In the early years of the photovoltaic (PV) industry, the sector was a goldmine that created countless success stories. Among the most prominent were Yingli, Suntech, and Saiwei—three giants that once dominated the market with their rapid growth and soaring stock prices. However, as the industry faced a sharp downturn, these once-powerful companies found themselves in deep trouble, battling massive losses, mounting debts, and the threat of delisting. 2012 turned out to be a year of unprecedented challenges for them.
Despite their struggles, they still had an advantage over smaller PV firms that had already collapsed during the crisis. With government support and the gradual recovery of the industry, these leading companies are now hoping to regain their footing and emerge stronger from the dark period.
Jiangxi LDK (Saiwei):
Five years ago, Jiangxi LDK made headlines when its founder, Peng Xiaofeng, was reported to have personal assets exceeding 3 billion yuan. The company's financial situation has since deteriorated dramatically. Today, its market value is just 240 million USD, and it remains deeply entangled in debt. Its cash flow is extremely tight, and even local governments have stepped in to provide some form of rescue.
In December 2012, LDK sold part of its power plant assets again to ease its debt burden. This marked the second time this year that the company offloaded its power stations. According to a recent announcement, Aoke acquired 100% equity in a 5MW solar plant owned by LDK, using it to offset 107 million RMB in receivables. Meanwhile, LDK reported a net loss of 136.9 million USD in the third quarter, marking its sixth consecutive quarterly loss.
Rather than relying solely on external help, LDK also tried to find internal solutions. In November, it announced a joint venture with Pingdingshan Yicheng New Material Co., Ltd., aiming to leverage both companies’ strengths in the energy sector and promote photovoltaic projects in Henan Province.
Meanwhile, the local government took further steps to support LDK. Hengrui New Energy, a government-affiliated firm, planned to acquire new shares, offering 23 million USD in exchange for equity. While these measures may offer short-term relief, industry experts remain skeptical about whether they will lead to long-term recovery.
Wuxi Suntech:
Suntech has also struggled with financial pressures. Despite revenue declines, the company continued to report net losses. Its gross margin dropped sharply from 21% in the first quarter of last year to just 0.59% in the first three months of this year. Total liabilities reached 3.582 billion USD, with an asset-liability ratio of 81.8%.
To cope, Suntech reduced its production capacity by 25%, cutting its solar panel output from 2.4 GW to 1.8 GW. Frequent leadership changes also added to the uncertainty. Recently, several high-level executives left, including the CFO, who resigned after only two months in the role. The CEO, Jin Wei, took over multiple responsibilities, while other key figures, such as the European and U.S. presidents, also departed.
Looking ahead, Suntech faces another major challenge: a $575 million convertible bond due in March 2013. Unable to repay it, the company sought new arrangements with seven major banks. However, the condition was steep: Shi Zhengrong, the founder, would have to give up control or leave entirely. Without a solution, Suntech risks a debt-to-equity swap, which could drive its stock price lower and potentially lead to delisting.
Yingli:
In contrast, Yingli appears to be showing signs of recovery. Its third-quarter results showed a net loss of 959 million, but the company’s revenue of 2.237 billion USD exceeded market expectations. The company has been reducing its reliance on the European market and focusing more on domestic and emerging markets.
Since September, Yingli has shifted toward building photovoltaic power plants, signaling a strategic move into the downstream sector. In the first nine months of this year, it shipped 1600 MW of modules, with projections of reaching 2100–2200 MW by year-end. If achieved, Yingli could surpass Suntech and First Solar to become the world’s largest PV manufacturer by shipments.
Yingli’s CEO, Miao Liansheng, noted that the company’s European market share fell to 45.17%, while the Chinese market rose to 36.71%. Emerging markets, though still small, are growing rapidly, increasing from 2% in 2011 to 7.82% currently. The company expects to achieve profitability in the first half of next year, signaling a potential turning point.
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Wuxi Jinshanghua Environmental Equipment Co., Ltd , https://www.jshfountain.com