Whose game will photovoltaics be in the next decade?

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Reposted from http://www.ne21.com/news/show-19027.html: Confessions of 10 photovoltaic industry leaders: Who will dominate the photovoltaic sector in the next decade? Publication date: 2011-07-12 07:44:49. Authors: Zhou Furong, Wang Zhaobin, Ding Ling. Although China’s photovoltaic industry saw its first pioneer in the form of Ningbo Solar back in 1978, the most interesting developments began 10 years ago, with a surge in activity occurring 6 years ago. After Suntech Power of Wuxi went public on the NYSE in 2005, the Chinese photovoltaic industry entered its golden age. But **there is always a past**, and it is often only after that that the truth emerges. Is there a bubble in China’s photovoltaic industry? When will this bubble burst? For this issue’s cover feature, we are making an attempt for the first time to have 10 industry representatives from the front lines of the photovoltaic sector write in the form of confessions, exploring the gains and losses, as well as the joys and concerns, associated with the development of China’s photovoltaic industry. 1. Shi Zhengrong, from Yangzhong, Jiangsu, is a leading figure in the solar photovoltaic industry and was once China’s richest man. A technical entrepreneur who studied under Martin Green, a global leader in the solar photovoltaic industry. 2. Ma Xuelu, from Baoding, Hebei Province; former director of the Management Committee of the High-Tech Zone (Diangu), and vice president of the China Wind Energy Association. The second-in-command of Yingli Group. 3. Peng Xiaofeng, from Anfu, Jiangxi, invested 500 million yuan in July 2005 to establish the photovoltaic company Jiangxi Suntech LDK, and led it to a successful listing in June 2007. 4. Jin Baofang, from Ningjin, Hebei Province, originally the head of Ningjin Electric Power Bureau. He founded Jinglong Group in 1996 and has been a key figure at various World Photovoltaic Industry Conferences. 5. Su Weili, from Baoding, Hebei Province, is one of the first experts in China to enter the solar photovoltaic industry. He served as vice general manager of Tianwei Yingli and founded Tianhua Sunshine in 2005. 6. Sun Zhi’an, from Anyang, Henan Province, founded Phoenix Photovoltaic in April 2009 and serves as its chairman. Adopt a three-step strategy of purchasing equipment, introducing technology, and attracting talent. 7. Li Hejun, from Dongyuan, Guangdong, is the president of the New Energy Chamber of Commerce of the All-China Federation of Industry and Commerce. In 1994, Beijing Huarui Investment Group (the predecessor of Hanergy Holding) was established, and it has made it onto the list of richest people on multiple occasions. 8. He Xianhan, from Ningbo, Zhejiang, is a returned overseas Chinese and the president of Ferrotec Corporation (China) in Japan. He founded Shanghai Hanhong in March 2005; he is a businessperson with a strong technical background. 9. Wang Hui, from Henan – Every photovoltaic company has its own unique skill. Wang Hui founded Yan Yuan Photovoltaic in 2009, dedicating himself to the research of copper indium gallium selenide thin-film solar cells. 10. Gao Jifan, from Changzhou, Jiangsu, with a background in chemistry, entered the solar industry later in his career. He founded Trina Solar in Changzhou in 1992, and in December 2006 he led Trina Solar to go public on the NYSE. They are the key players in the industry, and most of them have witnessed the rise and fall of the photovoltaic sector. They understand better than anyone else what it means to be a major exporter with a small consumer market, and a major producer with low profits. It is certain that the era of high margins in the photovoltaic industry is over. Nevertheless, this industry is bound to experience another major boom in the coming years, along with the various problems that come with such prosperity. A new era for the photovoltaic industry is already emerging, faintly visible. Who will dominate the photovoltaic industry in the next decade? By Zhou Furong, reporter for this magazine. The photovoltaic industry has been, from its inception, a product of the entrepreneurial spirit of entrepreneurs, subsidy support from local governments, and favor from capital markets. It is even described, along with new energy industries such as wind and nuclear power, as a savior in this era of energy scarcity. 33 years ago, Heliogas was the first to open the doors to the photovoltaic industry. After that, there was a period of silence lasting over twenty years. It was not until 2005, when Jiangsu Suntech Power Co., Ltd. went public on the NYSE, that its chairman, Shi Zhengrong, became China’s new richest man. Starting from that year, the photovoltaic industry, just like the internet industry back then, saw one hero after another emerge at an astonishing pace, along with their legendary stories of making wealth. A large number of photovoltaic production facilities equipped with high-profile new energy advertisements showcase their distinct identity at the entrances to various major highways. The myths keep escalating. Six or seven years ago, the sudden surge in demand in the Chinese market caused global polysilicon prices to soar. To secure supplies, domestic companies, in a state of panic, rushed to sign polysilicon supply agreements with foreign parties. Such Sino-Xiongnu-style treaties not only erode the profits of Chinese companies, but also leave China at the mercy of others since it relies on them for food and supplies. Such agreements provide a source of resources that enables the rapidly growing Chinese enterprises to expand swiftly. However, when the financial crisis hit in 2008, such \"alliances\" tied the hands of Chinese photovoltaic companies. In less than a year, the price of polysilicon