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Digitimes Research: China solar firms continue to see losses in 3Q12 Kristina Shih, DIGITIMES Research, Taipei [Monday 7 January 2013]  Due to fluctuating demand in Europe, China-based solar module firms Yingli, Suntech and Trina Solar saw shipments in third-quarter 2012 decrease by 16.9%, 10%, and 9% respectively. Jinko Solar, on the other hand, benefitted from domestic demand, and saw total shipments increase by 20% in the same period. Yingli's accumulated shipments in the first three quarters of 2012 reached 1.55GW and expects total shipments in 2012 to exceed 2GW, representing growth compared to 2011. Due to the punitive tariff set by the US and loss of inventory value, net losses continued to plague China-based large-size solar firms in third-quarter 2012. According to Digitimes Research, the debt that major solar firms such as Yingli, Suntech, Trina Solar, Canadian Solar, LDK and Jinko Solar had accumulated as of third-quarter 2012 totaled US$17.5 billion. In particular, the debt ratios of LDK and Suntech both exceeded 80%. Despite having government support, it is difficult to turn the situation around quickly. China's solar supply chain has been suffereing from market imbalance and the anti-dumping and anti-subsidy investigations by the US and Europe. Therefore, China's government has been eager to promote domestic demand through its 12th Five-Year Plan, with programs such as a feed-in-tariff (FIT) of CNY5.5/kWh (US$0.88/kWh) and an installation target of 35GW before 2015. In the future, the government also plans to promote solar PV system demonstration projects in various regions and solve grid connection problems. Related stories: Suntech agrees on new forbearance agreement with converible note holders (May 16) OCI cancels polysilicon supply contracts with Suntech (Apr 30) LDK reports negative 4Q12 gross margin (Apr 19) LDK announces partial nonpayment for convertible notes due to cash shortage (Apr 17) Suntech executives hope to continue cooperation with Taiwan solar cell partners (Mar 27) Suntech: Bailout or fade out? (Mar 26) Suntech went from dominance to insolvency in two years due to multiple factors, says IHS (Mar 25) Suntech executives to hold talks with Taiwan-based partners (Mar 22) Suntech announces petition of insolvency and restructuring of China subsidiary (Mar 21) Suntech announces default with respect to 3% convertible notes (Mar 19) Access to China domestic solar demand limited (Jan 4) Solar cell dumping eases in China (Jan 3) Commentary: Are Japan-Taiwan solar alliances possible? (Jan 2) China solar equipment firm JYT succeeds in suing LDK for breaching contract, say reports (Dec 28) Polysilicon firms may reduce capacity to prevent further price falls (Nov 23) Canadian Solar reports 3Q12 revenues down 6.4% on-quarter (Nov 16) GCL-Poly completes sales of 48MW solar projects in California (Nov 16) Commentary: Economies of scale vs. larger burden in solar market (Nov 13) Top |
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