Polaris solar PV net news: in the wake of mergers and acquisitions the past solar giant Suntech, tailwind international clean energy Ltd (hereinafter “clean energy with the wind”), but off early highs, profitability series of setbacks.
On July 20, the wind clean energy issued a profit warning, sharp decline in net profit in the first half of this year is expected to exceed 80%, with a net profit of about 173 million Yuan over the same period last year. Lead to profits drop of reasons, so clean-energy explained, mainly in Xinjiang power rationing has resulted in estimated losses of about 300 million-kilowatt electricity and generating revenue of about 246 million Yuan. In addition, due to the expanding scale of solar products in overseas markets and maintain domestic market shares, led to increased selling and administrative expenses in the first half of this year compared with about 30%. Meanwhile, financing costs were higher than in 2015 in the first half 60%.
Therefore, clean energy began to frequent the wind to sell assets, intending to “asset-Lite service provider”. In December 2015, wind clean energy announced a 1.2 billion yuan selling 180MW photovoltaic power plant, but the planned power plant “certain prerequisites had yet been reached” was stranded June this year.
Latest news display, so clean-energy plans in 5 billion yuan to the Asia-Pacific (China) Investments Limited (hereinafter “Pacific”) transfers the solar product manufacturing company. It is worth noting that is, clean energy and investment in Asia-Pacific with the wind behind the control per capita as Zheng JianMing, the “left hand” capital declared from the beginning of the game becomes the focus of attention in the industry.
For the above transaction, clean energy Director Zhang Jianmin told reporters in response to the wind, now it’s just a memorandum of intent, which belongs to the framework agreement also requires review of the stock exchange.
Profit from bad to worse
In 2013, so the price of clean energy with 3 billion yuan over the Suntech, performing “gobbles”, one of the PV industry’s “dark horse”.
Before that, the wind clean energy’s profitability did not stand out. According to Xinhua earlier reported, 2012-2013, the wind clean energy losses for years. In particular, in 2013, the financial pressure has spiked, lost more than 1.8 billion yuan annually. In 2014, driven benefited from the acquisition of Wuxi Suntech solar product manufacturing and trade sales, the wind energy a profit, from a loss of 1.8 billion yuan into a net profit of 1.3 billion yuan.
But after 2015, the wind clean energy profitable and worse. In 2015, the wind clean energy revenue 7.032 billion yuan, an increase of 22.4%, but only 57.96 million yuan in net profit, compared with a 95.6% reduction. At the time, wind clean energy, said net profit fell mainly due to cut product prices and abandon power and other factors.
Under the wind clean energy profit warning on July 20 this year decline in net profit in the first half of the year is expected to exceed 80%, abandon light power cuts have also been listed as is one of the main cause of decline in its net profits.
The reporter learns, by 2014, clean energy wind solar power stations to achieve total designed installed capacity capacity 1534MW grid-connected power generation, of which about 67.8% capacity in Xinjiang and Gansu regions. And abandoned the two regions hardest hit by blackouts.
First half of 2015, National Energy Board announced photovoltaic power generation for the first time, in Gansu province to abandon power light 1.14 billion kWh, abandon rates 28%, Xinjiang to abandon power 541 million kWh, abandon rate is 19%. The first quarter of this year, abandoned the country when power cuts of about 1.9 billion-kilowatt, occurs mainly in Xinjiang, Gansu, and Ningxia, Gansu abandoned power 840 million kWh, abandon 39%, Xinjiang (Corps) abandoned power 760 million kWh, abandon rates up to 52%.
Downwind said clean energy in a profit warning, though power increased with the rising total size power generation, but under the influence of power rationing in the Xinjiang region, resulting in estimated losses of about 300 million-kilowatt electricity and generating revenue of about 246 million Yuan.
Clean energy the wind did not reveal to journalists details of more blackouts. Zhang Jianmin told reporters, August 30 the wind clean energy will publish half-yearly reports, when relevant content will be disclosed.
Perhaps under the influence of abandoned light power, clean energy wind power sector’s pace of expansion had slowed.
At the time of acquisition of Suntech, the wind clean out photovoltaic energy ambitions, plans to use the former upstream manufacturing advantage, to supply its power plant and raw materials stocks. At the time, wind and Zhang Yi, Chairman of clean energy, said planned for 2014-2016 added 3GW projects every year by 2016 10GW capacity.
As of December 31, 2015, clean energy wind solar power stations to achieve total designed installed capacity capacity 1780MW grid-connected power generation. 10GW’s goal is still far from.
Journalists in a report entitled “China top 20 PV investment” found in the rankings, so investment in clean energy in 2014 and 2015 respectively to 890MW, 644MW installed capacity ranks the second place, by 2016, the wind clean energy has been in over 20.
Today, the downwind areas of clean energy not only in the power plant and raw materials slowed its pace of expansion, also began the transition to asset-light direction, frequently selling its PV asset.
On December 17, 2015, the clean energy the wind said, plans to price of 1.2 billion yuan to Chongqing’s future investment company sold its 9 total PV ground power station 180MW. But six months later, that ran aground deal was announced.
Reporters learned from the buyer, terminate the transaction was part of electric power business licenses involved in the PV (power type), planning permission, building permits and other underlying assets necessary and important business qualifications and procedures document will not achieve, related utility follow-up operations by the local power to dissolve and outside factors such as greater impact. Downwind said clean energy bulletin, termination of the agreement due to the disposal of a number of prerequisites had yet been reached.
Downstream power station after the sale goes, the wind clean energy target manufacturing areas in the upper reaches. On May 31 this year, the wind clean energy’s announcement, said it had entered into with the Asia-Pacific investment non-legally binding memorandum of understanding, to be sold at a cash cost of about 5 billion yuan to invest in the Asia-Pacific, Jiangsu shunfeng photovoltaic technology limited (hereinafter “Jiangsu shunfeng”) 100% per cent.
Reporters learned that Jiangsu shunfeng core field is downwind of clean energy in the solar manufacturing assets, which owns limited subsidiary of Suntech in Wuxi, Changzhou shunfeng photovoltaic material. In 2015, solar manufacturing business-clean energy the wind contributed 5.8 billion yuan in revenue, total revenue 83.7%.
One person in the photovoltaic industry with respect to reporters, the wind seems to already exist on the PV industry of clean energy. To reporters, downwind now clean energy and raw materials weighed down by abandoned power upstream manufacturing is the biggest source of profit, if you peel it, what does the future to support performance?
Clean the wind energy’s Chief Financial Officer and Company Secretary Xie Wenjie said, the company’s asset-light is mainly to improve the management efficiency of PV of automation, sell assets which is the normal operation mode, not out of the existing business.
Reporters learned that clean energy and investment in Asia-Pacific with the wind behind the actual controlling per capita for Zheng JianMing. The view was expressed that, Zheng JianMing’s move was intended to wind on clean energy and raw materials assets spin-off, Jiangsu shunfeng this part of solar manufacturing assets of which may be packaged in the domestic market.
“This company should ask the buyers”, Zhang Jianmin told reporters responded that its only on behalf of a listed company to represent Zheng Zong (Zheng JianMing). However, Zhang Jianmin said this agreement was a memorandum of intent was a framework agreement, but also by other constraints, in accordance with the provisions also need to review of the stock exchange.
Original title: clean energy wind net profits fell more than 80% “give up power” in trouble?