plummeted from nearly $500 per kilogram to $55. The sudden changes in the market caught this industry, which grew by using hormones, off guard. During the financial crisis, at least 3/4 of photovoltaic companies went bankrupt and ceased operations, with a significant number of them collapsing due to polysilicon supply agreements. Also around six or seven years ago, the significant gap in the polysilicon market led domestic companies to flock to the upstream stages of this industry, entering those segments where capital investment is required and where competition is most intense and costs are highest. The polysilicon industry has become the hottest emerging industry in the country. In 2004, China had only one polysilicon manufacturer. In 2005, China’s first 300-ton polysilicon production facility was built and put into operation in Luoyang Zhongsi. That year marked the beginning of China’s polysilicon industry as well as its photovoltaic industry. Just three years later, China’s total polysilicon production reached over 1,000 tons, and China began to surpass Europe and Japan, becoming the world’s leading producer of solar cells. In 2008, the growth rate of polysilicon was as high as 300.8%. The Pandora’s box contained greed, emptiness, slander, jealousy, pain... and of course, hope at the end. On the path of development for the photovoltaic industry, it has long been plagued by pollution, the reliance on external sources for key technical equipment and market demand as well as raw materials, along with three major problems: fierce competition and the resulting low quality and low profit margins. On these issues, experts and entrepreneurs in the industry have powerful opinions. Wang ZhanGuo, an expert in polysilicon and an academician of the Chinese Academy of Sciences, believes that: \"China’s current technologies are not sufficient to fully address the issue of recycling by-products generated in polysilicon production.\" ” He Zuoxiu, an academician of the Chinese Academy of Sciences, said: “The technology of some state-owned enterprises is also not advanced; in fact, it is quite backward.” Overall, domestic companies lack solid research and development efforts in this field. ” Cui Rongqiang, former director and professor at Shanghai Jiao Tong University’s Solar Energy Research Institute, said, “It’s good that attention is being paid to photovoltaic pollution. But if the international community is acting out of environmental concerns, they should go to the field to help Chinese companies solve their problems and share their technology, rather than cracking down on China’s photovoltaic industry.” ” Gao Hongling, deputy secretary-general of the China Photovoltaic Industry Alliance, said, “Expanding production capacity continuously without conducting in-depth analysis and research on development factors such as technology, resources, talent, market conditions, and competitive advantages and disadvantages certainly does not conform to the principles of scientific development; caution is needed.” ” Shi Zhengrong, chairman of Suntech, said, “Just look at **’s gross margin level and you’ll understand.” In fact, this industry is still comparable to the contract manufacturing industry. ” Ma Xuelu, INL’s chief strategy officer, said, “The era of high margins in the photovoltaic industry is over.” This is a challenge; companies can no longer solve problems through speculation – they must focus on practical actions, by earnestly working on technology, talent, and products. ” It must be said that China’s photovoltaic industry is truly a case of beauty appreciated beyond its own borders. The amount of solar power generated in our country currently accounts for only 5% of the world’s total, which is largely due to the **failure to establish appropriate pricing for solar power fed into the grid. This asymmetry seems to be a great irony when compared to the figure cited in official statistics in recent years, which states that \"China accounts for around 90% of the global exports of photovoltaic products.\" Since the price for accessing the optoelectronic network changes daily, it is difficult for the domestic market to develop. China has been trying to develop its domestic market by imitating foreign roof programs. The roof plan was first introduced in Germany. Germany achieved good results by installing solar power systems on the roofs of 2,000 residential buildings, and later the Netherlands and Japan also introduced similar programs. To date, 500,000 households in Japan have installed solar roof systems. Moreover, as early as 6 years ago, **subsidies for rooftop systems were discontinued, as Japan’s photovoltaic industry by then already had the capability to compete with other power sources. The secret to Japan’s success lies in its continuous public investment in the development and subsequent deployment of solar energy technology. In China, taking Shanghai, the financial hub, as an example, in preparation for the World Expo, Shanghai launched a project in 2003 called the \"100,000 Roofs Plan.