Financial risks affecting the sustainable development of the photovoltaic industry

Order to ensure the cash flow the receivables cycle between the upstream and downstream enterprises in the industrial are constantly stretched each other delinquent accounts phenomenon is more serious fermentation gradually become the trend of the "triangular debts" affect China's photovoltaic industry to sustainable development .

The business pressure continued to increase, "triangular debts" problem highlighted. Photovoltaic root of the dilemma is that the market oversupply, a strong product homogeneity, causing a vicious price competition. Currently, industry consolidation has not yet substantive progress will continue imbalances in supply and demand stage, companies will continue putting downward pressure.

The debt ratio of PV solar panel companies in China are generally higher average debt was 80% of the 10 PV companies listed in the United States, in the case of monetary policy tightening, corporate cash flow is tight. In order to ensure the cash flow the receivables cycle between the upstream and downstream enterprises are constantly stretched each other delinquent accounts phenomenon is more serious, fermentation gradually become the trend of the "triangular debts".

Once business failures, fear will trigger a domino enterprises collapse of the wave, a large bank loan is uncollectible, fear of triggering a regional financial risks, the impact of China's photovoltaic industry to sustainable development.

Financial credit tightened financing rendering inertia. Considerable strength of China's photovoltaic business, and widespread debt high and tight cash flow problems, who can obtain credit support, who will be able to obtain opportunities in this seesaw battle. Of large financial institutions, large-scale PV solar panels companies prevalence of large loans, bankruptcy will cause its bad debt losses, financial institutions will likely continue their old customers credit support, to support its integration to survive or win.

Such as the National Development Bank will support our "six six small photovoltaic enterprises, 12 enterprises more than its previous credit object. But this may lead to some of China's dominant enterprises is more difficult to obtain bank financing is not conducive to the synergy of the ministries related to industrial policy.

Large-scale power generation groups involved in the manufacturing, power plant procurement highlights lock. Group of large-scale power generation is the main pioneers of the future PV solar module market, Golmud, Qinghai fastest national power station construction, for example, 5 generation Group companies accounted for 63% of the 2011 new grid 583MW power plant, while private enterprises accounted for only 12.5%.

The strength of large-scale power generation groups experienced plant operations, and the development of new energy demand, the application power station "Lutiao" advantage, is the main body of the construction of photovoltaic power plants in the future. In order to control the product quality and cost, these power generation companies are now involved in the battery manufacturing industry in varying degrees.

State Power and China Power Investment has to get involved into the manufacturing sector of the photovoltaic cells from silicon expect the manufacturing sector of the battery components, Datang, Huaneng and Huadian is also brewing. Will undoubtedly intensify photovoltaic power generation groups to get involved is supporting its downstream power station development, no intention to vigorously expand manufacturing sector, its capacity will be locked most of the domestic PV market, a direct result of the reduction of the domestic market share of PV companies, corporate dilemma, is not conducive to the decline in the cost of PV.

Overall, in 2013 China's photovoltaic industry is facing a "triangular debts" difficult to cut into supporting policies and other issues, industrial development will also be presented to the market localization, credit inertia tender locked three trends, these are not conducive to industrial specifications and the plight of the breakout.