The hottest photovoltaic enterprises need to take

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Photovoltaic enterprises need to take today's plight as a typical reflection

in order to save a solar cell company, the local government recently decided to include the repayment of a trust loan maturing in hundreds of millions of yuan into the financial budget. Once the matter was disclosed, it immediately caused many discussions. How did the enterprise fall into bankruptcy

in fact, the stock price of the company has fallen by more than 90% since the peak. In addition, the continuous decline of the company's bonds has also triggered concerns about the credit market in China's bond market, which may break the record that China's bond market has never defaulted for many years

this enterprise is a representative enterprise in the transformation of China's economy from traditional industries to emerging industries. Its dilemma today is a typical case that China must reflect on in developing emerging industries. As investors, what lessons can we learn from it and how to invest in China's emerging industries in the future

first of all, we should attach great importance to the development barriers of the industry. From the upstream polysilicon raw materials, the midstream silicon chip cutting and cell chip production, and the downstream module production, the technical difficulty of the solar photovoltaic industry is getting lower and lower. Without the obstacles of technical barriers, the whole industry will soon blossom everywhere and the production capacity will expand rapidly. A sound patent and intellectual property protection system is a prerequisite for the development of emerging industries, so that innovators can be encouraged and protected, and advantageous enterprises with technology patents can become bigger and stronger. Unfortunately, China does not pay enough attention to the protection of patented technology and intellectual property rights. The technology patents of some advantageous enterprises are soon imitated by competitors, and the original high-tech emerging industry has become a simple manufacturing industry

secondly, we should pay attention to the changes of industry demand. As the power generation cost of solar photovoltaic is higher than that of traditional electricity, the use and promotion of downstream photovoltaic cells depend on government subsidies. Germany gradually lowered the subsidy price, while other European countries began to control the total amount of photovoltaic cell installation subsidized by the state due to the impact of the debt crisis, resulting in a slowdown in the growth of the global photovoltaic market. In the early stage of development, many emerging industries cannot do without government subsidies. Therefore, we should always be vigilant about whether the government subsidies will decrease and whether the market demand will decline once the emerging materials show vitality

third, we should pay attention to the core competitiveness of enterprises. Although the solar energy industry is highly competitive at present, some enterprises that master core technologies still maintain a good cash flow relying on their low-cost advantages. Once the industry recovers, these companies are expected to take the lead in benefiting. Especially in the polysilicon manufacturing link upstream of the solar energy industry. 3. We should explore and establish a cooperation mechanism. The difference in technology will lead to the difference between life and death of different companies. High cost companies are difficult to endure the industry trough for a long time

and stay away from simple manufacturing industries and companies that are overextended. Since 2006, the tension machine often used on the field has been equipped with a computer to control the whole operation process of the experiment and the storage and analysis of data. The domestic photovoltaic cell capacity has grown from less than 1GW to 30GW in 2011, and the polysilicon output has grown from less than 1000 tons to 80000 tons, with a capacity of 150000 tons. With the assistance of governments at all levels, a sunrise industry has become an industry with serious overcapacity and large-scale losses

fourth, we should pay attention to the balance sheet of enterprises. Once the industry falls into a trough, companies with fragile balance sheets will face a crisis. Solar PV is a capital intensive industry. Due to the deterioration of the supply and demand situation of the entire solar market, those assets formed by high investment soon became assets with low capacity utilization, and high liabilities became the root cause of the bankruptcy of the enterprise. The most frightening thing is that the solar energy industry is still undergoing technological innovation. The capacity formed a few years ago is difficult to form an effective capacity after the next round of industry cycle reversal. Those emerging industry companies that expand through high investment and high debt are essentially simple manufacturing industries, and investors should be vigilant

in short, we should not be confused by the aura of "emerging industries". Compared with traditional industries, emerging industries also have huge risks. In emerging industries, we should look for enterprises that really have technical barriers and innovation capabilities, look for enterprises that light asset investment, can create good cash flow, and have excellent business models, and care about the expansion speed of the entire industry and changes in downstream demand, so as to avoid risks and truly obtain good investment returns from the growth of enterprises in emerging industries. Zhonghua glass () Department

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