China's large-scale solar manufacturing companies are buying overseas assets, but the heavy debt burden of these enterprises could lead to domestic acquisition target. The global solar manufacturing industry is currently flooded with excess capacity, the integration time is ripe, the Chinese are also included. China's large-scale solar manufacturing companies in the expansion process of the debt snowball.
The data show that U.S. investment firm Maxim Group announced the end of the first quarter of last year, including Suntech Power (STP), Yingli Green Energy Holding (YGE), LDK Solar PV Silicon Technology Co., Ltd. (LDK), China's top ten listed solar energy company Total debt amounted to $ 17.5 billion, and free cash flow loss of 4 billion U.S. dollars.
Clean energy market research company GTM Research analyst Sharma - Mehta (Shyam Mehta), said: "strategic overseas assets may prove to be very attractive." Chinese enterprises is the field of global solar cell production leader, but the United States last year, the Chinese-made solar panels levy high tariffs, the EU launched anti-dumping and anti-subsidy investigation of Chinese enterprises.
Shamar - Mehta said: "the acquisition of a European enterprise for a Chinese company to provide one to enter Europe duty-free channel from a balance sheet perspective, the very poor performance of China's large-scale solar energy companies, therefore lending institutions like the China State Development Bank for these enterprises to provide more strategic acquisition of funds. "
The Hina Holdings has acquired several in the European and American solar manufacturers struggling. Hina holding the price of slightly more than 500 million U.S. dollars last year, the acquisition of the German solar panel manufacturer Q-Cells subsidiary Solibro,. In addition, earlier this year, holding Hina acquisition of U.S. solar cell manufacturers MiaSole. Hina holding executives the MiaSole price of the transaction were not disclosed, but the transaction price MiaSole market value of the peak value in 2008, far below the $ 1.2 billion.
Shamar - Mehta said in a report, regardless of the overseas assets has much appeal, with the Chinese government to promote the integration of the domestic solar energy companies, not all large Chinese solar companies can survive. This means that like Yingli Green Energy Holdings, Suntech and other enterprises are not only potential buyers of troubled Western solar companies, and other enterprises in China may become a takeover target, weak balance sheet because of these large-scale solar energy companies.
The majority of China's large-scale solar energy companies need to recapitalize, but not all of these enterprises are likely to become the beneficiaries of China's state-owned lenders continued generosity.