\" The initial plan was to enable each household to generate 3,000 watts of solar power; once fully implemented, this project would provide 300,000 kilowatts of electricity. Some even imagine making solar roof programs widespread in 30 years. However, a few years later, only one out of a hundred thousand roofs remained. Shanghai is not an isolated case. Currently, only Jiangsu Province in China has introduced a fixed price policy for photovoltaic power generation, stipulating that the feed-in prices for 2009–2011 were 2.15 yuan per kilowatt-hour, 1.7 yuan per kilowatt-hour, and 1.4 yuan per kilowatt-hour respectively. All other provinces and cities have not fixed the grid connection price for photovoltaic power generation. In fact, photovoltaic companies are full of optimism regarding the integration of photovoltaic power into the grid; they have been striving to make the costs of photovoltaic power equal to those of thermal power. Two years ago, 13 photovoltaic companies including Suntech and Saiwei signed the Luoyang Declaration in Luoyang, vowing to reduce the cost of photovoltaic power generation to 1 yuan per kilowatt-hour by 2012. This year, some companies have claimed that the cost of generating electricity has dropped to 0.8 yuan per kilowatt-hour. The main theme for the future of the photovoltaic industry is already emerging, faintly visible. Wang ZhanGuo, an authority on polysilicon and an academician of the Chinese Academy of Sciences, pointed out that thin-film solar energy will be the dominant technology in the future. He Zuoxiu said, “Concentrated solar power generation will become a substitute for crystalline silicon and thin-film cells.” ” Thin-film solar energy is expected to significantly reduce material consumption and costs, and it is undoubtedly the direction for the future development of the photovoltaic industry; however, it is difficult to achieve industrialization at this time. For at least the next 10 years, crystalline silicon solar power will remain the dominant force in the photovoltaic industry. For thin-film solar power to become dominant, four factors are crucial: the conversion efficiency needs to reach 30% ； Low cost ； Abundant raw materials ； Environmentally friendly and pollution-free. However, it is difficult for Chinese photovoltaic companies to meet these four requirements; in particular, the conversion efficiency issue alone is enough to hinder all such companies. In early November 2010, Suntech Power in Wuxi launched a new crystalline silicon cell manufacturing plant in Shanghai. This factory was originally used by Suntech to produce thin-film solar cells, and Suntech had planned to achieve a production capacity of 400 MW by 2010. However, in 2009, the production capacity of Suntech’s thin-film factory in Shanghai was only 20 MW, while the output of its crystalline silicon solar cells during the same period was as high as 704 MW. In 2010, Shi Zhengrong decided to make a change and transformed the thin-film battery factory into a crystalline silicon battery factory. JinkoSolar, the second-largest photovoltaic company in China, will also not enter the thin-film sector within 10 years. However, in the view of Yang Liyou, general manager of Chint Solar, Suntech’s choice does not represent the trend in the development of this industry. Like Shi Zhengrong, Yang Liyou also has many years of experience in the research and development of thin-film solar technology. This Ph.D. student of Lee Tsung-Dao said, “A technological breakthrough in conversion efficiency is only a matter of time.” ”Therefore, he led Chint Solar to stick to the thin-film route. Among the numerous companies across the river, there is actually one that is engaged in the manufacturing of optical disc equipment. In 2010, this company named Hongwei Digital invested 13 billion yuan in Dongguan to develop thin-film solar projects, and mass production has since begun. Looking back, it was in 1986 that the **Planning Commission included a section on \"solar cells\" in the rural energy \"Seventh Five-Year Plan for 1986–1990,\" which marked the slow beginning of the photovoltaic industry. Since 2004, China’s photovoltaic industry has developed at a rapid pace. By 2010, China’s photovoltaic manufacturing industry accounted for half of the global market. However, China’s photovoltaic industry has created a distorted image of the country as a major exporter but a small consumer, and as a major producer but one with limited profits. China’s photovoltaic industry, just like its low-end manufacturing sector, is becoming a contract manufacturing hub for the global photovoltaic industry. It is certain that the era of high margins in the photovoltaic industry is over. Nevertheless, in the coming years this industry is bound to experience a period of great prosperity, as well as the various problems that come with it. For photovoltaic companies, industry reshuffling is inevitable; only those that can capitalize on the domestic market and have long-term development plans will be the ones to succeed in the end. One yuan per kilowatt-hour is not an unattainable goal By Shi Zhengrong In 2001, I returned to my home country to start a business. On the one hand, this was due to my clear awareness of the energy crisis and environmental problems; on the other hand, it was driven by a sense of responsibility and pride as an intellectual, along with the desire and ambition to apply what I had learned to the benefit of my homeland. In 2002, Suntech’s first production line went into operation. The conversion efficiency of the polycrystalline silicon solar cells produced there not only reached an advanced level compared to other companies in the world, but the production capacity of 10 megawatts was also equivalent to the total output of solar cells in China over the previous four years. This quickly reduced China’s gap with the global photovoltaic industry by 15 years. After 10 years of development, Suntech’s production capacity has now exceeded 1,800 megawatts, and it is set to surpass 2,400 megawatts by the end of 2011. Over the past 10 years, Suntech has supplied more than 4,000 megawatts worth of photovoltaic products and systems to over 80 countries and more than 1,800 customers – equivalent to 4 million-kilowatt power plants. Assuming that 1 watt generates 1 kilowatt-hour of electricity per year, this amounts to 4 billion kilowatt-hours of green electricity produced each year. Over the course of 10 years, China has indeed become a major player in solar photovoltaic manufacturing. However, this is not our ultimate goal, nor should it be a reason for us to feel complacent. In