The cumulative debt of China's top 10 photovoltaic (PV) companies has reached approximately 110 billion yuan. When considering the massive accounts receivable—statistics show that in the first three quarters of 2012, 41 listed PV companies had combined receivables of over 31.6 billion yuan—the financial situation in the sector was even more critical than it appeared on the surface. This period marked a deep crisis for the industry, with many companies struggling to manage their cash flow and meet financial obligations.
On December 27 last year, media outlets reported that Ni Kailu, founder and chairman of Super Solar, had gone missing. There were rumors he might have fled abroad. Later, it emerged that he and his family had allegedly taken a huge sum of 2 billion yuan and left the country. Recently, Ni Kailu reappeared in the media, claiming he was raising funds overseas to address the company’s financial difficulties. He admitted that Chaori Solar was indeed facing a severe financial crisis.
Industry experts have pointed out that the tightening of capital chains due to high levels of accounts receivable and bank debt is a widespread issue across the PV sector. Many companies are at risk of seeing their receivables turn into bad debts, which could lead to insolvency. To survive the current downturn, the PV industry needs not only a timely revival of the domestic market but also supportive policies from the government. These policies should help ease the pressure on banks to collect debts from solar companies.
Ma Haitian, an analyst at the Silicon Division of the China Nonferrous Metals Industry Association, noted that with the ongoing decline in the PV sector, there is a high probability that the large accounts receivable held by these companies will eventually become non-recoverable. If this happens, the capital chain could break, leading to bankruptcy. He added that some PV companies with weaker or more stable operations have started using spot cash payments to ensure smoother cash flow. However, he also highlighted that well-funded companies are still operating at the cost of increasing payables.
"Some companies mistakenly believe they have strong customer relationships and sufficient capital, underestimating the risks associated with bad debts," Ma said. "For current PV companies, just surviving is already a victory. Everyone is waiting for the industry to recover. Before the 'spring' arrives, no one wants to go bankrupt. To maintain market share and build long-term customer relationships, even if debt continues to accumulate, companies are willing to take the risk."
Disperison for PU coating is acrylic waterborne emulsion containing hydroxyl functional groups.
hydroxyl acrylic dispersion,acrylic emulsion for waterborne wood coating,acrylic waterborne emulsion
Shanghai Na Long Tech Co., Ltd , https://www.na-long.com