China's photovoltaic industry, eliminate foreign mergers and acquisitions integration was imminent

Chinese PV companies MeV love Faso has recently signed with the German company SMA 72.5% of the equity transfer agreement, which caused a new round of domestic photovoltaic industry mergers and acquisitions wave of corporate thinking and concerns, but also highlights the domestic photovoltaic facing financial dilemma.

Analysis of the industry, although overwhelmed by foreign acquisition will not lead to mergers and acquisitions of domestic industry trend, but out of the industry consolidation is inevitable trend of development. Needed for the future development of photovoltaic timely introduction of complementary policy rules, so as to cultivate and strengthen domestic market.

Recently, the well-known photovoltaicinverter manufacturer Jiangsu Zhao volts love Faso New Energy Co., Ltd. and Global Inverter Suppliers SMASolarTechnologyAG signed an equity transfer agreement, the former confirm sell 72.5% stake, the two sides will conduct deep field of photovoltaic inverters level of strategic cooperation. This is undoubtedly to the current urgent "fire" of the Chinese PV industry Adds a fire.

It is understood that the acquisition will be completed via SMA's own funds, the acquisition is completed, SMA will hold 72.5% of MeV love Faso stake in the economic activity of the joint venture in January 1, 2013 officially started.

Foreign companies and Chinese enterprises choose this high-profile "hand", has raised many concerns about peer competitors, I do not know the Chinese PV helping hand of the "stick", or if they also pave the way for another one "clappers"?

Insiders analyzed that from the market point of view, through equity acquisition, foreign domestic enterprises to take advantage of existing channels and brand to enter the Chinese market more quickly; more important is that now is the low purchase price, MVA Love the equity transfer price index hit a triple equivalent, but the fact is that the domestic photovoltaic modified sine wave inverter companies are generally facing financial dilemma, we can say this is what we need.

Although some companies from abroad "dual" direct effect and still maintain an annual growth momentum, but also facing the same dilemma as the upstream and downstream industry chain, capital has become the most important dilemma facing the industry.

New Energy Co., Ltd., Guangdong Bao Wei domestic business unit manager Hezhao Xi said the company from the second half of 2011 to the end of 2012 more than doubled turnover, but has changed much bad debt, of which more than 40% of project funds not yet received back, which brings a more serious financial pressure.