the future, we should strive to become a major country in solar photovoltaic applications; only in this way can we truly overcome the problems of energy shortages and environmental pollution. At present, the solar energy industry and market in China have not been well integrated. Looking at the development experiences of Europe, Japan, as well as the rapidly growing photovoltaic market in the United States, it is clear that the launch and growth of such markets rely on **support. **We must actively join forces to encourage the use of solar photovoltaic technology, coordinating efforts from a future-oriented perspective. Not only should there be goals set, but also actionable plans in place. Firstly, conserving resources and reducing consumption is the **main way to address energy problems. On the one hand, energy conservation and emission reduction should be included as an important indicator in the GDP assessment for various regions; through certain administrative measures, the carbon intensity per unit of GDP should be continuously reduced, and energy efficiency improved ； On the other hand, it is necessary to broaden sources of funding by adopting an inclusive and open attitude to encourage the development of various alternative new energy sources. While ensuring the sustainable development of the national economy, it also improves the natural environment, thereby securing a dual improvement in people’s living standards and living conditions. Secondly, energy security must become an **important consideration in formulating energy strategic plans. The frequent occurrence of international conflicts often leads to threats of disruptions or shortages in the supply of imported energy sources such as oil and natural gas. Moreover, the nuclear accident in Fukushima, Japan, recently has brought the issue of the safety of energy sources itself to the forefront of attention. Germany and Switzerland have set clear timelines for phasing out nuclear power, and many other countries, including China, are also beginning to reevaluate their own nuclear energy development plans. It is evident that when choosing an energy source, not only its sustainability but also its safety must be taken into account. It is widely recognized by society that solar energy is the most abundant, cleanest, and safest energy source in nature. However, in China, this does not fully convince people to give up traditional energy sources in favor of solar energy, as the high costs and difficulties associated with using photovoltaic power generation still pose problems for end-users. This requires **actively drawing on the successful experiences of Europe and the United States; on one hand, it is necessary to introduce reasonable and effective feed-in tariff policies for photovoltaic power as soon as possible, so as to use price mechanisms to achieve the goal of curbing pollution and promoting the use of renewable energy** ； On the other hand, efforts should be made to upgrade grid technology and move toward smart grids, in order to ensure the safety, reliability, and cost-effectiveness of electricity supply. Of course, in addition to **support and encouragement at the macro-policy level, as enterprises, we also bear corresponding responsibilities to drive market demand. We firmly believe that a market is essential to better support the industry and achieve sustainable development. This requires companies to continuously reduce the production costs of photovoltaic products, in order to address the issue of high costs associated with solar power generation at its root. On the one hand, we need to actively recruit and train talent in the field of photovoltaics, and continue to intensify efforts in technology research and development in order to improve the conversion efficiency of solar photovoltaic cells; after all, for every 1% increase in efficiency, costs are reduced by 7% ； On the other hand, enterprises should also reduce costs from the perspective of production management; by recycling and reusing resources, they can improve resource utilization and minimize waste. In producing clean energy products, they can truly achieve energy conservation, emission reduction, and clean production. Furthermore, the demonstration of photovoltaic projects represents the most direct and effective way to convey these concepts to the general public, and companies should actively participate in the development and construction of such demonstration projects in the country. Taking Suntech as an example, over the past few years we have not only supplied green electricity to public infrastructure such as the Beijing National Stadium, the China Pavilion at the World Expo, and the roofs of various exhibition halls, but we also invested in building China’s first 10-megawatt photovoltaic power plant in Shizuishan, Ningxia. In Dongtai, Jiangsu, Suntech partnered with Huadian to invest in the construction of China’s first tidal flat photovoltaic power plant. During the 2008 Olympic torch summiting mission, we planned the \"Everest Operation\" to supply the base camp with photovoltaic power that met the requirements for original ecological protection. We are also very concerned about energy utilization in high-altitude areas; we have donated standalone photovoltaic systems to the highest-altitude schools, middle schools, villages, and outposts in the world, enabling the residents there to lead a life illuminated by electricity. I am firmly convinced that, through the joint efforts of all parties, solar photovoltaic technology will soon achieve the goal of a cost of 1 dollar per watt. It will also not be long before China reaches the goal of a power generation cost of 1 yuan per kilowatt-hour. ““To enable every household to use affordable solar energy” – with this green vision, we are ready to set off for the next