China's top ten PV companies have over 100 billion yuan in debt

The cumulative debt of China's largest 10 photovoltaic companies has reached about 110 billion yuan. If we count a large number of accounts receivable (statistics show that in the first three quarters of 2012, the accounts receivable of 41 photovoltaic listed companies were as high as RMB 31.6 billion), the financial crisis of the photovoltaic industry was even more severe.

On December 27 last year, the market reported that the founder and chairman of Super Sun Sun Ni Kailu was missing. He said that he may have gone abroad. Later, it was reported that Ni Kailu and her father and daughter had fled with a huge sum of 2 billion. A few days ago, Ni Kailu appeared in the media in response to questioning on the road, saying that he was raising cash abroad to deal with the plight, and admitted that Chaori Sun had indeed been caught in a financial crisis.

A number of industry insiders pointed out that the tightening of the capital chain caused by high receivables and bank debt is indeed a common problem faced by the photovoltaic industry. A large number of accounts receivable is likely to become bad debts, leading to the bankruptcy of photovoltaic companies. To survive in the winter, the photovoltaic industry needs not only the timely start of the domestic demand market, but also the introduction of support measures at the policy level, which will allow banks to slow their debt payments to photovoltaic companies.

Ma Haitian, an analyst at the China Nonferrous Metals Industry Association’s Silicon Division, said that in the light of the downturn in the PV industry, there is a high possibility that PV companies’ high receivables will be converted into bad debts. Once these receivables fail to come back, the capital chain will break and companies will face bankruptcy. Ma Haitian pointed out that in the face of the current situation, some photovoltaic companies with relatively weak or stable operations have adopted the spot cash payment method to ensure the stability of capital flow. However, he also pointed out that some relatively well-funded enterprises are still operating at the cost of high payable accounts.

“They blindly believe that they have high-quality customer resources, abundant capital, and other advantages and advantages, so that the risk of the capital chain breaking may be underestimated when the accounts receivable become bad debts. For the current photovoltaic companies, as long as they can survive It is a victory, and now everyone is waiting for the industry to pick up on that day. Before the advent of photovoltaic companies in the spring, nobody wants to die early. In order to maintain their market share and cultivate their own customers, even if the debt is still to be produced ."