October 17, 2008
China's largest wireless carrier also expects to receive an additional estimated 2MWp of PV modules from Suntech.
Tianwei Yingli New Energy Resources, a subsidiary of Baoding, China's Yingli Green Energy (NYSE: YGE), won a bid today to supply photovoltaic modules to the largest mobile phone operator in China.
Tianwei Yingli is expected to deliver approximately 1.5 megawatts of PV modules to China Mobile Communications (HYSE: CHL) from November 2008 to October 2009.
Yingli Green Energy previously signed a contract to supply Germany's S.A.G. Solarstrom with 36.6 MW of PV solar modules.
And in May Yingli agreed to supply 17.35 MW of PV modules to Japan's Eiko Trading.
Considered one of the largest manufacturers of PV products in the world as measured by annual production capacity, Yingli Green Energy has said it will not increase its production capacity next year. The worldwide credit crunch is thought to have influenced the company's decision.
Yingli Green Energy currently has a manufacturing capacity of 600 MW.
The winning bid from Tianwei Yingli represents a third of China Mobile's total recent PV module procurement. Earlier this week Jiangsu-based PV manufacturer Suntech (NYSE: STP) announced it had won a bid for China Mobile's PV system integration and controller procurement project, offering an estimated 2 megawatt-peak output in solar cell modules.
Suntech was China Mobile's largest solar supplier in 2007, providing 1.4 MWp of solar modules to nine provinces. The company acquired California-based EI Solutions earlier this month as part of its plans to triple U.S. sales in 2009.
China Mobile is the largest wireless operator in the world, with more than 260 million subscribers. The company is controlled by China's Ministry of Information Industry.
Showing posts with label Tianwei Yingli. Show all posts
Showing posts with label Tianwei Yingli. Show all posts
Saturday, October 18, 2008
Saturday, September 6, 2008
Yingli Green Energy Subsidiary Signs Five-Year US$50 Million Credit Facility Agreement with DEG and FMO
BAODING, China, Sep 02, 2008 (BUSINESS WIRE) -- Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or the "Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today announced that Baoding Tianwei Yingli New Energy Resources Co., Ltd ("Tianwei Yingli"), the Company's principal operating subsidiary, has entered into a five-year credit facility agreement with DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH ("DEG") and the Netherlands Development Finance Company ("FMO").
Under the agreement, DEG and FMO have agreed to lend Tianwei Yingli up to an aggregate of US$50million to support Tianwei Yingli's capacity expansion, subject to certain conditions. The loans will be guaranteed by Yingli Green Energy and will carry an interest rate of LIBOR plus 3.0%, with outstanding principal payable in eight bi-annual installments from March 2010 to September 2013.
"Climate protection has been an important issue for DEG since the mid-1990s," said Mr. Winfried Polte, Chairman of the Board of Management of DEG. "We are proud to support Yingli Green Energy as a company distinguished by exceptional expertise and a proven track record in the solar energy industry. In addition, Yingli Green Energy's capacity expansion will create thousands of new jobs in China thereby contributing to economic growth in this rapidly developing economy."
"FMO is strongly committed to renewable energy projects," said Mr. Arthur Arnold, Chief Executive Officer of FMO. "Energy is central to economic and social development and essential to fighting poverty in emerging markets. Therefore we are pleased to contribute to the rapid growth of the solar energy market worldwide by financing Yingli Green Energy's expansion of production capacity in China."
"We are pleased to have been selected to receive financing from DEG and FMO, two well-known financial institutions that specialize in providing long term financing to support socially and environmentally friendly companies in developing countries," commented Mr. Zongwei Li, Chief Financial Officer of Yingli Green Energy. "The strong commitment of DEG and FMO to our growth strategy not only strengthens our ability to expand our vertically integrated manufacturing capacity, but also enhances our debt structure by enabling us to shift to longer term indebtedness.
"We believe this financing demonstrates DEG and FMO's confidence in our business strengths and leadership position, as well as recognizes our status as a good corporate citizen. As a leading green energy company, we not only focus on developing our own business to provide returns to our shareholders, but also aim to make lasting contributions to society and the environment through job creation, appropriate working conditions and valuable technical training, as well as adherence to internationally accepted environmental protection standards and research and development efforts to create innovative energy efficient manufacturing processes."
About DEG
DEG, a member of the KfW Bankengruppe (KfW Banking Group), finances investments in companies in developing and transition countries. As one of Europe's largest development finance institutions, it promotes private business structures that contribute to sustainable economic growth and improved living conditions.