decade. **Subsidies are of strategic significance – By Ma Xuelu. The first full-industry-chain project in China’s photovoltaic industry was carried out by Yingli Group. Yingli’s growth process has been very difficult. Technically speaking, there were no reference examples available in the country at that time, so it was necessary to create everything from scratch. Furthermore, there is no relevant talent training system, nor is there a similar system within the education sector; to date, China has not established an appropriate training system for photovoltaic professionals. In terms of the market, the global photovoltaic market at that time was not clear, and innovation was required to develop it. Therefore, the development of Yingli has been relatively full of hardships and challenges. Judging from the current situation, the era of high margins in the photovoltaic industry is over. Of course, this is also a challenge for businesses. The days of solving problems through speculation are over; now it is necessary to focus on practical actions (specific strategies), to work diligently on technology, talent, and products. The growth of a company is not only a process of expanding production capacity, but also a process of gathering capital and developing teams. Unified statistical standards are of great importance for assessing industries; they serve not only as a basis for **decision-making and regulation, but also as a foundation for companies to make strategic decisions. The Ministry of Industry and Information Technology has now established a China Photovoltaic Industry Alliance, which is an internal organization; the data it provides is useful for reference. Such an unincorporated entity should be upgraded to an incorporated association in order to regularly release authoritative and accurate statistical data, thereby enabling it to play a guiding role in the industry. This can avoid a lot of blindness. The market for the photovoltaic industry is a **subsidy-driven market, and subsidies are necessary. Because in the existing economic system, the environmental and resource costs associated with fossil fuels are not taken into account in the production process, and these costs are quite high. This also means that the methods used to measure the existing economic system do not reflect the true costs, whereas the cost of clean energy is very low; thus, there is unfairness in the way these two types of energy are compared. Moreover, the technological development of the photovoltaic industry takes time to mature, and as the industry advances, **subsidies will also decline. The current **subsidies should take into account how to measure the role of clean energy in future energy systems. Fossil fuels are non-renewable; by American consumption standards, gasoline will only last for 10 years. By current global average standards, oil will last only a few decades, while coal will last only 100 years. It should be emphasized that fossil fuels are not only a source of energy but also raw materials for the chemical industry. As long as it is a resource, there will come a time when it runs out. Based on an analysis of the current situation, China has reached a critical stage where energy constraints are hindering economic development. The hallmark of this period was the electricity shortage. This year, the power shortage arrived two to three months earlier than usual, and it shows a tendency to worsen, which means that many factories are unable to operate. Building large-scale thermal power plants incurs high costs in terms of transportation, and oil prices are rising at the moment. At the same time, economic development must absolutely not follow the path of polluting first and then dealing with the consequences. **It is necessary to consider the overall strategic picture; one cannot plan for a specific area without considering the whole situation, nor can one plan for the present without thinking about future generations. **At the very least, this issue should be viewed from a perspective of 100 years or even 500 years. Therefore, it is strategically significant to appropriately increase subsidies for the photovoltaic industry. There is too much speculative capital in the market these days, with an excessive degree of speculation. **Funds should be directed to areas that are truly beneficial for economic development, rather than being used for real estate speculation or garlic speculation. Of course, these investments are themselves a last resort, but such flows can affect the economic order of **. I believe that the funds saved from energy conservation should be used to develop renewable energy. To save 1,000 watts of electricity, only an investment of 2,000 yuan is required, with virtually no operating costs thereafter. Building a 1,000-watt thermal power plant requires an investment of 4,000 yuan; moreover, coal and oil must be burned, which has adverse effects on the environment, forcing humans to pay even higher costs to restore the damaged environment. The current total installed capacity nationwide is 1 billion kilowatts, so saving 1/4 of that is an easy task. Of course, there is an issue of interest distribution here; getting this distribution right would bring significant benefits to energy conservation and emission reduction, as well as to the development of renewable energy. Furthermore, **great emphasis is placed on the forward-looking nature and continuity of plans for the photovoltaic industry. The infrastructure for research and development needs to be strengthened; the construction of such infrastructure is not limited to building railways, nor is it restricted to increasing the speed of railways. For example, it takes me an hour and a half to get to Liuliqiao in Beijing by bus, but to reach the Third Ring Road, even if you’re an athlete, it will take at least 20 minutes