Chuantou energy, tianwei baobian polysilicon “dying” before the dawn

Polaris solar PV net news: polycrystalline silicon industry in China under the background of slow recovery, the first thousand metric tons of polysilicon production enterprises-Leshan, Sichuan xinguang silicon technology limited liability company (hereinafter referred to as xinguang silicon), but now he is facing bankruptcy and liquidation of embarrassment.

Recently, the company’s two major shareholders chuantou energy, tianwei baobian respectively, said in a statement, has received notice of Leshan city, Sichuan province of the people’s Intermediate Court, the Academy application under chuantou energy GmbH, decides to accept xinguang Silicon case of bankruptcy and liquidation.

Public information display, xinguang Silicon was the first company to launch thousands of metric tons of polysilicon business, was China’s polysilicon market gainers. Their registered capital amounted to 362 million Yuan, mainly produce and sell polycrystalline silicon, monocrystalline silicon and monocrystalline silicon slicing, high purity metals and other related products.

Chuantou energy, tianwei baobian has high hopes the two major shareholders of xinguang Silicon from 2011 into troughs of PV industry begins long “cutoff modification” total loss is as high as 1.15 billion dollars in almost three years, and at the end of last year, xinguang Silicon assets amounted to 623 million dollars. To get rid of polysilicon burden, last November chuantou energy has announced plans to jointly tongwei group to restructure it. But now xinguang Silicon filed for bankruptcy, display previous restructuring efforts, or has failed.

3 loss of 1.15 billion

On September 6, the xinguang Silicon chuantou energy of the largest shareholder said in a statement, from joint venture company Sichuan xinguang silicon technology limited liability company is unable to pay the debts, and official capacity as creditor of the Corporation on August 25, apply to the Leshan intermediate people’s Court of Sichuan province xinguang Silicon liquidation of shares 33.14%.

According to the announcement on September 4, and chuantou energy officially received the Leshan intermediate people’s Court of the civil order book, received xinguang Silicon forwarded simultaneously to the notification of Leshan city intermediate people’s Court, Leshan intermediate people’s Court on September 3 to accept chuantou energy xinguang Silicon filed for bankruptcy liquidation.

Public information, xinguang Silicon was founded in October 2000, is the first to have tons of polysilicon production enterprises, and has several manufacturing core technology team and top experts, while companies or domestic polysilicon industry technology standard-setter. Currently, chuantou energy, tianwei baobian separately holds xinguang Silicon 33.14% and 30.38% shares.

Xinguang Silicon reportedly was established in October 2000, its 1260 tons/year of polycrystalline silicon project was the construction of the national development and Reform Commission approved in 2001 ‘s first high-tech model industrialization projects and estimates a total investment of about 1.29 billion yuan. In February 2007, put to trial a one-time success. On the set up time, and it can indeed claim to be China’s polysilicon industry “exists”.

Xinguang Silicon since its establishment under the Sichuan provincial investment Group LLC, 2007 chuantou energy at the cost of nearly 420 million Yuan scored xinguang Silicon 38.9% equity, cash payments 371 million Yuan, to jiangyou coal-fired 12.605% the equity price to pay 48.8245 million Yuan. According to the media, and xinguang Silicon initial total assets reaching nearly 2 billion yuan and net assets of more than 1 billion yuan.

Acquisition was completed in the first year, despite the impact of the financial crisis, causing xinguang Silicon product sales in the fourth quarter sales dropped sharply, but xinguang Silicon in 2008 and still made a net profit of 807 million Yuan, and chuantou energy brings to 314 million dollars of income.

Did not last long however, and chuantou energy 2009 annual report, xinguang Silicon profit that year had declined by 89.67%, this has also led to the chuantou energy’s net profit fell by more than 50%. By 2010 xinguang Silicon’s business situation continues to deteriorate, which has only 1.7388 million yuan in net profit.

In the context of 2011 polysilicon prices, xinguang Silicon chose production technical, since the company has fallen into the deficit trap. According to 2011 net profit-37.5273 million, 2012 loss widened to 410 million Yuan last year, losses increased to 709 million Yuan. Total loss of 1.15 billion dollars in almost three years, and ending on December 31, 2013, xinguang Silicon 622 million Yuan total assets total liabilities of 634 million dollars, owners ‘ equity-11.26 million Yuan.

Some analysts have pointed out to reporters, polysilicon belongs to the threshold for high-tech industries, high investment, even for reconstruction, but also less likely to get out of the red, technology, after all, is limited, and the equipment is updated. In terms of energy consumption, if enterprises do more than 2000~3000 tons, and can be recycled, not only can increase economies of scale, high energy consumption and problems can be improved.