About FMO
FMO is the international development bank of the Netherlands and one of the largest bilateral development banks worldwide with an investment portfolio of approximately 3.5 billion. FMO invests risk capital in companies and financial institutions in developing countries with the goal of creating flourishing enterprises that can serve as engines of sustainable growth in their home countries.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by mid-2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, France, China and the United States. For more information, please visit www.yinglisolar.com.
Under the agreement, DEG and FMO have agreed to lend Tianwei Yingli up to an aggregate of US$50million to support Tianwei Yingli's capacity expansion, subject to certain conditions. The loans will be guaranteed by Yingli Green Energy and will carry an interest rate of LIBOR plus 3.0%, with outstanding principal payable in eight bi-annual installments from March 2010 to September 2013.
"Climate protection has been an important issue for DEG since the mid-1990s," said Mr. Winfried Polte, Chairman of the Board of Management of DEG. "We are proud to support Yingli Green Energy as a company distinguished by exceptional expertise and a proven track record in the solar energy industry. In addition, Yingli Green Energy's capacity expansion will create thousands of new jobs in China thereby contributing to economic growth in this rapidly developing economy."
"FMO is strongly committed to renewable energy projects," said Mr. Arthur Arnold, Chief Executive Officer of FMO. "Energy is central to economic and social development and essential to fighting poverty in emerging markets. Therefore we are pleased to contribute to the rapid growth of the solar energy market worldwide by financing Yingli Green Energy's expansion of production capacity in China."
"We are pleased to have been selected to receive financing from DEG and FMO, two well-known financial institutions that specialize in providing long term financing to support socially and environmentally friendly companies in developing countries," commented Mr. Zongwei Li, Chief Financial Officer of Yingli Green Energy. "The strong commitment of DEG and FMO to our growth strategy not only strengthens our ability to expand our vertically integrated manufacturing capacity, but also enhances our debt structure by enabling us to shift to longer term indebtedness.
"We believe this financing demonstrates DEG and FMO's confidence in our business strengths and leadership position, as well as recognizes our status as a good corporate citizen. As a leading green energy company, we not only focus on developing our own business to provide returns to our shareholders, but also aim to make lasting contributions to society and the environment through job creation, appropriate working conditions and valuable technical training, as well as adherence to internationally accepted environmental protection standards and research and development efforts to create innovative energy efficient manufacturing processes."
About DEG
DEG, a member of the KfW Bankengruppe (KfW Banking Group), finances investments in companies in developing and transition countries. As one of Europe's largest development finance institutions, it promotes private business structures that contribute to sustainable economic growth and improved living conditions.
About FMO
FMO is the international development bank of the Netherlands and one of the largest bilateral development banks worldwide with an investment portfolio of approximately 3.5 billion. FMO invests risk capital in companies and financial institutions in developing countries with the goal of creating flourishing enterprises that can serve as engines of sustainable growth in their home countries.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by mid-2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, France, China and the United States. For more information, please visit www.yinglisolar.com.
Friday, October 12, 2007
Yingli Shines Among Solar Energy Stars
October 10, 2007: 08:05 PM EST
Oct. 11, 2007 (Investor's Business Daily delivered by Newstex) --
As solar stocks continue to power ahead, newcomer Yingli Green Energy is casting a long shadow on its rivals.
The Chinese solar company has seen its stock soar more than 150% since its debut in June.
Most other solar shares have also soared, though their gains over the same period have been far less dramatic.Analysts say the company is catching more attention with new supply agreements to ramp up production. It's also got the size and scale to drive profits and attract the best customers.
"I believe this is the best-positioned company in China," said Jesse Pichel, an analyst with Piper Jaffray (NYSE:PJC) who has an outperform rating on the stock. Yingli YGE has been a Piper Jaffray banking client, and the investment bank expects to do more business with the firm.
There's no doubt that the company is in a hot market. The solar industry continues to grow as governments around the world pour money into programs to spur "clean energy." Companies like Yingli are in the photovoltaic segment of the solar industry that helps businesses and homeowners tap the power of the sun via rooftop solar panels.
In the second quarter the company reported sales of $118 million, up more than 150% from the year-ago period. Thomson Financial had no official estimates for the newly traded company's quarter, but Pichel says sales beat views. The company earned 6 cents per share for the quarter, which the company says also topped estimates.
That's drawing more interest from bigger investors to Yingli and other solar stocks, analysts say.
"Part of it has just to do with momentum in the sector," said Adam Hinckley, an analyst with CIBC World Markets. "There's a lot of institutional money that has not really been involved in the sector. There is now capital inflow into the sector." Hinckley has a sector performer rating on the stock, and his firm has a banking relationship with Yingli.
Although Yingli is new to the U.S. stock market, it's one of the oldest Chinese solar companies around, founded in 1998, Pichel says.
