Hairun Solar gets government subsidies of nearly 500 million yuan

Announced 4 times a week, Hairun Solar is constantly releasing good for toothpaste. The local government directly subsidizes 500 million. It is crazy to save Hairun PV.

Local rescue companies go crazy again

From December 18 to December 25, within a week, Hairun PV has issued four announcements that it will receive a total of nearly 500 million government subsidies.

However, for the huge subsidies Hairun photovoltaic, the industry has many platitudes: out of place, from the perspective of the size of the subsidy and time, the local government has the suspicion of their bottom line performance promise. A photovoltaic industry analyst said to 21st Century Network.

An executive from a photovoltaic company in Zhejiang bluntly stated that “in the context of the EU’s dual reaction, this move is tantamount to giving people a handle.”

It is understood that when Hareon Solar was listed on the backdoor, it had made a commitment to the performance and ensured that if the net profit of the shareholders of the parent company was less than 50.96 million yuan in 2012, the major shareholder Jiangsu Sunshine Group will disclose the annual report within 5 days. The cash method makes up for the difference.

According to the loss of 199 million yuan in the first three quarters of 2012, performance compensation is a foregone conclusion. Relying on this 500 million subsidy, Hairun Solar is not only expected to turn a profit, but the compensation pressure of its major shareholders is also greatly reduced.

According to analysts, Hai Run PV chief Yang Huai is a 'Godfather' figure in the industry and successively participated in the founding of four photovoltaic companies, including Suntech, Sunergy, Jingao, and Hareon Solar. bigger.

500 million crazy subsidies

Announced 4 times a week, Hairun Solar is constantly releasing good for toothpaste.

On December 18th, Hairun Solar announced that it had received 48 million yuan in financial subsidies from the government of Xu Xiake Township. On December 19, Hairun PV was granted the second batch of “Golden Sun Demonstration Project” by the Ministry of Science and Technology, which is expected to receive subsidies of 172.755 million yuan; 12 On the 21st of the month, Hairun Photovoltaic Technology Co., Ltd. said that it has received a total of 80 million yuan in research funding and industrial support funds from the Administrative Committee of the Taicang Port Economic and Technological Development Zone.

On December 25, Hareon Solar announced again: The company and its subsidiary Jiangyin Hairun Solar Power Co., Ltd. received various financial incentives from Jiangyin Municipal People's Government for the successful listing of enterprises, subsidies for the introduction of talents, and technological innovation equipment. Total funds amounted to RMB 205.86 million.

According to the relevant provisions of the “Accounting Standards for Enterprises No. 16—Government Grants”, the above-mentioned financial subsidy funds will be recorded as non-operating income in the current profits and losses.

In addition to the RMB170 million “Golden Sun Demonstration Project” not yet in place, Hairun Solar has received a total of RMB 330 million in government subsidies. Hairon Solar is expected to turn a profit.

However, for Hairun Photovoltaic's huge subsidies, people in the industry have different views: First, it is appropriate to publish announcements on such intensive times; secondly, such a number of subsidies are suspected of cleverly setting up titles; From the point of view of time, local governments have the suspicion of making a bottom of their performance.

The most critical point is that during the investigation of China's PV dual-reverse in Europe and the United States, Hairun Solar announced a huge amount of subsidies, which will give people a handle and involve other companies.

"The United States has already reversed its influence. If the double opposition in Europe is also true, the days of domestic companies will be very difficult," the executive said.

It is reported that the European market occupies more than 70% of China’s export share of photovoltaic companies.

"This is also inconsistent with the country's current policy." Premier Wen Jiabao, chairman of the State Council, presided over the State Council executive meeting on the 19th, clearly stated that the photovoltaic industry should fully play its role as a market mechanism, reduce government intervention, and prohibit local protection.

Earlier on December 7, State Councilor ** discussed the PV industry subsidy policy at the photovoltaic industry development forum held in Wuxi.

"There are rumors that the focus of subsidies will be shifted from the manufacturing enterprises to end consumers." The above executives said.

Suntech, Saiwei photovoltaic company capital chain situation

4 Weekly Announcement of Huge Subsidy Frequently Questioned

  Excluding the huge amount of outdated subsidies, market participants also questioned: Hairun's toothpaste-type announcements and numerous subsidy titles.

"The announcement of four financial subsidies was issued within one week and it was at the time of the lifting of the restricted shares sale," said the analyst.

It is reported that on December 20th, Hairun Photovoltaic Limited Sale of Shares on the lifting of the ban date, opening daily limit, daily turnover of more than 200 million, is the largest turnover in the past 5 months.

And such an announcement method has a precedent in Hairun PV.

On July 3 of this year, Hairun Solar announced that the German SCHOTT Group announced that it will suspend the production of crystalline silicon photovoltaic products under Schott Solar this year. SCHOTT Solar is one of its major customers and sales of SCHOTT Solar in 2011 Revenue accounted for 19.1% of total operating income.

