Decreased module shipments, among other reasons, have brought down the total annual 2015 revenue for Yingli Green Energy Holding Company Limited (YGE). The Chinese company has delayed filing its annual report for 2015 on Form 20-F from the expected date of May 2, 2016 as it ‘needs more time to prepare and review its consolidated financial statement’. It admitted that it may disclose ‘substantial doubt as to its ability to continue as a going concern’ in Form 20-F.

Shipments and revenues down over 20%, net loss worsens by about 350%

In the preliminary, unaudited financial results for 2015, Yingli shared on April 29, 2016, its estimated net loss is in the range of 5.8 to 5.9 billion RMB  ($895.6 to 911.0 million), increasing around 350% from a loss of 1.3 billion ($200.7 million) RMB in 2014. While revenue is expected to be in the range of 10 to 10.2 billion RMB  ($1.54 to $1.57 billion) owing to decreased shipments to third parties as well as falling prices of PV modules in the global market. Revenue is down 21% from 12.9 billion RMB  ($1.99 billion) in 2014. Shipments came down 24% from 3,101 MW in 2014 to 2,357 MW in 2015.

Underutilized production capacity and lower revenue led to gross profit coming down to 1.1 to 1.2 billion RMB ($169.8 to $185.2 million), dropping 45% from 2.2 billion RMB ($339.7 million) the previous year. Due to these reasons, the company expects to record impairment losses of around 3.8 billion RMB  ($586 million) for its long lived assets.

Yingli hopes to partially offset its net loss with 1.2 billion RMB  ($185.2 million) that it expects to gain on disposal of land use rights by its subsidiary Fine Silicon.

The Chinese module manufacturer is being supported by state-owned banks in China that are looking for every possible way to save the company from decline. In February this year, there were reports of State Development Bank led consortium giving 2 billion RMB ($308.8 million) to the company (see 2 billion RMB loan For Yingli). Before that, in January 2016, China Cinda Asset Management Co. was said to be planning to help Yingli sell its non-performing assets.

Nonetheless, Yingli’s problems seem to be multiplying. It already has a multiple billion-dollar loan to pay off. On top of it, one of its subsidiaries, Tianwei Yingli, was unable to pay off its due payment of 1 billion RMB ($154.4 million) five-year medium term notes in October last year, and it already has to pay 1.4 billion RMB ($216.1 million) on May 12, 2016. The subsidiary is apparently discussing the issue with its lenders. The alternative financing plans will be shared by Yingli in the annual report.