Solar technology giant Yingli has this week laid claim to the title of world’s largest solar PV manufacturer, after reporting that its output for 2012 narrowly beat expectations.

The China-based company reported that module shipments for the last quarter of the year hit a record high, meaning that total shipments for 2012 exceeded 2.2GW, outstripping the company’s stated estimate of 2.1GW.

The performance represents an increase in shipments of over a third on 2011 and means the company should outstrip its closest rival, Suntech, which recently issued guidance for 2012 of 1.7-1.8GW.

“Despite the tremendous challenges to the global PV industry, we’re extremely inspired to have continuously expanded our market share throughout 2012 not only in the existing markets but also a number of emerging markets,” said Liansheng Miao, chairman and chief executive of Yingli Green Energy, in a statement.

“According to public data to date, we believe that Yingli has evolved into the world’s largest PV module supplier.”

The increase in shipments has been largely driven by a drastic reduction in the cost of solar PV modules. However, Yingli’s performance will also be seen as a vindication of the company’s decision to fund a high profile marketing and advertising campaign, which has seen it emerge as one of the world’s most well-known solar manufacturers.

But despite the strong performance, Yingli and other leading solar manufacturers continue to face financial challenges as a result of the sharp drop in solar panel prices, which has seen the cost of the technology halve in recent years.

The company’s most recent results for the third quarter of last year revealed operating losses for the three months of $148m on revenues of just under $356m.