Photovoltaic enterprises "huge loss" trend will continue in 2013

As of the end of March 2013, there have been few representative PV giant announced fiscal 2012 earnings, according to the filing shows Yingli PV giant net loss of 3.0644 billion yuan ($ 491.9 million), the net loss for the same period in 2011 to 32.09 one hundred million yuan; Trina Solar net loss of $ 266.6 million and a net loss of $ 37.8 million in 2011; Hareon and 2012 as a whole, only 2.0759 million yuan in profits, but Hareon and was amazing subsidies of 402 million yuan, so its actual loss.

2013, PV giant is bound to continue in 2012 "huge loss" trend, this judgment is mainly based on the following aspects: 1. Photovoltaic capacity will remain serious exceeds demand, some enterprises "down and die" has entered production capacity out a crucial stage, the local government does not quit, the reshuffle will be deadlocked. 2012 PV solar charge controller shipments of approximately 23GW, the actual capacity still being 35GW, was forced to withdraw after the toss last year, many of the industry's many small, but industry giants towering down, almost without exception in disguise assistance of the local government in large the photovoltaic enterprises or the dominant PV corporate restructuring, production capacity out of the space has been very limited.

Thunder and heavy rain from the demand point of view, the Chinese PV market, represented by China, emerging markets can only make up for the European market, the vacancy caused by the 2013 global PV buy solar panels demand may only be around 33GW smaller increase and left the largest market share of the Chinese PV companies is just 15GW, there are still huge asymmetry between demand and capacity phenomenon. 2. The PV prices weak growth, corporate profitability is still low. According to authoritative statistics, the domestic photovoltaic power plant bid price of PV modules in the 4.2 yuan / watt, currently only a handful of first-line enterprises can cost control at $ 4.

Although there is no competitiveness of the component costs of many second-tier companies, but these companies has been able to survive mostly vertically integrated enterprise, the components they produce mostly "homegrown" type, that most of the components used directly for themselves investment in the power plant, the backlog portion of the market share of traditional manufacturing enterprises. Polysilicon prices "rose" in a large space. Component price growth is weak because the capacity polysilicon prices upside.

First, in February 2013, the average price of imports from the United States, Germany, South Korea polysilicon only $ 17, the dumping trend is still evident, in this context, the Chinese government should not be determined only from the perspective of a retaliatory "dual" early CD results. Europe to China "double reverse" overseas polysilicon should levy a certain tax rate, otherwise all domestic enterprises closed down, capacity is highly concentrated the Chinese PV will be controlled by others, when polysilicon prices will probably not as they are now so low. Second, polysilicon prices do not improve, the profitability of enterprises will not change, not a permanent solution for polysilicon enterprises, in line with the price of 25 U.S. dollars / kg upstream enterprise status, also likely to be realized in the "dual" .

Global PV product prices fell sharply with the Chinese government's generous subsidies, Chinese companies through a variety of subsidies from the Government for the global free transport of photovoltaic small solar panels products, production capacity and technological progress but not a major factor. Double reverse if established, the photovoltaic market space was the backlog, fear not escape bankruptcy fate of a large number of photovoltaic companies, enterprises and local governments apparently this extremely afraid, but from another point of view, even if there is no European "double reverse" China PV business days but also where to go?

I would have thought that the "double reverse" the establishment of the Chinese PV industry will have long-term positive, "dual" out of a large number of backward production capacity, local governments also were unable to rescue the local businesses, the Chinese photovoltaic industry reshuffle to end soon. The bankruptcy is to disappear from the market, not the so-called restructuring, the oldest, largest enterprises die or quit, qualify as true sense of capacity to contract.