Polaris solar PV net news: the beginning of the year, fame due to sponsor the World Cup, China Solar giant Yingli thrown with five consecutive years of losses and reorganization of the olive branch, and Baoding tianwei PV manufacturing subsidiary will start insolvency proceedings of the Tribunal. And Suntech, sinovideo outcome is different, hareon once bear the pressure of public opinion is expected to profit. Integration of photovoltaic manufacturing depth, it is industry mergers and acquisitions continue some kind of epitome improve industry concentration.
Industry analysts believe that starting in 2012 China PV companies meet Europe and double reverse, which includes solar, Yingli performance pressure on enterprises.
In order to reverse this situation, many companies started moving into solar power plant construction and raw materials, due to the photovoltaic power plant needs more funding, can only be achieved by way of loan industry expansion, like excessive expansion eventually led to the company’s assets in restructuring their debts.
Deepening of market-driven resource integration
According to the Photovoltaic Industry Association Secretary-General Wang Bohua introduces 2015 PV installed capacity of about 15 gigawatts, rose 40%, first for three consecutive years, which share ground power station 84%, distributed power plants accounted for 16%. And about 43 GW PV cumulative installed capacity, ranking first in the world. Share solar power concepts listed in the company expected net profit growth of over 50% of 70% enterprises, high or even 15 times. Meanwhile, the firm differentiation significantly, upstream is the most losses.
2015 PV industry mergers and acquisitions accelerating and deepening of the market-leading integration of resources. Wind international to buy perpetual silicon and polysilicon enterprises United States solar module company SuniVa, further optimize the industrial chain layout tongwei group to invest NT $ 850 million stake in Taiwan Gintech energy, enhanced cell scale; longi shares, companies such as Trina in cooperation with Yingli, processing method through a delegate, to achieve maximize capacity utilization, and so on.
From 2011, the Yingli has been losing money for 5 consecutive years, 2015 debt to asset ratio has exceeded 100%. Ying Li as the core competitiveness in manufacturing industry, including, sales channels, brand, cost, technology team. Are to be solved only through a period of time to reduce financial costs to a reasonable level, solve the problem of high financial leverage is the main aim of restructuring.
Worth noting is that PV manufacturing a polarization phenomenon clearly. Orders full scale, brand, technical components, SMEs receive orders difficult, most of the products offered for OEM or for their own power plants. Life difficult for upstream polysilicon business, seasonal changes in the global PV market, polysilicon pressure than other parts, prices are way down, most enterprises are still losing money.
According to financial announcements out of Baoding tianwei display, includes three companies owned by Baoding tianwei polysilicon and monocrystalline silicon ingot/wafer manufacturing subsidiary, tianwei Sichuan silicon industry limited, PV module manufacturers and project developers, tianwei new energy and amorphous silicon thin film subsidiaries-Baoding tianwei photovoltaic company limited are in insolvency proceedings at all stages.
Speed up the reorganization and integration to improve industry concentration
In 2015, China PV industry profitability improved markedly, most enterprises out of the red. 2015 PV sector’s profitability has increased significantly. 33 specification for enterprise in 2015 the overall business conditions showed that average profit rate of 4.7%, 2014, increasing 30.6%. From the perspective of niche, performed significantly better than the Silicon link component links, annual output of more than 43 GW of PV components, including amorphous silicon solar cell is still the mainstream, average capacity utilization for 86%, differentiation was evident.
“The current polysilicon trade situation is still grim and complex foreign polysilicon manufacturers are still searching for loopholes to keep the influx of Chinese market. Korea ‘ double ‘ tax rate is too low, part of the corporate tax rate of only 2.4%, resulting in from Korea imported poly-silicon surge hit the domestic polysilicon industry, and those of EU commitments expected results, there is no significant, with Taiwan the polysilicon large increase in re-exports. “Vice President Zhao Jiasheng of China Nonferrous metals industry association said.
Significant change is that PV manufacturing enterprises from the manufacturing application to transfer. Development investment internal rate of return of more than 10%, well above the industry average. Under this driven, top 20 manufacturers almost all traditional components involved in PV power plant development and investment business, first half of 2015 a-share listed companies in solar stocks raised more than 26 billion yuan for the PV power station, covered the size of 3 GW. And financial institutions not only to provide loans, instead of using equity participation in, even as Chongqing Road and bridge and other companies is even more aggressively into the cross. In addition, the diversification development gradually emerging, such as photovoltaic and agriculture, poverty alleviation, climate, combined.
Worthy of attention is, has quietly opened a new round of photovoltaic technology competition, Europe is the layout module conversion rate of 20%, to seize the commanding heights, China’s energy and raw materials development, there are more companies seeking to enter, appealed to watch out for a new round of overcapacity in the industry. Moreover, the situation of small enterprises will be further intensified, subsidies, land and power, “three big mountains” pressures remain, and will continue to eat into utility profits, PV manufacturing industry merger integration and depth adjustment would be the key to increasing industry concentration.
Original title: photovoltaic manufacturing mergers accelerated