Three big PV giants can be dominated by the new Jianghu

A few years ago, the splendor of the photovoltaic market had created many myths of wealth. Yingli, Suntech, and Saiwei were the creators of these myths. However, when the entire photovoltaic industry suddenly cooled, these once-admired giants have also fallen from heights. Huge losses, debt crisis, delisting pressure ... For them, 2012 is an unprecedented year of hardship.

But on the other hand, they are fortunate than those small and medium-sized PV companies that have long since fallen in the industry. With the advent of the “Saving Private” rescue policy and the dawning of the industry, these leading companies are expected to sneak in the new photovoltaic rivers and lakes after the darkness before their dawn.

Jiangxi Levi:

Still deep in debt quagmire 5 years ago, when the personal book assets with the company listed more than 30 billion yuan, the name of Peng Xiaofeng and Jiangxi Levi suddenly resounded through the capital sector, the young rich man's origins and experiences were talked about. Road. Today, the total market value of LDK is only 240 million US dollars, and the debt is high, the company's capital chain is extremely tight, and even the local government needs rescue.

In December 2012, Jiangxi Seville, which was deeply involved in the financial crisis, once again “sold” power plant assets to repay debts. This is the second time since October this year that Seville has transferred its power plants to hedge its debts. According to the announcement made by Aoke in early December, it purchased a 100% equity interest in a 5MW photovoltaic power station under Jiangxi Saiwei at the consideration of offsetting RMB 107 million in accounts receivable. At the same time, on December 4th, LDK announced three quarterly reports, and the net loss in the third quarter was 136.9 million U.S. dollars (approximately 853 million U.S. dollars), which was the company’s loss for the sixth consecutive quarter.

Sai Wei did not think about self-help. In November of this year, LDK announced that it will establish Pingdingshan Yicheng New Energy Co., Ltd. jointly with Pingdingshan Yicheng New Material Co., Ltd. of Pingmei Shenma Group. The newly established company will make full use of LDK. With extensive experience in the field of photovoltaic systems, Hepingpei Shenma Group has strong capabilities in the energy industry. At the same time, with the joint venture company as a platform, it effectively and efficiently promotes the development and construction of photovoltaic projects in Henan Province.

At the same time, after paying $500 million in financial institutions for Jiangxi Saiwei, the local government went further on the road to salvation. The government-affiliated company Hengrui New Energy will acquire the new shares of the company, which will receive 23 million U.S. dollar shares**.

However, industry insiders interviewed by media reporters earlier said that these measures can help Sai Wei ease short-term financial pressure, but the long-term effect, whether it can help Servi to return to the right track, it is still not easy to say.

Wuxi Suntech:

Next year or face greater financial pressure From the first quarter of last year, the fourth quarter and the first quarter of this year's performance, Wuxi Suntech, like many of its counterparts, has fallen into a situation of revenue but a net loss. In the three quarters, Suntech’s revenue declined gradually from US$8.77 billion to US$629 million, US$409.5 million, and shipments were 491 megawatts, 523 megawatts, and 382 megawatts respectively. The gross margin was even more from the first quarter of last year. The 21% fell to 0.59% in the first three months of this year. In addition, Suntech’s total liabilities have reached US$3.582 billion, and the asset-liability ratio has reached 81.8%.

According to data released by Suntech Solar, the company's operating solar panel production capacity will be temporarily reduced from the previous 2.4 GW to 1.8 GW, a reduction of 25%. The module production capacity is maintained at 2.4 GW, and the wafer production capacity is maintained at 1.6 GW.

Not only that, frequent turnover of senior executives has added to this private enterprise. Ding Huai'an, who had just been appointed to the CFO of the Suntech Power Agency two months ago, resigned this week and the company’s CEO, Jin Wei, took over his agency responsibilities. Just less than two months ago, Jin Wei just took over as CEO of the company. At that time, he took over Suntech's soul and CEO Shi Zhengrong. In addition, Suntech's personnel changes also affected overseas subsidiaries. Before that, Suntech's European president Jerry Stokes and US president John Lefebvre also left. According to incomplete statistics, since August this year, the number of vice president-level executives who have left and Suntech has resigned has already reached seven. Zhang Jianmin, director of media relations at Suntech, has suspended his appointment and is replaced by Gong Xuejin, director of operations.

Suntech Wuxi may face another financial pressure next year. Recently, it was reported that Suntech had a US$575 million convertible bond due at the end of March of the next year. Suntech, which was unable to pay, began to apply for new arrangements with seven large state-owned banks a few months ago. However, these banks have The proposed condition is that Shi Zhengrong must give up control and even completely withdraw from Suntech.

With Suntech's current funding situation, it has been unable to redeem this money on its own. If there is no money to pay, investors will be forced to choose debt-to-equity swaps. This will cause Suntech's share price, which is on the brink of delisting due to a long-term downturn in the stock price, to continue to fall sharply, and may face a risk of delisting. At that time, investors will lose everything.

Yingli:

In the first half of next year, it is expected to turn losses into profit. The third-quarter financial report shows that in the third quarter, the company’s net loss was 959 million, a loss of 573 million in the previous quarter and a loss of 180,500 million in the same period of last year.

The financial report also showed that in the third quarter, Yingli's revenue was 2.237 billion, which was higher than market expectations, a decrease of 27.9% from the previous quarter and a decrease of 47.46% year-on-year.

Last year, due to the loss of nearly 2.3 billion yuan from the 69 silicon subsidiary of its subsidiary, Yingli’s 2011 annual loss amounted to 3.2 billion yuan.

The domestic photovoltaic industry has a serious excess capacity. Under the “double reverse” investigation in Europe and the United States, several large-scale PV companies have fallen into bankruptcy crisis. The European market has always been the most important market for photovoltaic companies in China. More than 70% of photovoltaic products rely on the European market. The “double-anti” investigation has forced Chinese PV companies to find another way out.

It is reported that Yingli is currently reducing its reliance on the European market and making efforts in the domestic market and emerging markets. Since September of this year, Yingli has begun to transition to the downstream to build photovoltaic power plants.

According to statistics, in the first three quarters of this year, Yingli’s shipment volume has reached 1600 MW, and it is expected that annual shipments will reach 2100 to 2200 MW. If this expectation can be realized, Yingli will replace Suntech and U.S. First Solar, becoming the world's largest photovoltaic company with annual shipments.

Ying Yi, chief strategy officer of Yingli, said that in the second half of this year, the share of Yingli’s European market will fall to 45.17%, the US market share will fall to 10.31%, the Chinese market share will rise to 36.71%, and the emerging market share will rise to 7.82%. Although the share of emerging markets is small, the rate of increase is very fast. In 2011, this figure was only 2%.

At the same time, Ms. Miao Liansheng, chairman and chief executive of Yingli, stated: “The company’s domestic market share is expected to reach 40% next year. The growth of the domestic market is mainly from the supply of components of large-scale photovoltaic power plants in the northwestern provinces.”

Yingli expects to benefit from this, the company will achieve losses in the first half of next year.