A Twin Cities in PV industry Shand love and hate

All along, Wuxi Suntech's success is regarded as the industry myth, let a lot of people relish.　　This year, South Africa's World Cup performance, so that China's British good to "cover" the momentum of Suntech. 5 years ago, when Suntech stripped its state-owned shares to a successful IPO, Miao Lianseng and his Chinese Yingli were being hobbled by state-owned shareholding reform.　　And also in 2005, China Yingli Holdings of Solar and Wuxi Suntech to fight for the silicon source of Sichuan, but because the British Lee has a state-controlled background, so that the balance of the winning trend of their own, Suntech was defeated.　　Now, after the international financial crisis, Suntech and Yingli are taking the opportunity to expand their territory, but in the way and path choice is very different-the former in the promotion of technology research and development, but also in the creation of a complete upstream and downstream industry chain, the latter is based on a complete industrial chain, the line of sight began to make technology and standards. "At present, the domestic PV industry has entered the scale stage of ' ones ', from vertical mergers to horizontal mergers and acquisitions," said Li Zongwei, the CFO.　　"So, will the new confrontation be staged after the two big solar giants, Suntech and Yingli, have grown for years?" Yingli's "Red Top Merchant" Road 1998 Yingli New Energy Co., Ltd. was established. 3 years later, Suntech settled in Wuxi.　　The two companies are full of frustrations. When Miao Lianseng tired of reselling cosmetics, it looked at photovoltaic solar energy. He introduced a solar neon-light production line from Japan in 1993, his first contact with the new energy concept.　　Unlike Shi's perennial immersion in photovoltaic research, Miao Lianseng's choice of solar energy depended on a businessman's keen sense of smell. However, to develop solar energy, only through the National Development Bank loans, Yingli as a private enterprise at that time did not have access to loans.　　In addition, Miao Lianseng only transfer 60% of the equity into the state-owned capital, the company will be restructured, the later Yingli New Energy Co. The introduction of state-owned capital is the government's background of the Tianwei change, the two sides reached a gentlemen's agreement: to protect the operation of Non-interference, only in the role of investors. After the second year of restructuring, the company undertook the National High-tech Industrialization Demonstration Project-polysilicon solar cell and the application System production project, this is our country first has the international Advanced Level polysilicon Solar PV product demonstration production line.　　But many people are not optimistic about the project. As the investment side of the Tianwei change, in the investment in the time many people have a lot of concern: first, scruples Yu Yingli private enterprise identity; Secondly, many people do not understand what solar photovoltaic is.　　This was the same embarrassment that Shi had at first-when Suntech decided to take solar products to open the market, no one in the country could guarantee "that thing works", and many people were not interested in made. Faced with the survival crisis are "Liang Jian" overseas domestic market around the wall, helpless, the British and Suntech will be the way out to the international market. At this point, the intensification of the traditional energy crisis forced governments to accelerateThe development and utilization of green and new energy such as solar energy have been paid more and more attention by developed countries in the exploration of renewable energies. The most forward-looking in Japan, as early as in 1994, the introduction of solar cell power subsidy incentive scheme.　　In August 2004, the German government updated the Renewable Energy Act to become the first country to expand the market demand for photovoltaic cells after the entry into force of the Kyoto Protocol. In this context, Miao Lianseng began to change its strategy, realizing that the international market is the driving force of China's new energy industry. In 2004, Miao Lianseng from Germany's southern town of Munich to start the first German market, Spain, Italy and other markets followed. Similarly, Suntech's biggest turnaround in the face of growth bottlenecks has been from Freiburg, Germany, which is known as the "solar capital".　　Both of them are great minds, and history is an astonishing coincidence. The International trade fair for new Energy products was held in Fryburg in June 2003, a once-in-a-lifetime opportunity for Suntech.　　Due to product quality and international certification, many German distributors in the exhibition on Suntech expressed great concern, a large number of orders from overseas to Suntech, the company's previous backlog of the battery board was quickly snapped. It now appears that, while Suntech and Yingli's market development stems from international markets, they have different paths and strategies.　　