Polaris solar PV net news: market economy, ever-changing at a tremendous pace, challenging in all industries. Companies maintain peak condition is tantamount to Arabian nights, but this time there is no shortage of winners. In the PV industry’s “winning” list, JA Solar in this great enterprise, you cannot ignore them.
Since its inception in 2005 so far, ja has gone through nine years and never seems to shine in the center of the stage, but steady wins the race. It strategy are not radical, but by no means slow, know when to advance, and will be “fast, accurate, stable” trend captured Hill.
For nearly two years, the entire photovoltaic industry struggling to struggle. When the vast majority of enterprises are still in hot water when the ja has to get out of the mess back into profit in the fourth quarter of last year on track. Although subject to seasonal slowdown, but ja revenue in the first quarter of this year, gross margin and operating income year and the chain were to achieve growth and still maintain profitability. It is worth pointing out, ja in Japan market has been achieved significant PV module shipments in 2013, the enterprise only Japan market had more than 400 MW, ranked top in the module manufacturer, China. In February exports Japan top three components of China enterprises respectively, ja solar, Trina solar, ja shipments in excess of 65 megawatts on top. It is well known that Japan customers on product quality and brand requirements more stringent, in the Japan market opened up a place undoubtedly ja excellence self are not unrelated.
In addition, the following project components and batteries forming, JA Solar’s power plant business development wind. It is learnt that the ja on line this year is expected to reach 200 MW, flagging available (including grid-connected projects) has exceeded the total of 400 megawatts. “Looking forward to 2014, both the sustainability of recovery still ja consolidating an industry leader, we are optimistic. We’ve seen Latin America and emerging markets like the Middle East to bloom the immense business opportunities in these emerging markets and raw materials projects and plans. In addition, we also will adopt a strategy to expand market share in China. With the State-owned public enterprise-level projects breaks industry ground-breaking, ja 2014 we expect second-half earnings will be even stronger. “Ja Mr Jin baofang, Chief Executive pointed out in the first quarter of 2014.
Technically, the ja had been seeking a breakthrough. This year, Japan International Solar PV Exhibition in Tokyo, the company introduced the industry’s highest power solar module products: Percium Riecium poly and monocrystalline module, respectively, than the industry average of 60 cells monocrystalline modules and polycrystalline modules up to 20 Watts and 15 watts, this is by far the highest in its class on the market power of the components. On June 20, ja announces official Hirohide efficient battery mass production, mass production battery average conversion efficiency of 20.4%, in the industry’s first to achieve mass production conversion efficiency of p-type cells than 20%. The company claimed that with high conversion efficiency, high reliability is the general trend of the development of the industry, ja product advantages. High conversion efficiency to reduce cost per watt of power station systems and system-side has a higher price at the plant.
Thus, ja somewhere along the way, it looks like low-key conservative, but the shot never relent – no shots had, Yan started four shots. Coinciding with the 2014 World PV industry Investment Summit, reporters on JA’s “winning ways” interviewed guest speaker – Mr JA Solar’s Chief Strategy Officer, Cao m.
JA Solar’s Chief Strategy Officer, Cao m
Reporter: PV manufacturers claimed that their overall success factors can be summed up in two points: + cost-cutting efficiency. JA has smoothly from a difficult patch, walk in front of the industry. Being a ja, Chief Strategy Officer, strategic management of development will turn to ja?
Cao m: ja has been committed to controlling costs, I dare not say ja cost of either the first or the most advanced, but it is located in the first echelon of the industry, is an advanced class. However, our ultimate goal that new energy is more and more widely used. Our solar products are ultimately used to produce electricity, whether distributed or ground station, or, in fact, is a power plant, power plant talk about generating benefits for maximum benefit. Is a one-time initial installation cost, measured by system generating benefits in the end. Power station long-term stability operations, power generation, reduced maintenance cost, failure rate, which is a combination of revenue. Today, industry insiders pay more attention to the topic. We are not one-sided pursuit of reduction in unit costs, but pay more attention to the whole system of the cash flow generated from its regular power and reward–this is ja had been looking for.
In addition, ja will assess the situation and make adjustments for different markets. Previously, we specialize in the battery business, followed by transfer to the component, spent two years in the difficult time of adjustment of the industry, playing a beautiful “transformational battle.” Today, our components, but batteries do, after all, in a leading position in the industry, but shipments of components is much higher than the battery.
Overall, the ja do so selectively vertical industry chain. In particular, is based on the battery step by step to expand into downstream. This year, ja also made many efforts in power station construction, will be seeing results.
In addition, we are more concerned about new markets, such as Japan. Although compared to the senior component companies such as Suntech and ja entered the field of components later in the time, but our achievement is worthy of praise. The first quarter of 2014, ja sold in Japan market component shipments account for half of export shipments. Also, we are positively the layout in other emerging markets, I believe that after a long period of time and cultivation, the outcome will emerge.
