In fact, this is the recent report of some analysts depicted the Chinese solar energy company. Many Chinese solar companies to carry a heavy debt burden, while two years ago, seems to back the debt they helped a lot of help.
Is now in the United States re-evaluation for the new federal energy subsidies, loans and other programs on the occasion, some members are still new to the Chinese government for its domestic energy industry’s strong support as a reason the United States to provide equivalent support.
In fact, it is easy to get over the past three years, low-interest loans and other reasons, the Chinese solar energy enterprises to gradually increase capacity, and soon captured the market share of European and American manufacturers. According to Bloomberg New Energy Finance (Bloomberg New Energy Finance) data, only 2010, the National Development Bank to come up with $ 35 billion low-interest credit for China’s renewable energy enterprises. U.S. Energy Secretary Steven Chu (Steven Chu) 11 mid to House Energy and Commerce Committee (Energy and Commerce Committee) testimony had reference to that figure.
However, low-cost, mass production of solar panels has led to fierce price competition, now in turn, began to crack down on the same large group of market-leading manufacturer in China. This is probably caused by a loose financing unintended consequences.
Investment bank Think Equity analyst, wrote in the report, taking into account the profit margins to be suppressed, we have the entire solar industry is still worried about the level of debt; rise in net debt, the price decline, it is difficult to imagine the absolute increase in gross profit enough to offset the operating costs of existing and interest.
For example, the world’s largest solar cell maker Suntech Power Co., Ltd. (Suntech Power Holdings) market capitalization of U.S. $ 470 million of debt there is $ 2.4 billion. Wells Fargo Bank (Wells Fargo) to clients in late November, an analyst reported that the longer term perspective, Suntech’s debt seems to be uncontrollable; We believe that the fundamentals before the reunification, the company’s fate will be tied to the Bank of China the generosity of the industry.
March, “The Wall Street Journal,” held a forum, Suntech CEO Zhengrong Shi, chairman and asked him what advice to the United States. He hinted that bureaucracy is often cumbersome. Dr. Shi said, I sometimes feel that the United States may be too democratic. (He is not specifically refer to the solar industry or bank lending policies.) Analysts said, as Wells Fargo, Shi said different systems, perhaps the Chinese state-owned banks and other companies to continue to support Suntech one of the reasons.
Another Chinese company LDK Solar LDK (LDK Sola) Zengyin receive $ 8.9 billion line of credit caused by their U.S. counterparts envious. However, this huge amount of credit does not seem to let it become a market-leading companies.
November 15, Wells Fargo sent a letter to explain why customers abandon the study of LDK stock price, analysts Dubinsky (Sam Dubinsky) said in the letter, we expect, due to the china solar market is very sluggish, and in view of the company’s balance sheet has been poor (mainly constituted by the short-term debt), it will increase liquidity risk; in our opinion, LDK ability to maintain operations will depend on whether China’s banking sector have the patience to continue to grant short-term credit; pay off the debt may nature does not look.
Government supported,but bring bad result of solar companies
Posted by admin in News
In fact, this is the recent report of some analysts depicted the Chinese solar energy company. Many Chinese solar companies to carry a heavy debt burden, while two years ago, seems to back the debt they helped a lot of help.
Is now in the United States re-evaluation for the new federal energy subsidies, loans and other programs on the occasion, some members are still new to the Chinese government for its domestic energy industry’s strong support as a reason the United States to provide equivalent support.
In fact, it is easy to get over the past three years, low-interest loans and other reasons, the Chinese solar energy enterprises to gradually increase capacity, and soon captured the market share of European and American manufacturers. According to Bloomberg New Energy Finance (Bloomberg New Energy Finance) data, only 2010, the National Development Bank to come up with $ 35 billion low-interest credit for China’s renewable energy enterprises. U.S. Energy Secretary Steven Chu (Steven Chu) 11 mid to House Energy and Commerce Committee (Energy and Commerce Committee) testimony had reference to that figure.
However, low-cost, mass production of solar panels has led to fierce price competition, now in turn, began to crack down on the same large group of market-leading manufacturer in China. This is probably caused by a loose financing unintended consequences.
Investment bank Think Equity analyst, wrote in the report, taking into account the profit margins to be suppressed, we have the entire solar industry is still worried about the level of debt; rise in net debt, the price decline, it is difficult to imagine the absolute increase in gross profit enough to offset the operating costs of existing and interest.
For example, the world’s largest solar cell maker Suntech Power Co., Ltd. (Suntech Power Holdings) market capitalization of U.S. $ 470 million of debt there is $ 2.4 billion. Wells Fargo Bank (Wells Fargo) to clients in late November, an analyst reported that the longer term perspective, Suntech’s debt seems to be uncontrollable; We believe that the fundamentals before the reunification, the company’s fate will be tied to the Bank of China the generosity of the industry.
March, “The Wall Street Journal,” held a forum, Suntech CEO Zhengrong Shi, chairman and asked him what advice to the United States. He hinted that bureaucracy is often cumbersome. Dr. Shi said, I sometimes feel that the United States may be too democratic. (He is not specifically refer to the solar industry or bank lending policies.) Analysts said, as Wells Fargo, Shi said different systems, perhaps the Chinese state-owned banks and other companies to continue to support Suntech one of the reasons.
Another Chinese company LDK Solar LDK (LDK Sola) Zengyin receive $ 8.9 billion line of credit caused by their U.S. counterparts envious. However, this huge amount of credit does not seem to let it become a market-leading companies.
November 15, Wells Fargo sent a letter to explain why customers abandon the study of LDK stock price, analysts Dubinsky (Sam Dubinsky) said in the letter, we expect, due to the china solar market is very sluggish, and in view of the company’s balance sheet has been poor (mainly constituted by the short-term debt), it will increase liquidity risk; in our opinion, LDK ability to maintain operations will depend on whether China’s banking sector have the patience to continue to grant short-term credit; pay off the debt may nature does not look.