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The 12 Types of PV Companies that are Most Likely to Cose Down: More Debts, No technology, and Single Customer...


PV Solar Industry

The photovoltaic industry is entering a new round of industrial integration. The policy is iteratively accelerated, low-price competition is rampant, and the industry's production capacity is over-represented, and the industry's oligarchy tends to be obvious. The phrase [a bright future" cannot sum up the real situation of the development of the entire industry. Just like the game in "Animal Manor", the strong devours the weak, the fist is big and the fist is small, and the business competition is extremely cruel. The analysis believes that in the next few years, the following 12 PV companies are likely to be eliminated in the new round of industrial integration and competition.

The first one: long-term cash flow is tight, stocks are high, and companies with serious triangular debts
Not only small enterprises, according to the analysis of the earnings of some listed companies, some medium-sized and large-scale enterprises also have very tight cash flow, and there are also some pressures on inventory. Some enterprises have high accounts receivable and management costs increase significantly. If there are no effective strategies and channels to solve the above problems and pressures in the long run, some enterprises will lose the ability to continue to operate, and eventually suddenly [broken" or even close down in the violent fluctuations of industrial policies or markets.

Second: companies without core technology, no innovation and motivation
Saying goodbye to the era of "scale advantage", the photovoltaic industry is developing with high quality and efficiency, reducing costs with technological innovation, and finally achieving parity online. You can't stop this trend. In this industry, once I have imitated the drawings, or gave people a job, I can make money, but that era is gradually drifting away. Even if you rely on the big tree, if you don't have core technology, you don't have the ability to innovate, and sooner or later you will be eliminated.

The third type: photovoltaic enterprises with extensive management of enterprises and incapable of reducing costs in management and operation
This year's PV front-runners bid for several times to issue the first round of warnings to enterprises. Next year's "super leader" is expected to bring more pressure to some companies. Enterprises should not only be technologically innovative, but also continually optimize management and operations to reduce overall costs to adapt to the era of increasingly low prices. For some medium-sized and large-scale PV companies, it is also necessary to establish a modern enterprise system with the best domestic and foreign companies as the benchmark to achieve sustainable growth.

The fourth type: medium-sized photovoltaic enterprises with the top leaders of the enterprise [knowing people without knowing themselves"
Some medium-sized PV companies have been established for some years, and they have also established a certain status in the market, and the leaders of the company can be regarded as a success, and it is time to "sit a break." After they have become famous, they may look at the head of the people and look dizzy. Therefore, there is no new and clear strategic plan: what to insist on, what to improve, how to innovate, how to stick to it, and how to face new competition.

Fifth: companies that rely too heavily on a regional market
If you rely too much on a country or regional market, once the policy or market changes, the company's survival may immediately fall into the realm of life and death. For example, Shanghai has a grid-connected inverter manufacturer, 90% of which are sold to the UK market. Today, the scenery of the UK market is no longer the fate of this manufacturer. This is just a manufacturer of inverter electrical appliances, and there are quite a few component factories. This 1-2 years depends on the British market, and the strength is maintained. The UK market suddenly changed, and some small and medium-sized PV companies in China soon faced the problem of bankruptcy.

Sixth: small and medium-sized enterprises that are involved in photovoltaics but are accustomed to twisting
As the industry recovers, other new capital entering the photovoltaic industry is also increasing. Especially in the wake of entrepreneurial trends and the promotion of related policies such as [Photovoltaic+", there are more and more cross-border companies emerging in the upstream and downstream of the PV industry chain. They cover all aspects of the upstream and downstream of the photovoltaic industry chain. Some of them are born out of the photovoltaic industry, and some may come from IT, big power, and even the industry where "the gossip can't beat". It is completely cross-border.
For such enterprises, the most taboo should be [empiricalism": different time, different markets, different industries, facing different employees or consumers, if you want to use the past feelings to do market, do channels, engage in contacts, It may not work in the photovoltaic industry. They are likely to be blocked in the fierce market competition, and there will be chasing troops in the future. In the end, they will be [suppressed to death".

