Sinovel wind power or unload "low price one brother" identity

Once defined as "spoiler" status of Huarui Technology (Group) Co., Ltd. (hereinafter referred to Sinovel wind power), the recent encounter "was aggravating." October 26 morning, in Beijing state Macro Hotel held in Hebei Zhangjiakou and Xinjiang Hami Wind turbine Bidding, Goldwind technology (002202. sz;02208.　　HK 1.5 MW wind turbine, with a minimum price of 4003 yuan/kilowatt, will be "good to play" prices of sinovel wind power left behind.　　However, Sinovel's offer is also very low, just 3983 yuan/kilowatt.　　Late on the same day, the SFC issued a regulatory department, said, "In view of the sinovel still need to further check the relevant issues," decided to cancel the issuance of the Audit Committee on October 27, the issue of the review of the company's declaration documents.　　Prior to this, because of the development of the ultra-shun and low unit prices, Sinovel's growth process is considered to be "mythology myth." The reality is that "myths" are inevitably challenged.　　At least for sinovel, this year's October 26 is definitely black.　　The postponement of the listing may not be significant. The data from the 2010-year report revealed that, as of June 30, 2010, the total amount of the company's orders and the winning bids without formal contracts was 5292.25 MW (or 5,292,250 kw).　　Although Sinovel has such a large amount of orders to hand, but in view of the future trend of large-scale fan, sinovel wind power to consolidate their own market advantages, must increase the investment in research and development.　　However, in the evening of October 26, the commission to cancel Sinovel issued a report on the issuance of documents to review the news, let it from the capital market to finance hopes frustrated. Although there are different reasons why Sinovel will be stranded, but a person who declined to be named told reporters, "such as Sinovel was a temporary cancellation of the situation occurred before, such as a securities company listed earlier because it was reported that the process has been suspended."　　"His analysis may not be a minor problem, because it is very rare to be canceled at 0 o'clock like Sinovel," he said. But others argue that the current situation is temporary. A person who understands Sinovel's listing has a figurative analogy, "it's like going to the toilet before a meeting, just a little episode, and it's still a big probability event."　　However, he declined to disclose the real reason for Sinovel's cancellation of the audit by the CSRC.　　In fact, whether it is a small episode or a big problem, Sinovel listed the urgency of financing is not very strong. According to Sinovel, the IPO prospectus for the initial public offering of a shares (the "prospectus") shows that Sinovel will be mainly used for the following issues: 3MW wind turbine development projects, 3MW Offshore and terrestrial wind turbine capacity construction projects,　　Offshore wind turbine shipping base construction project.　　In total, 3 projects require a total capital investment of about 3.4 billion yuan, but in fact, Sinovel has about 3.8 billion of the capital. "BecauseFor emergency funds more, the postponement of the listing will not affect the progress of its research and development. "The impact is more manageable," said Li Shenmao, a senior researcher at the CIC adviser. He said that Sinovel should only be a technical issue, not related to competitiveness, "so the listing may be the latest thing."　　"Price advantage or threat in fact, as early as 2008, Sinovel's low-cost strategy has allowed it to make a substantial amount of orders." June 20, 2008 the opening of the Gansu Jiuquan 3.8 Million-kilowatt Fan project, Sinovel wind power quotes 5800 yuan/kw, compared with the Goldwind technology is nearly 500 yuan/kilowatt.　　At that time, the price of the 1.5 MW wind turbine was 6500 yuan/kilowatt.　　As a result, Sinovel won 1.8 Million-kilowatt of the order and Goldwind only 810,000-kilowatt. Subsequently, in 2009 China's sixth phase of Inner Mongolia, Hebei wind power bidding project, sinovel 1.5 MW unit price of about 5388 yuan/kilowatt, goldwind unit kw the lowest price only than Sinovel high 11 yuan.　　But two of orders to get the difference is still not small: Sinovel is 2.0055 million kilowatts, Goldwind is 775,500 kw.　　According to China wind Power Generation network data, at the beginning of this year, sinovel to 1.5 MW wind turbine quoted price to about 4200 yuan/kilowatt.　　A few months later, the 1.5 MW wind turbine price again "diving", but this time "collar jump" is the Goldwind technology.　　Some analysts have pointed out to reporters that because Xinjiang is the headquarters of Goldwind, so they are the potential for these projects, so that the report of 3812 yuan/kw So far seems irrational prices.　　