New growth region found amid ailing market for PV module makers
Chinese PV module makers are turning investments away from module manufacturing into building solar power stations, amid bleak market prospects for PV-related products due to low market prices coupled with oversupply, and the upcoming EU sanctions on Chinese export of PV products, set to take place in June.
In the 2013 Q1 and 2012 annual reports, recent developments in two Chinese PV module manufacturers: Zhongli Science And Tech. Group Co., Ltd, Talesun (SHE: 002309) and Hareon Solar Technology Co., Ltd (SHA: 600401) are strong indicators of this trend. Although both companies posted substantial losses in Q1 of 2013, such losses are largely attributed to initial investments in overseas and domestic power station development projects, which are not expected to begin generating profits until Q3 or Q4 of this year. In particular, Zhongli is very optimistic that 2013 will end with profit gains for shareholders as turnover from power station ownership transfer deals starts kicking in later this year. Meanwhile, share prices for Hareon remain relatively high in the short term, as the company continues to receive a multitude of government subsidies and cash from its controlling shareholder Jiangsu Sunshine Co., Ltd (SHA:600220).