Previously, chuantou energy xinguang silicon production technical has been attributed to “the slowdown of the world economy, the European debt crisis continues to deepen and expand, further reductions in PV subsidies in developed countries of Europe, multiple factors such as banks restricted credit, market, xinguang Silicon technological stagnation”.

The analyst said years before 2008 as polysilicon prices skyrocketed, stimulated by the development of domestic polysilicon industry is very fast, but in contrast, Leshan polysilicon production enterprises are scattered into durability is worse, with Leshan electricity price is high, has no competitive advantage, Leshan polysilicon manufacturers are therefore more than the other.

Reorganization run aground?

Chuantou energy Dong bi Gong Yuan once said in an interview prior to the media “in order to activate the new silicon, has made a lot of effort, but all did not go through. If you really want to save, need financial, technical and other support. Is difficult to reach agreement between the shareholders, shareholders can’t think of a better way, and don’t want to be put on, which is why xinguang Silicon drag even bankruptcy today. “

Xinguang Silicon since discontinued in 2011 after severe lack of funding, has been unable to maintain the normal production and operation activities, relying mainly on major shareholders chuantou energy loans to survive.

Chuantou energy nearly three years annual report shows that ended March 8 chuantou energy has accumulated to xinguang Silicon offers 340 million Yuan loan, maturing loans totaled 65 million Yuan, including December 2013 to return 40 million dollars and overdue loans amounting to 25 million dollars. By the end of 2013, xinguang Silicon’s assets totaled 623 million Yuan, total liabilities of 634 million Yuan, is insolvent.

To get rid of polysilicon burden, and chuantou energy had planned to introduce tongwei group Sichuan xinguang silicon industry restructuring. On November 6 last year, and chuantou energy bulletin, the Sichuan investment group of controlling shareholders of the company with the tongwei group signed a strategic cooperation framework agreement tongwei group voted for Sichuan xinguang Silicon 38.9% owned by energy industry restructuring.

Furthermore chuantou energy Web site message display on January 7 this year, and chuantou energy General Manager Zhao Desheng with the Leshan City Government team to negotiate before xinguang Silicon restructuring, xinguang Silicon General Manager Chen Changjiang, Deputy General Manager Xie Hongxian chuantou energy, standing Vice President of tongwei group a surname jen is also involved in the talks.

Earlier, news that Yeong-tongwei group shares becomes the most likely to offer. This year, however, May 24, and chuantou energy announced the official launch of the new light Silicon of the insolvency proceedings. However, with the Leshan intermediate people’s Court accepted xinguang Silicon liquidation procedure has officially started. Restructuring means that the interested parties have to face not only xinguang Silicon massive debt problems, follow-up technical inputs will also be “bottomless pit”. The Sichuan xinguang silicon industry, investment and energy announced the bankruptcy, display previous restructuring efforts, or has failed.

For restructuring failed assertion, a potential restructuring of tongwei group Yongxiang, Sichuan company limited official had previously publicly denied, “the two sides remained in contact, try to find a best solution and create maximum value for all parties. In the process of further initiatives, Yeong-shares of Sichuan xinguang silicon industry restructuring from the market mechanism must be taken into account, including past debt and other related conditions. For Yeong shares, and not a burden. Meanwhile, as chuantou energy, nor any impairment of State-owned assets. ”

It is understood that enterprise filed for bankruptcy to be reviewed by the acceptance of bankruptcy, insolvency, bankruptcy announcement and call a meeting of creditors in several aspects. After the people’s Court has accepted a bankruptcy petition before bankruptcy is declared, the review found that the debtor does not comply with the conditions of bankruptcy, decide to reject the application. At present, the xinguang Silicon’s bankruptcy is still at an early stage, in front of the Court did not make a final decision, there is great uncertainty in corporate bankruptcy.

It should be noted that is the year polysilicon industry has started to recover, major domestic polysilicon production enterprises operating rate rose significantly.

China Nonferrous metals industry association data showed that domestic polysilicon prices averaged 161,000 yuan per ton in the first half, up 23%. However, since domestic polysilicon production equipment, technology update, no advantage to their production costs, this requires companies to conduct technological transformation, but technical innovation also means huge capital investment, and any new disk access is involved in future to Sichuan xinguang silicon industry restructuring is still unknown. China Nonferrous metals industry association data showed that domestic polysilicon prices averaged 161,000 yuan per ton in the first half, up 23%. However, since domestic polysilicon production equipment, technology update, no advantage to their production costs, this requires companies to conduct technological transformation, but technical innovation also means huge capital investment, and any new disk access is involved in future to Sichuan xinguang silicon industry restructuring is still unknown.

However, chuantou energy Executive told Xinhua in a telephone interview, said, “everything is subject to the company’s announcement, should be disclosed and undisclosed information does not currently exist. ”

Original title: chuantou energy, tianwei baobian polysilicon “dying” before the dawn

Posted in News.