After entering the photovoltaics industry, Shi Zhengrong was forced to make a livelihood ByChance more than 20 years ago. But when the photovoltaic industry is at its lowest point right now, his confidence is not full of ByChance. As the world’s largest solar PV module manufacturer, China Suntech Power Chairman and CEO Shi Zhengrong, said in an exclusive interview with Reuters that the frustration experienced by the photovoltaic industry in the long term will not prevent it from eventually replacing traditional energy sources; in the short term, the industry price war may be down. Six months later, Suntech and the industry may turn losses into losses as early as the fourth quarter. He also stated that thanks to the strong position of Suntech’s global supply chain and sales channels, no matter how much the US’s double taxation (anti-dumping and countervailing) final tariff rates on Chinese-made PV products, it will not affect sales in the United States. This year's sales in this market are still expected to increase by 40% year-on-year. Looking at the development of energy technology, it becomes a familiar process from being very strange to becoming more and more people aware. This is a process. This process cannot be easy, it can even be questioned and it can be criticized, but its curve is definitely an upward direction. Shi Zhengrong said. Who can see this, I think whoever will have great confidence in this industry. He said. In 2011, turmoil in demand caused by changes in subsidy policies in major international PV markets caused the previously lucrative and massive expansion of the PV industry to fall into the dilemma of oversupply. Product prices plummeted and inventory levels led PV companies including Suntech to make losses. The entire industry to restore profits depends on the fourth quarter, I think it is very difficult in the first half. The main reason is that prices have fallen and gross profits have fallen. Large scale means operating costs are still there. He also said that in the second half of the year, the prices of the industry should be able to stabilise, and the cost will drop even faster. Perhaps there is hope. He predicted that the price of polysilicon, the main raw material for photovoltaic cells, will be stabilized after falling below 30 US dollars per kilogram this year, and that there are not many silicon companies that can start operating at this price. In the long run, the price of crystalline silicon is expected to stabilize at 30 U.S. dollars, and there is little chance for a substantial rebound. The era of sky-high price of 500 U.S. dollars was gone forever. Last year, Suntech Power shares fell 72.4%. However, due to favorable stimulus such as a surge in shipments in the fourth quarter of last year, its share price has risen by 33% since the beginning of this year. A total of 26 analysts at Reuters predicted that the average price of its target price is US$2.53, which means that the current stock price of US$2.95 or 16.6% still has room to fall, indicating that the market’s pessimistic attitude towards Suntech and the photovoltaic industry has not yet been completely improved. China's PV manufacturing industry currently accounts for half of global production capacity, but it is also the first to suffer from the impact of the industry downturn last year. Among other global top ten companies, Trina Solar and Altus have recorded losses. Optimistic about European and American markets, the risk comes from China The domestic industry is currently uneasy about how the U.S. double reversed the final outcome. Shi Zhengrong's comment on the double counter is very simple, Badluck (luck is bad). He believes that for the industry, it is a double-shuffling move that will eventually hurt the United States’ own employment. At the end of last year, the United States launched a double investigation on China's photovoltaic products. Prior to the initial ruling, the United States decided to collect a maximum of less than 5% of the countervailing duty rate, far below market expectations. However, the United States will make an anti-dumping ruling at the end of May, and the industry expects that the combined maximum tax rate may still reach nearly 25%. This will result in the complete loss of price advantage for PV modules assembled in China in the US market. Shi Zhengrong believes that the final result is difficult to predict, but regardless of the outcome, it will not affect the development of Suntech in the US market. This year, the market is still expected to grow by 40% compared to the same period last year. 123 This year, our sales in the United States still grew by about 40% from last year. Let's say this, our sales in the United States should not be affected by this. Suntech is a global company with a global supply chain. He said. He also expects that overall global demand is expected to be flat, or a 10-20% increase. According to Solarbuzz, a world-renowned solar energy industry research institution, the installed capacity of the global solar PV market reached a record high of 27.4 GW in 2011, an increase of 40% year-on-year. In the annual report, Suntech expects shipments in the first quarter of this year will fall about 30% from the previous quarter, and annual shipments are expected to be between 2.1-2.5GW, which is only marginally higher than 2.1GW last year. The shipment target is also about 400MW. Uncertainty. This uncertainty is mainly from the Chinese market. The Chinese market as a whole should be good, but due to irrational domestic prices and irrational payment methods, we must make a very careful assessment of each project. He said. He predicted that the Chinese market's demand this year will be around 4-5 GW, and its goal is to achieve 8-10% market share. The demand scale forecast is also significantly higher than the official plan. Liu Tienan, director of the National Energy Administration of China, said that in 2012, the first batch of solar photovoltaic development plans with a scale of 3GW will be implemented during the 12th (2011-2015). Step by step Shi Zhengrong’s confidence also comes from careful judgments and strategies. Under Professor Sun Green from Australia's New South Wales University, known as the father of solar energy, Shi Zhengrong is one of the few CEOs of technology in China's photovoltaic industry. Dr. Shi's name is more familiar. Suntech has suspended capacity expansion this year, maintaining battery and component capacity at 2.4 GW, and slightly upstream wafer production capacity at 1.6 GW. Shi Zhengrong also said that the expansion must wait for the market to stabilize a little afterwards. In the annual report, Suntech also bearish on the performance of the first quarter. It is expected that the revenue in the first quarter will fall by 30% from the previous quarter. Shi Zhengrong said that on the one hand, the first quarter itself is lowseasons (low season). On the other hand, in the current situation where the market is not very clear, we have stricter control over the inventory and would rather lose some opportunities. I would not take this risk and create even more inventory. He also stated that the revenue in the second and fourth quarters will be much higher, and whether the company can make profits throughout the year depends on the market conditions in the second half of the year. As far as the current situation is concerned, the market expects Suntech Power's revenue to shrink by about 30% this year to approximately US$2.225 billion. A total of 35 analysts from Reuters I/B/E/S forecasted that they would choose to hold and reduce each of the 14 and another 5 analysts chose to sell. The market expects Suntech's gross margin to improve quarter-by-quarter from a low of 5.51% in the first quarter and recover to more than 10% in the second half of the year, reaching a level of around 8.8% for the year. In addition to the suspension of expansionary expenditures, Suntech also plans to substantially reduce its costs in 2012. Capital expenditures will be reduced by two-thirds to US$120 million from last year, and operating costs will be reduced by 20% to US$320 million. In terms of prices, Shi Zhengrong stated that Suntech was forced to take measures to cope with the irrational price cuts of its competitors. Industry data show that in the fourth quarter of 2011, Suntech's average sales price fell 43.2% from the first quarter to 1.25 US dollars per watt. During the same period, Yingli's decline was 53.2%. Altus CSIQ.N and Trina Solar decreased by 61.8% and 66% respectively. %, approaching 1 dollar mark. Shi Zhengrong stated that when the European and American markets grow slowly, they are more inclined to buy well-known brands. In addition, Suntech's guarantee for quality has made its price more premium than its competitors. However, due to global overcapacity, the industry has gradually returned to rationality. The era of huge profits in this industry has Gone (end), OK? Come back to pay it! Shi Zhengrong said with a smile. PPGI Corrugated Sheet,Corrugated Roofing Sheets,Galvanized Corrugated Sheet,Clear Corrugated Roofing Sheets SHAOXING YOTO IMPORT&EXPORT CO., LTD , https://www.sxyotoes.com