Polaris solar PV net news: listed for 3 years, to raise 3 times, financing amounted to nearly 400 million dollars. Using these funds, Hai Duong made it through in the PV industry downturn, and established companies turn to solar thermal power generation by photovoltaic power generation base.
Company Chairman Xue Liming said in an exclusive interview with Xinhua recently, Hai Duong has been hoping for investors to create a good mechanism for withdrawal or transfer of shares, the company has started to prepare the relevant material, bid to become the first new sanban companies to take market transfers. After the bidding rules for the transfer of clear, the company will also actively consider bidding transfers. On the new tier system innovation, actively involved in pioneering in Haiyang, the company is considering issuing preferred shares and corporate bonds [-0.03%], to raise funds in the future will be mainly devoted to companies focus more on solar thermal power generation sector.
Three rounds of increases to raise 400 million Yuan
Reporter: Haiyang in what kinds of cases listed in the new tier?
Xue Liming: since the company register in 2005, spend most of their time deep in the industry, when businesses don’t understand financial or financial talent, can think of only one financing option was to borrow from the Bank.
In 2010, by chance, have been flying in the new sanban boss introduced me to a new tier, said tone can make understanding of capital markets, corporate governance is more standardized, Zhongguancun [-2.32% funds research report] also has a dedicated support fund. In this case, we fly through the find the SW and then start listing program.
Reporter: since companies list on the new Board, a total of 3 rounds will be increased, total financing amount by nearly 400 million Yuan. 2010 first round PE31 times increase in the first half, second half of 2010, a second round of financing PE is as high as 57 times, how can I do such a high PE?
Xue Liming: the first round was to get higher PE, firstly, because 2010 PV is in glorious times, industry environment is very good. Secondly, at Haiyang in large photovoltaic power plant construction on the ground went ahead, in 2008 the company project of Yunnan stone forest, has completed its investigation, design and construction of the whole programme, is the first of 10 megawatts of photovoltaic power station as a whole, these are seen in the eyes of investors.
A second round of financing PE high, is when the company is gradually expanding, and gradually release performance. More important is, when articulated 212 million yuan in raised funds to get more attention of solar thermal power generation sector. Through this funding, Haiyang needs in the development of funds not only solves the problem, but also allow companies to be more familiar to investors.
Reporter: I note that recently increased PE drop to about 27 times, decline in PE is associated with transfer Board expectations?
Xue Liming: the first two rounds of financing PE is high, in addition to outside investors have high expectations of the photovoltaic industry as a whole at that time, another important reason was that investors had expected transfer Board. Under the influence of entire photovoltaic industry downturn, decline in 2012 the company interim report financial data is very large, we have withdrawn IPO applications. Taking into account the third round will increase the finance company’s stock from 47.5 million shares in the first round of financing to expand to 180 million shares, corporate transparency and higher multiples contrasting frames of more and therefore lower PE is normal.
Striving to become one of the first market-making company
Reporter: in the three rounds of increases during company to look for potential investors?
Xue Liming: hosted first round investors are mostly brokers recommended by Shen Wan, the latter two are mostly investors who turn to you. Haiyang will increase in the participation of investors in the prospects for more of the corporate identity of private-equity firms or individuals.
Reporter: in addition to Board, the company is also considered other exit for investors? Whether the future will consider transfer market or auction?
Xue Liming: and that seemed to best exit mechanism is indeed turning Board. In 2013, the entire industry at your disposal, how many investors exit did have a disagreement, but ban’s upcoming, new market after transfer and bidding system, these investors are exiting Outlook was uncertain.
From system selection, we definitely want to exit or transfer to investors and create a better mechanism to fulfill the liquidity needs of investors. At present, the company has begun to prepare the relevant material, bid to become the first new sanban companies to take market transfers, there are currently many brokerages hope to do for us, but taking into account the cost of communication, we are currently further exchange of securities can be three or four. After the bidding rules for the transfer of clear, the company will also actively consider bidding transfers. In this process, turn Board rules issued in the future, we will consider further follow-up action. On the new tier system innovation, Hai Duong has always been willing to participate and pioneering, the company is also considering issuing preferred shares and corporate bonds, to raise funds in the future will be mainly devoted to the company focus more on solar thermal power generation field.
Shift to light and heat transfer
Reporter: you mentioned that future financing will be mainly directed to areas of light and heat, in the company’s future plans, light and heat will not go beyond solar, becoming the company’s main business direction?
Xue Liming: Yes. In the photovoltaic field, Haiyang in addition to EPC part of industrial chain in the back-end ranking, but in other areas did not have too many advantages. Despite the current photovoltaic business contribution to the company’s main revenue is still the largest, but the company’s future growth, to be located in a more creative, more areas of core competence, a more and more professional market segment, Haiyang, solar-thermal power generation with the elements mentioned above.
The next few years, solar-thermal power generation account for an increasing proportion of the company’s main revenue, the company will gradually realize the strategic transformation of photovoltaic solar-thermal power generation. Solar thermal power generation business model, also developed by PV + sale of dumbbell-shaped pattern towards research and development + sales + manufacturing of models. Haiyang inputs for solar-thermal power, will not qualify to trough a technology roadmap. For now, company’s second round of funding into solar thermal power generation sector is completely correct, Chengdu base so that the company already has a solar-thermal power generation capacity to manufacture of main equipment and solar-thermal power plant EPC, if the money were invested in the PV, so businesses may not even remain difficult.
I think the future solar-power industry, large power plants, should be dominated by solar-thermal power generation, photovoltaic power generation by distributed primarily. The technical advantages of solar-thermal power, you can combine well with conventional fossil fuels. 10-20 years in the future, solar-thermal power generation in coal, conventional oil and gas and combined application of unconventional oil and gas exploration, transportation, market capacity will be very great. Domestic lighting resources in one or two areas of coal, oil, capacity optimization of energy saving will be able to create a multi-billion-dollar solar thermal market.
However, in recent years, photovoltaic power generation, absolute market share is surely greater than the light and heat, so we won’t give up on photovoltaic business, photovoltaic business in the future will exist as a division of the group.
Reporter: kW solar-thermal power generation of the future unit cost, unit cost and price to make a forecast.
Xue Liming: I expected this year district heat fixed electricity price is unlikely, the most likely first introduced a number of solar-thermal power generation demonstration projects, according to the project situation, approval of each project electricity price until after the construction and operation of these projects mature, further launch solar-thermal power generation benchmark price.
In accordance with the present rate of progress, I expect that after 5 years, solar-thermal power generation units less about 50% kilowatt should cost more now, electricity costs and price should be less than or equal to the same period cost per kilowatt of photovoltaic power generation and electricity price.
Xue Liming, Chairman of Hai Duong company expected after 5 kW solar-thermal power unit cost should be less about 50% now, electricity costs and price should be less than or equal to the same period cost per kilowatt of photovoltaic power generation and electricity price.
Original title: transition to a solar-thermal power generation strategy