Photovoltaic Companies Business China

 

Photovoltaic Business 2nd half, the game has changed

1. With the advent of the era of affordable Internet access, state-owned enterprises with absolute capital cost advantages have begun to accelerate their entry, and private enterprises have to reposition themselves and start the second half of photovoltaics.

 

Refer Solar Power in India

 

In addition to central state-owned enterprises, local state-owned enterprises have also begun to accelerate their "staking out of the race."

 

Since June of this year, major state-owned enterprises have been active in the photovoltaic field, and the degree of activity in equity transactions in the photovoltaic industry has surpassed that of any previous year. Huaneng Group, Shuifa Group, and Nangang Group entered the game with huge sums of money, making the photovoltaic industry gradually become a capital battlefield.

 

Previously, private enterprises had expanded their business operations too quickly and their strategic directions were not clear, leading to a situation of excessively high assets and liabilities and tight cash flow during the operation of the enterprise. In this process, subsidy arrears have also accelerated and worsened the situation. Photovoltaic private enterprises are taking a stance. 

When it comes to life and death, companies can only choose to "sell their lives to continue their lives", re-position themselves, and do what they do best in manufacturing.

At the same time, financing costs swallowed too much profit, and state subsidies have not been issued. Taking GCL New Energy as an example, the state owes subsidies as high as 6.2 billion, and GCL 

New Energy’s revenue of 5.6 billion last year is equivalent to being One year of revenue owed. It is better to transfer to central enterprises to revitalize high-quality assets.

 

2. For state-owned enterprises, because the process of parity grid access is accelerating, the manufacturing cost of photovoltaic systems is declining year by year. 

It is expected that parity will be achieved in the next year, and the profit of power stations will be greatly compressed by then, and the capital cost advantage of state-owned enterprises will be more prominent.

 

Therefore, speeding up the purchase of power stations of private enterprises at this time is the core capacity for future state-owned enterprises to compete in the photovoltaic field. "One sells his life to continue his life, and the other takes the opportunity to reap. Everyone is happy."

 

Now the wind power industry has formed an oligarchic situation. Leading enterprises have been born in the fields of silicon wafers and modules in the photovoltaic industry. In the case of obvious oligopoly, private enterprises have become lonely and difficult to support. "The world's largest photovoltaic EPC commercial special transformer electrician, last year, was a leader because of insufficient power stations. I can't hold it. The subsidy is in arrears and there is no cash flow. It is all book value."

 

On the one hand, on the manufacturing side, these leading companies will occupy a certain market share, and after central enterprises accelerate their acquisitions and enter downstream power stations, the price of power station systems is expected to accelerate decline. 

On the other hand, this will force photovoltaic mid- and upstream companies to reduce costs and increase efficiency. For small and medium-sized photovoltaic manufacturing companies, this will be a new reshuffle process.

 

3. Judging from the current situation, the "national aggregation" model may be a new starting point for industrial development. Previously, the photovoltaic industry, represented by private enterprises, has temporarily taken the lead in this war by virtue of the advantages of leading companies, and the huge financial strength of state-owned enterprises settling in will also bring more vitality to the market. 

For today's private enterprises, compared with the competition of the survival of the fittest in the past, the "play" of the photovoltaic industry is undergoing a fundamental change.

 

In the era of parity, from the perspective of power station developers, large-scale ground power stations will be the world of state-owned enterprises. However, distributed power stations are small, scattered, complicated in procedures, and difficult to develop. 

Leading private enterprises with photovoltaic modules, inverters, and EPC as their main industries can still open up this position while doing a good job in manufacturing.