Through its subsidiary Baoding Tianwei Yingli New Energy Resources, the company keeps its costs low with a business model that says, in essence, more is better. The company has brought just about every step of the manufacturing process in-house. Analysts note that Trina Solar (NYSE:TSL) TSL is moving toward this vertical model as well.
The only step Yingli excludes during production is the actual manufacturing of silicon, the basic material used to make photovoltaic solar modules.
After Yingli buys the silicon, it makes the basic polysilicon ingot, then the silicon wafers, then the actual photovoltaic fuel cells. From there, it makes the larger modules and finally the complete solar-energy system.
Miao Qing, Yingli's director of investor relations, says the company has all of its manufacturing process at one central site in China. That means there are no extra transportation costs to move products from one site to the next.
Perhaps most importantly, Yingli avoids paying third-party providers.
"Why let your supplier make margin on wafers when you make the wafer?" Piper Jaffray's Pichel asked. "And why let your supplier make the ingot when you can make the ingot?"
The company had gross margins of about 23% in the quarter, easily beating out other solar players such as China Sunergy CSUN, according to Hinckley.
The company has found the right target market. About 80% of the company's sales come from Spain, where solar expansion is on a tear, Pichel says. Government incentives are a big help in expanding megawatt capacity.
"We thought it was going to be 300 megawatts (of solar) in 2008," Pichel said. "Now it looks like it's 500 megawatts."
China itself is opening up with its own set of government incentives, which could be finalized by the end of the year.
To meet demand, Yingli is expanding production with new equipment. The investments should double its 2007 manufacturing capacity by the end of 2008. Analysts say capacity could then rise 50% in 2009.
Pichel says the company's size should help make it an attractive customer for polysilicon makers.
That's important, since polysilicon is in short supply in the industry. Companies that can't get enough polysilicon can't meet their manufacturing targets.
For example, China Sunergy saw its stock slump 19% in one day in July after announcing difficulties in getting enough polysilicon.
CIBC's Hinckley says he had hesitations about the company's ability to meet supply and manufacturing equipment goals when he initiated coverage in July. But in early September he saw signs that the company's prospects were better than he'd first thought -- and the stock began its big surge.
Later in September, Yingli announced a new deal with Wacker Chemie of Germany. Wacker is set to supply Yingli with polysilicon from 2009 to 2011, enabling it to produce more than 80 megawatts' worth of solar modules over the life of the contract.
Oct. 11, 2007 (Investor's Business Daily delivered by Newstex) --
As solar stocks continue to power ahead, newcomer Yingli Green Energy is casting a long shadow on its rivals.
The Chinese solar company has seen its stock soar more than 150% since its debut in June.
Most other solar shares have also soared, though their gains over the same period have been far less dramatic.Analysts say the company is catching more attention with new supply agreements to ramp up production. It's also got the size and scale to drive profits and attract the best customers.
"I believe this is the best-positioned company in China," said Jesse Pichel, an analyst with Piper Jaffray (NYSE:PJC) who has an outperform rating on the stock. Yingli YGE has been a Piper Jaffray banking client, and the investment bank expects to do more business with the firm.
There's no doubt that the company is in a hot market. The solar industry continues to grow as governments around the world pour money into programs to spur "clean energy." Companies like Yingli are in the photovoltaic segment of the solar industry that helps businesses and homeowners tap the power of the sun via rooftop solar panels.
In the second quarter the company reported sales of $118 million, up more than 150% from the year-ago period. Thomson Financial had no official estimates for the newly traded company's quarter, but Pichel says sales beat views. The company earned 6 cents per share for the quarter, which the company says also topped estimates.
That's drawing more interest from bigger investors to Yingli and other solar stocks, analysts say.
"Part of it has just to do with momentum in the sector," said Adam Hinckley, an analyst with CIBC World Markets. "There's a lot of institutional money that has not really been involved in the sector. There is now capital inflow into the sector." Hinckley has a sector performer rating on the stock, and his firm has a banking relationship with Yingli.
Although Yingli is new to the U.S. stock market, it's one of the oldest Chinese solar companies around, founded in 1998, Pichel says.
Through its subsidiary Baoding Tianwei Yingli New Energy Resources, the company keeps its costs low with a business model that says, in essence, more is better. The company has brought just about every step of the manufacturing process in-house. Analysts note that Trina Solar (NYSE:TSL) TSL is moving toward this vertical model as well.
The only step Yingli excludes during production is the actual manufacturing of silicon, the basic material used to make photovoltaic solar modules.
After Yingli buys the silicon, it makes the basic polysilicon ingot, then the silicon wafers, then the actual photovoltaic fuel cells. From there, it makes the larger modules and finally the complete solar-energy system.
