Yingli posts bigger-than-expected loss, strong yuan weighs

(Adds details, background, shares)

March 25 (Reuters) - Chinese solar panel maker Yingli Green Energy Holding Co Ltd reported a bigger-than-expected quarterly loss, reflecting a drop in selling prices and the yuan's strength against the yen and euro.

The company, whose shares were down 6 percent in premarket trading on Wednesday, said its gross margin fell to 16.8 percent in the fourth quarter ended Dec.31, from 20.9 percent in the third quarter.

Japan and Europe are among the biggest markets for Yingli's products, most of which are made in China, while panel prices have been falling due to oversupply in the market.

Yingli has increased its reliance on the Chinese market, which now accounts for about a third of annual sales, after the United States and the European Union slapped stiff anti-dumping duties on solar products made in the country.

Yingli said it expected to ship 3.6-3.9 gigawatts (GW) of solar products in 2015, compared with 3.36 GW last year.

The company, which has not posted a profit in more than three years, said fourth-quarter shipments rose 4 percent compared with the third quarter to 939.2 megawatts (MW).

The net loss attributable to Yingli narrowed to $88.7 million, or 49 cents per American depositary share, from $128.2 million, or 82 cents per ADS, a year earlier.

On an adjusted basis, the company lost 49 cents per ADS, far higher than analysts' average estimate of 13 cents, according to Thomson Reuters I/B/E/S.

Revenue fell 9.4 percent to $555.5 million, missing the average analyst estimate of $591.8 million.

Up to Tuesday's close of $2.34, the company's shares had fallen almost 50 percent in the last 12 months.

(Reporting by Anannya Pramanick in Bengaluru; Editing by Simon Jennings and Ted Kerr)