China-based solar equipment manufacturers Yingli
Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE) and JA Solar Holdings Co., Ltd.
(ADR)(NASDAQ:JASO), who are facing charges from the United States and Europe of
dumping cheap products in their markets, cut their shipment outlook for the
year.
Yingli has said that it expects to ship 2100 MW to
2200 MW against its previous guidance of 2400 MW. JA Solar on the other hand had earlier
forecast photovoltaic shipments of 1800 MW to 2000 MW. This has now been cut
down to 1500 MW to 1800 MW. According to JA Solar
Chief Executive Officer Peng Fang, “The downward pressure on pricing continued.
In light of this, we focused on sustaining a healthy balance sheet and building
our footprint in key growth markets.”
Yingli, headquartered in Baoding,
suffered a loss of 573 million yuan against a net profit of 375.6 million yuan
in the corresponding quarter of last year.
JA Solar which is headquartered in Shanghai has doubled its net loss
from 228.9 million yuan in the second quarter last year to 457.8 million yuan
this year.
Since early last year, the sharp decline
in prices of solar cells and panels has been eroding manufacturer margins. Chinese solar companies are supposed to have
aggravated the situation by flooding the market with cheap solar
equipment. The United States retaliated
by imposing 31% tariffs on Chinese solar panels including those manufactured by
Yingli and JA Solar. Europe may soon
follow suit. JA Solar’s shares have
fallen by 20% this year, while the Yingli scrip has lost 50%.
Shares of JASO are down 7.77% to
$0.987 and YGE slumped 3.60% to $1.88.
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