Yingli Green posts loss, sees demand recovery

Solar power component manufacturer Yingli Green Energy Holdings announced a $57.6 million loss in the second quarter, down from a US$29.8 million profit the year before, but said demand for its products is already recovering, the Wall Street Journal reported. Chief Executive Officer Miao Lianshen said shipments have increased due to project financing and increased demand from Germany in particular. The second quarter loss was driven by derivative liabilities and debt extinguishment, Miao said. He added that he believes the first quarter of 2009 was the lowest point for the solar power industry. Yingli Green affirmed its forecast that it will ship 450 to 500 megawatts of solar power capacity in 2009. The firm will be supported by Chinese and US policy incentives for solar power, but industrial overcapacity will remain a challenge.