,685      113,080
Goodwill and intangible assets, net                                                                               110,386            73,846       11,750
Other assets                                                                                                      399,615            606,916      96,569
Total assets                                                                                                      27,483,413         28,053,228   4,463,663
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings, including current portion of long-term debt                                           8,225,076          7,369,588    1,172,605
Convertible notes                                                                                                 139,345            9,577        1,524
Accounts payable                                                                                                  2,977,230          3,670,196    583,980
Other current liabilities and accrued expenses                                                                    1,607,961          1,452,065    231,044
Total current liabilities                                                                                         12,949,612         12,501,426   1,989,153
Long-term debt, excluding current portion                                                                         3,451,899          4,462,909    710,111
Medium-term notes                                                                                                 2,406,391          3,910,485    622,213
Accrued warranty cost, excluding current portion                                                                  425,350            500,132      79,578
Other liabilities                                                                                                 1,196,500          1,295,497    206,132
Total liabilities                                                                                                 20,429,752         22,670,449   3,607,187
Shareholders' equity:
Ordinary shares                                                                                                   12,011             12,239       1,947
Additional paid-in capital                                                                                        6,476,123          6,627,646    1,054,552
Treasury stock                                                                                                    (123,838)          (127,331)    (20,260)
Accumulated other comprehensive income                                                                            138,999            230,190      36,627
Accumulated deficit                                                                                               (1,342,098)        (3,157,486)  (502,401)
Total equity attributable to Yingli Green Energy                                                                  5,161,197          3,585,258    570,465
Noncontrolling interests                                                                                          1,892,464          1,797,521    286,011
Total shareholders' equity                                                                                        7,053,661          5,382,779    856,476
Total liabilities and shareholders' equity                                                                        27,483,413         28,053,228   4,463,663





YINGLI GREEN ENERGY HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Condensed Statements of Comprehensive Income
(In thousands, except for share, ADS, per share and per ADS data)
                                                                       Three months ended
                                                                       September30,2011  June30,2012  September 30, 2012
                                                                       RMB                 RMB            RMB          US$
Netrevenues:
 Sales of PV modules                                                4,201,785           3,031,278      2,164,493    344,401
 Sales of PV systems                                                9,231               13,026         28,814       4,585
 Other revenues                                                     47,560              59,180         43,684       6,951
Total net revenues                                                     4,258,576           3,103,484      2,236,991    355,937
Cost of revenues:
 Cost of PV modules sales                                           (3,713,630)         (2,899,026)    (2,670,396)  (424,898)
 Cost of PV systems sales                                           (7,329)             (9,143)        (21,009)     (3,343)
 Cost of other revenues                                             (79,077)            (53,788)       (53,343)     (8,488)
Total cost of revenues                                                 (3,800,036)         (2,961,957)    (2,744,748)  (436,729)
Gross profit (loss)                                                    458,540             141,527        (507,757)    (80,792)
Selling expenses                                                       (191,926)           (256,227)      (206,647)    (32,880)
General and administrative expenses                                    (186,491)           (165,684)      (163,027)    (25,940)
Research and development expenses                                      (85,635)            (46,317)       (54,096)     (8,607)
Total operating expenses                                               (464,052)           (468,228)      (423,770)    (67,427)
Loss from operations                                                   (5,512)             (326,701)      (931,527)    (148,219)
Other income (expense):
 Interest expense                                                   (156,430)           (229,328)      (256,008)    (40,735)
 Interest income                                                    6,673               18,098         3,445        548
 Foreign currency exchange gains (losses)                           (153,189)           (183,661)      52,128       8,294
 Other income                                                       8,252               10,784         17,453       2,777
Loss before income taxes                                               (300,206)           (710,808)      (1,114,509)  (177,335)
Income tax benefit                                                     34,374              102,338        97,053       15,443
Net loss                                                               (265,832)           (608,470)      (1,017,456)  (161,892)
Less: Loss attributable to the noncontrolling                                                             58,232       9,266
 interests                                                          85,381              35,490
Net loss attributable to Yingli Green Energy                           (180,451)           (572,980)      (959,224)    (152,626)
Weighted average shares and ADSs outstanding
Basic and diluted                                                      158,195,822         156,576,418    156,580,455  156,580,455
Loss per share and per ADS
Basic and diluted                                                      (1.14)              (3.66)         (6.13)       (0.98)
Net loss                                                               (265,832)           (608,470)      (1,017,456)  (161,892)
Other comprehensive income (loss)
Foreign currency exchange translation                                  49,900              52,320         32,702       5,203
 adjustment, net of nil tax
Cash flow hedging derivatives, net of nil tax                         4,661               2,364          (969)        (154)
Comprehensive loss                                                     (211,271)           (553,786)      (985,723)    (156,843)
Less: Comprehensive loss (income) attributable                         83,930              29,546         51,725       8,230
 to the noncontrolling interest
Comprehensive loss attributable to Yingli Green                        (127,341)           (524,240)      (933,998)    (148,613)
 Energy





Reconciliation of Non-GAAP measures to GAAP measures


                                                          Three months ended
                                                          September30,2011  June30,2012   September 30, 2012
                                                          RMB                 RMB             RMB         US$
Non-GAAP income (loss) attributable to                    142,658             (551,177)       (398,337)   (63,381)
 Yingli Green Energy
Share-based compensation                                  (13,481)            (9,524)         (6,858)     (1,091)
Amortizationofintangibleassets  (11,967)            (11,967)        (11,967)    (1,904)
Inventory provision                                       (258,628)           -               (523,203)   (83,249)
Interest expenses consisting of changes in
 fair value of the interest rate swap and the           (10,171)            (312)           (671)       (107)
 amortization of the debt discount
Non-cash valuation allowance for deferred                 (28,862)            -               (18,188)    (2,894)
 income tax assets
Net loss attributable to Yingli Green                     (180,451)           (572,980)       (959,224)   (152,626)
 Energy
Non-GAAP diluted earnings (loss) per share                0.89                (3.52)          (2.54)      (0.40)
 and per ADS
Diluted loss per share and per ADS                        (1.14)              (3.66)          (6.13)      (0.98)



SOURCE Yingli Green Energy Holding Company Limited

Website: http://www.yinglisolar.com