Intensive expansion of production capacity to stimulate the photovoltaic plate

On August 21st, Trina Solar, a large-scale Chinese photovoltaic company, announced its second-quarter results. After the general rise on the 20th, the US-China PV sector was once again stronger across the board.

Among them, Trina Solar rose 14.71% to 8.97 US dollars, Yanhui Sunshine rose 7.67% to 4.21 US dollars, Yingli Green Energy rose 6.48% to 4.11 US dollars, JA Solar rose 4.35% to 8.16 US dollars, Jinko Energy (NYSE: JKS ) rose 5.13% to $14.54.

Trina Solar shipments record high <br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br> Trina Solar announced its second quarter 2013 financial report based on Changzhou, China, showing that shipments of photovoltaic modules totaled about 6.47 million kilowatts. Significant growth of 64.6% QoQ and YoY growth of 54%; net loss for the quarter was US$33.7 million, a sharp decrease from US$63.7 million in the previous quarter. The above data are better than market expectations.

The data also showed that the company’s net revenue in the second quarter of this year was 440.7 million US dollars, an increase of 69.4%; gross profit was 51.2 million US dollars, higher than the 4.4 million US dollars in the first quarter; gross profit margin was 11.6%, much higher than the previous The 1.7% in the quarter was also higher than 8.4% in the same period of last year; additional accounts receivable was US$8.7 million. The operating loss was US$23.9 million, which was US$40.1 million in the first quarter. The operating profit margin was -5.4%, which was -15.4% in the previous quarter. The loss after dilution was US$0.47 per share, compared to US$0.90 in the previous quarter.

Gao Jifan, chairman and chief executive of Trina Solar, said that the company's shipment volume in the second quarter of 2013 hit a record high, exceeding expectations by more than 1 million kilowatts. At present, the global PV market demand continues to be strong. As far as pricing is concerned, the average selling price of components has stabilized and the trend of continuous decline in the past few quarters has been curbed. Given the continuous improvement of operational efficiency and control of production costs, the company's cost can be significantly reduced, which is beneficial to its profit improvement.

Gao Jifan also stressed that the geographical diversity of the company's business mitigated the risks of the industry. While the total shipment volume hits a historical record, shipments in important markets such as China, the United States, India, and Japan have all increased.

PV production capacity is expected to expand <br> <br> 22, according to Bloomberg reports, a number of PV companies are in almost full production and to develop plans to expand production capacity to meet growing demand in Asia, which in the short term or for the entire industry with Come to life.

According to the announcement issued on the 21st, Trina Solar raised its forecast for shipments this year to a maximum of 24 million kilowatts, which was previously expected to be 20 million kilowatts to 21 million kilowatts. Bloomberg reported that: "This ties in the company's annual production forecast, indicating that the company may increase its production capacity next year." Trina Solar also expects shipments of up to 6.8 million kilowatts this quarter.

In addition, the report also pointed out that JinkoSolar and other companies also recently said that they are also "production at maximum capacity, and are considering ways to increase production." Solar panel industry has been suffering from overcapacity, solar panel prices since early 2011 It has fallen by 61%, but the increase in demand is now diluting excess capacity, making some companies with better operations even start to consider increasing production capacity.

Angelo Zino, an industry analyst with Standard & Poor's in New York, also stated that Asian demand has soared to absorb these excess production capacity and prompted these largest manufacturers to expand the factory scale. “First-tier producers may increase production capacity in 2014.”