New energy “bleeders” constantly tianwei group first-half losses of nearly 900 million

Polaris solar PV net news: due to new energy sector and “bleeding” more than Baoding tianwei Group Ltd (hereafter “the group”), another sharp loss of 890 million yuan in the first half of this year, company to profitability measures in the short term is weak.

On August 25, the group released semi-annual report shows, 2014 1 June, the company reported revenue of 2.7 billion yuan, 4.009 billion yuan in the same period of last year; about-890 million yuan in net profit,-1.408 billion yuan in the same period last year.

Tianwei group was formerly established in 1958, the Baoding transformer plant in 1995, as a company under a restructuring of State-owned limited liability company. In January 2008 transferred to the China ordnance equipment Group Corporation (hereinafter “group of soldiers loaded”), which became a wholly owned subsidiary. At the end of March 2014, 2.109 billion yuan of registered capital of the company by SASAC for actual control of the company. Company mainly engaged in production of power transmission and distribution products such as transformers, transformers and sales, while operating in the field of new energy photovoltaic and wind turbine industries.

The first half, the group operating loss of 505 million dollars, however such a big loss, mainly from the new energy industry. Tianwei group said, as the company’s new energy industry market decline, excess production capacity, product prices, and the situation is not significantly better revenue cost upside down is serious, polysilicon manufacturers to stop production of the company in addition to holding or share other than holding other new energy enterprises have reduced production, limiting the production of a variety of control measures, strengthen risk controls.

In fact, tianwei new energy industry’s loss was caused by blind investments. In PV and wind power and other industries of the much-ballyhooed three years from 2008 to 2012, tianwei group has launched 21 new energy fixed-asset investment projects, but one of the 20 projects without going through the Board of Directors statutory procedures, with a value of 15.2 billion yuan.

Had participated in the Group of photovoltaic projects in Sichuan province said one person, 2006 photovoltaic industry after a fire, is developing rapidly, polysilicon prices are high, even a windfall, tianwei thinks this one is good, so in Chengdu and throws a lot of money building Solar polysilicon plant in Leshan, but on projects of decision is not in line with market rules, select, process, out of the market is not surprising.

Group of soldiers from the National Audit Office installed in 2012-part of the financial audit findings related to tianwei, tianwei new energy investment that year quite arbitrary: from 2010 to 2012, the group without approval from the national development and Reform Commission, arbitrarily raised its investment plans, offshore renewable energy investment project implemented by design flaws and other reasons was forced to shut down, bankruptcy and liquidation. Until the end of 2012, the Group has 3 Ultra plans to invest 285 million yuan of investment projects, and does not report to the competent authorities for approval; 11 without a loaded Group approval to start construction of the project, involving investment of 2.485 billion yuan.

Tianwei group did not anticipate the new energy industry will be drastically changed. “The company’s early leadership in such a large project is made serious mistakes on the estimate, measure, there is no thought of polycrystalline silicon in several years, dropped to a completely unable to survive, the fundamental problem still haven’t picked the right out in the most technical route. “These people.

Compared with the new energy sector, the company’s transmission and distribution plates are better. Tianwei group said first half of 2014, the company’s power transmission industry to market demand-oriented, optimizing the allocation of resources, strengthening scientific and technological innovation ability, steadily enhance the core competitiveness of enterprises by optimizing product mix, reducing cost and increasing efficiency, our transformers products gross profit margin rose, transmission and distribution industry profits to remain profitable in the first half, and achieve an increase.

However, the provision for impairment of assets the company still increased significantly. Tianwei group said that based on the principle of prudence, the company in accordance with the relevant provisions of the accounting standards for business enterprises, the relevant provision for impairment of assets within the scope of consolidated financial statements preparation 501 million Yuan. In addition, changes in fair value gains and losses, earnings in the first half of tianwei group amounts to 30.42 million Yuan, mainly for the transfer of equity returns on investments; 81.68 million dollars in net operating income of the company, in which the Government subsidizes 86.63 million Yuan.

Noteworthy is that as the Group continued years of losses, leading to asset-liability rate of 97%, have a serious impact on the company’s financial position. However, the companies through bank financing channels have been blocked, and now is suffering from a number of financial institutions to recover debts so that the assets have been frozen, the company now only trust by high costs to borrow.

Next how to deal with the loss, the group said, crisis will strengthen the new energy industry off the hook at the same time, focus on effective resource tianwei transmission industry through market consolidation and capacity, increased investment in science and technology, management and innovation, deepen measures such as budget management, to improve the company’s market share of core competitiveness, industrial management, industrial efficiency and so on.

Original title: new energy “bleeders” constantly tianwei group first-half losses of nearly 900 million

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