After a round of overcapacity baptism, the photovoltaic industry is experiencing a recovery. Among the 32 A-share listed PV companies, 80% achieved profitability, and half of the company's net profit doubled.
However, not all companies are striving for this wave of recovery. The early PV “double-reverse†led to the overall contraction of overseas markets. Those companies that did not open up emerging markets are facing serious differentiation, high debt and tight capital chains. It will lead the company to face more severe challenges in this year's industry expansion.
In the second half of last year, with the start of the domestic installed market and the recovery of the market, almost all PV companies are increasing their shipments, even at the expense of sales, in order to clear inventory and ensure cash flow. “The sudden emergence of market changes that are in short supply has caused the photovoltaic enterprises that had been shut down before to take the opportunity to reignite, leaving a hotbed for the overcapacity of photovoltaic products. The photovoltaic market has hidden dangers of repetitive competition.†Yan Baofang, chairman of Jinglong Group, to the industry Issue a warning.
Shaoguan
With more than a year of asset optimization and financial restructuring, JA Solar has ushered in its first turnaround in 11 quarters and is firmly positioned as the global leader in PV cell shipments. Both the cash ratio and the current ratio are nearly 20 percentage points higher than the industry average, and the asset-liability ratio is at a lower level in the industry. As of the end of 2013, Jing'ao cash and cash equivalents were $350 million.
On March 17, the JA Solar Annual Report showed that the net profit for the fourth quarter of last year was US$23.52 million, achieving the first single-quarter profit since the recovery of this round of industry. The gross profit margin in the fourth quarter also increased from 6% at the beginning of the year to 15.5%.
Guo Shuai, a researcher at Guojin Securities, predicts that JA Solar’s ​​full-year profit is expected to exceed US$100 million. “In all first-line component companies, the company is one of the few companies with a high share in the two most important markets, China and Japan. Shipments to the two countries account for 33% of the company’s total annual shipments. And 43%, in the sales area distribution and product technology research and development has a certain advantage over other first-line enterprises." Zhang Shuai said.
Looking back at the toughest time, Xie Jian, president of JA Solar, told the Economic Observer that adding component business is one of the important strategies to survive the crisis. "We judged at the time that although the top ten component companies are expanding, their self-sufficiency rate of photovoltaic cells is gradually increasing, which will inevitably reduce the outsourcing demand for photovoltaic cells, which will put tremendous pressure on the sales of JA Solar photovoltaic cells." Health name.
To this end, in 2011, JA Solar decided to stop the expansion of photovoltaic cells and enter the downstream development of photovoltaic components business. In the following year, the top ten component companies in the global photovoltaic industry accounted for more than 50% of the market share, and the self-sufficiency rate of photovoltaic cells exceeded 95%. In the same year, JA Solar's component shipments exceeded the PV battery shipments and became a new profit contribution point.
The same signs of market recovery are also reflected in the financial report of another photovoltaic leader, Artes (CSIQ), whose net profit for the fourth quarter was US$20.95 million and its gross profit margin was 19.5%. This is the second consecutive year for Artes. Realized profitability in the quarter and achieved the goal of turning losses throughout the year. In 2013, Artes' total revenue was $1.65 billion, a 28% year-on-year increase and a net profit of $45.6 million.
In the view of Yan Xiaotong, president and CEO of Artes Solar Power Group, returning to profitability is not only due to the development of component product sales in the global market, but more importantly, thanks to the new business model, namely the company's components. The transition from supplier to power plant and PV system package solution provider.
“We have been alone in the exploration of the new business model for four years, until this year it really shows the benefits and is recognized by the market.†Xiao Xiaoying said that Artes’ overall solution has brought good returns to the world. The reserves of large-scale PV projects have also grown steadily, with the overall solution accounting for 28.6% of annual sales.
In the A-share market, the annual report of Yijing Optoelectronics shows that in 2013, the company's operating income was 2.69 billion, a year-on-year increase of 37%, and the net profit was 68.876 million, an increase of 110%. In addition, the net profit of Hengdian Dongxin, Xindaxincai and Zhonghuan Co., Ltd. also increased by 226%, 186% and 173% respectively.
As of March 20, a total of 30 companies in 32 A-share PV companies issued annual reports or performance reports, of which 24 were profitable, accounting for 80%. More than 10 companies, such as Tuo Rixin, Aerospace Electromechanical, Sunflower, and Zhonghuan, doubled their net profit year-on-year.
Differentiation
Not all PV companies are striving for this wave of recovery. On March 19th, Yingli Financial News showed that the company's annual net loss was as high as 1.944 billion yuan. Compared with other PV companies listed in the US stock market, the losses were more serious. This is Yingli's three consecutive years of losses, and the previous annual losses exceeded 30. 100 million yuan.
