Almost all China-based integrated solar makers facing financial pressure,says LDK Solar president Nuying Huang,Taipei;Jackie Chang,DIGITIMES[Wednesday 19 September 2012]China-based LDK Solar recently announced a huge net loss for the second quarter.On September 18,2012,the firm held a product launch for its M3 high-efficiency solar wafers in Taipei during which company COO and president,Xingxue Tong noted that almost all China-based vertically integrated solar firms are currently facing financial problems due to oversupply in the global market.
LDK Solar reported net loss of US$254 billion for the second quarter.The firm's debt ratio has reached 93%.To obtain more funds,LDK Solar has been transferring some property rights to the local government,confirmed Tong.At the end of the second quarter,LDK solar had cash and cash equivalents of US$296.2 million,a significant increase from US$135.7 million in the first quarter.
Tong noted that China's solar supply chain has been facing problems such as the US anti-dumping investigation and punitive tariffs.In addition,the anti-dumping investigations in the EU and India have been causing solar firms in China to face growing challenges.Hence,Tong added,the China government stressed its position during the visit of German Chancellor,Angela Merkel.Furthermore,China has sent representatives from the Ministry of Commerce to the EU for negotiations.China has been trying to expand domestic demand as the government recently announced is will increase its solar installation target to 20GW for its 12th Five-Year Plan period,said Tong.
Tong added that China-based firms can still survive even if their debt ratio reaches 120%.
Xingxue Tong,COO and president of LDK Solar
Photo:Shihmin Fu,Digitimes,September 2012