to get there due to the heavy traffic. It takes 58 minutes to travel by train from Baoding to Beijing Station, but it takes another 15 minutes to get out of the station; plus another 20 minutes for transportation or renting a car. Nearly 40 minutes are lost in this process – so what help does the increased speed of trains really provide? The same is true in the photovoltaic industry; to enhance the systematicness and coherence of various functions, attention should be paid to the social micro-circulation system. Recently, Germany plans to reduce subsidies for photovoltaic systems, so integrators are trying to install as many systems as possible before these subsidies are cut, in order to take advantage of them. This sent a signal to the market indicating huge demand, so many companies failed to approach the situation rationally and entered the market blindly, resulting in overcapacity, rapid expansion, an oversupply of goods, and a sharp drop in product prices. This double-edged sword will lead to the closure of a number of small and medium-sized enterprises. The entire industry needs to be integrated, and the profit margins in various production stages need to be reduced to levels similar to those of mature industries, so as to bring this industry closer to the standards of mature industries and enable it to compete with traditional energy sources. However, the closure of businesses leads to a waste of social resources. However, this is the overall trend in the global photovoltaic industry. The Challenge of Connecting Power Generation to the Grid – By Peng Xiaofeng I often explain the company’s name to my employees in this way: \"‘Ai’ refers to a competition of speed, symbolizing our need to keep striving and constantly going beyond.\" ； Dimension is a spatial dimension that symbolizes the need to approach our endeavors with a long-term perspective and a forward-looking attitude. Over the past few years, the photovoltaic industry has faced many difficulties in its development, but overall, the trend of growth for this industry is irreversible. Sevye LDK was established in July 2005, and two years later it went public on the New York Stock Exchange, becoming the first company from Jiangxi Province to list there. It was also the largest IPO in China’s new energy sector. In 2010, our sales revenue exceeded 20 billion yuan, making us the photovoltaic company with the largest global shipment volume and the strongest profitability. Sevi LDK was able to achieve such success because it chose a growing industry. However, companies have also encountered many difficulties in their development process, and many of these are the same challenges that most photovoltaic companies face as they grow. In 2008, the global economy, including the entire photovoltaic industry, faced an unprecedented severe crisis, and Suntech LDK also encountered its greatest difficulties since its establishment. The prices of polysilicon materials and various photovoltaic products have dropped sharply; companies along the supply chain have canceled or postponed the fulfillment of contracts and orders. The overall weakness of the global economy has led to weak demand in the entire photovoltaic market. These problems weigh like a mountain on the heads of all photovoltaic companies, including SEV LDK. In the face of the financial crisis, we promptly adopted a \"three no’s\" policy: no layoffs, no salary cuts, and no reduction in production. This approach helped to stabilize the morale of our employees right away, ensured unity within SVL DDK, and enabled us to work together to overcome the difficulties. In production, we do our utmost to reduce costs and minimize unnecessary losses during the manufacturing process ； Technically, we proactively develop new technologies and improve manufacturing processes to further reduce costs ； In terms of sales, we strive to retain existing customers while actively seeking new ones, and we stabilize the sales of our company’s products through long-term orders. Thanks to the unremitting efforts of everyone, SEVE LDK was able to emerge from the shadow of the financial crisis alongside the photovoltaic industry, achieving breakthrough growth in 2009. In addition to the financial crisis, we are also faced with an issue that will constrain the development of photovoltaic technology in the near term and for a long time to come, and that is the problem of integrating photovoltaic power generation into the electrical grid. For a long time, the issue of integrating photovoltaic power generation into the grid has hindered the development of this industry due to factors such as costs, prices, and the fact that power generation occurs mainly during the day. This issue involves multiple aspects. To address it, it is necessary to provide strong **policy support, including electricity price subsidies, incentives for the integration of photovoltaic systems into the grid, and simplified procedures for such integration** ； On the other hand, companies themselves also need to continuously develop new technologies, improve production processes, and reduce production costs in order to be able to connect to the grid and even compete on equal terms with traditional energy sources. At the beginning of this year, during China’s 12th Five-Year Plan period, SVLDK also formulated its own five-year plan. “During the 12th Five-Year Plan period, Suntech LDK will achieve a transformation from a photovoltaic technology company to a new energy technology group, striving to become one of the world’s top 500 companies and a world-class new energy group with sales revenue in the hundreds of billions. Making the transition from a photovoltaic technology company to a new energy technology group is by no means an easy task, and becoming one of the world’s top 500 companies as well as achieving sales revenue