This naturally has a lot to do with the experience of their leading people. The development of the vein is very different although Miao Lianseng realize that the international market is the most important way to China's PV products, but it suffers from the lack of "exit card" to the international market.　　At that time, Wuxi Suntech, because of the advantages of Shi's technical background, in foreign markets. As early as 1995, when Shi's mentor, Martin, founded Pacific Solar, Shi had more than 10 patents for international inventions. By virtue of his more than 10 patents of technology, Shi is engaged in solar cell research and development, production, the sun can be converted through solar cells into electrical energy business projects.　　When he started his business, he almost had nothing but technology. Shi is well aware of the importance of technology for an enterprise's development, especially for self-made start-ups, and the role of technology is most important. At the same time, Shi, who has a background in the market, is also well aware of the significance and important role of international certification for product promotion.　　When Suntech started production, Shi did not rush into the market, but sent the products to the world's leading authorities for testing. Gold。 In the year from September 2002 to September 2003, Wuxi Suntech almost won all the international certification, and then passed a series of foreign authoritative certification. All these have opened the door to the successful entry of Suntech products into various markets.　　In the German trade fairs, Suntech is able to hit, the important factor is that these "out of the door card." Unlike Suntech's technology first, Miao Lianseng, who relies on marketing, has fully integrated the market style into Yingli. Yingli has long been overseas to hire local people with financial and political connections to set up branch offices and to work in European solarThe mainstream market has been pitted against international rivals such as BP and Sharp. One of the most challenging and even beyond Suntech's killer is a complete industrial chain. Yingli's products and services cover the entire PV industry chain from manufacturing polycrystalline silicon ingots, silicon wafers, photovoltaic cells, PV modules, PV applications to PV system integration and installation services.　　Not only domestic unique, in the world only the United States Bpsolar, Germany deutschesolar, Japan Sharp three have such strength. It is thanks to the complete industry chain that Yingli has established a solid supply relationship with the world's main suppliers and the two-tier market. This relationship makes the silicone stock can reach about 80 days.　　Suntech listed the prospectus showed that the company only one day and a half of the inventory, downtime to be expected to the risk of the sword hangs in the head. Now it seems that if the Anglo-Italian listing is facing more fetters, "China's king of photovoltaic cells," the laurel Flower fell who home is also unknown. Although the company had previously made a profit by selling its holdings, it found that there were still hurdles ahead when it tried to plan a bigger blueprint.　　　　It's Chengye, Shenya. Blow up the listing assembly number Shi Yingli is crying. For the British, then, the bigger blueprint is the overseas listing to achieve rapid rise.　　Similarly, Suntech founder Shi has a similar idea, and Suntech's pace is clearly faster than that of Yingli. In the second half of 2004, the domestic PV market changed dramatically. Suntech's rivals have risen rapidly, and it is hard to maintain their original strengths if only by their own power.　　With shareholders having no intention of additional investment and a 60% per cent ratio of bank liabilities, Suntech will continue to maintain its position in the industry and the IPO will be inevitable. For Shi, it is in their own interest to be able to gain absolute control over the company by listing overseas.　　With the departure of the spokesperson for Li Yanshin state-owned shares, Suntech, the long-awaited exit plan for the state-owned sector, began to be phased in. Despite the difficulties in the early stages of implementation, it is fortunate that Shi's state-owned stock exit scheme was finally affirmed by Weize, the party secretary of Wuxi. All state-owned shareholders agreed to sign the equity withdrawal agreement in March 2005. Recalling the situation, Shi said: "The withdrawal of state-owned shares is in fact a very simple matter." But after 10 months of psychological warfare, the government's command was finally implemented. Without that command, Suntech would not have been able to restructure.　　