Once again, photovoltaic giant: can Suntech and Yingli be reborn?

category:Finance
 Once again, photovoltaic giant: can Suntech and Yingli be reborn?


If you want to make a biography of important figures in the development history of Chinas photovoltaic industry, there will be a series of names joining Miao Liansheng: Shi Zhengrong, Zhu Gongshan, Li Hejun, Gao Jifan, Qu Xiaohua, Jin Baofang, Li Zhenguo, Liu Hanyuan, Cao Renxian, and Peng Xiaofeng, founder of Seville LDK, who is far away from the United States. With their courage and determination, they have created one photovoltaic entrepreneurship myth after another. But some of them are sad - Shi Zhengrongs Suntech electric power, Miao Lianshengs Yingli energy, Peng Xiaofengs Seville LDK have all flourished and declined and went bankrupt and restructured.

Fortunately, these former photovoltaic giants have been reborn. In todays new round of photovoltaic industry competition, there are many old trees emerging. What makes people sad is that in the future development history, the names of the founders who once went deep into the corporate gene may gradually be diluted.

Giant rebirth

Yingli energys bankruptcy reorganization is entering a critical stage.

21st century economic reporter learned from an informed person that Yingli energys merger and reorganization bill has been passed by creditors on October 9, and is expected to enter the implementation stage through judicial judgment at the end of October.

In the future, Yingli will transform to technology, green and service. A staff member of Yingli energy told the 21st century economic report that in recent years, the companys technological updates, photovoltaic plus applications and the development of green building materials products are all around this keynote.

In the eyes of employees, Yingli energy seems to be moving towards a green and stable development road, laying a new posture in the future. This is in sharp contrast to the image of price butcher in the industry ten years ago.

There is always a controversial section in the success history of each giant enterprise. The dispute of Yingli energy is that it has been labeled as market snatching without cost.

The well-known 69.6 incident is the beginning of the Yingli energy dispute. The person recalled that the event occurred in Dunhuang, Gansu Province, 10 MW photovoltaic grid connected power generation demonstration project bidding activities. As the largest photovoltaic power station in China at that time, the bidding of 10 MW photovoltaic grid connected power generation demonstration project in Dunhuang attracted attention. Domestic mainstream photovoltaic cell, module enterprises and power generation groups formed a number of consortia to participate in the bidding. Under the industrys view that the photovoltaic power price would be 2-3 yuan / kWh at that time, Yingli energys consortium quoted a low price of 0.69 yuan / kWh, which was astonishing.

Yingli energy has not failed to respond to the price butcher controversy. It believes that the whole industrial chain layout and cost control can support low prices. However, it is precisely because of Yinglis low price strategy that caused the price war in the industry later. Superimposed on the European and American double anti investigations in 2012, the entire Chinese photovoltaic industry ushered in a major reshuffle. The debt crisis of Yingli energy was ignited in 2015.

In this reshuffle, Suntech Power also fell.

In the course of the development of Chinas photovoltaic industry, Shi Zhengrongs reputation is better than that of the rising of the seedlings. In 2000, he returned home to start his own business with a thick business plan, which was supported by Wuxi Municipal government, and took Suntech Power into root here.

On October 10, this year, the foundation laying ceremony of zigbo Jingyou photovoltaic technology 3gw (phase I) solar module project (hereinafter referred to as Zibo project) jointly invested by Suntech new energy investment holding company of Suntech Power and Shanghai Daode was held in Shandong Province. The partner is also interested in our brand and quality, so that the project can finally be completed. An executive of Suntech Power said in an interview with 21st century economic reporter.

Shi Zhengrong spent five years to build Suntech into a world-class photovoltaic enterprise and landed in the US stock market. But he also spent eight years squeezed the bubble of Suntech myth. In March 2013, Suntech Power declared bankruptcy and was finally accepted by Shunfeng optoelectronics as a strategic investor.

In this years SNEC 14th (2020) international solar photovoltaic and smart energy conference and exhibition, Yingli energys booth, Longji Co., Ltd. and GCL group are in the same hall and competing on the same stage.

In fact, it is very difficult for Yingli energy to reproduce its former glory in a short time. An analyst of the photovoltaic industry told the 21st century economic report that the domestic photovoltaic industry has entered the stage of oligopoly competition in some subdivision fields. Whether Yingli or Suntech, what needs to be considered at this stage is to keep a firm foothold in the competition and survive first, then live.

At this years SNEC exhibition, Yingli energy will focus on efficient components. One of the two-sided modules adopts high-efficiency TOPCON battery technology; the other single-crystal module product introduces the technology of M12 (210mm) large-size silicon chip and the technology of three-piece multi main gate. In an interview with the media, Yingli energy related personnel said that in the future restructuring plan, the company mainly focuses on the production and sales of medium and high-end products. It is expected that the production capacity will gradually increase to about 10GW from 2024 to 2025.

Focusing on the battery and component business can reduce the financial pressure for Yingli energy. In fact, this is also the core competitiveness of the old group of photovoltaic giant enterprises. Therefore, they continue to choose the same field of electric power.

In the recently started Zibo project, the main component production line of Shangde power can realize the mass production of 210mm large-size high-power components, and it is expected to be put into production in March next year. Suntech Powers new production line mainly plans to produce 182mm and 210mm size components. Of course, the largest shipment volume is still 166mm size components. Suntech Power executives told 21st century economic reporter.

However, in this years PV industry chain prices rise, the days of module enterprises are not easy.

In July this year, affected by the production accident and natural disasters in the head polysilicon plant, the domestic polysilicon price has been rising all the way. Subsequently, the price rising pressure of this upstream material continued to conduct downward, and the prices of silicon wafers, batteries and components increased one after another. At the same time, photovoltaic glass, film and other auxiliary materials also join the ranks of price increases.

In fact, the price rise caused by tight supply is quite a headache for component manufacturers. Although component manufacturers can continue to transfer the pressure of rising costs by raising prices, the shortage of production materials leads to the failure of many component enterprises to release their production capacity. In an interview with the 21st century economic report reporter, the above-mentioned Suntech Power executives were quite helpless, many materials, such as battery chips and photovoltaic glass, have been locked in the head of large factories.

21st century economic reporter noted that components and silicon wafers together contributed nearly 90% of Longjis business income. However, whether the component and silicon business as a cash cow can continue to support the growth of market value depends on whether the capacity scale can continue to expand.

In order to ensure the smooth expansion of production, Longji has spent a lot of efforts on the supply guarantee of some photovoltaic materials: in terms of polysilicon materials and photovoltaic glass, Longji has successively signed long-term contracts worth about 9.5 billion yuan and 5.7 billion yuan, locking up the supply in the next five years. It is worth mentioning that at the end of September this year, Longji and Tongwei reached the cooperation intention of establishing a long-term and stable supply-demand relationship of polysilicon materials. The alliance of the two giants, to a certain extent, solves the problem of raw material supply for Longjis future expansion.

However, when resources are gathered in the hands of leading enterprises, other production enterprises may face production crisis. Fortunately, the shortage of photovoltaic materials supply will be eased in the short term.

The former photovoltaic giants that have made a comeback may not be able to spend a lot of money on expanding production and purchasing like Longji and Tongwei. However, in the layout of new products and technologies, Yingli energy and Suntech Power have followed closely.

This seems to be a decisive battle in the future gamble, the winner Phoenix Nirvana, the loser left the game.