There is an important point, JA’s financial performance has been very strong. We have been controlling the balance sheet, debt ratio is always maintained at around 60%. Then, we need to ensure enough cash to keep the business expansion and operations. We will not be rushing, absolute will to act according to the degree we can receive funds. We will not power plant sector is hot, declaring that a certain scale of how much you want to do, then don’t even know money–it’s not ja style.
For many years, ja has maintained a steady pace, the thick product sends thinly.
Reporter: in response to the overseas “double reverse” Chinese PV companies plan to set up factories overseas. Last year, many industry insiders the first PV companies (such as Trina, renesola and Yingli) were taken in OEM production strategies, and ja is 100% automation, 100% since birth. Will talk about ja considerations in this regard?
Cao m: the contract should be set depending on the region. If you are Foundry site is still “double reverse” area will also be affected. As far as we know, at present, in the areas outside China’s Mainland and Taiwan OEM, it was hard. In addition, China has accounted for a larger share in the world now.
JA we basically don’t do OEM. From a quality standpoint, we insist on 100% own manufacturing. And so, we can grasp the product quality itself. Were originally hand-line, are now fully automated. At first, people think automatic bad fragments, but when implementation of the truly stabilize quality can be controlled at once, and higher efficiency, and costs decreased. Although a late ja entered the field of components, but it has the advantage, a high degree of Automation does not transition from manual. We own the factory and laboratories TUV Bayern, ETL satellite laboratory qualifications, production process, quality and plant quarantine inspection through third parties such as PI-Berlin and Solar-IF, and PID decay resistance testing and quality management system and product quality assurance.
Reporter: today the distributed power plants remained challenging, such as financing the single, most coming from bank loans and financing system isn’t complete. In addition, China’s credit mechanism, and PV electricity price subsidies have not timely, smart grid assistive technology is not mature, roofs with limited resources and other factors will also have an impact on the development of photovoltaic power station. What do you think of China’s development of distributed PV? JA strategic geometry in that area?
Cao m: frankly, distributed characteristics suitable for photovoltaic solar energy. The so-called photovoltaic was the sun shines, anywhere easy installation. Distributed using the roof without taking up extra floor can also eliminate – very good.
However, in terms of policy implementation are inadequate. For example, electricity who collected, how to collect it. If roof owners and project owners are not the same person, how to cooperate? In the industry in a period of adjustment of integration of individual enterprises are likely to 3-5 had died down, and a power plant needs at least 25 years, after whom tariff?
However, as management becomes aware of problems in the practical application, timely introduction of policies, I think the problem will gradually be resolved.
In this regard, having more success in Europe, especially Germany. We can also learn from each other, a lot of experience. As long as the Government was determined to solve the distributed application to be optimistic in the future.
In the current under such a situation, ja is also actively exploring. If the person is the owner, we just carry out the EPC, this turnkey job; if we are the landlord, on risk and return matches should, taking into account as far as possible, the excellent, control risks as much as possible. Of course, any business has risks, but under the current circumstances, we will not act rashly, but still can do a certain amount.
Journalist: apart from the traditional sales model, a growing number of PV enterprises choose to set up shop on the Internet or set up their own e-commerce platform to sell products. However, PV product online e-commerce channel continues to face many challenges. JA see photovoltaic electricity supplier?
Cao m: promotion of businesses do this pretty well. But at this stage the actual run, suspected of slightly premature. Of course, this thing is worthy of recognition, and needs someone to try it, and trial and error experience, and maturity.
At present, the ja does not get involved, but will keep an eye on, and timely intervention. If the time is ripe, ja will do it.
We believe that the PV industry is worth fighting for his lifelong career, not out overnight, heavy and steady, at every step. We will force at the right time, not only the time is ripe, also ensures walking sound.
Cao m Description:
Cao m August 2011 up served as Crystal o solar holding limited chief financial officer; he has ten years financial institutions operations management experience, 2006 up began into solar industry; January 2008 to August 2011 any Crystal Dragon industrial group limited Deputy General Manager, and Shanghai Crystal long investment limited (Crystal Dragon industrial group in Shanghai full funding established of professional engaged in equity and industrial investment of company) General Manager, is responsible for group capital operation, and investment and the major project argument, ; 2006 to 2007, any Jiangsu Solarfun new energy limited Deputy President, is responsible for financing and the capital operation, private financing, on December 20, 2006 United States NASDAQ public listed; had in over domestic well-known of securities company investment banking Department served as executives, 2004 to 2005 between any peace securities investment banking career Department market development department General Manager; 2001 was business management master (MBA) degree; 1983 was Shanghai Engineering Technology University Enterprise Professional Bachelor degree.
Original title: JA Solar Cao m: ebb steadily winning