Seventh: companies that rely on one or two big customers to discuss life
The term "big customer" always makes the eyes of the marketers shine. However, large customers sometimes face financial constraints, construction suspension, and planned changes. Large customers can generally rely on a while, but they can't rely on the world. Under the increasingly standardized industry, but the competition is becoming increasingly fierce, many big customers may not dare to continue to arbitrarily sprinkle money.
What should I do in the future? Companies that rely on one or two big customers are risky. Unless you are relying on a large customer at the first level. If you rely on the second, third and fourth level customers, high risk! Others are new companies that were established after the [single flight" of the original large companies. They may also rely on a fixed [big customer" or a single channel to survive, but the risk is also very high,big.

The eighth type: some enterprises that want to solve problems by [funding" and [crowdfunding"
According to the observation of entrepreneur Feng Lun, there are mainly three ways for private enterprises to allocate capital resources. One is to allocate resources by power levers, and the other is to allocate resources by means of market. Another is to raise funds by geography, kinship and blood relationship. Past historical evidence proves that most of the people who actually die in fundraising are grassroots private entrepreneurs. For some PV companies, if you don't have the privilege of configuring resources and the experience, knowledge and ability of the market to allocate resources, you have to take the private fund-raising route. When the law is too strict, it is easy to get out of the situation. Sudden death or accidental injury, so I went to the other side.

The ninth: obsessed with political and business relations, and the "tiger" officials are inextricably entrepreneurs or bosses
In China, officials of all sizes can be called politicians. Large and small bosses are also called entrepreneurs. The relationship between politics and business has evolved into a relationship between leaders and bosses. The development of photovoltaic enterprises is inseparable from the support of government departments and officials at all levels. However, things have two sides, and the investment in large-scale PV projects is huge, involving many bidding matters. Now the "anti-corruption storm" is still going on, and the tiger movement has not stopped.
In the past few years, the energy industry has been [handled" by a large number of tigers. The so-called [pull up the radish and bring out the mud", even if it is a very good business of photovoltaic enterprises, once the incident occurs, the consequences are unimaginable. The heads of photovoltaic enterprises should pay attention to it. In the fierce market competition environment, we must pay attention to physical health and avoid entering the hospital. Second, we must handle the relationship between government and business, and put more emphasis on corporate governance and innovation, so as not to enter the court.

The tenth: the "hacker" company, the shell company, the hit company
With the completion of relevant regulatory policies and the maturity of the market, many [body companies" in the photovoltaic industry rely on contacts and [roads" to live a productive life and perhaps go to the end (at least reduce) . The goal of the current industrial policy is to go online at a low price, and companies with technology, cost and management advantages can get more market share. In the past, the situation of [bad money expelling good money" has been obviously reversed. In the past, relying on [making relationships" every day, companies that use unscrupulous means to engage in [roads" and defraud subsidies will be squeezed out of the market.

The eleventh: a company that succumbs to strategic choices and owes too much money
Some medium-sized and large-scale companies may have lived in the past few years, but they must avoid strategic investment mistakes. There have been many lessons from the case of dragging down enterprises due to investment mistakes. Another company that is the easiest to dump is a large company with large accounts, which have large companies and small companies. The economy is down, and cash is king. The overall economic situation is not good, and the photovoltaic enterprises that are first dumped must be enterprises with poor cash flow. At present, in order to ensure cash flow, the accounts receivable cycle between upstream and downstream enterprises is also constantly expanding. Once individual medium-sized and large enterprises fail, they may drag on more companies.

The twelfth type: can not stand the vicious competition, see the photovoltaic "red dust", the initiative to leave the enterprise
Although the photovoltaic industry is very attractive, the business here is not good. How much money does PV make? If the subsidy falls or the subsidy is cancelled? The low price competition in 2017 and 2018 has reached the point of [malicious" and even [unbearable" for some investors. Then there may be enterprises that [see through the red dust" (none be disillusioned with the mortal world)and leave the photovoltaic industry – I am not mixing here, I am going to engage in the Internet. Going to eco-agriculture, can't you do it? Making money is not necessarily less than this!

Guangzhou City Poojin Electronic Technology Co., Ltd.
Business Type:Manufacturer
Product Range:Solar Inverter , Solar Charger , Solar Energy System
Products/Service:Power Inverters , Solar Inverters , Car Inverters , Solar Controller , Solar Generation Sysetm , Battery Charger
Certificate:ISO9001 , FCC
Company Address:Building B2,No.138,Pacific industrial zone(511340),GuangShen road,XinTang town,, Guangzhou, Guangdong, China

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