Photovoltaic industry reshuffles Suntech's future

Recalling 2012, this is a year full of variables. Looking around the world, East Asia, the United States, Russia, and other countries have successively renewed their terms. Western European debt crisis continues to plague and Arab countries have become turbulent. In retrospect, the same economic slowdown occurred and the *** held. Deep-seated contradictions in a system reform gradually surfaced. The Chinese business community is also full of variables. The real estate industry is in the winter period. The photovoltaic industry has suffered industrial earthquakes. In the world structure, the competition of national power lies in the enterprise, and the competition of the enterprise lies in the entrepreneur. At this time, it is the right moment to test entrepreneurship. China Entrepreneur Network chose the entrepreneurs who had taken a look at the changes in 2012 at this time. It is hoped that they will examine the epitome of China's economic situation.

China Entrepreneurs Network has selected 12 entrepreneurs and 12 topics in total to outline the development trend and business environment of their respective industries, and the underlying macroeconomic background, together depicting a developing Chinese entrepreneur. Image. The launch of this issue is "Shi Zhengrong's changes in the industry." This plan is introduced daily, so stay tuned.

In 1992, Shi Zhengrong received his Ph.D. in Solar Energy Science from the University of New South Wales, Australia. Twenty years later, when he looked back, he did not know if Shi Zhengrong would have a new view of his original academic career. However, he was called a scholar-type entrepreneur. He has always enjoyed the status of a scientist and has “cross-bordered” from scientists to entrepreneurs. "a feeling of. This cross-border has also brought challenges to his entrepreneurial identity. On August 15, 2012, Shi Zhengrong officially retired as the CEO of Suntech Power, which he founded. This is a microcosm of Suntech's suffering. As China’s richest man once, Shi Zhengrong’s hardship in 2012 was not only due to him, but the entire photovoltaic industry was in the doldrums. The great changes in the entire industry had reached the point where the industry must be re-examined. At this time, taking Shi Zhengrong as a representative to examine China's photovoltaic industry, it became justified.

Industry changes On August 15th, 2012, Suntech Power announced that Dr. Shi Zhengrong was the executive chairman and chief strategy officer and was not the CEO. The former chief financial officer, Mr. Jin Wei, was the chief executive officer. At the same time, Ms. Ding Huai'an was declared as the interim chief financial officer. According to the “Shanghai Securities News” report, “In a person who is close to Suntech Power, Shi Zhengrong is currently surrounded by many unfavorable factors such as industry difficulties, overseas “double reverse” and counter-guarantee, and he himself also bears huge amounts of money. The pressure did not rule out that he also wanted to use this opportunity to retreat."

It is not known whether Shi Zhengrong wants to withdraw. However, the photovoltaic industry is experiencing the coldest winter in the industry, but it is a conclusive fact. Over the past ten years, if there is an industry-wide halo that can compete with the Internet, it must be photovoltaic; if there is an industry that can match the wealth of the Internet, it must be photovoltaic; if there is an industry that can attract capital to the Internet Compared with the United States, it must be photovoltaic; and if there is an industry that inspires the enthusiasm of the local government to chase more than real estate, it must be photovoltaic. Suntech and Saiwei were the two most representative companies in the Chaoyang industry. They are also known as PV “Double”.

The photovoltaic industry in China is faced with a mystical scene of sorrow and joy. Fortunately, in a few short years, China’s PV production capacity accounted for more than half of the world's total. China’s top ten PV module manufacturers China took the top five; sadly, under the background of anti-dumping lawsuits filed in Europe and the United States, the entire photovoltaic industry In a big defeat, several giants are close to being insolvent. This is actually a bill for the contradictions accumulated during the industrial outbreak. On the one hand, the government encourages the rapid development of photovoltaic companies. On the other hand, the domestic market has not made any significant moves in the on-grid tariffs and grid connection issues.

The disorderly and out-of-control expansion of production capacity, and the resulting international rebound, eventually became the last straw to overwhelm the "sun god." "If the EU anti-dumping case is eventually decided to be a high tax rate, the impact on China's PV industry will be huge. It may cause 50% to 60% of the companies to go bankrupt." Gao Jifan, CEO of Changzhou Trina Solar Energy This summer Davos Forum said.

Miao Liansheng, another entrepreneur in the photovoltaic industry, stated at the 2012 (11th) Annual Meeting of Chinese Business Leaders that the United States, the dual anti-European Union, India, and Japan can all shoot out more than others. It's hard to get through the winter. Actually we have even harder winter now. Our bad brothers and sisters have lost a lot this year and are appalling. We do not know when to pay.

