Small businesses are cautiously entering the photovoltaic industry

Those small and medium-sized enterprises that are disappearing may be trying to enter emerging industries encouraged by the government, but “blind transformation” may bring them greater risks. The energy-saving and environmental protection industry represented by photovoltaics, LEDs, etc. has always been the hot choice for transformation. “Transformation is to find death, not to transform is to die.” A textile foreign trade enterprise boss describes his current development dilemma. Lack of technology and funding made him struggle on the road to transformation and upgrading. Some companies seem to be somewhat confused about how to transform. Some people think that the transformation of SMEs is still somewhat wishful thinking before they solve the problem of survival. In the first half of 2011, more than 50,000 new and medium-sized enterprises were added to Zhejiang, and more than 10,000 were cancelled. But this data is not enough to reflect the real dilemma that SMEs are currently facing. Zhou Dewen, president of the Zhejiang Small and Medium Enterprises Promotion Association, said: "At present, 20% of small and medium-sized enterprises in Zhejiang are in a state of suspension and semi-stop work," and this number is likely to continue to expand. And those small and medium-sized enterprises that have been “deregistered” may not really disappear. According to data from the Zhejiang Solar Energy Industry Association, more than 60 small and medium-sized enterprises have entered the photovoltaic industry by the end of 2010 alone. For the current small and medium-sized enterprises in Zhejiang, transformation and upgrading is a topic that cannot be avoided. The energy-saving and environmental protection industry represented by photovoltaics and LEDs has always been a hot choice for transformation. But companies that have been immersed in traditional industries for many years do not seem to have found the key to unlocking future treasures. Three "wild" and two "high" profit margins are not as good as bank deposit rates. Who still has the confidence to do business? However, this may also bring greater risks to these SMEs. Zhou Dewen bluntly said that blind transformation may not help the enterprise "return to life", but accelerate the closure of the enterprise. On August 29, Lou Zhiming, deputy director of the Zhejiang Provincial Economic and Information Technology Committee, pointed out that the reason why the SMEs were extremely sad this year was that the international economy was fluctuating, macroeconomic policies were tightening, inflation was obvious, and factors were constrained. Some economists have outlined the predicament that SMEs are currently facing. They are three highs: the shortage of money, the shortage of people, the shortage of electricity, high costs, and high taxes. Zhou Dewen pointed out that the current difficulties faced by SMEs in Wenzhou are very different from those in the 2008 financial crisis. In 2008, many small and medium-sized enterprises were forced to stop work or even close down because they could not get orders. The dilemma of this time is that there are orders, but companies are afraid to pick up and are unwilling to pick up. "Because profits are too thin, many companies have only profit. 1% to 2%, even a loss." "Now everything is going up, labor costs are rising, raw materials are rising, but product prices can't rise year-on-year, otherwise they will not be competitive." Wenzhou Yueqing, an electric appliance company official said. When SMEs encounter operational difficulties, the "money shortage" problem they face is becoming more and more prominent. According to the monitoring data of the People's Bank of China Wenzhou City Center Sub-branch, from January to June 2010, Wenzhou's private lending scale was 80 billion yuan, and the comprehensive interest rate was 20.67%. In the same period of 2011, the scale of private lending in Wenzhou City has exceeded 120 billion yuan, and the comprehensive interest rate has climbed to about 24%. The transformation is imminent. The “low threshold” of photovoltaics has become the first choice for SMEs to upgrade and transform. In July, Wenzhou just launched the “Three Emerging Industry Cultivation Programs”, including: biomedical industry, energy conservation and environmental protection industry, and new materials industry. Among them, the “new materials industry” mainly involves new energy materials, new metal materials, and new chemical materials. The government's guidance has received many responses from SMEs. Hu Yongqiang, deputy general manager of Zhejiang Effie Energy Technology Co., said, “Now, there are so many companies entering the PV industry, largely because of the government’s policy orientation.” Effie is a subsidiary of Wenzhou Baoyi Group. The