Suntech loses 260 million dollars in two quarter, and its shares are low

Zhang Shanghai Report is immersed in the "cheat donation door" of Wuxi Suntech (STP.　　N shares have also fallen to historic lows.　　On the evening of 22nd, Suntech released its second-quarter earnings in 2011, showing a net loss of $259.5 million a year and a 1.44 dollar loss per share. On the second quarter, Suntech's shares fell 0.59% to 5.07 dollars on 23rd.　　This is Suntech's lowest price since its Nasdaq listing.　　While Suntech's share price has been linked to a sell-off in overseas sales, it has also been affected by poor performance and a deep fraudulent donation. Two quarterly reports are generally worrying Suntech's two-quarter loss is not an exception. The two quarterly CLP photovoltaic (CSUN) has already been released. OQ Two quarterly net loss of 16.9 million U.S. dollars, crystal Australian solar energy (JASO.　　OQ) is also now 35.4 million dollars in losses. Chint's new energy chairman, Shang, attributed the decline in the two-quarter PV company to a fall in the number of installations caused by European countries cutting solar-price subsidies.　　But he also said the situation would be improved in the three quarter by the rise in European installations and the impact of domestic market demand. This claim is also confirmed by another industry researcher.　　According to him, as a leader in photovoltaic industry chain, LDK three quarter improved, although the margin remained low, but the increase in shipments to improve business conditions. Suntech's second-quarter quarterly survey showed that Suntech's total net income was 830.7 million U.S. dollars in two quarters, down 5.3% per cent in the chain.　　In contrast, the cost of spending rose 14.8% per cent a year, but also rose 58.8%, which led to the second quarter gross margin of 4.1%, the margin fell 81.6%.　　Li Shenmao, a senior researcher at CIC, explained to reporters that weak demand in the PV market since the beginning of the year has led to a sharp fall in prices, leading to a decline in PV revenues. On the other hand, the whole industry's operating costs and production costs fell relatively limited, but the sharp decline in gross profits led to a reduction in operating cash flow, accounts receivable increased. Suntech's second quarterly bulletin showed that Suntech accounts for 862.7 million dollars as of June 30, 2011.　　This makes some photovoltaic enterprises have to through the capital market financing way to support the company stable operation and the trend of expansion, so the operating cost of the increase is also relatively large.　　Suntech Second quarterly also showed that its operating costs for the second quarter of 204 million U.S. dollars, the chain Rose 137.8%. Suntech attributed the rise in its spending to its overseas business expansion. Despite weak demand in overseas markets, Suntech is increasingly dependent on overseas markets.　　Suntech Media Relations director Zhang Jianmin told reporters that its European market accounted for 67% of its total income, the U.S. market accounted for 15%-16%, while the domestic market accounted for only 5%.　　In addition, the sharp increase in inventories is also a major issue reflected in Suntech's second quarterly report.　　Suntech Quarterly reported a 50% increase in Suntech's second-quarter inventory. But the researchers told reporters that while this was related to the weakness of the entire European market and the eruption of new production capacity in the first half, Suntech stocksSo much and it did not see the prospective market early intentional Yahuo not to sell also has a great relationship.　　He revealed that another photovoltaic business, LDK, is now fully booked, with virtually no inventory. Suntech, in its second quarterly bulletin, highlighted its 2011 projected battery and total production of 2.4G Watts. and achieve 1.2GW silicon ingot and wafer capacity.　　2011 Total revenue is expected to reach 323.4 billion U.S. In the face of such a dilemma, Suntech has plans to find a way out.　　Suntech Media Relations director Zhang Jianmin told reporters that Suntech will not take the entire industry chain of the road, Suntech's goal is to take the "IBM" route, the goal is to provide customers with "energy solutions." The solution is to provide customers with a tailored set of new energy applications, such as the overall design of the building and the design of a community.　　And this solution will not only be limited to the solar photovoltaic field. Zhejiang Province has a comprehensive plan for this problem.　　According to the Zhejiang Solar Energy Industry association Secretary-General Shen Fuxin revealed that Zhejiang province for PV industry overcapacity and product quality differences, will start in September PV industry and action, the main content is to guide the powerful combination of enterprises, build technology platform to improve the entire industry in Zhejiang province PV product quality. Li Shenmao that some of the problems faced by PV enterprises are closely related to the life cycle of PV industry, as the PV industry enters a mature development period, these problems will be solved gradually under the action of market mechanism.