The dilemma brought about by the external environment for Suntech and Shi Zhengrong almost prevented him from doing any evasion. As a company founded by returned scholars, Shi Zhengrong's experience has a place of concern. The current situation in the photovoltaic industry is precisely the amount of tuition fees that Chinese industries must pay in the process of internationalization. Today is not the photovoltaic industry. It will also erupt in other industries tomorrow. China is accelerating its integration into the world, becoming a key link in the world's industrial chain, and a sneeze in foreign countries has caused a serious shake-up in one industry in China. This also requires that no matter how we formulate policies or maintain the market environment, we can no longer rest on our laurels. We must focus on the world and focus on the future. We must not be short-sighted.

Shi Zhengrong, who was struggling with Shi Zhengrong, was not in trouble for the first time. He has been in trouble for more than one time since he returned home for 11 years. However, he admits that no one has surrendered like this today: huge debts, continuous losses, executives leaving, the United States and Europe... “The internal and external problems” are the best footnotes for Suntech. “I don’t know what I’m going tomorrow.” Where." He told "Chinese entrepreneurs."

Shi Zhengrong originally did not name Shi, but surnamed Chen. At that time, after the Shi family adopted it, the grandfather was honored and honored. He gave great expectations and care for him. Even when he was ten years old and knew his own life, Shi Zhengrong was still very grateful for the kindness of his adoptive parents. “No matter how much the family is struggling, parents always support my studies.” Shi Zhengrong, who studied hard as a child, studied Chinese Academy of Sciences in 1988. After receiving a master's degree from Shanghai Opto-Mechanics Institute, he was sent to Australia for further studies and successfully obtained a Ph.D. in optics.

In 2001, he returned to China to start a business. He settled the company in Wuxi, Jiangsu Province, and at the time was no doubt taking a step. Wuxi's government-led venture capital has been successful at Suntech. Suntech started, except for a bloody and full of knowledge, Shi Zhengrong had only 400,000 US dollars. The Wuxi municipal government used similar administrative orders to allow eight local state-owned enterprises to make a combined $6.5 million stake in Suntech. They even made preparations for "this money was so deferred." Affordable investment, of course, if they can accompany Suntech on the road to market, will gain more, but also with government support, state-owned shares exit before the listing.

Shi Zhengrong can be described as an all-round way, and has also achieved Wuxi's leading position in the photovoltaic industry parks across the country. From 2005 to 2007, Suntech's power sales increased from US$200 million to US$1.348 billion, and profits increased from US$30 million to US$1.7 billion. Shi Geng boarded the throne of mainland China’s richest man with a price of 16 billion yuan. Shi Zhengrong’s personal gains and losses have been closely linked with Wuxi City. Suntech has a special significance in Wuxi. It has even been integrated into the urban spirit of Wuxi - "Suntech is pragmatic, harmonious and progressive." It is also the weight of the officials of Wuxi's ruling government. In 2011, the industrial output value of Wuxi was 1.5 trillion yuan, and the output value of Wuxi Suntech was 30 billion yuan. The proportion is not significant, but its status is very significant. Suntech’s status as a star company greatly enhances Wuxi’s visibility.

It is also the excessive support of the government that Shi Zhengrong and Suntech neglected the repair of corporate loopholes. As a result, the company’s internal system construction has not been completed. Therefore, after the impact of the crisis, the pain will be greater. There are some factors that Shi Zhengrong can not afford. As a private entrepreneur, the bondage with the city makes him a victim.

The industrial opportunity “************************************************************** The State Councilor and the Secretary-General of the State Council* visited Wuxi Suntech Power.” At 3:00 pm on December 7, the website of Wuxi Suntech Power Co., Ltd. hangs this short message.

**This time, the ***** has just ended and the Central Economic Work Conference is coming soon. . “The central government attaches great importance to the development of strategic emerging industries, clean energy, and renewable energy.”** In a Jiangsu survey, “photovoltaic companies need to accelerate structural adjustment and industrial upgrading, improve their technological innovation capabilities, and continuously enhance their core competitiveness.” ** In the summary of the meeting, it was clearly stated that banks must support backbone enterprises, leading enterprises, and outstanding enterprises in the photovoltaic industry, such as Suntech, with technology, scale, and brand, with 400 companies in the supply chain, with large influence. . ”

On December 19, the executive meeting of the State Council studied and determined policies and measures to promote the healthy development of the photovoltaic industry. The meeting identified five rescue measures. Among them, Article 5 puts forward requirements for the government itself, "fully play the role of the market mechanism, reduce government intervention, prohibit local protection, improve the pricing mechanism of electricity prices and the assessment mechanism of subsidies, and increase the effectiveness of policies."

Despite the frequent blows of warm air, the industry believes that there are still uncertainties about whether the photovoltaic industry can survive the predicament. For Shi Zhengrong and Suntech, whether or not they can get out of the industrial winter still needs further observation.