[odyd 1,340]

ZURICH, Switzerland and BAODING, China, Oct. 22, 2012 /PRNewswire-FirstCall/ -- 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 ("PV") manufacturers, which markets its products under the brand "Yingli Solar</person>", today successfully completed its Fifth Annual Customer Conference at the Home of FIFA, the Company's partner in developing a greener world through the passion of football, in Zurich, Switzerland. Yingli Green Energy was the first Chinese and the first renewable energy company in history to sponsor the FIFA World Cup™ in 2010 and 2014. Approximately 200 customers, partners and representatives from renowned international research institutes have joined the event in Zurich, the Swiss city located in the heart of Europe. The conference was opened by a welcome speech from Mr. Joseph S. Blatter</person>, President of FIFA, who attended the conference together with Mr. Thierry Weil</person>, FIFA Director of Marketing. Keynote speeches from Yingli Green Energy's Senior Vice President, Mr. Zhiheng Zhao</person>, Executive Director and Chief Financial Officer, Mr. Bryan Li</person> and Chief Strategy Officer, Mr. Yiyu Wang</person> followed. "We are honored that Yingli was able to host such an important event at the Home of FIFA. Yingli Solar</person> is a leader in the renewable industry and we are proud that Yingli is part of our family. Yingli did not only bring forth the knowledge of renewable energy to FIFA, but also to the world of football. Football is the largest and most popular sport in the world. Together with our passion for football and responsibility towards the environment, we are able to create a better and more sustainable future", said Mr. Joseph S. Blatter</person>, President of FIFA. "The solar industry is now at a critical turning point which will determine its long-term prosperity. We as a leading solar player are very well positioned to weather the headwinds. Our success demonstrates the attractiveness of our value proposition, brand reputation, strong partnerships and highly motivated employees. This year, we have become the global leader as measured by module shipment volume and we are confident to maintain this upward trend," said Mr. Zhiheng Zhao</person>, Senior Vice President of Yingli Green Energy. "Regardless of the current disruptions and building on the trust we have established with our long-term customers and partners, Yingli Green Energy has always proven to be able to come out as a winner in a highly competitive market. We are very proud to say that there is now more than 4.5 GW of Yingli Solar</person> modules installed worldwide in 38 countries. We remain confident to be able to continuously differentiate ourselves and be the supplier of choice to our committed partners," said Mr. Yiyu Wang</person>, Chief Strategy Officer of Yingli Green Energy. "We successfully navigated the policy uncertainty here in Europe and are working closely together with our customers on strategies to tackle new markets even beyond public incentives. It goes without saying that the anti-dumping and anti-subsidy complaint filed at the EU commission in July and September this year has cast a shadow on the European solar industry. However, we retain our optimism that Europe will remain a significant market for Yingli Green Energy, given the rapid reduction in the cost of solar deployment, electricity price inflation and the 2020 climate targets," said Darren Thompson</person>, Managing Director of Yingli Green Energy International AG.

[odyd 1,340]

Yingli is the third company after Trina and Renesola in 24 hours to release a note about Singapore http://en.prnasia.com/pr/2012/10/24/US201210CN9908211.shtml It seems a lot of the activities is foreseen for those regions.

[odyd 1,340]

They are talking about 17% drop from 15% in Q2, so I am happy surprised it was not worse. But I am not getting this, would those reversal of duties have an positive impact not a negative one? "In addition, according to the final rulings by the United States International Trade Commission regarding the import of Chinese PV cells and modules to the U.S., the Company expects to reverse the preliminary countervailing and anti-dumping duties provision recognized in the first quarter of 2012. As a result, the Company expects its gross margin in the third quarter of 2012 to be in the range of negative 22% to 24%. Excluding the impact of the non-cash charges and the reversal of duties provision mentioned above, the Company expects its gross margin of PV modules in the third quarter of 2012 to be in the range of 0% to 1%." http://ir.yinglisolar.com/phoenix.zhtml?c=213018&p=irol-newsArticle&ID=1759633&highlight=

[explo 648]

But I am not getting this, would those reversal of duties have an positive impact not a negative one?

They have a positve gm impact, not excluding those the non-gaap gm would be even higher. This means that the negative effect from inventory provision and under utililzation total more than 20% negative gm effect. I think it is the first time one of these companies exclude the under utilization cost.

[explo 648]

With 0% gm with most non cash effects excluded it is clear that they've sold products just a few cents above their cash cost.

[odyd 1,340]

Their poly costs are horrendous and their inventory must be the most expensive. I think they were under 50% for wafers and cells for whole quarter, and perhaps good part of the module was down too. I would hope their write off on the inventory plus selling only from it could give them half inventory numbers, or am I too naive?

[explo 648]

Their poly costs are horrendous and their inventory must be the most expensive. I think they were under 50% for wafers and cells for whole quarter, and perhaps good part of the module was down too. I would hope their write off on the inventory plus selling only from it could give them half inventory numbers, or am I too naive?

FG inventory is bad for anyone shipping less than expected, of course worsened by input cost moving slower than market (like YGE poly cost). Underutilization is extra bad for those with a lot of fixed assets on their balance sheets. YGE is one of those trappex by having paid more for its production assets than can be recovered with low ASPs. At underutilization this unreoverability becomes highlighted. Just as STP's Q2 warning a while ago (still not reported) YGE's warning means the quarterly net loss to be reported could be close to 200m.

[explo 648]

You're right that underutilization cost taken this quarter reduces inventory provision cost next quarter, by not building too much inventory. This can be done when you expect low demand and thus low need to keep inventory to meet customer commitments.

[odyd 1,340]

They are mostly non-cash losses, however.

[explo 648]

Yes loss derived from provision and depreciation cost reflect loss on cash spent when raw material was bought and goods was produced and when equipment was bought relative to cash they can get for/from it now when goods are sold. They still burned the share holder capital, they just recognize it now although the cash was spent quarters ago. The loss related to the 110m in opex and interest cost is cash cost and affects current cash balance.