Essay About Financial Analysis And Photo-Voltaic Power Generation Project

Ja&jinko Financial Analysis
20500 Financial Valuation and StrategyTable of Contents1.0 Industry Analysis of Solar Market                                                                                 12.0 The examination of the revenue recognition policies                          73.0 Profitability and Risk Analysis and Comparison                              134.0 Liquidity and Solvency                                                   195.0 Cash Flow Analysis                                                      266.0 Forecasting and subjective analysis                                         33Reference                                                                   461.0 Industry Analysis of Solar MarketThe Overall Profitability of Solar IndustryOwing to the boom of emerging markets economy and other related factors, the demand for global solar products maintains its constant growth throughout these years. In 2013, Chinas new installed capacity of solar photovoltaic reached 12.9GW, an increase of 186.7% compared to the same period. For the first half of 2014, the poly-silicon production reached 60,000 tons— a 100% growth compared to the same period. From January to May, 2014, Chinas poly-silicon imports reached 36,400 tons. Meanwhile subject to the high market demand, by the end of the first half of 2014, Chinas battery module capacity reached more than 40GW, and the output of about 15GW—with a year-on-year growth of 30.4%. From January to May, Chinas solar battery value of exports added up to $5.492 billion—with a year-on-year growth of 25.6%. The export proportion of countries like Japan, India, South Africa, USA and other Asian countries has been increasing.It is expected that after a few years’ time, emerging markets such as China and the Asia Pacific regions will continue to maintain a good growth momentum. Overall, thanks to the reduction price of PV modules, and the average price downturn of solar industry’s grid purchase price, the profitability of solar industry will still have been enhanced later on. Meanwhile, benefiting from the state subsidies and low operating and construction costs, distributed photo-voltaic power generation project has its strong economic strength, and in the premises of enhanced solar economy, the development of Chinese solar power project is expected, in the short term, to speed up significantly.Current Situation of Solar IndustryAt present, JA mainly emphasizes on the selective vertical integration mode, forming a relatively complete industrial chain for production of silicon wafer, batteries and component elements. At the same time, it provides a development service of photo-voltaic system project.     So far, JAs is equipped with financial soundness and good development trend.                                                                                                             [pic 1]At the same time, another solar member—Jinko, one of its subsidiaries gained a $20 million line of credit for a two-year period from Well Fargo in the second half of 2014 to support the wealth of nations, USA operating capital and business operational requirements. In fact, since the second half of 2011, affected by the global financial crisis, several countries have to shrink the subsidy policy of photo-voltaic industry, leading to the fact that Chinese domestic PV export enterprises suffer from tremendous impact of businesses. The signing of these agreements will undoubtedly plays a strong supporting role in expanding business and long-term development for the solar industry members.[pic 2]