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Home> News>Industry Information>China's Solar Energy Enterprises — Flat Roof Solar Mounting Made In China

China's Solar Energy Enterprises — Flat Roof Solar Mounting Made In China

From:Serve (Xiamen) New Energy Co., Ltd.     Release time:2019-02-26

Overview:People who know about the solar industry have not been bullish on China's Solar Stocks for the past two years. On the contrary, I think American companies are the best choice to invest in the industry. However, China's solar stocks have performed well in the past few months, and market forecast profits will follow, pushing up stock prices. But why don't many people buy the shares of China Solar Energy Corporation?

People who know about the solar industry have not been bullish on China's Solar Stocks for the past two years. On the contrary, I think American companies are the best choice to invest in the industry. However, China's solar stocks have performed well in the past few months, and market forecast profits will follow, pushing up stock prices. But why don't many people buy the shares of China Solar Energy Corporation?


Now, considering that the price of solar cell components in China is about $0.65 per watt, and is still declining. For many photovoltaic enterprises, it is very difficult to achieve break-even.

Wholesale Iron Solar Structure From China

This estimate does not take into account the very likely price decline in the next few years. Recently, solar energy costs could reach $0.36 per watt in 2017. If sales prices remain unchanged, the decline will be significant, but the price decline has become the theme and may continue.


Obviously, China's solar industry is improving and its gross profit margin is likely to increase in the second quarter. However, owning Chinese Solar Stocks is dangerous because of their debt burden, because they are heavily indebted and have a price war. In order to achieve break-even or improve debt repayment ability, high profit margin is necessary, but price war is not the panacea to achieve this goal.


To make matters worse, the Chinese government no longer injects unlimited financing into the solar industry, so these companies have no money to expand and stimulate the next round of solar investment. In the end, you will find that companies with high debt will have a harder time than companies without large debt. Now photovoltaic companies have defaulted on their debt, which is usually the first step in bankruptcy. So the risk of holding Chinese Solar Stocks is very high.


About Serve Energy

Serve (Xiamen) New Energy Co., Ltd. is a Chinese manufacturer of low ballasted aluminum PV mounting system with independent intellectual property rights. Serve Energy specializes in the research and development, production, sales and services of solar products, such as wholesale iron solar structure from China, floor hot-dip galvanized steel pv bracket system, ground PV mounting systems made in China, flat roof solar mounting made in China.



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