The photovoltaic business gross margin rapid decline

China's photovoltaic industry encountered multiple reasons for the crisis in the industry, in addition to external factors outside of Europe and the United States double reverse policy, domestic enterprises, resulting in overcapacity is also a crisis intensification of one of the main reasons for the blind expansion, photovoltaic enterprises liabilities surged once again deterioration in the industrial environment.

According to data provided by the China Photovoltaic Industry Alliance, January-June 2012, polysilicon prices have dropped from $ 30.5 / kg to 23.6 U.S. dollars / kg, a drop of 22.6% in the gross margin of each PV solar grid tie inverter companies to drop sharply. Corporate profitability decline sharply. Maxim Group, the U.S. investment institutions research data shows that 10 of China's largest photovoltaic business debt accumulated up to $ 17.5 billion, or about 111 billion yuan, the entire PV industry in China is close to the edge of bankruptcy, which Suntech has recently been declared bankruptcy.

Photovoltaic giant Suntech recently declared bankruptcy in the industry once again brought to the cusp of public opinion, photovoltaic listed companies and liabilities also become the focus of attention. Beijing Daily Investment Weekly statistics published annual reports of 58 listed companies found that liabilities increased from 255 billion yuan in 2010 to 325.1 billion yuan last year, three years liabilities increased by 70.1 billion yuan. The plate is still half of the companies are not disclosed in the annual report, which also means that liabilities surged scale is far from the case.

Statistics iFinD, as of now, the the charge controller concept of plate has 58 listed companies officially disclosed in the annual report. Total liabilities of the 58 listed companies has reached 325.1 billion yuan, the previous two years were 304.6 billion yuan and 255 billion yuan. This means that the three-year liabilities of 58 solar companies surged by 70.1 billion yuan, an average annual growth rate of 13.7%.

The surge in debt at the same time, the photovoltaic listed companies profit margins are in decline step by step. The statistics show that last year's net profit of 58 listed companies totaled $ 130 million. 2011 and 2010 were 21.7 billion yuan and 23.6 billion yuan, is not difficult to see that the net profit of a significant downward trend. From the increase in liabilities and net profit of a marked decline in the two-party data can be very intuitive to see the plight of the moment photovoltaic enterprises.

Liabilities surge is mainly due to the large number of inputs expansion only in low-cost processing status as China's diy solar panels energy industry, the core technology lies in the hands of others. Encounter others trade constraints, the industry will fall into the development of the quagmire. "Solar practitioners of Beijing Chinese Commercial News reporter Biao Shi. "Suntech is actually through the acquisition of the rapid expansion of production capacity in order to meet the market demand. Final capacity digestion can not afford, and go bankrupt."

Industry boom is on the decline, but in recent years the solar photovoltaic industry, but instead "warming" and crazy sought after by a large number of capital.

Previously, many people in the industry are expected once the solar energy industry chain production costs decline, industry market space will be broader. This resulted in a large number of PV companies gambler mentality, almost regardless of the cost to expand the construction of the production line, in order to expand production capacity to capture the market share. Therefore, the objective reality caused by a surge in the current liabilities. the iFinD statistics show that of the 58 PV listed companies Non-current liabilities accounted for approximately 25% of the average of the total liabilities. This also means that 1/4 of the total corporate liabilities in a short period of time or place of business cycle than can not be easily converted into income.

It is worth mentioning that the insiders said, This figure was more than 50% of the enterprises are facing the risk of bankruptcy than in other enterprises. iFinD data show that such enterprises 6. Among them, Sichuan Investment and Energy 1.76% funds research reported that the data the highest, reaching 79.29%. However, insiders said that the data only by virtue of corporate liabilities or subdivision of a liability and not judge the risk of corporate bankruptcy. "Liabilities belong to the asset account, a single increase only in the expansion of the overall size of the corporate assets in most industries and enterprises will choose to expand the scale of production context, this data alone can not explain the photovoltaic industry, there is the risk of bankruptcy, but also should be combined with a comprehensive analysis of the ability of the asset is realized. "the source said.