“Double-reverse has caused the overseas market to shrink and the domestic market has not been opened.†Shen Hongwen, a researcher in the new energy industry of China Investment Consulting, said that “Yingli will face a more serious situation in the future. Although various measures have been taken to reduce losses, it cannot Substantial results in the short term." Yingli’s loss this year includes a 480 million yuan long loss of silicon material.
In the terminal market, Yingli has always adopted a competitive approach of selling at a low price. This method of “sacrificing profits in exchange for market size†is also a model adopted by industry giant Suntech Power. In 2013, Yingli became the world's largest PV module supplier for two consecutive years, but its loss-making sales status for three consecutive years has resulted in high debt and a debt-to-asset ratio of 92%, which is among the highest in the industry.
Also suffering from huge losses, there is also the photovoltaic company Tianwei Baobian in the A-share market. The financial report shows that the company's net loss amounted to 5.233 billion yuan. The company's subsidiaries in the new energy field all suffered heavy losses. Among them, Tianwei Sichuan Silicon The loss of the company reached 1.168 billion yuan, and the loss of Baoding Tianwei thin film photovoltaic was 1.248 billion yuan.
"The new energy industry of the company is affected by the macroeconomic situation at home and abroad, the market is shrinking, overcapacity, low prices of products, etc. have not improved." Tianwei Baobian official said that the company's new energy companies are basically in a state of suspension, The large amount of asset impairment provision led to a large loss in the year. On March 13, the “11 Days Weixin†issued by Tianwei Baobian Company was suspended. A few days ago, the “11 Super Day Debt†issued by ST Chaori Company declared a breach of contract and became the first default case of the Chinese bond market.
Although Hairun Photovoltaic has also set a benchmark for this PV recovery, it has turned losses in the third and fourth quarters. However, due to the company’s losses in the first half of the year, the company’s annual net loss was 130 million yuan, a sharp drop of 6394.96%. The performance promise, the major shareholder will have to compensate the company 660 million yuan. In the same period, due to the loss in the first half of the year, the overall net profit of the year fell, and Leshan Power and Jingsheng Electromechanical Co., Ltd. fell 750% and 74.9% respectively.
GCL-Poly, a PV upstream company listed in Hong Kong, also achieved profitability in the second half of last year, but the net loss for the year was 664 million Hong Kong dollars. Previously, due to the rapid decline in polysilicon prices, domestic polysilicon enterprises fell into a large-scale suspension. According to the statistics of the China Nonferrous Metals Association Silicon Branch, as of the first half of 2013, only 43 of the 43 polysilicon enterprises in China have been put into production. At the end of 2013, about 13 polysilicon enterprises in China resumed production. GCL-Poly people expect that when the downstream component demand increases, there will be no obvious increase in upstream polysilicon, and there may be a shortage of supply, which will push the price of polysilicon back up.
As of March 19, domestic polysilicon prices climbed from 130,000 yuan per ton at the end of last year to 170,000 yuan per ton. The strength of polysilicon prices is related to the strong demand in the downstream market.
"This year's industry consolidation will be further aggravated. A group of enterprises lacking core technology, weak cost control ability and excessive debt burden will become the object of bankruptcy reorganization, while those with core competitiveness will further enlarge and become stronger." Industry analysts said.
expansion
Xie Jian, president of Jingao Solar, said that although the photovoltaic industry turned warm in 2014, it will enter the era of low profit. He introduced that several major component companies have announced expansion plans this year, and it is expected that the component increment will exceed 20GW, which will inevitably put tremendous pressure on product prices. In order to seize the market, the trend of “increasing the price and increasing the price†is obvious, and enterprises will accept the meager profit reality.
Jingao's photovoltaic cell capacity is 2.5GW and component capacity is 1.8GW. The company plans to expand its battery and component capacity to 2.8GW before the second quarter of 2014. Xie Jian said, "This year, the company will move faster and expand its horizons to the downstream industry chain. On the basis of maintaining manufacturing technology and products, it will enter the downstream power station service field and make the company's development to a new level." In the second half of last year, almost all PV companies were increasing their shipments, even at the expense of sales, with the aim of clearing inventory and ensuring cash flow,†said a photovoltaic company executive.
Recently, US solar panel manufacturer SunPower released its 2014 capital expenditure plan. The company pointed out in the report that with bold forecasts for the global solar market, the amount of capital expenditure in 2014 is expected to reach 1.5-170 million US dollars, doubled compared with 2013.
When the photovoltaic company was working on the downstream power station, Cao Bo, vice president of JA Solar, said that there are still many challenges in distributed power plants: the financing channels are relatively simple, most of them come from bank loans, and lack a complete financing guarantee system; The income will be uncertain due to the imperfect credit mechanism in China. In addition, the timely payment of photovoltaic electricity price subsidies, the immature grid-assisted technology of smart grids, and limited roof resources will also affect the development of distributed power plants. At present, the subsidy of 0.42 yuan / kWh is not enough to trigger the installation boom of residential roofs. â€
However, not all companies are striving for this wave of recovery. The early PV “double-reverse†led to the overall contraction of overseas markets. Those companies that did not open up emerging markets are facing serious differentiation, high debt and tight capital chains. It will lead the company to face more severe challenges in this year's industry expansion.
