China's Yingli Green Energy Holding Company Limited (NYSE: YGE) boosted revenues more than 80% in 2Q10 to RMB 2,699.6 million (US$398.1 million).
Earnings totaled $32.1 million, or $0.21 per share, up from a loss of $57.6 million a year ago. Analysts had expected earnings of only $0.19 per share, according to Thomson Reuters I/B/E/S.
However, Yingli's share price is down about 30% for the year, having fallen 3.7% on Thursday to close at $10.77.
Strong demand, particularly in Europe, has been the driving force behind the revenue increase, but with sibsidy cuts looming, solar prices are expected to fall in 2011, which is likely pulling down share prices across the board.
Yingli will further expand its vertical integration in 3Q10, as it ramps up production of its first polysilicon production facility. At that point, Yingli will produce the raw materials for solar wafer, as well as solar wafers, solar cells and solar modules.
The company has big goals for its Yingli Solar brand, as demonstrated by the launch of a global marketing push during the 2010 World Cup this summer. With two new production facilities in the ramp-up stage, the company expects to have a solar module capacity of about 1 gigawatt (GW) by the end of 3Q11.
"On the research and technology front, we have commenced initial production of 300 MW PANDA high efficiency solar cells in July 2010, merely thirteen months from conceptualizing the project. In parallel, we have successfully enhanced PANDA cell conversion efficiency rate to 19% on the pilot line, and have kicked off collaboration with Innovalight to boost the average efficiency of our multicrystalline silicon based solar cells," Yingli's CEO Liansheng Miao said in a release.
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