2024-08-14
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The photovoltaic industry will experience many twists and turns in 2024.
In the first half of the year, the prices of polysilicon and silicon wafers fell by more than 40%, and the prices of solar cells and modules fell by 15%. Affected by the price decline, the output value of domestic photovoltaic manufacturing (excluding inverters) was about 538.6 billion yuan, a year-on-year decrease of 36.5%, and the total export value of photovoltaic products was about 18.67 billion US dollars, a year-on-year decrease of 35.4%.
Such a downward price trend has squeezed corporate profit margins, directly affecting performance, and some companies’ stocks have fallen sharply. According to data, the photovoltaic index has fallen by more than 30% since the beginning of the year, and some companies’ stock prices have even fallen by more than 60%.
The industry downturn, coupled with corporate and personal reasons, has led to frequent changes in senior management in the photovoltaic industry in the first half of the year. According to incomplete statistics from other media, as of now, a total of 37 photovoltaic listed companies have undergone personnel changes, involving levels including directors, supervisors, general managers, deputy general managers, board secretaries, securities affairs representatives, etc.
Industry turmoil, companies suffer huge losses
In terms of position distribution, at least 7 executives at the level of chairman, president, and general manager resigned, accounting for about 20%; at least 5 executives at the level of deputy general manager and vice president resigned, accounting for about 14%; at least 23 directors, independent directors, and non-independent directors resigned, accounting for 66%.
These changes not only involve old leading companies, such as Trina Solar and Longi Green Energy Technology Co., Ltd., but also cover new players that have crossed over into the photovoltaic field, such as Baoxin Technology Co., Ltd. and Fengfan Co., Ltd.
According to incomplete statistics, the performance of many photovoltaic companies in the first half of 2024 or Q1 has dropped sharply.
According to the performance forecast released by Longi Green Energy, the company expects to achieve a net loss attributable to shareholders of listed companies of 4.8 billion to 5.5 billion yuan in the first half of 2024, compared with a net profit of 9.178 billion yuan in the same period last year.
In the first quarter of 2024, Trina Solar achieved operating revenue of 18.256 billion yuan, a year-on-year decrease of 13.37%; net profit was 516 million yuan, a year-on-year decrease of 70.83%.
JA Solar's performance forecast shows that its net profit in the first half of 2024 is expected to be a loss of 800 million to 1.2 billion yuan, compared with a profit of 4.813 billion yuan in the same period last year, a sharp year-on-year decline. The net profit in Q1 was -483 million yuan, a year-on-year decline of 118.70%, turning from profit to loss.
TCL Zhonghuan expects a net profit loss of 2.9 billion to 3.2 billion yuan in the first half of 2024, a year-on-year turnaround from profit to loss compared with a profit of 4.536 billion yuan in the same period last year.
Tongwei Co., Ltd. expects to achieve a net profit of approximately -3 billion yuan to -3.3 billion yuan in the first half of 2024, which is a substantial loss compared with the net profit of 13.27 billion yuan in the same period last year.
In this regard, people in the photovoltaic industry believe that the frequent changes in industry executives cannot rule out the possibility that the photovoltaic industry has entered a period of deep reshuffle. Prices in the main industrial chain have plummeted, and manufacturers in all links are facing tremendous operating pressure. Some executives may choose to leave due to poor performance or company strategy adjustments.
Changes in senior management positions have attracted much attention in the industry
Senior management changes have a profound impact on photovoltaic companies. On the one hand, changes in core management may lead to adjustments in corporate strategy and business tactics; on the other hand, the departure of senior management may also cause instability within the company, such as declining team morale and business disruption.
On August 2, TCL Zhonghuan announced that due to work needs and personal energy considerations, Shen Haoping applied to resign from the company's CEO position. After resigning, he will continue to serve as the company's director, vice chairman and various related positions in the board of directors' special committees. The company's chairman Li Dongsheng will temporarily take over the CEO duties.
As soon as the news came out, it triggered various speculations about TCL Zhonghuan in the photovoltaic industry, including that it had a buyer, physical discomfort caused by high pressure, changes in career plans, poor performance, internal struggles within the company... In response, TCL Zhonghuan said that the industry is currently undergoing unprecedented changes and the company is also facing more severe challenges. Considering the workload, Mr. Shen decided to resign as CEO, but will still retain the position of Vice Chairman of TCL Zhonghuan, actively exert his expertise, and focus more on the field of technology research.
On April 1, Yijing Optoelectronics announced that the company's board of directors received a written resignation report from Mr. Tang Jun on April 1, 2024. Mr. Tang Jun applied to resign from the company's seventh board of directors as a non-independent director, a member of the nomination committee, a member of the remuneration and assessment committee, a member of the strategic development and ESG committee, and general manager for personal reasons. After resigning, Mr. Tang Jun will no longer hold any position in the company.
The industry said that for Yijing Optoelectronics, Tang Jun's departure is no less significant than Steve Jobs' departure from Apple.
Tang Jun, who took office in 2022, increased the revenue of Yijing Optoelectronics by 145.47% in the same year, and turned the net profit from loss to profit. Yijing Optoelectronics also stated in its annual report that under the leadership of the management team headed by Mr. Tang Jun, during the reporting period, the company implemented an equity incentive plan to share the development dividends with the core members who made outstanding contributions to the company's development.
Therefore, the industry predicts that Tang Jun’s departure will have a certain impact on Yijin Optoelectronics’ strategic layout and operational management.
Earlier, Xiu Qiang Co., Ltd. announced that the company's director and general manager Mr. Lu Xiu Qiang applied to resign from the company's director, general manager and other positions in the company and its subsidiaries due to personal reasons, and after his resignation, he will no longer hold any position in the company and its subsidiaries.
Unlike the previous two companies, Xiuqiang Shares was founded and led by Lu Xiuqiang himself, just like his own child. This position change is bound to have a profound impact on the company's future development.
On the other hand, according to the announcement, Lu Xiujiang and his associates collectively hold a large proportion of the company's shares. How he will manage these shares after his resignation and whether it will affect the company's shareholder structure and control are also the focus of attention in the industry.
For the industry, frequent changes in corporate executives may cause fluctuations in the relationship between the company and external partners such as suppliers and customers, affecting the stability of the company's supply chain and market share. It may also damage the ecology of the entire industry, intensify vicious competition and waste of resources among companies in the industry, and cause more panic during the industry's downward cycle.