In the second half of last year, with the start of the domestic installed market and the recovery of the market, almost all PV companies are increasing their shipments, even at the expense of sales, in order to clear inventory and ensure cash flow. “The sudden emergence of market changes that are in short supply has caused the photovoltaic enterprises that had been shut down before to take the opportunity to reignite, leaving a hotbed for the overcapacity of photovoltaic products. The photovoltaic market has hidden dangers of repetitive competition.†Yan Baofang, chairman of Jinglong Group, to the industry Issue a warning.
Shaoguan
With more than a year of asset optimization and financial restructuring, JA Solar has ushered in its first turnaround in 11 quarters and is firmly positioned as the global leader in PV cell shipments. Both the cash ratio and the current ratio are nearly 20 percentage points higher than the industry average, and the asset-liability ratio is at a lower level in the industry. As of the end of 2013, Jing'ao cash and cash equivalents were $350 million.
On March 17, the JA Solar Annual Report showed that the net profit for the fourth quarter of last year was US$23.52 million, achieving the first single-quarter profit since the recovery of this round of industry. The gross profit margin in the fourth quarter also increased from 6% at the beginning of the year to 15.5%.
Guo Shuai, a researcher at Guojin Securities, predicts that JA Solar’s ​​full-year profit is expected to exceed US$100 million. “In all first-line component companies, the company is one of the few companies with a high share in the two most important markets, China and Japan. Shipments to the two countries account for 33% of the company’s total annual shipments. And 43%, in the sales area distribution and product technology research and development has a certain advantage over other first-line enterprises." Zhang Shuai said.
Looking back at the toughest time, Xie Jian, president of JA Solar, told the Economic Observer that adding component business is one of the important strategies to survive the crisis. "We judged at the time that although the top ten component companies are expanding, their self-sufficiency rate of photovoltaic cells is gradually increasing, which will inevitably reduce the outsourcing demand for photovoltaic cells, which will put tremendous pressure on the sales of JA Solar photovoltaic cells." Health name.
To this end, in 2011, JA Solar decided to stop the expansion of photovoltaic cells and enter the downstream development of photovoltaic components business. In the following year, the top ten component companies in the global photovoltaic industry accounted for more than 50% of the market share, and the self-sufficiency rate of photovoltaic cells exceeded 95%. In the same year, JA Solar's component shipments exceeded the PV battery shipments and became a new profit contribution point.
The same signs of market recovery are also reflected in the financial report of another photovoltaic leader, Artes (CSIQ), whose net profit for the fourth quarter was US$20.95 million and its gross profit margin was 19.5%. This is the second consecutive year for Artes. Realized profitability in the quarter and achieved the goal of turning losses throughout the year. In 2013, Artes' total revenue was $1.65 billion, a 28% year-on-year increase and a net profit of $45.6 million.
In the view of Yan Xiaotong, president and CEO of Artes Solar Power Group, returning to profitability is not only due to the development of component product sales in the global market, but more importantly, thanks to the new business model, namely the company's components. The transition from supplier to power plant and PV system package solution provider.
“We have been alone in the exploration of the new business model for four years, until this year it really shows the benefits and is recognized by the market.†Xiao Xiaoying said that Artes’ overall solution has brought good returns to the world. The reserves of large-scale PV projects have also grown steadily, with the overall solution accounting for 28.6% of annual sales.
In the A-share market, the annual report of Yijing Optoelectronics shows that in 2013, the company's operating income was 2.69 billion, a year-on-year increase of 37%, and the net profit was 68.876 million, an increase of 110%. In addition, the net profit of Hengdian Dongxin, Xindaxincai and Zhonghuan Co., Ltd. also increased by 226%, 186% and 173% respectively.
As of March 20, a total of 30 companies in 32 A-share PV companies issued annual reports or performance reports, of which 24 were profitable, accounting for 80%. More than 10 companies, such as Tuo Rixin, Aerospace Electromechanical, Sunflower, and Zhonghuan, doubled their net profit year-on-year.
Differentiation
Not all PV companies are striving for this wave of recovery. On March 19th, Yingli Financial News showed that the company's annual net loss was as high as 1.944 billion yuan. Compared with other PV companies listed in the US stock market, the losses were more serious. This is Yingli's three consecutive years of losses, and the previous annual losses exceeded 30. 100 million yuan.
