Photovoltaic manufacturing industry has seriously deteriorated

Photovoltaic manufacturing is deteriorating. "This year's industrial situation has deteriorated further compared to last year and the second half is worse than the first half." Wang Bohua, secretary-general of the China Photovoltaic Industry Alliance, lamented at the "IntersolarChina China Symposium" yesterday. He disclosed that at present, more than 80% of domestic polysilicon enterprises are in the state of suspend production. Only Jiangsu Zhongneng, Daquan and other companies are still maintaining production, but capacity utilization has dropped significantly. In addition, more than 50% of the small and medium-sized battery module companies have fallen into production and started to lay off employees at different levels.

“When we entered the photovoltaic industry four years ago, we all felt that we could make a fortune. After a good day, the price began to plummet, and the market suddenly tightened. Now our company is still holding on, but Many similar companies in the surrounding area have closed down.” The person in charge of a photovoltaic company in Jiangsu said with resignation. According to him, these small and medium-sized enterprises mainly attack overseas markets, and the United States and the United States have the most serious attacks against them. In addition, because government subsidies did not achieve full coverage, they could only rely on production cuts and production cuts to go through low tides.

For the current status of China's photovoltaics, Li Junfeng, secretary-general of the Renewable Energy Special Committee of the China Resources Comprehensive Utilization Association, used the term “abandoned children” to describe it. “When the photovoltaic industry booms, the whole world treats him as a darling. Investment community, government, industry No one in the world does not applaud him." According to reports, at the time a photovoltaic module was 4 US dollars/Watt, and a system was 7-10 US$/Watt. Now, one component is less than $1/Watt, and one system is less than $1.5/W. "Now the PV is like an outcast, even worse than an abandoned child. The media criticized him and the financial industry rejected him." Li Junfeng said.

However, in fact, external market tightening is the biggest pressure for photovoltaic companies. The U.S.’s anti-final ruling imposed a tariff ranging from 23% to 249.46% on China’s PV companies, and the EU and India’s twins followed. It is understood that China's overseas PV market accounts for nearly 90% of the total, and nearly half are in Europe. Therefore, the EU’s dual impact on Chinese PV companies will be even greater.

In response, Reinhold Buttgereit, the secretary-general of the European Photovoltaic Industry Association, told reporters yesterday that trade frictions are a matter of competition for fisheries. "The implementation of photovoltaics will be counterproductive, and other industries such as thermal power and wind power will benefit," he said. Look forward to the results as soon as possible. However, the adverse effects of the double reverse have now appeared. According to Wang Bohua, orders for domestic PV equipment are expected to decrease by more than 80% this year, far higher than the global decline.

The dilemma of photovoltaic companies is not limited to these. “The company’s hematopoietic capacity is deteriorating, the recovery period of accounts receivable is growing, cash flow is tight, and there is a risk of cash breaks,” Wang Bohua further explained. He also explained with the example of a battery assembly company that the liabilities of the ten photovoltaic companies currently listed in the United States are as high as 17.5 billion U.S. dollars, and the average debt ratio is about 70%, and even the highest ones are nearly 90%.

Faced with the overseas setbacks of photovoltaic companies, the government has recently begun to rescue each other. Not only has the government issued frequent favorable policies, but it has also vigorously promoted the demonstration of large-scale distributed power generation applications and Golden Sun demonstration projects. However, Wang Bohua pointed out at the same time that expanding demand in the domestic PV market also requires rational planning. “Regulation of the market needs to be carried out simultaneously and the backward photovoltaic companies must not be revived”. According to its forecast, from 2013 to 2014, some photovoltaic companies that are not competitive will be eliminated naturally.