in the hundreds of billions also poses significant challenges for Sunwoda LDK. But I believe that with all the above measures being implemented simultaneously, and through the joint efforts of the SEVE people, our goals are not far away, and SEVE LDK’s aspiration to \"illuminate the future with sunlight\" will ultimately be realized. The High Ground Determines Creativity by Jin Baofang 15 years ago, Jinglong Industrial Group, founded in Ningjin County, Hebei Province, started out with only three crystal pulling furnaces and 30 employees. Today, we are among the top 500 Chinese enterprises and a leader in the domestic photovoltaic industry. Currently, we have production and R&D facilities in Hebei, Shanghai, Jiangsu, and other places, as well as R&D centers in Germany and the United States. In 2005, the photovoltaic industry entered a period of rapid growth; demand for its products exceeded supply, and prices kept rising. However, Jinglong, which started out with monocrystalline silicon, once faced bottlenecks in its product transformation. At that time, Jinglong’s annual production of solar-grade monocrystalline silicon exceeded 1,500 tons, accounting for about 20% of the world’s market share; it remained the world’s leading producer for consecutive years, which led us to propose the slogan of being the world’s base for monocrystalline silicon production. However, domestic experts with authority poured cold water on Jinglong – isn’t it just a company dealing in basic materials trying to get into the solar industry? What’s the point in selling materials? That really motivated me. Indeed, the production of monocrystalline silicon lies at the bottom of the U-shaped curve of the entire solar industry. In 2005, our sales revenue was less than 2 billion yuan, and we were still a relatively small player in the industry. Thus, capturing the high end of the industrial chain became one of Jinglong’s strategic goals. We quickly identified strategic partners and entered into full cooperation with the Solar Research Centre at the University of New South Wales in Australia, founded by Martin Green, known as the \"father of solar energy,\" to establish JA Solar Co., Ltd., controlled by Jinglong Holdings. This is seen as the key to Crystal Dragon’s transformation. As a result, Jinglong has developed a relatively complete photovoltaic industry chain that spans crystal pulling and slicing, as well as solar cells, modules, and installation. Even under the severe impact of the international financial crisis, sales revenue reached 10.7 billion yuan in 2009. In 2010, Jinglong Group’s sales revenue increased by more than twice again. Sales revenue reached 13.5 billion yuan in the first five months of this year. Those familiar with the solar energy industry know that in this emerging field, only those with a complete industrial chain can be considered true leaders. When Crystal Dragon decided to cooperate with the Australian side to adopt its advanced technology in order to address its weaknesses, a new problem arose. Australia values Jinglong’s advantages in basic materials and has requested to hold a 15% stake in the newly established JA Solar Co., Ltd. through technical investment. At that time, some people said that in the city and province as well, there were few cases of technology-based investments in joint ventures; isn’t investing with technology simply equivalent to giving away shares for free? In the face of doubts, my view is that the world’s advanced solar cell manufacturing technology is in the hands of the University of New South Wales in Australia; the joint venture’s team of scientists comes from there, and they are all experts at the highest international level. After the joint venture, it will be possible to address Jinglong’s technical shortcomings in the production of solar cells; investing in technology represents a significant advancement for the company. So that’s how it was decided in the end. Additionally, issues such as funding and personnel are problems faced by enterprises. But how can it be resolved easily? We see innovation as the solution to these problems; we don’t have to buy equipment or do anything else, but we must foster innovation – otherwise, the company will lack the drive to develop. In other words, once a positive cycle is established, it becomes the company’s voluntary action. Because through innovation you can reduce costs, which enables you to compete in the market; it is through innovation that you can produce products that meet market standards and are satisfactory to customers. At the same time, when it comes to a company’s industrial upgrading, it is by no means a simple process of combining technologies and equipment from others; rather, it must be an upgrade that involves mastering core technologies and possessing independent intellectual property rights. We have a provincial science and technology center, four R&D institutions, two laboratories, two postdoctoral research stations, and a scientific research team of over 150 experts from home and abroad. Jinglong has over 20 innovative projects that are independently developed, hold independent intellectual property rights, and serve as alternatives to imported products. These technological innovations have changed the situation of simply imitating others in the past. Currently, the global photovoltaic market relies primarily on subsidy policies implemented by various countries. A fixed feed-in tariff is recognized as the most effective incentive for the development of the photovoltaic industry, yet no such tariff has been introduced in China. China’s solar photovoltaic products rely almost entirely on exports, primarily to markets in Europe and the United States. Domestic installation capacity accounts for only about 3% of the total solar photovoltaic production, which means that the