The Ministry of Industry and Information Technology or issued a PV merger and reorganization opinion

On September 17, the Ministry of Industry and Information Technology of China released the “Regulations for Photovoltaic Manufacturing Industry”, and intended to standardize industrial development with “market access”. In addition, there is news that the "Guidelines for M&A and restructuring of the photovoltaic industry" led by the Ministry of Industry and Information Technology will also be released soon.

It is reported that the Guidance Opinions on Merger and Restructuring of Photovoltaic Industry led by the Ministry of Industry and Information Technology has been revised and will be formally introduced in the near future. It is understood that some of China's leading photovoltaic companies have already communicated with the relevant decision-making departments on industrial integration issues. In the near future, the subject of China's PV manufacturing industry will be "merger and reorganization."

Industry analysis believes that for the entire photovoltaic industry, market access + mergers and acquisitions, will greatly speed up the "re-capacity" process of slow progress. The “market access” is just the beginning. The greater intention of the policy follow-up is to guide PV companies to implement mergers and reorganizations, and to promote the deep integration of stocks on the basis of incremental control of industrial scale.

The "Specifications for photovoltaic manufacturing industry" issued this time is not much different from the "Draft for Comment" at the beginning of this month. Among them, the production scale, battery efficiency, energy consumption, and service life are clearly stipulated for all aspects of the manufacturing process, such as photovoltaic silicon wafers and battery modules. In the future, new or modified PV manufacturing projects that do not meet these requirements will be affected. Strict control.

According to the planning objectives of the policy makers, by the end of the “Twelfth Five-Year Plan”, China will have to form a photovoltaic company with an annual sales income of over 100 billion yuan, and 3-5 photovoltaic companies with annual sales revenue of over 50 billion yuan, 3-4 Photovoltaic special equipment companies with annual sales income exceeding RMB 1 billion.

According to an analysis released by the Ministry of Industry and Information Technology in mid-August, China's battery module production capacity exceeded 40GW in the first half of this year, accounting for approximately 67% of the world's total. There is no major change in the scale of this production capacity, either year-on-year or ring-to-quarter, which means that the process of capacity-reduction of PV manufacturing companies has been slow in the past few years.