Solar "Reshuffling," AKA Bankruptcy, Accelerates in China; Late Wages and Disguised Layoffs at Yingli (YGE)

Yingli solar is said to be delaying wages and disguising layoffs as questions about its ability to repay an October debt mount.

An article in Sina, originally from Shanghai Securities news, has the story. It opens:
Recently, a number of solar companies have filed for bankruptcy, delisted and disguised layoffs, suggesting that the industry reshuffle is accelerating.

The key bankruptcy for Yingli is a joint-venture partner, a fellow Baoding solar manufacturer and the first SOE to default on a bond.

PV Mag: Tianwei files for bankruptcy protection as solar debts mount.
Baoding Tianwei Baobian Group Co., parent company of the solar firm, defaulted in April on a bond payment, becoming first state-owned Chinese firm to do so; bankruptcy filing issued this week as debts mount.

Bloomberg: Yingli Fights to Survive as Another Solar King Dethroned
No one illustrates that better these days than Yingli Green Energy Holding Co., which was until last year the world’s biggest panel company by shipments. It’s lost two-thirds of its market value in 2015 and in May acknowledged “substantial doubt” about whether it can stay afloat amid a pile of debt. The Baoding, China-based manufacturer will report second-quarter results Tuesday and analysts are expecting a 16th straight loss.

It’s a familiar story in the solar business. Yingli followed Suntech Power Holdings Co., another Chinese panelmaker that held, and lost the top spot in the industry. Before that, Germany’s Q-Cells SE held the No. 1 position. Both went bankrupt, felled by debt and high costs in an industry where prices have plunged.
Here's an interesting tidbit:
The company is trying to raise money to repay a local venture’s bond that’s due next month, Jean Tian, an investor relations officer, said on Monday. Yingli will raise money by selling land and from other cash flows to help cover Baoding Tianwei Yingli New Energy Resources Co.’s 1 billion yuan bond coming due on Oct. 13., the official said.
From 2007: Yingli Green Energy Contributes Additional Capital to its Joint Venture
Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading vertically integrated photovoltaic ("PV") product manufacturer in China, today announced that it further amended the joint venture contract (the "Amendment") with Baoding Tianwei Baobian Electric Co., Ltd. ("Tianwei Baobian") under which Yingli Green Energy will contribute additional capital of RMB1,750,840,000 (equivalent of US$236.6 million at the exchange rate of RMB7.40 to US$1.00, as previously agreed upon by the Company and Tianwei Baobian) to its principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd. ("Tianwei Yingli").
Back to the article linked below.
Second quarterly show, Yingli's short-term borrowings of approximately $ 1.626 billion, compared to $ 1.23 billion increase in the same period last year, medium-term notes of $ 48.4 million, long-term borrowings of $ 333 million. In October, the five-year period Yingli also worth 1 billion yuan of unsecured medium-term notes due.

The growing tension in the capital chain when the mouth, Yingli also came disguised layoffs, wage arrears messages.

Informed sources have revealed that the company was originally the 15th wages, because money is tight changed to the 18th, the 18th and now have a few days of wages not landed. Also, because an old wages equivalent to two new staff wages, so while a large number of recruit new employees, while they came "disguised layoffs."
The company pays wages on the 15th. It moved the date to the 18th, yet some workers still haven't been paid. Many workers are being transferred to new jobs that are very physically demanding and are retiring. The new hires by the company earn 50% of the old worker's salary, hence the internal reorganization is called a disguised layoff.
"The workshop is cutting staff, but the training department has a number of new employees in training, what does this mean? In fact, we know everything. The issue is when will wages be paid." The source said.
The company has acknowledged what is happening. It says wages will be paid, but staff is being idled due to consolidation.
 In this regard, the spokesman Wang Yingli new Shanghai Securities news reporter yesterday acknowledged that the company is indeed part of the staff because of funding problems delayed wage payment, but in advance and employees are communicated, and certainly will be issued. As for the accusations of disguised layoffs inaccurate, because the company requires office staff and other departments have experience at the workshop, while the company's ongoing sector consolidation, assembly plant at full capacity due to a lack of people.
What is interesting is this press release from September 17: Yingli Signs Its Largest Solar Panel Supply Agreement to Date in China
Yingli Green Energy Holding Company Limited ("Yingli" or "Yingli Solar") (NYSE:YGE), one of the world's leading solar panel manufacturers, today announced that its holding subsidiary, Yingli Energy (Beijing) Company Limited ("Yingli Beijing") has entered into an agreement with CFC Group Construction Limited ("CFC Construction") to supply 170 megawatts (MW) of solar panels for utility-scale power plants in China's Hebei province. It is Yingli's largest solar panel supply agreement to date in China.

According to the agreement, Yingli will deliver over 650,000 multicrystalline YGE Series solar panels to CFC Construction during the third quarter and fourth quarter of 2015. The panels will be installed in power plants located in the city of Zhangjiakou, one of Hebei province's largest municipalities. Once operational, the panels are expected to generate more than 200,000 megawatt-hours of clean energy, offsetting approximately 120,000 tons of carbon emissions.

Zhangjiakou is an ideal location for the development of solar power plants due to its abundant solar resources, large industrial base, and high demand for electricity, so it was selected by China's State Council to be the site of the country's first renewable energy pilot zone. Zhangjiakou also recently won the rights to host the 2022 Winter Olympic Games together with Beijing, and these new solar power plants will help provide clean solar power for a green, low-carbon Olympics.
One area that soaked up capital was malinvestments in silicon factories.
"Fundamentally, Tianwei, Yingli are 'dead' in silicon."

Some people think Yingli can survive with government help and strong executive leadership, but the debt in the industry is crippling:
"A lot of companies are bankrupt too much blind expansion of some key enterprises owe the government more than one hundred billion yuan, it is still not paid off. These companies do not meet the development of market rules, should go bankrupt and eliminated, survival of the fittest is the market mechanism." China Renewable Energy Society, vice president of Meng Xiangan said in an interview with the Shanghai Securities News reporter.

In his view, Suntech and LDK bankruptcy, Tianwei Yingli problems, can be attributed to the lack of respect for laws of the market.
Sina: 多家光伏龙头企业深陷泥潭 盲目扩张后沉疴难愈

YGE has been a money loser since it IPOd.
Seeing the mention of silicon made me think of SUNE. The damage is not contained.

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