Suntech takes the initiative to adjust and expect a strong return

On August 15, 2012, Shi Zhengrong announced his resignation from the CEO position, which was taken over by CFO (Chief Financial Officer) Jin Wei. After Jinwei took office, he took a series of rectifications, including closing the P2 factory, mass layoffs, dismissing senior executives, and strategic adjustments... trying to redeem investors' hearts. In the face of industry difficulties and corporate crisis, how does Suntech look?

China's photovoltaic industry needs to continue to nurture

In the global downturn of the industry and the intensification of competition in the industry, Suntech, as a leading company in the industry, is not only incapable of self-improvement, but even bears the brunt of it. The anti-dumping investigations and anti-dumping investigations conducted by the United States and Europe both listed Suntech as mandatory respondent companies. On October 10th, the results of the United States’ double anti-final ruling were released. Suntech was also given a maximum tax rate of 35.98%.

In this regard, Suntech believes that because of its high share in overseas markets such as Europe and the United States, it will naturally become the focus of the “double reverse” or “anti-dumping” investigation. “As opposed to v., enterprises need to absorb a lot of manpower, material resources and financial resources. To a certain extent, they cannot affect the daily operations and management of the enterprise.” This is also one of the challenges faced by enterprises.

In response to the US "double reverse" sanction and European "anti-dumping" investigation, Gong Xuejin indicated that Suntech will actively respond to the following four aspects:

First, together with industry-related companies, under the guidance of relevant state departments, they actively cooperated with the relevant investigations and used reasonable and forceful evidence to prove that the company’s business activities were completely legal and fully complied with local laws and regulations of the relevant countries and to follow market competition. The law of fairness, there is no improper subsidies and dumping.

Second, actively communicate with relevant European and American departments and industry organizations, and jointly install and operate downstream companies to clarify that trade frictions and trade barriers can only bring impediments to the healthy development of the industry, delaying the advent of the era of solar energy, which is the era of clean energy and affordable Internet access. , and ultimately infringe the immediate interests of clean energy end-users;

Third, we must give full play to the production capacity of US factories, serve our local customers in close proximity and with high efficiency, and win the market with quality and service. This part of the production capacity is completely free of the double tax conviction rate, and is also the company’s four-year premise layout. the result of.

Fourth, integrate and rely on the advantages of the company's global supply chain to effectively avoid unfair taxation policies in the selection and use of raw materials;

Fifth, through technical innovation, restructuring, and process optimization, the company will continue to reduce production and operating costs and ensure the company’s product competitiveness in the market. This includes the recent frequent high-level personnel changes, Gong Xuejin said that personnel adjustment is only the normal content of business operations, the outside world should not be too sensitive speculation.

Actively adjust to self-change

Since the crisis of photovoltaics, banks have generally tightened their enthusiasm for photovoltaic companies. Not long ago, the list of the “six majors and six smalls” of China Development Bank that had been heated up was settled, and Suntech was among the supporters. In this regard, Gong Xuejin believes that from a business point of view, banks have different investment strategies in different periods and they can understand them. However, even in the current downturn of the industry, we all have a consensus that the future prospects of the photovoltaic industry are not the best, only better. Especially after the introduction of the PV industry development plan during the 12th Five-Year Plan period, the bank will be able to see the huge potential of the photovoltaic industry in the near future.

“Thus, this is also the support of the banks and even the policies for the industry. It will appropriately tighten the structural imbalances and repetitive transitional investment in the industry, and increase the support for the brand, backbone and leading enterprises to ensure the sustainable and healthy development of the industry and promote China. Excellent companies overcome the crisis ahead of schedule, emerge from the predicament, and regain the global advantages of China's photovoltaic industry."

Although Suntech is experiencing a "subversive" crisis like the industry, there is no doubt that the difficulties are only in stages. Suntech believes that it will surely be out of danger. Its goal is also very clear. "We will take the initiative to adjust and change ourselves. With the most economical scale, under the premise of quality leadership and service quality, we will once again win the trust of capital, market and all sectors of society."