Yingli Green Energy Holding Co. (YGE) recovered from a prior-year loss in the second quarter caused by derivatives impacts and debt-extinguishment losses as the Chinese solar-products maker saw demand rebound sharply.

The results beat analysts' expectations and its American depositary shares were up 3% in light premarket trading at $11.59. They were down 29% this year through Wednesday.

The solar industry continues to rebound from weak demand last year, with many companies reporting stronger results in the latest quarter. The sector is likely to benefit from major projects planned by China , as well as rising demand in the U.S. and abroad as falling prices and clean-energy requirements generate greater interest. A number of companies have been expanding production capacity as a result.

Yingli reported a profit of CNY217.8 million ($32.1 million), or CNY1.41 ($0.21) an American depositary share, compared with a prior-year loss of CNY393.7 million, or CNY3.03 an ADS. Excluding items such as debt-extinguishment and derivative impacts, earnings rose to CNY1.69 ($0.25) from CNY0.91.

Revenue surged 80% to CNY2.7 billion ($398.1 million) after a prior-year drop of 25%.

Analysts polled by Thomson Reuters most recently forecast earnings of 19 cents on revenue of $371 million.

Currency conversions are based on prices as of June 30.

Gross margin jumped to 33.5% from 19.8% on the revenue surge. Yingli Green boosted its target for the year by one percentage point as it reiterated its shipment target.

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