New reports of a government-sponsored rescue package being assembled for for fast-sinking Suntech (NYSE: STP) and other major solar firms highlight everything that’s wrong with China’s struggling solar sector, most notably exposing the ridiculous levels of state report it receives. At this point the Chinese seem to no longer care about denying the allegations of unfair government support made by their western peers, and instead are focused on simple survival as the industry remains caught in its worst ever downturn created by a massive supply glut. The western allegations have only made the situation worse for the Chinese, as both the US and the European Union have launched probes that are likely to result in punitive tariffs for Chinese-made solar cells imported into those markets.
Tag Archives: Suntech
Solar Day of Reckoning Nears
Despite China’s best efforts to avoid it, a much needed day of reckoning seems to be drawing nearer for the bloated global solar panel industry, which should include a major shake-up for Chinese firms that supply over half the world’s output. The latest signs of a looming judgment day are coming in news that US firm MiaSole has just agreed to be purchased by a Chinese buyer, and from Chinese giant LDK Solar (NYSE: LDK), which disclosed it has received a brief reprieve from its lenders for repayment of its rapidly souring debt.
News Digest: September 22-24, 2012 报摘： 2012年9月22-24日
The following press releases and media reports about Chinese companies were carried on September 22-24. To view a full article or story, click on the link next to the headline.
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- Microsoft Asks PetroChina (HKEx: 857), Others to Stop Using Pirated Office – Sources (Chinese article)
- Qunar Monthly Air Ticketing Revenue Surpasses Ctrip (Nasdaq: CTRP) (English article)
- Volvo Cars Likely to Miss 2015 China Sales Goal: CEO (English article)
- Suntech (NYSE: STP) Receives Continued Listing Standards Notice from NYSE (PRNewswire)
- Panasonic (Tokyo: 6752) Details Damage to China Manufacturing Sites (Businesswire)
Solar Companies “Right-Size” 太阳能企业“精简规模”
Traditional consolidation in industries suffering from overcapacity typically sees stronger companies merge and weaker ones close, resulting in a healthier, more sustainable sector where everyone is profitable. But such conventional “right sizing” is less common in China, where struggling companies in strategic industries are often kept alive through financial and other support from local governments that are highly reluctant to let those ventures simply fail or be purchased by outsiders. Such artificial support may save jobs, but it does nothing to solve the overcapacity problem that created the need for consolidation in the first place. That’s exactly the dilemma facing China’s struggling solar sector, which is now posting huge losses even though we’ve yet to see players close or merge despite a flurry of such activity in the West. In the absence of proper consolidation, Chinese companies appear to be taking the next-best logical step by shuttering idle capacity and implementing massive layoffs in a bid to stem their losses, according to one report. (English article)
Suntech: Rats Fleeing A Sinking Ship? 尚德：船沉鼠先窜？
After managing to stay out of the news for a couple of weeks, scandal plagued solar panel maker Suntech (NYSE: STP) has bounced back into the headlines with the announcement of the departure of its chief commercial officer, who is leaving for “personal reasons.” (company announcement) I don’t want to sound too crass on this otherwise lovely Monday morning in Shanghai, but this departure looks a bit like the proverbial “rats jumping from a sinking ship” that we often see just before a company implodes.
News Digest: September 8-10, 2012 报摘： 2012年9月8-10日
The following press releases and media reports about Chinese companies were carried on September 8-10. To view a full article or story, click on the link next to the headline.
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- Insigma (Shanghai: 600797), Cisco (Nasdaq: CSCO) Establish Cloud JV, Plan Overseas IPO (English article)
- Suntech (NYSE: STP) Announces Departure of Chief Commercial Officer (CCO) (PRNewswire)
- Alibaba’s Taobao E-commerce Site Signs Deal With US Film Rep to Curb Piracy (English article)
- FedEx (NYSE: FDX), UPS (NYSE: UPS) Win Domestic Parcel Delivery Licenses (Chinese article)
- Xiaomi Sells Out Second Batch of 200,000 Mid-Range 1S Smartphones (English article)
More Solar Outrage Over EU Probe 欧盟光伏倾销调查触发众怒
The headlines are filled this morning with chatter on the latest news that the European Union is launching an anti-dumping probe into Chinese solar panel makers, following a similar investigation by the US that is likely to result in punitive tariffs by the end of this year. In addition to news of the probe itself, most of the major Chinese panel makers have issued their own statements protesting the move, and Beijing has also expressed regret over the decision. Rather than always turning to these predictable displays of outrage and disappointment each time they receive a setback in this year-long dispute, the Chinese players might consider trying a more conciliatory approach if they really want to avoid a trade war over an industry that everyone agrees will be critical to the development of long-term sustainable energy sources.
Suntech: More Trouble in Italy 尚德在意大利惹上新麻烦
The sounds of a death knell for fast-falling solar star Suntech (NYSE: STP) keep growing louder, this time with word that Italian officials have charged a company affiliate for illegally abusing the country’s solar subsidies meant to promote clean energy development. After 2 weeks of nearly non-stop news about its questionable relationship with a firm that Suntech set up to buy its solar panels at inflated prices, Suntech had largely faded from the headlines as the stream of new revelations started to subside. But now we’re getting word that an Italian court has filed criminal charges against GSF, the fund that Suntech set up to build solar farms to take advantage of generous Italian subsidies. (English article)
News Digest: August 30, 2012 报摘： 2012年8月30日
The following press releases and media reports about Chinese companies were carried on August 30. To view a full article or story, click on the link next to the headline.
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- India to Restrict Chinese Telecom Equipment Imports (English article)
- China’s Fraud-Hit Suntech (NYSE: STP) Strikes More Trouble in Italy (English article)
- Agricultural Bank of China (HKEx: 1288) Announces H1 Results (HKEx announcement)
- Suning (Shenzhen: 002024) Chairman Says Next Target Is Alibaba’s TMall (Chinese article)
- Lenovo (HKEx: 992) Aims to Hold 30 Pct Japan’s PC Market Share (English article)
Suggestion to Beijing: Let Suntech Fail 建议中国政府：让尚德倒闭
The past 2 weeks have seen solar energy pioneer Suntech (NYSE: STP) plunge into a downward spiral after revelations of questionable accounting, leaving the firm on the edge of financial collapse and its fate largely in the hands of Beijing. But rather than come to Suntech’s rescue, Beijing should let the company collapse to send a high-profile message that it won’t support companies that engage in such financial shenanigans.
Suntech CEO Resigns, Haier Hits Jingdong 尚德电力CEO辞职 海尔停止与京东合作
I don’t like to write too much about the same topics in a single week, but I can’t really ignore separate breaking developments at solar cell pioneer Suntech (NYSE: STP) and in the e-commerce space that could be critical for the future of each. In the former case, Suntech has just announced the resignation as CEO of Shi Zhengrong, the company’s founder who was once lauded as a visionary when Suntech became China’s first publicly listed solar panel maker in 2005. (company announcement) In the latter case, leading Chinese home appliance maker Haier has announced it is severing its relationship with Jingdong Mall, also known as 360Buy, as the temperature continues to rise in a rapidly escalating price war that has broken out this week with rivals Suning (Shenzhen:002024), Gome (HKEx: 493) and others. (English article)