private valve group began to enter the photovoltaic industry in March 2010. The government's support is obvious. In the first half of this year, in the case of power shortages, the Wenzhou Electric Power Bureau implemented an “orderly power plan”, and many traditional enterprises were regarded as the first choice for “wrong users”. New energy companies can still enjoy a more favorable electricity policy. Land is another strong support given by the government. Hu Yongqiang revealed that Wenzhou's local resources are very tight, and it is generally difficult for traditional industries to get the land. But this year, Effie has got 120 acres of land for building factories, and it is almost free. Dangerous "transformation" Shen Fuxin, secretary general of Zhejiang Solar Energy Industry Association, told reporters that the first choice for SMEs to transform new energy is the solar photovoltaic industry. At present, there are about 200 PV companies in Zhejiang. At the end of last year, it was the peak period for SMEs to enter the industry. At the end of the day, there were more than 60 small-scale enterprises, most of which were small-scale enterprises with a capacity of 50MW. Zhang Xiaodong, general manager of Effie, said that in 2010, many small and medium-sized enterprises in various industries in Zhejiang all poured into the solar photovoltaic industry. Some of them used to be stationery, leather, and gifts. In his view, the main reason for the influx of SMEs is that the threshold of the PV industry is not too high. "The division of labor in the photovoltaic industry is too fine, the industrial chain is too long, and it is also possible to do the photovoltaic new energy. Now, the cost of a crystal pulling machine has dropped below 1 million, and the investment is 2~5. Taiwan can set up a company with a total investment of only a few million. After all, the photovoltaic industry is not only capital-intensive, but also labor-intensive," Zhang Xiaodong said. Hu Yongqiang seems that the most direct manifestation of the transformation of traditional enterprises into photovoltaics is that on the roads of industrial zones, on the signs of many enterprises, the left side reads “shoes, leather, leather goods” and the right side reads “polysilicon rods”. , silicon wafers." Hu Yongqiang pointed out that small and medium-sized enterprises are willing to switch to photovoltaic enterprises because the traditional industry competition is fierce and the gross profit is declining, while the higher gross profit margin of the photovoltaic industry is attractive to them. “Even if it is engaged in the production of silicon rods and wafers with the lowest technical content in the solar photovoltaic industry, the gross profit is higher than the traditional manufacturing industry.” However, Zhou Dewen pointed out that if the small and medium-sized enterprises are blindly transformed, they may increase the risks of enterprises. "In some cases, the transformation may not help the enterprise to 'return to life', but will speed up the collapse of the enterprise." The problem of overcapacity highlights "Su total, I have 30 million here, can you see LED?" At the first LED industry supporting conference in the province, a boss in the construction industry in Zhangzhou raised such a question to Su Guangyao, general manager of Zhejiang Mingxin Technology Co., Ltd. Su Guangyao’s answer is no, but he knows that his words are likely to be a whisper. Since last year, many of my friends have been asking him the same question, and then rushed into the industry without hesitation. In Su Guangyao's view, Zhejiang enterprises have become more rational about LED lighting, but there are still many people who want to take a slice of it. "This industry is really big, but there are too few companies that have plans and can withstand temperament. An objective fact is that many companies are now turning to indoor lighting, and indoor lighting has become the "Red Sea" for a time. Weng Maoyuan, chairman of the Zhejiang Lighting Association, said that the civilian lighting market, which now accounts for the main demand for indoor lighting, has not yet opened. If there is continued enterprise entry, there is a risk of overcapacity in indoor lighting. In the field of accessories such as light sources and chips, this excess has already appeared. Guan Yong, general manager of Zhejiang Sunshine Lighting, said that because of the different standards on the accessories, many companies took the opportunity to produce a large number of low-end homogenized products, which has a significant excess capacity. Domestic research institutions have issued early warnings. As the shipments of domestic epitaxial chips have doubled, prices may rebound in the third quarter. This also sounded the alarm for some SMEs.

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