Miao Qing, Yingli's director of investor relations, says the company has all of its manufacturing process at one central site in China. That means there are no extra transportation costs to move products from one site to the next.
Perhaps most importantly, Yingli avoids paying third-party providers.
"Why let your supplier make margin on wafers when you make the wafer?" Piper Jaffray's Pichel asked. "And why let your supplier make the ingot when you can make the ingot?"
The company had gross margins of about 23% in the quarter, easily beating out other solar players such as China Sunergy CSUN, according to Hinckley.
The company has found the right target market. About 80% of the company's sales come from Spain, where solar expansion is on a tear, Pichel says. Government incentives are a big help in expanding megawatt capacity.
"We thought it was going to be 300 megawatts (of solar) in 2008," Pichel said. "Now it looks like it's 500 megawatts."
China itself is opening up with its own set of government incentives, which could be finalized by the end of the year.
To meet demand, Yingli is expanding production with new equipment. The investments should double its 2007 manufacturing capacity by the end of 2008. Analysts say capacity could then rise 50% in 2009.
Pichel says the company's size should help make it an attractive customer for polysilicon makers.
That's important, since polysilicon is in short supply in the industry. Companies that can't get enough polysilicon can't meet their manufacturing targets.
For example, China Sunergy saw its stock slump 19% in one day in July after announcing difficulties in getting enough polysilicon.
CIBC's Hinckley says he had hesitations about the company's ability to meet supply and manufacturing equipment goals when he initiated coverage in July. But in early September he saw signs that the company's prospects were better than he'd first thought -- and the stock began its big surge.
Later in September, Yingli announced a new deal with Wacker Chemie of Germany. Wacker is set to supply Yingli with polysilicon from 2009 to 2011, enabling it to produce more than 80 megawatts' worth of solar modules over the life of the contract.
Saturday, September 29, 2007
Yingli Green Energy Contributes Additional Capital to Its Joint Venture
BAODING, China--(BUSINESS WIRE)--Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading vertically integrated photovoltaic ("PV") product manufacturer in China, today announced that it further amended the joint venture contract (the "Amendment") with Baoding Tianwei Baobian Electric Co., Ltd. ("Tianwei Baobian") under which Yingli Green Energy will contribute additional capital of RMB1,750,840,000 billion (equivalent of US$236.6 million at the exchange rate of RMB7.40 to US$1.00, as previously agreed upon by the Company and Tianwei Baobian) to its principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd. ("Tianwei Yingli").
As a result of the Amendment and Ying Green Energy's additional capital contribution upon approval of the relevant PRC governmental authorities:
1. The registered capital of Tianwei Yingli will increase from RMB1,624,380,000 to RMB3,375,220,000;
2. Yingli Green Energy's equity interest in Tianwei Yingli will increase from 70.11% to 74.01%; and
3. The equity interest of Tianwei Baobian in Tianwei Yingli will correspondingly decrease from 29.89% to 25.99%.
As an intermediary step in anticipation of this additional capital contribution, the Company had advanced part of the proceeds it received from its initial public offering completed in June 2007, in an aggregate amount of US$230.0 million, into Tianwei Yingli in the form of shareholder loans, which will be converted into part of the additional capital contribution contemplated under the Amendment as described above. The balance of the additional capital contribution will be made by the Company within 60 days of approval by the relevant PRC governmental authorities.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited ("Yingli Green Energy") is one of the leading vertically integrated photovoltaic ("PV") product manufacturers in China. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in China. Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in China to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 megawatts by 2010. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, China and the United States.
As a result of the Amendment and Ying Green Energy's additional capital contribution upon approval of the relevant PRC governmental authorities:
1. The registered capital of Tianwei Yingli will increase from RMB1,624,380,000 to RMB3,375,220,000;
2. Yingli Green Energy's equity interest in Tianwei Yingli will increase from 70.11% to 74.01%; and
3. The equity interest of Tianwei Baobian in Tianwei Yingli will correspondingly decrease from 29.89% to 25.99%.
As an intermediary step in anticipation of this additional capital contribution, the Company had advanced part of the proceeds it received from its initial public offering completed in June 2007, in an aggregate amount of US$230.0 million, into Tianwei Yingli in the form of shareholder loans, which will be converted into part of the additional capital contribution contemplated under the Amendment as described above. The balance of the additional capital contribution will be made by the Company within 60 days of approval by the relevant PRC governmental authorities.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited ("Yingli Green Energy") is one of the leading vertically integrated photovoltaic ("PV") product manufacturers in China. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in China. Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in China to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 megawatts by 2010. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, China and the United States.
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