The Ministry of Industry and Information issued a document to promote the structural adjustment of the photovoltaic industry

On the last day of 2014, the Ministry of Industry and Information Technology (MIIT) issued a heavy document entitled "Opinions on Further Optimizing the Market Environment for the Merger and Restructuring of Photovoltaic Enterprises" (hereinafter referred to as "Opinions") in support of photovoltaic development, and proposed to accelerate the structural adjustment of the photovoltaic industry and promote the healthy development of the industry. By the end of 2017, a group of backbone PV companies with strong international competitiveness will be formed and the formation of 15 PV giants will be supported.

Zhao Yuwen, a photovoltaic industry expert, told reporters that after fierce market competition, the photovoltaic industry in the next few years will surely be a few photovoltaic oligopoly that will occupy more than 80% of the market's share. The documents issued by the Ministry of Industry and Information Technology will further accelerate the reshuffle of the photovoltaic industry.

Future photovoltaic giants occupy 80% of the share

For China's photovoltaic industry, 2014 is a year of ups and downs. However, the promulgation of favorable documents by the Energy Administration has also set the tone for the development of the photovoltaic industry in the next few years.

The “Opinions” promulgated by the Ministry of Industry and Information Technology proposes that by the end of 2017, a group of backbone photovoltaic companies with strong international competitiveness will be formed. The output of the top 5 polysilicon enterprises will account for more than 80% of the national total, and the output of the top 10 battery module companies will account for more than 70% of the national total. , Formed a number of photovoltaic power integrated development and application companies with a global perspective and leading strength.

In fact, current production of polysilicon and silicon wafers has achieved its target, and the production of polysilicon and wafers by several leading companies such as GCL-Poly and Longji Silicon has exceeded 80%.

In response, Zhu Gongshan, director of the Poly-Guangxie Board of Directors, said in an interview with reporters, “The photovoltaic industry in the future will have more than 80% of the market share of photovoltaic leading companies. These leading photovoltaic companies will guide the development of the entire photovoltaic industry. ."

Zhao Yuwen also stated that "In fact, the leading photovoltaic industry has already emerged. Among them, GCL-Poly, Hairun Photovoltaic, Shunfeng Optoelectronics, Yingli Energy, Hanergy Photovoltaic, and Trina Solar have formed a whole industry chain. It is possible to become an oligarchic company in the photovoltaic industry, and as these companies' market share further increases, some enterprises that do not have a competitive advantage will face the situation that they are eliminated.

Policy supports photovoltaic companies in mergers and acquisitions

The “Opinions” of the Ministry of Industry and Information Technology pointed out that it is necessary to improve the market operation mechanism, give full play to the decisive role of the market in resource allocation, and create a market environment conducive to the merger and reorganization of photovoltaic companies. In addition, it is necessary to further reduce barriers to cross-ownership mergers and reorganizations in PV companies and encourage state-owned enterprises, private enterprises, and foreign-funded enterprises to carry out mergers and acquisitions through various means such as mergers and acquisitions and share participation.

In addition, the Ministry of Industry and Information Technology also pointed out that it is necessary to guide upstream and downstream companies to strengthen cooperation and encourage upstream and downstream companies in the photovoltaic industry chain to establish long-term and stable cooperation relationships and improve the industrial chain structure through strategic alliances, long-term contracts, technical cooperation, and mutual equity participation. Focus on promoting the establishment of deep cooperation between polysilicon companies, battery and module companies, upstream manufacturing companies, and downstream power generation companies. Backbone photovoltaic companies supporting good operating conditions and leading technology will implement mergers and reorganizations with upstream and downstream companies, improve the industrial chain structure, and increase the profitability of the entire industry chain. Encourage the merger and reorganization of backbone enterprises and photovoltaic companies in the related industries such as electric power and chemical industry.

In the process of mergers and reorganizations, the government will give advantageous enterprises land, finance, and other resources, and scientific research institutions, industry organizations, financial and securities institutions will cooperate and support through various channels. Among them, in financial aspects, banking financial institutions are encouraged to innovate financial products and service methods that suit the characteristics of photovoltaic companies, and photovoltaic companies with high technological content, good prospects for development, and independent intellectual property rights will grow through mergers and acquisitions. Give full play to the guiding role of the relevant banks in the country, encourage commercial banks to improve the mergers and acquisitions system, implement comprehensive credit extensions for mergers and acquisitions, and acquire the underlying assets or equity as security. Support commercial banks in perfecting credit credit for mergers and acquisitions of photovoltaic companies. And allow qualified photovoltaic companies to issue preferred stocks and issue directional convertible bonds as a merger and reorganization payment method.

In this regard, Zhao Yuwen told reporters: “In the new round of competition for photovoltaic companies, companies will face the dual pressure of large capital demand and shrinking profits. Some small and medium-sized battery and component companies will be the focus of reorganization and mergers, especially in some Under the impact of leading companies with strong financial strength and high market share, some small and medium-sized enterprises with insufficient capital strength will experience a sharp decline in market share, and closure or mergers and acquisitions in the competition are inevitable outcomes.