However, according to the reporter understand, October 26, the tender will be tender scale of 3.5 million-kilowatt, involving the project is divided into two parts, Zhangjiakou dam million kilowatt-grade wind power base two, and Xinjiang Hami Chivan Chiva-class wind power base in the southeast wind area. Among them, Zhangjiakou 1.5 Million-kilowatt project bidding, for different wind field, the equipment put forward 1.5 MW and more than 2 MW single capacity requirements.　　Xinjiang Hami 2 billion wind turbine bidding, the requirements of a stand-alone capacity of not less than 2.5 MW, and equipment bidders must have 300 prototype through 240 hours to run the test. In other words, the Goldwind 1.5 MW wind turbine offer, and headquarters in Xinjiang have no relationship.　　If it is true that the analysis of the parties, at present, less than 3812 yuan/kilowatt such low price, then Goldwind is for the installed capacity, after six months after the price decline.　　This is obviously not good news for Sinovel. "The price of Goldwind is definitely going to increase the probability of winning the bid," he said. "An analysis by a member of the equipment business involved in the bidding.　　He told reporters, now the state has a policy, has won the National Concession bidding project, in the next bid, there will be some points, so the price of wind turbine enterprises will no longer be sinovel wind power "a single low." However, only from the installed capacity, although goldwind and other enterprises in the fierce,But Sinovel's "one brother" status is still not easily shaken.　　Sinovel "Prospectus" data shows: as at the end of the report (June 30, 2010), the company in hand orders and has won the bid but has not signed the contract project Total about 10 Million-kilowatt. Operating cash flow is decreasing trend but one investment company believes that, Miss this opportunity, sinovel recently difficult to meet the listing requirements. Because of the problem of grid-connected power generation, the whole wind power market is not very good, "the equipment business competition is too fierce, and equipment sales may not receive cash." Sinovel's prospectus shows that the net cash flow from its operations in 2010 1-June was negative, at about $730 million trillion.　　The net cash flow generated by the operating activities in 2009 and 2008 is about $1.38 billion and $2.02 billion respectively.　　The investors told reporters that at present, Sinovel's operating cash flow has been decreasing trend. He told reporters that the impact of the company's operating activities of cash flow reasons, in addition to accounts receivable can not be recovered, but also may be the inventory volume is too large.　　And it looks like the two problems sinovel may also "recruit" at the same time.　　The prospectus shows that 2010 1-June sinovel revenue of about 7.5 billion yuan, of which accounts receivable is about 5.5 billion yuan, accounting for up to 73.28% of operating income, and in the inventory, it is nearly 9.9 billion yuan in inventory. Data show that as of June 30, 2010, December 31, 2009, December 31, 2008, December 31, 2007, Sinovel's accounts receivable turnover rate is 1.60, 5.68, 6.84, 8.18 times/year, inventory turnover is 0.66, 1.91,　　1.93, 4.23 times/year. "Sinovel is not very good at the current financial situation, but it is difficult to determine how it will be in the second half."　　"Analysis of the investment company." The explanation given in the prospectus is that expansion of the company's sales scale, should be receivable owners contract progress of the increase; In accordance with the contract of sale, after meeting the conditions of pre-acceptance, the general contract 5%-10% as a quality deposit, the rapid growth of business income also makes the quality of the guarantee of gold accumulated accounts receivable increase the impact of increasing　　, the company's main customers are engaged in wind farm investment in the state-owned power enterprises, due to the enterprise Project Investment Management reasons, usually customers focus on the second half of the payment of procurement funds.　　In fact, according to the Goldwind 2010 years of data, its accounts receivable about 4.8 billion yuan, in the operating income of 6.3 billion yuan accounted for as high as 76%. In terms of inventories, the prospectus analyzes that the company's business model is to arrange the purchase and production plan according to the sales contract with the customer, so the company purchases and produces on the basis of the stable customer and the order planned; As of the end of the reporting period, inventories are mainly for the execution of the second half orders Because the construction of wind farm in China is basically started at the beginning of the year, the construction is completedProduction, the company's product delivery and hoisting concentrated in the second half, in order to meet the second half of the demand for centralized supply, the company must be fully produced in the first few quarters. In fact, compared to its December 31, 2009 and December 31, 2008 data, Sinovel also has about 7.8 billion yuan and 3.6 billion yuan in the inventory limit respectively.