As China-based players weaken, First Solar could strengthen its position in this region.
Yingli Green Energy Holding Co and Trina Solar are both dominant players in China. Trina anticipates favorable product development growth for PVs in China. The company also signed a land use agreement that would support Trina's large-scale, multi-phase utility-scale project in Eastern China. Trina is also increasing head count in China.
Yingli Green Energy reported shipment growth to China increased by 74% over the previous quarter. The region represented 28% of total revenue, up from 14% in the previous quarter.
Still, Yingli and Trina both experienced a serious deterioration in its gross margins. Trina's gross margin was 0.8% last quarter. Yingli reported gross margins of negative 5.9%.