The following press releases and media reports about Chinese companies were carried on September 18. To view a full article or story, click on the link next to the headline.
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China Electronics in Talks to Acquire US Chipmaker Atmel (Nasdaq: ATML) （English article)
Alibaba’s (NYSE: BABA) Rise and Fall: What Comes After the Historic Wipeout? (English article)
Rail Giant CRRC Ramps up Overseas Drive as Unit Signs Las Vegas-LA Deal (English article)
Yingli (NYES: YGE) Signs Its Largest Solar Panel Supply Agreement to Date in China (PRNewswire)
Baidu (Nasdaq: BIDU) to Sell Off Music Unit Amid Copyright Difficulties – Source (Chinese article)
Bottom line: Trina’s plan to separately list its solar plant-building assets is likely to meet with lukewarm to frosty demand, while Yingli’s downward spiral will continue as customers abandon the company due to its financial weakness.
Trina eyes IPO for plant-building unit
More signs of stress are on display in the solar panel sector, where shares of the stumbling Yingli (NYSE: YGE) are coming under pressure after its latest earnings report and a new plan by Trina (NYSE: TSL) to separately list some capital-intensive assets has overtones of desperation. These 2 stories reflect the intense pressure solar panel makers continue to feel as their sector still struggles to recover from a downturn that dates back 4 years due to massive oversupply.
Panel prices have rebounded somewhat over the last 2 years and many of the best-run companies have returned to profitability during that time. But intense pressure still remains for less well-run companies like Yingli. Even better performers like Trina are feeling pressure as they pour massive money into construction of new solar power plants, in a bid to create more demand for their products. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 9. To view a full article or story, click on the link next to the headline.
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Bottom line: China is likely to see 1-2 of its weakest major solar panel makers close over the next year in a campaign led by Beijing, with Yingli as the most likely candidate to make the first exit.
Yingli’s star grows dimmer
A couple of new reports from the Chinese solar sector are shining a spotlight on consolidation that’s still needed before the industry can return to health. One report cites the Ministry of Industry and Information Technology (MIIT), the sector regulator, saying more such consolidation is necessary and the pace should accelerate. The second is a technical announcement from Yingli (NYSE: YGE), the weakest among China’s major panel makers, saying it has fallen out of compliance with US listing requirements due to its low stock price.
The appearance of these 2 news items on the same day is purely coincidence, even though both are related to the same phenomenon. That phenomenon saw global solar panel production explode over the last decade, as scores of new plants opened in China in response to policy directives and other incentives from Beijing. Read Full Post…
Bottom line: Yingli’s use of crowd-funding to finance a small project and the bargain sale price of a small polysilicon maker reflect continuing struggles at second-tier solar companies and the need for more consolidation.
Desperate Yingli tries crowd funding
Two solar energy stories are showing how overcapacity continues to haunt the sector 2 years after it began to emerge from a major downturn. The first involves a desperate-looking fund-raising plan from the struggling Yingli (NYSE: YGE), which is trying to use crowd funding to pay for a new solar plant. The other news involves another slightly bizarre investment in the space, with Internet titan Tencent (HKEx: 700) and real estate giant Evergrande (HKEx: 3333) paying a bargain price for Mascotte (HKEx: 136), a money-losing Taiwanese maker of polysilicon, the main ingredient used to make solar panels. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 1. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Eyes $600 Mln Investment in India Online Payment Firm Paytm (Chinese article)
Baidu (Nasdaq: BIDU0 to Invest 20 Bln Yuan in Nuomi.com Over Next 3 Years (English article)
KFC (NYSE: YUM) Forms Alliance With Alipay (Chinese article)
Yingli (NYSE: YGE) Seeks Public Solar Investment With Internet Financing Platform (PRNewswire)
Amazon (Nasdaq: AMZN) to Offer Loans to Sellers in China, 7 Other Countries (English article)
Bottom line: Yingli’s shares could rebound a bit as concerns ease about an imminent bankruptcy, while Hanergy’s shares are likely to continue sliding when trading resumes to correct from a massively speculative recent run-up.
Hanergy shares tumble
This week has been a volatile time for solar company stocks, which have taken a beating after Yingli (NYSE: YGE) warned about its ability to stay in business due to its heavy debt load. Now Yingli has put out a new statement saying its earlier warning was misinterpreted, helping to reverse a huge sell-off of its shares as it laid out the next big deadline in the struggle to repay its debt.
At the same time, Hong Kong-listed solar equipment maker Hanergy (HKEx: 566) has also been in global headlines, after its shares lost nearly half their value in just a matter of minutes in Wednesday trade. Media are focusing on the huge price swing, which no one seems able to explain. But this really looks like a story of stock manipulation by speculators rather than one of any significant change in the company’s prospects, which once again underscores the dangers of dealing in this kind of thinly-traded stock. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 21. To view a full article or story, click on the link next to the headline.
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Microsoft (Nasdaq: MSFT) Xbox One Gets $100 Price Drop in China to Boost Sales (English article)
Disney (NYSE: DIS) Opens Its First And Largest Store In The World In Shanghai (Businesswire)
Yingli (NYSE: YGE) Responds To Media Coverage Of Its Ability As a Going Concern (PRNewswire)
Bottom line: Yingli is in increasing danger of defaulting on its heavy debt load, which could result in a rapid and disorderly bankruptcy if its hometown government fails to provide support.
Yingli struggles under heavy debt
After sending out a steady series of distress signals over the last few weeks, solar panel maker Yingli (NYSE: YGE) has sent out its strongest trouble sign yet as it struggles under a huge debt load. The most recent signal comes in a new filing with the US securities regulator, in which Yingli says its big debt could threaten its ability to survive, potentially making it the latest casualty in a clean-up of China’s bloated solar panel sector. Such an outcome would see Yingli follow in the footsteps of former high-flyers Suntech and LDK, and would raise the question of whether others may soon follow down a similar path. Read Full Post…
Bottom line: Yingli appears to be in financial distress but will avoid defaulting on debt obligations coming due next week, while China’s broader solar panel sector is likely to face new anti-dumping tariffs in Europe later this year.
Yingli assures investors on bond payment
The solar panel sector has become quite a turbulent place these days, riding high one day on reports of major new plant construction, only to stumble the next on signs of conflict and financial distress. This kind of conflicting news reflects the fact that the industry is still in the midst of a major overhaul that could ultimately see a few more companies get closed down or purchased, leaving a smaller field of the biggest, best-run players to survive over the longer term.
The latest signs of distress are coming from Yingli Green Energy (NYSE: YGE), one of China’s largest players, which has just announced it has the necessary funds to pay off a bond that will mature next week. Some may see such an announcement as a sign of strength; but the fact that Yingli is taking the unusual step of making an announcement seems aimed at allaying market concerns that it might not make the payment. The other big distress sign is coming from reports that indicate Europe could soon re-launch an anti-dumping probe into Chinese solar panels, following complaints that the Chinese are violating an earlier agreement designed to avoid punitive import tariffs. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 24. To view a full article or story, click on the link next to the headline.
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17 Major Travel Agencies Unit To Oppose Tuniu (Nasdaq: TOUR) (Chinese article)
Hong Kong’s TVB (HKEx: 511) Sells Stake To China Media Capital-Backed Fund (Chinese article)
