According to the official account of China Photovoltaic Industry Association (CPIA), China Photovoltaic Industry Association (CPIA) recently held a "Symposium on High Quality Development of Photovoltaic Industry" in Beijing. The meeting clearly stated that efforts should be made to strengthen the crackdown on vicious competition in sales below cost prices, encourage industry mergers and reorganizations, and facilitate market exit mechanisms.
Since last year, the prices of the photovoltaic industry chain have continued to decline, and the problem of outdated production capacity is prominent. According to data released by the Silicon Industry Branch of the China Nonferrous Metals Industry Association on May 15th, the current price of polycrystalline silicon has exceeded the cash cost of all enterprises in production.
The author believes that the current problems faced by the photovoltaic industry can be analyzed in detail from two aspects.
On the one hand, many cross-border photovoltaic companies have previously fallen into development bottlenecks, some with outdated technological routes and some with severe performance losses. It can be said that under the influence of market rules, the first batch of companies to fall were mostly cross-border enterprises.
Two years ago, the high prosperity of the photovoltaic industry continued, attracting capital from all parties, including cross-border enterprises who wanted to get a share of the pie. When there is a strong demand for products in the industrial chain, some cross-border enterprises also enjoy industry dividends. But as production capacity continues to expand, the market enters a stage of oversupply, and cross-border enterprises with insufficient technological accumulation and financial strength face the risk of project failure, and outdated production capacity faces clearance. Since the beginning of this year, the photovoltaic projects of multiple cross-border enterprises have announced their termination. For example, ST Lingda plans to terminate investment in the construction of the Tongling 20GW high-efficiency photovoltaic cell industry base project.
On the other hand, many of the once popular old listed photovoltaic companies have reached the brink of delisting.
As of the close on May 23, with the overall upward trend of the photovoltaic concept sector, ST Aikang has hit the limit down and its stock price has dropped to 0.86 yuan/share; ST Sunshine's stock price has fallen for 14 consecutive trading days, at 0.74 yuan/share, and has been below 1 yuan/share for 6 consecutive trading days.
The current situation of ST Aikang and ST Sunshine is not an exception in the photovoltaic industry. As of now, 7 A-share photovoltaic companies have been "wearing hats".
From the perspective of the development situation of the photovoltaic industry, the China Photovoltaic Industry Association encourages mergers and acquisitions at this time, providing ideas for the high-quality development of the industry. This means that after experiencing multiple cycles of development, the photovoltaic industry has entered a critical period of survival of the fittest. The photovoltaic industry is gradually shifting from rapid expansion to a downturn, and the elimination of some enterprises is an inevitable trend.
The meeting also mentioned that the photovoltaic industry is a highly market-oriented industry, and it is more appropriate to solve the current industry difficulties through market-oriented means. However, the tangible hand of the government should also be fully utilized.
In my opinion, through mergers and acquisitions, resources within the industry will gradually concentrate towards advantageous enterprises. Meanwhile, advantageous enterprises can expand their scale, enhance market competitiveness, and better cope with market changes and competitive pressures by integrating resources. In addition, the outdated production capacity of the photovoltaic industry relies on low prices to compete in the market, squeezing the industry's profit space and disrupting market order. Mergers and reorganizations help enterprises optimize resource allocation, improve capacity utilization, reduce ineffective competition, and further alleviate industry difficulties.
The article is sourced from the internet!