Li Zongwei: PV industry will come out of winter in 2013

Since the beginning of last December, the price of photovoltaic modules has been on a steady upward trend, marking a positive shift for the solar industry. This rise has not only boosted the performance of some PV companies in the fourth quarter but also brought renewed optimism to the sector, which had struggled through a prolonged downturn. During the global launch of the World Wildlife Fund's Carbon Reduction Pioneer Project on January 29, Li Zongwei, Executive Director and CFO of Yingli Green Energy Holdings Co., Ltd., shared his insights. He stated that based on current trends, the photovoltaic industry is expected to emerge from its "winter" in 2013. Li explained that since December 2012, PV module prices have stabilized, partly due to a more balanced supply and demand situation. Although there are still surpluses, they have significantly decreased. Additionally, the Chinese market has shown strong growth, with downstream demand increasing rapidly. While he expects some correction in 2013, the overall trend is for a 5% to 10% increase in module prices compared to 2012. According to a research report by Cinda Securities, the price of photovoltaic products has continued to rise, with module prices seeing their first increase since the second half of 2011. PVInsights data shows that the average price of PV-grade polysilicon wafers rose by 0.19%, while polycrystalline silicon wafers increased by 1.36%. Solar cells and wafers saw weekly price increases of 1.47% and 0.46%, respectively. Silicon wafers and batteries also experienced gains, with increases exceeding 1% in some cases. This price movement has positively impacted Yingli’s financial results. The company’s fourth-quarter performance improved compared to the third quarter, with reduced losses. However, the third-quarter financial report still showed significant challenges: revenue reached 2.237 billion yuan (US$355.9 million), which was above expectations, but it represented a 27.9% drop from the previous quarter and a 47.46% year-over-year decline. The net loss for the quarter reached 959 million yuan ($152.6 million). Despite the ongoing challenges, Li Zongwei noted that rising module prices are being offset by declining costs, which have widened the profit margin. As a result, the gross profit rate has seen a significant improvement. He believes the entire photovoltaic industry will experience a recovery in 2013, though it won’t return to the levels seen in 2009. Through consolidation and efficiency improvements, the industry is gradually becoming stronger and more resilient.

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