BAODING, China, April 29, 2016 /PRNewswire/ -- Yingli Green
Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy"
or the "Company"), one of the world's leading solar panel
manufacturers, known as "Yingli solar," today announced that it has
filed with the Securities and Exchange Commission a Form 12b-25
(the "Form 12b-25") to extend by fifteen days the due date for
filing its annual report on Form 20-F for the fiscal year ended
December 31, 2015 (the "2015 Form
20-F") and disclosed preliminary, unaudited financial results for
full year 2015.
The Company is unable to file the 2015 Form 20-F on or before
the prescribed due date of May 2,
2016 without unreasonable effort or expense, because the
Company needs more time to prepare and review its consolidated
financial statements as of and for the year ended December 31, 2015 and notes thereto, to finalize
the assessment of its internal control over financial reporting and
to finalize its other disclosures, including those related to the
Company's liquidity, as further discussed below. The Company's
management expects that the 2015 Form 20-F will be filed on or
before May 16, 2016.
The Company disclosed in the Form 12b-25 that, while the
Company has not yet finalized its consolidated financial statements
as of and for the year ended December 31,
2015 to be included in the 2015 Form 20-F nor the other
disclosures required therein, the Company anticipates the following
significant changes in results of operations from the last fiscal
year will be reflected in the consolidated financial statements to
be included in the 2015 Form 20-F.
The Company estimates that its net loss in 2015 was in the range
of RMB 5.8 billion to RMB 5.9
billion, increased from net loss of RMB 1.3 billion in 2014. The expected increase of
net loss in 2015 was primarily resulted from the following
significant changes:
- The decrease of net revenues. The Company
estimates that its total net revenues in 2015 was in the range of
RMB10.0 billion to RMB10.2 billion,
decreased from net revenue of RMB 12.9
billion in 2014. The expected decrease in total net revenues
year-over-year was primarily due to the decrease of PV module
shipments (excluding PV module shipments to the Company's own
downstream PV projects in China)
from 3,101MW in 2014 to 2,357 MW in 2015 as a result of the lower
utilization rate of the Company's production capacity in certain
quarters of 2015 due to tight cash flow as well as the decline of
selling price of PV modules around the world, especially in
China.
- The decrease of gross profit. The Company
estimates that gross profit in 2015 was in the range of
RMB 1.1 billion to RMB 1.2 billion,
decreased from RMB 2.2 billion which
was mainly due to the lower utilization rate of the Company's
production capacity and the decrease of revenue as discussed
above.
- Impairment of long-lived assets. Due to
lower-than-expected utilization of certain production facilities,
the Company did an impairment analysis on its long-lived assets in
2015 and expects to record an impairment loss of approximately
RMB 3.8 billion for property, plant
and equipment with respect to the production facilities based on
the difference between carrying value and fair value of such
long-lived assets.
- Provision for inventory purchase commitments under
long-term polysilicon supply contracts. In 2015, the
Company expects to record provisions of approximately RMB 522.8 million for the prepayments to certain
suppliers under the Company's long-term polysilicon supply
contracts as a result of the reassessment of the purchase
commitments under those supply contracts. No such provision was
made in 2014.
- The increase of income tax expense. The Company
expects to recognize income tax expense of approximately
RMB 731.2 million in 2015, compared
to income tax expense of RMB 89.7
million in 2014. The expected increase of income tax expense
year-over-year was mainly due to assessment on recovery of deferred
income tax assets which resulted in an additional valuation
allowance of deferred income tax assets in 2015.
The increase of net loss in 2015 is expected to be partially
offset by the following significant change:
- Gain on disposal of land use rights. In 2015,
Fine Silicon, one of the Company's subsidiaries in China, disposed its land use rights and the
Company expects to recognize a disposal gain of approximately
RMB 1.2 billion.
The Company is also in the process of finalizing its assessment
of control deficiencies identified which could be material weakness
related to the lack of sufficient accounting and financial
reporting personnel with adequate US GAAP knowledge.
In addition, the Company expects to disclose in the 2015 Form
20-F that there is substantial doubt as to its ability to continue
as a going concern. In particular, Tianwei Yingli, a major
subsidiary of the Company, repaid only approximately 70% of
the RMB denominated unsecured five-year medium-term notes of
RMB 1.0 billion (the "2010 MTNs")
when they became due on October 13,
2015, and has RMB denominated unsecured five-year
medium-term notes of RMB 1.4 billion
(the "2011 MTNs") due on May 12,
2016. As disclosed in the Company's press release dated
April 6, 2016, Tianwei Yingli
informed holders of the 2011 MTNs that it would be very difficult
for Tianwei Yingli to repay the 2011 MTNs on the due date and
Tianwei Yingli proposed to extend the repayment date by two to
three years; and holders of the 2010 MTNs demanded Tianwei Yingli
to repay the remaining portion of the 2010 MTNs in full together
with accrued interests before May 12,
2016. Tianwei Yingli is still in the process of actively
discussing with the holders of the 2011 MTNs and the 2010 MTNs
about potential extension of the repayment dates of both MTNs and
the Company's alternative financing plans for repayment of both
MTNs, such as 1) introduction of strategic investors to invest into
the Company and the Company's subsidiaries, 2) introduction of new
creditors to grant new borrowings to the Company or the Company's
subsidiaries, and 3) sales of certain long-lived assets including
land use rights to obtain additional funds. The Company also
expects to disclose such alternative financing plans to improve the
Company's liquidity and financial position in the 2015 Form
20-F.
All of the above anticipated changes, including preliminary,
unaudited financial results for full year 2015, are based on the
Company's management's preliminary review of the results of
operations for full year 2015 and remain subject to change based on
the management's ongoing review and assessment before filing of the
2015 Form 20-F.
About Yingli Solar
Yingli Green Energy Holding Company Limited (NYSE: YGE),
known as "Yingli Solar" or "Yingli",
is one of the world's leading solar panel
manufacturers. Yingli's manufacturing covers the
photovoltaic value chain from ingot casting and wafering through
solar cell production and solar panel assembly. Headquartered in
Baoding, China, Yingli has more than 30 regional
subsidiaries and branch offices and has distributed more than 14 GW
solar panels to customers worldwide. For more information, please
visit www.yinglisolar.com and join the conversation
on Facebook, Twitter and Weibo.
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.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results to differ materially from
those contained in any such 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:
Jean Tian
Investor Relations Director
Yingli Green Energy Holding Company Limited
Tel: +86 312 8929787
Email: ir@yingli.com
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SOURCE Yingli Green Energy Holding Company Limited