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Yingli says shipments up in 2Q

The Associated Press

Chinese solar company Yingli Green Energy Holding Co. said Friday that it narrowed its second-quarter loss as stronger demand led to increased shipments.

Yingli, like other solar companies, has struggled with a steep drop in solar-panel prices that stemmed from a glut on the market.

However, companies and investors have recently grown more optimistic about a potential recovery following several industry changes.

The Chinese government announced ambitious plans in July to expand solar-power capacity in the country, which could help ease the glut of products on the market. It also said that it plans to help profitable solar companies with loans and encourage overseas investment, while also supporting restructuring efforts that will encourage industry consolidation.

That announcement comes on the heels of China and the European Union settling a long-running trade dispute that had threatened to escalate into a trade war.

Yingli reported a net loss of 320.8 million yuan ($52.3 million), or 33 cents per American depositary share, for the quarter that ended June 30. That is compared with a net loss of 573 million yuan last year.

Its revenue increased 9 percent to 3.38 billion yuan ($550.4 million) for the quarter on increased shipments and a slightly higher selling price.

Yingli's total shipments increased by 23.6 percent, which it attributed to improved demand from China and the U.S. tied to traditional peak seasons and increased construction of utility projects. It said that revenue from Europe was better than expected.

The increased demand, along with lower manufacturing costs, help boost its gross margin to 11.8 percent from 4.1 percent in the first quarter.

Yingli said that it expects its shipments for the full fiscal year will be 39.4 percent to 43.7 percent higher than in 2012.

The company's U.S.-traded shares gained 4 cents to $4.24 in afternoon dealings. They remain at the upper end of their 52-week trading range of $1.25 to $4.83.