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 Infopetro -> Industry in Focus

Two of China's Top 4 Solar Power Giants Suffer Losses in Q2


Suntech Power Holdings Co Ltd, the world's largest crystalline silicon photovoltaic module manufacturer, and LDK Solar Co Ltd, the global leading manufacturer of multi-crystalline solar wafers, both suffered losses in the second quarter of this year, partly due to price reduction of solar power in most of the European countries.

Loss of Suntech Power amounted to US$259 million in the second quarter, said the firm, adding that it terminated silicon chip supply agreements with several companies in the period, including two upstream firms MEMC Electronic Materials and CSG Solar AG, which caused a loss of US$105 million.

LDK Solar's loss for the second quarter was US$87.7 million, mainly dragged down by dropped prices of silicon chips and modules.

However, the other two Chinese solar power giants recorded profits in the second quarter of 2011.

Trina Solar Ltd, a solar power developer headquartered in Changzhou, Jiangsu Province, reaped US$11.1 million in profit in the second quarter, while the profit booked by Yingli Green Energy Holdings Co Ltd<YGE>, based in Baoding, Hebei Province, reached US$58.1 million in the same period.

Yingli Green Energy topped the four Chinese solar power firms with the highest gross margin of 22%, compared with the lowest 2.2% realized by LDK Solar.

Gross profit of Yingli Green Energy swelled 12% from a year earlier in the second quarter, while the other three solar power companies all had a year-on-year gross profit plunge with 70% in Suntech Power, 17.32% in Trina Solar and 89% in LDK Solar.

For the third quarter of 2011, Suntech Power said its PV module shipments are expected to swell 15% quarter on quarter with gross margin of 11% to 13%, compared with only 4.1% in the second quarter.

LDK Solar expects its sales revenue for the third quarter to be in the range of US$630 million to US$680 million. In the same period, the firm's shipments of silicon chip are estimated to be between 350 megawatts and 400 MW, and module shipments are expected to be from 250 MW to 300 MW.

According to statistics, China exported around 7.77 gigawatts of PV modules for a total of EUR 8.84 billion in the first half of 2011. Exports for the first quarter reached 3.53 GW, and the figure welled to 4.24 GW in the second quarter. But the average price per watt for the second quarter had a sequential decline of 19%, party due to fierce competition.

(chinaknowledge.com Sep. 2011)

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