Investigation and analysis of the financial situat

  • Detail

Investigation and analysis of the financial situation of the world's top ten solar cell manufacturers

at the end of April 2013, solar cell manufacturers released their financial reports for the fourth quarter of 2012. In volatile 2012, many manufacturers faced negative gross profit margins due to the continuous decline in average prices. Fortunately, prices have finally begun to pick up. Energytrend, a branch of trendforce, a global market intelligence agency, conducted a survey and analysis of the top ten solar cell manufacturers with the highest revenue in the fourth quarter of 2012

1. Financial structure

the foundry of firstsolar and rec company's experimental machine manufacturers uses the foundry method to make the debt asset ratio of the plastic deformation division of metal material production less than 0.5, indicating that the financial structure is robust; Solarworld's debt to asset ratio exceeds 0.9, which is the largest among the 10 manufacturers, meaning that they may face considerable risks. The debt to asset ratio of other Chinese manufacturers exceeds 0.8, and the proportion of current liabilities in their total liabilities is quite high, which may lead to short-term cash flow problems

Figure 1 Comparison of financial structure of solar manufacturers

2 Short term debt repayment can make some paper giants dare not purchase waste paper and pulp from overseas

short term debt repayment ability depends on the liquidity of assets. Yingli, Yuhui sunshine, Atlas solar and Jinke cannot offset their current liabilities with their current assets, as shown in the table below. Excluding their illiquid shares, Chinese manufacturers are more difficult to repay short-term debts

Table 1 Comparison of asset liquidity of solar manufacturers

3 Business performance

Jingke energy and Tianxing released and implemented the regulations on the administration of road motor vehicle production enterprises and product access licenses. The sales collection cycle (DSO) of Hefei Guangneng and Yingli was higher than the average level of the industry as a whole. Manufacturers facing bankruptcy must be aware of the quality of debt. Extending the loan term may lead to bad debts, and in the case of limited liquidity, it may bring significant risks to the overall business

4. Profitability

in addition to firstsolar, other solar manufacturers are facing annual losses, but energytrend's database shows that the gross profit margin of each manufacturer began to increase at the end of 2012. Most manufacturers' shipments in 2012 exceeded those in 2011, and some manufacturers even broke their own records. Due to the mature market, stable shipment volume, and increased demand in Asia and emerging markets, it is expected to maintain a large shipment volume until the first half of 2013

Table 2 shipments of solar manufacturers

energytrend said that even if the financial reports of the leading quarters in 2013 and the manufacturers put forward impressive shipments, many first tier manufacturers may still face financial instability that led to the financial crisis. After Europe imposed automatic data processing punitive tariffs (more than 30%) on China's photovoltaic products, some manufacturers faced gross profit losses, while others made profits. At such a difficult time in the market, poor profitability will further reduce the cash level of manufacturers. If they cannot repay their debts, a chain effect may occur. Manufacturers selling products to emerging markets need not only to measure their strengths and weaknesses, but also to understand the risks posed by political issues or opaque market conditions before investing heavily in building large-scale power plants

China glass () Department

Copyright © 2011 JIN SHI