“Double-reverse has caused the overseas market to shrink and the domestic market has not been opened.†Shen Hongwen, a researcher in the new energy industry of China Investment Consulting, said that “Yingli will face a more serious situation in the future. Although various measures have been taken to reduce losses, it cannot Substantial results in the short term." Yingli’s loss this year includes a 480 million yuan long loss of silicon material.
In the terminal market, Yingli has always adopted a competitive approach of selling at a low price. This method of “sacrificing profits in exchange for market size†is also a model adopted by industry giant Suntech Power. In 2013, Yingli became the world's largest PV module supplier for two consecutive years, but its loss-making sales status for three consecutive years has resulted in high debt and a debt-to-asset ratio of 92%, which is among the highest in the industry.
Also suffering from huge losses, there is also the photovoltaic company Tianwei Baobian in the A-share market. The financial report shows that the company's net loss amounted to 5.233 billion yuan. The company's subsidiaries in the new energy field all suffered heavy losses. Among them, Tianwei Sichuan Silicon The loss of the company reached 1.168 billion yuan, and the loss of Baoding Tianwei thin film photovoltaic was 1.248 billion yuan.
"The new energy industry of the company is affected by the macroeconomic situation at home and abroad, the market is shrinking, overcapacity, low prices of products, etc. have not improved." Tianwei Baobian official said that the company's new energy companies are basically in a state of suspension, The large amount of asset impairment provision led to a large loss in the year. On March 13, the “11 Days Weixin†issued by Tianwei Baobian Company was suspended. A few days ago, the “11 Super Day Debt†issued by ST Chaori Company declared a breach of contract and became the first default case of the Chinese bond market.
Although Hairun Photovoltaic has also set a benchmark for this PV recovery, it has turned losses in the third and fourth quarters. However, due to the company’s losses in the first half of the year, the company’s annual net loss was 130 million yuan, a sharp drop of 6394.96%. The performance promise, the major shareholder will have to compensate the company 660 million yuan. In the same period, due to the loss in the first half of the year, the overall net profit of the year fell, and Leshan Power and Jingsheng Electromechanical Co., Ltd. fell 750% and 74.9% respectively.
GCL-Poly, a PV upstream company listed in Hong Kong, also achieved profitability in the second half of last year, but the net loss for the year was 664 million Hong Kong dollars. Previously, due to the rapid decline in polysilicon prices, domestic polysilicon enterprises fell into a large-scale suspension. According to the statistics of the China Nonferrous Metals Association Silicon Branch, as of the first half of 2013, only 43 of the 43 polysilicon enterprises in China have been put into production. At the end of 2013, about 13 polysilicon enterprises in China resumed production. GCL-Poly people expect that when the downstream component demand increases, there will be no obvious increase in upstream polysilicon, and there may be a shortage of supply, which will push the price of polysilicon back up.
As of March 19, domestic polysilicon prices climbed from 130,000 yuan per ton at the end of last year to 170,000 yuan per ton. The strength of polysilicon prices is related to the strong demand in the downstream market.
"This year's industry consolidation will be further aggravated. A group of enterprises lacking core technology, weak cost control ability and excessive debt burden will become the object of bankruptcy reorganization, while those with core competitiveness will further enlarge and become stronger." Industry analysts said.
expansion
Xie Jian, president of Jingao Solar, said that although the photovoltaic industry turned warm in 2014, it will enter the era of low profit. He introduced that several major component companies have announced expansion plans this year, and it is expected that the component increment will exceed 20GW, which will inevitably put tremendous pressure on product prices. In order to seize the market, the trend of “increasing the price and increasing the price†is obvious, and enterprises will accept the meager profit reality.
Jingao's photovoltaic cell capacity is 2.5GW and component capacity is 1.8GW. The company plans to expand its battery and component capacity to 2.8GW before the second quarter of 2014. Xie Jian said, "This year, the company will move faster and expand its horizons to the downstream industry chain. On the basis of maintaining manufacturing technology and products, it will enter the downstream power station service field and make the company's development to a new level." In the second half of last year, almost all PV companies were increasing their shipments, even at the expense of sales, with the aim of clearing inventory and ensuring cash flow,†said a photovoltaic company executive.
Recently, US solar panel manufacturer SunPower released its 2014 capital expenditure plan. The company pointed out in the report that with bold forecasts for the global solar market, the amount of capital expenditure in 2014 is expected to reach 1.5-170 million US dollars, doubled compared with 2013.
When the photovoltaic company was working on the downstream power station, Cao Bo, vice president of JA Solar, said that there are still many challenges in distributed power plants: the financing channels are relatively simple, most of them come from bank loans, and lack a complete financing guarantee system; The income will be uncertain due to the imperfect credit mechanism in China. In addition, the timely payment of photovoltaic electricity price subsidies, the immature grid-assisted technology of smart grids, and limited roof resources will also affect the development of distributed power plants. At present, the subsidy of 0.42 yuan / kWh is not enough to trigger the installation boom of residential roofs. â€
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