"China's solar energy company is not too good, and the industry's new round of shuffling is not far behind." Conergy, the largest solar energy company in Germany, will have a pre-tax loss of 150 million to 200 million euros this year. Ningbo Solar Energy Co., Ltd. The top executive said in an interview with China Business News yesterday. Industry profits have fallen sharply With the rapid development of the solar industry, the price of polysilicon, the main raw material for solar panels, has soared from $23/kg in 2003 to the current $250/kg. Polysilicon research experts analyzed that in 2010, the global polysilicon needs about 85,000 tons, the total supply is 58,800 tons, and the gap is 26,200 tons.
According to the data provided by the China Semiconductor Industry Association, the current market share of the highest 6-inch polysilicon chip, the price in 2003 was less than 0.9 US dollars, the single-chip price in the third quarter of this year has approached 9 US dollars. The market generally believes that $9 will be the upper limit of solar cell production costs. If the psychological price of $9 is exceeded, the net profit of solar cells will be almost zero.
Since the cost of silicon wafers in solar cells has already accounted for 70%, the profits of Chinese solar companies have also been greatly affected. Since 2004, the profit margin of solar cell manufacturers has started to decline from a high point. Wuxi Suntech's gross profit margin dropped from 30.3% in 2005 to 24.9% in 2006, and the net profit margin fell to 10.6% in the first quarter of 2007. Advancing to the upstream "Because there are not many enterprises that make solar upstream products in China, and the technology is also uneven, most of the domestic silicon materials that are needed for solar energy products are dependent on imports. Recently, the sharp price increase of silicon is a solar energy enterprise. Fatal blow." The person said.
"Now the price of silicon materials is so high, how can companies be unaffected?" Shi Zhengrong, chairman of Wuxi Suntech, said in an interview with China Business News.
"The current solution is to develop its own silicon technology and produce its own silicon wafers, in any case to seize the upstream of the industry." Shi Zhengrong also revealed that Wuxi Suntech is developing its own silicon technology, "the specific program can not be announced temporarily, this industry is now The competition is too intense." Shi Zhengrong said with a smile.
According to the plan of Ningbo Solar Energy Co., Ltd., Ningbo Solar Energy invested RMB 4 billion to establish Ningbo Silicon Materials Co., Ltd., which will be officially put into operation by the end of next year. In 2006 and 2007, the cost of importing silicon from Ningbo was even higher than 4 billion yuan.
Compared with Ningbo Solar's biting teeth, Tianwei Yingli seems to have a slightly better life. Although they have recently spent billions of dollars to develop their own silicon raw materials, the support of local governments has given them a little relief. “Baoding SASAC declares the project to the state to obtain state subsidies; at the same time, 15% reduction of corporate income tax, plus some subsidies from local finance, Tianwei Yingli has not yet been strongly impacted, of course, the current prices of raw materials and products. The impact on the company is inevitable," said Xiao Mingwang, deputy director of the State-owned Assets Supervision and Administration Commission of Baoding City.
"We will certainly not give up the core technology of silicon wafers. As for the form to be adopted, it depends on the results of our research." Peng Xiaofeng, chairman of Jiangxi Sevi, told reporters. Industry mergers and acquisitions will intensify. However, according to industry analysts, as the price of raw materials falls sharply and the cost of raw materials continues to rise, even if companies develop their own raw material bases, the price will be a “suffocating number”.
At present, the largest raw material producer in China is Luoyang Zhongsi, followed by Shaanxi Huayin and other enterprises. However, in general, the quality needs to be further improved, and the output is high and the price is high. "This has forced some middle and lower reaches to spend their money to build their own silicon base, but in the short term, these companies will definitely be hurt," said an industry analyst at Orient Securities.
"Now some enterprises are developing independently, some companies are seeking mergers and acquisitions, and opening up the photovoltaic industry chain for batteries, slicing, silicon wafers, etc. Next year will be the most intense battle in the photovoltaic industry chain." The analyst also said. New entrants push competition to a climax December 14, China's largest low-voltage electrical appliance manufacturer Chint Group announced that it has entered the solar industry since the day before, and decided to invest in Spain's largest solar power plant in Spain, involving funds of up to 120 million euros .
However, the industry believes that Chint is already in the low-voltage electrical field that has not satisfied the meager profit, and is looking for new investment opportunities.
Prior to this, Shanshan Co., Ltd. held the Eureka Solar Company with 73.31% of the total shares, which means that Shanshan Group officially entered the upstream of the photovoltaic industry.
"Now some private large enterprises have joined the competition, which means that the photovoltaic industry has been pushed to a climax." Zili said that the researcher of the Renewable Energy Development Center of the Energy Research Institute of the National Development and Reform Commission.
A deputy secretary-general of the China Solar Energy Association told reporters that although the current national policy can not provide much support for these enterprises, many local governments have “care” to a certain extent.
However, in the opinion of some insiders, this is not a good thing. Nan Cunhui, chairman of Chint Group, is currently the vice chairman of the National Federation of Industry and Commerce. Zheng Yonggang, chairman of Shanshan Group, has a great influence in the industry. There may be some help with the introduction of some plans and policies.

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