PV Enterprise stranded euro loss Shangyimeiyuan - photovoltaic enterprises, Suntech - chemical indus - Business

HC Chemical Network News quot for the euro we exchange the first quarter loss of about 25 million U S dollars Canadian Solar is 18 million U S dollars the domestic photovoltaic company may total billions of dollars in revenue evaporated quot Suntech Solar Power Company Limited STP NYSE hereinafter referred to as quot Suntech quot a high level yesterday told reporters by telephone Production of PV cells in China accounted for more than 40 global share while 90 of domestic products exported to Europe the euro exchange rate of continuous dive a tremendous impact on Chinese companies From Rio Nisshin energy companies such as Changzhou wafer cell and understand that they are taking a variety of methods such as hedging hedging and diversification of sales to reduce losses Serious exchange losses Topsolar Green Energy Co Ltd General Manager Zhu Yuanhao told reporters last year after Christmas the euro depreciated quot At that time the euro exchange rate of RMB is 1 10 2 and now t he euro is 1 8 3 5 months against the yuan or about 20 very severe quot He said quot now than in 2008 fairly good very good sales of PV modules greater demand in Europe even if the enterprise is in stock is also bullish on the stock But when the bank is not the end of 2008 to the PV power plant financing and component plants both can not be sold and the continuous depreciation of the inventory is increasing quot Present 125 mm diameter price of PV modules in Europe about 1 4 euro watt compared to January 2009 is 40 quot Count down the exchange rate of 20 corporate profits are still some quot Zhuyuan Hao said However the losses caused by exchange is undoubtedly enormous Suntech 39 s senior who said the first quarter is estimated at 25 million U S dollars exchange losses of about Artus 39 s loss is 18 million U S dollars Extension board secretary Liu Qiang Nisshin can also told reporters that the report of the first quarter of this year also disclosed some financial cost is a manifestation of exchange losses quot about 200 million to 3 million yuan quot quot Changzhou Tianhe JA Yingli exchange losses and other companies do not know it is estimated the industry because of the euro and evaporated Shangyimeiyuan income quot Senior who said Suntech China Merchants Securities researcher Liu Sheng Wang that Shangyimeiyuan loss may also more conservative forecast quot China 39 s battery production in 2009 of about 4100 MW 700 MW Suntech is about 17 Suntech loss of 25 million U S dollars the overall exchange loss should be far more than 100 million U S dollars quot Zhuyuan Hao told reporters as euro exchange rate plummeted the market has been hot cold quot a long term impact is that the future of Europe whether the number of station building will shrink as a result of the exchange rate down quot He explained that the current power station investors face a double challenge on July 1 this year the PV power plant in Germany will fall 15 subsidy the other ha nd if the euro exchange rate of RMB to continue diving China 39 s exports of components prices will in turn increase the cost of PV power plant construction will be directly raise the yield is also lower quot Before the rate of return of a power station may be 10 now reduced a lot because of investor enthusiasm for building power stations will be cool quot Hedging to minimize losses To reduce the impact of exchange rate fluctuations companies are in preparation Artus extension and wafer cell and Nisshin can choose to use the forward exchange settlement and hedging operations So called hedging that is the euro photovoltaic business and customer sales contracts signed after the signing of an agreement with the bank agreed future currency exchange settlement and sales of foreign currency amount and duration and the rate

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