Solarfun Electronic Power Meter rapid expansion or face overcapacity

Yang Yong March 30, Jiangsu Solarfun Electronics Co., Ltd. (hereinafter referred to as "Solarfun electronic") will be formally, the company mainly produces electronic energy meter, to issue 75 million shares, the collection of funds 800 million yuan for Intelligent Energy meter construction projects, intelligent electricity information management terminal construction and other 5 projects.　　Before that, Solarfun, the actual controller of the Lu Yonghua, had sold a stake in the solarfun of new energy in Solarfun as it landed on Nasdaq in the United States and developed rapidly in the global solar module sector.　　Solarfun Electronics The proposed IPO project in the postpartum, and may face the risk of overcapacity. Let go. Solarfun new energy in Solarfun Electronics nearly three years of the first five customers, are Jiangsu Huayuan Instrumentation Co., Ltd. and Jiangsu Solarfun New Energy Co., Ltd., solarfun electronic sales of both accounted for 2008 to 2010 total sales of 13.47%, 8.63% and 16.01%,　　In 2010, the sales of Jiangsu Solarfun New Energy Co., Ltd. accounted for 12.54% of the total sales.　　Solarfun New Energy was founded in 2004, is the name Hanwha New Energy (Qidong) Co., Ltd., for the Nasdaq listed enterprises (stock trading Code "HSOL"), the main business for solar cells and components, such as product development, production and sales.　　The company's 6-year sales revenue from 80 million to 8 billion yuan, now the fourth-place global solar module sales, is pounding the world's top three, according to the Qidong Technology Bureau website March 22, 2011.　　May 27, 2006, the predecessor of Solarfun Electronics Solarfun Limited and Solarfun BVI signed the agreement on the transfer of shares, Solarfun Limited will be held in the solarfun of new energy 70% shares in accordance with the value of the valuation after the evaluation of 53.12 million yuan transfer to the Solarfun BVI. Nasdaq listed company Lin Yangkaiman through the overseas reorganization holds Solarfun BVI 100% stake, while the BVI holds Lin Yangkaiman shares 77.27 million shares, accounting for the company's total shares of 32.2%, for Lin Yangkaiman's largest shareholder.　　Yonghua BVI is precisely solarfun electronic actual control person Lu Yonghua set up outside a special purpose company.　　2007 and 2010, the Yonghua BVI two times to sell its holding Lin Yangkaiman all the equity, Lu Yonghua no longer directly and indirectly hold Lin Yangkaiman any equity.　　Will there be excess capacity?　　Give up solarfun new energy may be due to solarfun electronic control of the actual Lu Yonghua decision, and solarfun the rapid expansion of the production of electronic products caused by the risk of product sales, had to attract the attention of investors. The main products of Solarfun Electronics are intelligent watt-hour meter, in which, Single-Phase table and three-phase table capacity of 8.5 million units and 700,000 units respectively, and the output of single-phase table in nearly three years only 8.386 million, 7.827 million and 7.285 million respectively, capacity utilization only 98.7%, 92% and 92%,　　The production and sales rate in the last three years were 101.73%, 99.81% and 99.75%, respectively. Three-phase table square, the output from 2008 to 2010 was 643,000 units, 683,000 units and 641,000 units respectively, and the capacity utilization was 91.9%, 97.6% and 91.6% respectively, and the production and marketing rates were 99.73%, 101.26% and 99.69% respectively. This means that the output of single-phase and three-phase tables can meet the demand for sales, given that the existing capacity is not fully utilized.　　And the company intends to invest 440 million yuan Intelligent Energy Meter construction project to the postpartum, the company single-phase Intelligent Energy Meter capacity will be increased by 5 million units/year, three-phase intelligent Energy meter capacity increase of 500,000 units/year, the capacity of the existing capacity based on the expansion of 59% and 71% respectively. The construction of intelligent watt-hour meter construction period is 4 years, the project reaches postpartum, if the demand growth rate is lower than the capacity expansion speed, how to solve the overcapacity caused by rapid expansion of capacity will be solarfun electronic need to face the problem.