Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) has reported more than anticipated quarterly losses. These losses have mirrored the decrease in prices for the Chinese solar panel making company as well as poor performance of the Yuan against the euro and the yen.
The company’s shares were down by 6% before the beginning of trade on Wednesday. Yingli’s gross margins fell from 20.9% in the third quarter of 2014 to 16.8% in the fourth quarter. The company’s prices are reported to be dropping due to supply exceeding demand in Japan and Europe. This is resulting into increased difficulty for the company to sell, thus leading to accumulated losses.
With harsh anti-dumping policies being imposed by the United States, Yingli has resulted to increased dependency on the Chinese market which takes up only a third of the company’s annual sales. The company has not made any profits for the past three years though it is expecting to ship out about 3.6-3.9 3.36gigawatts this year, as opposed to 3.36 gigawatts.
The net loss attributable to Yingli tapered from $128.2 million to $88.7 million. Yingli’s shares had tumbled almost 50 percent in the last year on record at Tuesday’s close of $2.34.
The company’s continued loss reflects the slap down by economic hurdles. The company’s management is currently working on coming up with news strategies to bandage the bruised performance. Considerations increase sales in more regions. With speculation for improvement of economic conditions, the company is hoping to rise from its slump. The universal outburst against carbon emissions is pushing towards green energy; Yingli has prospects or a better future.
Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) also stand a chance to benefit from investors and joined ventures due to the growing demand for green energy. Modern housing is also including solar power as a source of energy. Rising electricity and fuel costs are forcing government to promote the pursuit of alternative sources of energy. This is good news to the company as it aims to capitalize on such ventures.