"On December 14, 2005, Shi sounded the bells on the New York Stock Exchange, and Suntech sailed up the fast lane." Far away, China's Yingli seems less fortunate. On the eve of the 2006 IPO, Miao Lianseng had to regain a crucial 2% per cent stake in order to hold the company, which cost 25 million yuan-a 16 times-fold higher than the year's transfer. According to the Tianwei change announcement of the "Overseas listing Refinement scheme" shows that the overall idea is Miao Lianseng to Yingli 51% of the shareholder equity to the overseas listing, and then Tianwei conservation toYingli 49% of the equity in exchange for foreign listed companies, the final days of the new Yingli to become wholly foreign-owned enterprises, and TIANWEI security into a NYSE listed company's shareholders. June 8, 2007, Yingli is listed on the NYSE.　　It is the Miao Lianseng who knocks the bell. But then the story is rather awkward, Yingli Green Energy opened 10.80 U.S. dollars, closed at 10.50 U.S. dollars, below the 11 dollar price. Suntech, which was listed in the same location, rose 40% per cent on the opening day and closed at $21.20.　　Industry analysts said that the Yingli missed the most valuable time to go on the market, after a wave of solar energy companies overseas listing, it was late, more than Suntech 1.5 later.　　It now appears that both Yingli and Suntech have built up a complex overseas shareholding structure, but Suntech's state-owned shareholders have opted out and the Anglo-Italian stakes have been tangled. "The Red item son" again becomes gram enemy to win the sharp weapon government to support, the listing financing, the rapid rise, Suntech and the Yingli have too many similarities, the head-on confrontation inevitable.　　In recent years, China's photovoltaic industry, "North and South" there has been "Sichuan silicon source of contention" and "competition for concessions" two times big contest.　　Around 2005, the domestic PV industry is in a fast-rising golden age, who has the most, cheapest polysilicon, who has mastered the lifeblood of the photovoltaic industry-that is a "Silicon King" era.　　At this time, there are big and strong targets Suntech and Yingli around to find silicon, "crash" is inevitable. At the beginning of 2005, Sichuan Xinguang Silicon Industry decided to introduce new investors because of the slow progress of the project, and the news came from Suntech and Yingli try. Although at that time, the country's so-called thousand-ton production line has several, but because of technology, development time and can be approved, and other reasons, short-term internal energy to form effective capacity of only new light silicon industry.　　Suntech and Yingli are all in for it.　　This is the first upstream resource scramble between Suntech and Yingli. The result of the competition is that the new light silicon industry has opted for the Tianwei change, which is the holding side of Yingli. Tianwei change to 110 million yuan into the new light silicon industry to become the second largest shareholder, holding the new light silicon industry 35.7% of the equity. As a strong government background of the new optical silicon industry, its establishment, the whole process of project development, has been the Sichuan provincial government's strong support.　　This shows that the new optical silicon industry in early 2005 to increase capital shares, the choice of "country size" of the Tianwei change is the wise after weighing the pros and cons. After Sichuan frustrated, Suntech forced to turn the angle of view to Henan Luoyang.　　Because at that time the country has "improved Siemens law" production process except Sichuan xinguang silicon, only Luoyang silicon.　　Suntech, with the fastest pace of its production line directly in Luoyang, its Luoyang Suntech Power Co., Ltd. adjacent to Luoyang Silicon production plant-the latter is about to become Suntech plate meal. March 22 last year, the Dunhuang 10MW project concession Bidding, Suntech, Yingli met again. Dunhuang 10MW Project Concession Bidding--the largest domestic tooYang Energy photovoltaic power Station, the National Development and Reform Commission will be the project to determine photovoltaic power grid benchmarking price, and to determine the market size open.　　The first group of domestic photovoltaic enterprises Yingli and power, Wuxi Suntech and China's energy-saving, Sino-Canton Nuclear and LDK of the good combination of the camp, in Dunhuang launched a close hand-to-hand combat. In 1.53 yuan, 1.44 yuan, 1.09 yuan, and so on the sound of quotations, Yingli suddenly reported the lowest price of 0.69 yuan/kwh, noisy venue instant solidification, instant silence is an uproar. Suntech could not accept this offer. In fact, in order to deal with this round of bidding, as early as the beginning of 2009, Wuxi Suntech has joined the 13 major solar enterprises, the "1 yuan/kwh" photovoltaic cost of the program reported to the Ministry of Science and Technology, which did not see the figure of Yingli.　　And soon after the tender meeting, the Anglo-Italian at this unprecedented low price to throw the scheme to the corner. This also let Suntech this domestic PV field leader really embarrassed a.