On the announcement day, the share price of Hairun PV plunged by 8.84% and was once dropped in the trading session.

Immediately after July 4, Hareon Solar announced that it plans to establish a joint venture with Guodian Mengdian New Energy Investment Co., Ltd. to build a 20MW photovoltaic power station in Alxa Zuoqi, Inner Mongolia, and a 40MW photovoltaic power station in Wulatehouqi, Inner Mongolia. It is expected to invest more than 900 million yuan.

On the same day, the share price of Hairun PV reached a daily limit. The proposal to invest in power stations was passed as early as July 2.

In the announcement, Hairun PV has detailed the subsidy received: The subsidy of Xu Xiake Town Government is the first time that the scale of the company exceeds 100 billion yuan; the Taicang Port Management Committee is the state-level research and development center for scientific research funds and industrial support funds; the subsidies of Jiangyin City Government Including subsidies for technological transformation equipment, listing incentives, capital subsidies for the introduction of talents, and discount subsidies for strategic emerging industry development funds.

"Although there are announcements, but such a number of subsidies, there are still cleverly set up the names of the suspects, there is a talent introduction subsidies 40 million, to know that in the first three quarters of this year, the government subsidy funds of Hairun photovoltaic was only 37.61 million yuan." Analysts pointed out.

According to the “Opinions on Promoting Economic Transformation and Upgrading of the “445 Plan for Accelerating the Development of Emerging Industries” in Jiangyin City (temporary)” document, the Hairun Photovoltaic Group received one-sixth of the 300 million yuan special supporting funds in Jiangyin City.

“For the first three quarters of this year, Hairun PV was 3.65 billion, and there are no more than 10 billion.” Some investors have also questioned some of these subsidies.

In this regard, a staff member of the Office of Hairun Photovoltaic Dongzhang explained to the 21st Century Network: “The statistics of the Xu Xiake Town Government are cumulative operating income, and the revenue of Hairun Solar has already exceeded 10 billion yuan.”

Government pays for performance commitments to reduce pressure on debt repayment by large shareholders

Hairun PV can be said to be the lucky one under the photovoltaic winter.

It is reported that on March 29, 2010, Hairun Solar signed an agreement of reorganization with *ST Shenlong. After nearly two years of hard work, Hairun finally achieved a backdoor listing on February 17 of this year, catching up with the last bus of the listed photovoltaic companies.

In order to be successfully listed, Sunshine Group, a major shareholder of Hairun Solar, has made “attractive” performance commitments: net profit attributable to shareholders of the parent company was less than RMB 4,985.55 million, RMB 50.96 million, and 52,858 respectively in 2011, 2012, and 2013. In million, the Sunshine Group will make up the difference in cash within 5 days of the annual report disclosure.

However, Hairun Solar has turned into a loss-making position since its listing.

In 2011, the actual net profit of Hairun PV was RMB 401.6 million, which was a difference of RMB 69.89 million from the forecast value. The Sunshine Group eventually paid for its own expenses. In the first three quarters of this year, Hairun Solar lost a total of 199 million yuan. Under the current industry background, the inability of Hairun Solar to complete its performance pledge is almost a foregone conclusion.

As a result, the Sunshine Group's performance compensation is at least 700 million yuan. And if this year closes, the pressure of Sunshine Group can be imagined.

It is reported that Sunshine Group is a comprehensive group company. The industry is involved in many industries such as clothing, real estate, and new energy, and it is also plagued by funds.

To supplement the cash flow, on April 17th this year, Sunshine Group launched two phases of a medium-term note issuance plan with a total of 1.5 billion yuan, and almost all of the shares held by the company will be pledged.

"At this point in time, such a large-scale government subsidy was thrown out. It is apparent that local governments are paying for their performance. With this financial subsidy of more than 3 billion yuan, the compensation pressure of major shareholders will not be reduced. Moreover, they have to pay A power station is available for sale," said the analyst.

“Hairun PV and Sunshine Group are all local large enterprises in Jiangyin. Now that the government is in trouble, the government will not sit idly by. Hairun PV head Yang Waijin is a “godfather” figure in the industry and has participated in the Suntech, China With the establishment of four photovoltaic companies, namely, Photovoltaic, JA Solar, and Hareon Photovoltaic, there is more room for Tendon.”

It is not just Jiangyin City Government that has helped. It also includes Xu Xiake Town Government and Taicang City Government.

In order to save Hairun Solar, Yang Huaijin pledged his 8.39% stake to Jilin Trust. "This attitude may make local governments more at ease." The analysts said.

Earlier, it was reported that Shi Zhengrong, the founder of Wuxi Suntech, was unwilling to take personal equity pledges, which led Wuxi Suntech to delay the government's rescue.

"However, with LDK, Dongying Photovoltaic, Shinsung-Shin Wood and other state-owned assets to save different ways of saving, at this time the local government directly to assist companies in the name of huge subsidies is also somewhat crazy." The industry analyst said.