development of domestic photovoltaic enterprises is constrained by foreign markets. We hope that policies and mechanisms for grid-connected power generation will be introduced as soon as possible, so that the domestic market can be activated promptly, and the awkward situation in which China’s photovoltaic industry is dependent on foreign markets can be resolved at an early date ； At the same time, industry guidance should be strengthened to avoid disorderly competition, so that the photovoltaic industry can become an industry in China that possesses independent intellectual property rights and core competitiveness on the international stage. We can’t follow the old path of pure manufacturing. By Su Weili: Six years ago, when I left Tianwei Yingli, the vast majority of domestic photovoltaic companies were manufacturers; I wanted a company that could build on its existing manufacturing strengths to provide customers with more sophisticated, professional photovoltaic services. Thus, Tianhua Sunshine Company was born. In the early stages, Tianhua Sunshine was primarily engaged in the investment, financing, development, technology research and development, engineering design, construction, and operation management of photovoltaic power plants in Europe and the United States. If we use the construction industry as a metaphor, photovoltaic manufacturing companies are akin to building material suppliers, while Tianhua Sunshine functions like a real estate developer in the photovoltaic industry. Through years of operations in the European and American markets, Tianhua Sunshine has accumulated extensive experience in terminal operation and management. Although a sustainable and mature business model has not yet been established in the investment sector of the domestic photovoltaic market, we are optimistic about the future development of China’s new energy market. We hope to return to China and contribute to the development of photovoltaic technology there, applying Tianhua Sunshine’s experience and expertise to serve China’s photovoltaic industry. The Chinese photovoltaic market is expected to experience significant growth within the next 23 years; until then, **all participants in various sectors of this industry chain will go through a process of continuous exploration and adjustment. In photovoltaic concession bidding projects, **Team almost secures all the opportunities for investment in photovoltaic projects. The private enterprises that participate in the bidding either fail to qualify due to technical shortcomings or lose all their advantages in the price competition; it seems that private enterprises have to find alternative ways if they want to invest in photovoltaic power plants. We have different understandings of this. On the path of development for the photovoltaic industry, large state-owned enterprises may need to take the lead as pioneers. From a technical perspective, aspects such as internet access, applications, and basic data all require a process of improvement and enhancement. At present, China does not yet have accurate photovoltaic meteorological data; whether in Yunnan, Gansu, Heilongjiang, or in Tibet and Xinjiang where there is abundant solar energy, there are no precise data available to guide investments in photovoltaic systems. Lacking foundational data, current investments are akin to trying to cross a river by feeling the stones beneath one’s feet; they are not considered mature forms of business investment. State-owned enterprises take the lead in making these attempts, laying the groundwork for the healthy development of the photovoltaic industry in the future. Only through market investment, technological progress, and cost reduction can a sustainable path of photovoltaic development leading to grid-parity electricity be achieved. When dealing with domestic enterprises, Tianhua Sunshine is willing to leverage its strengths to cooperate fully with ** and various enterprises along the industry chain, working together to promote the development of photovoltaic technology in China. On the one hand, it continues to explore the domestic photovoltaic market, bringing in mature technologies and extensive experience ； On the other hand, it takes advantage of Tianhua Sunshine’s global network to supply high-quality domestic products to Tianhua Sunshine’s high-return new energy projects around the world. At the same time, by working together with strategic partners from various sectors, we strive to enhance China’s photovoltaic brands, deliver high-quality photovoltaic services worldwide, and channel Chinese capital into overseas end markets, thereby achieving profits through services and capital investment. Technological innovation must be given top priority. By Sun Zhi’an. Anyang Phoenix Photovoltaic Technology Co., Ltd. is located in Huaixian County, Henan Province. It was established in April 2009, with a registered capital of 150 million yuan and assets worth 780 million yuan. In just two years, Phoenix Photovoltaic’s assets reached 1.5 billion yuan, with sales revenue amounting to 1.8 billion yuan. However, Phoenix Photovoltaic also faces challenges on its path of development. The development of the domestic photovoltaic market is primarily driven by policy subsidies. Domestic photovoltaic companies suffer from the disadvantage of relying on external factors for three key aspects: technology and equipment, markets, and raw materials, which means that market fluctuations have a significant impact on their daily operations. In 2011, the international solar market entered an era of homogeneous competition, and Chinese photovoltaic companies that relied solely on equipment and production capacity to drive their development faced tremendous challenges. In response to this, Phoenix Photovoltaic has achieved rapid growth through technological innovation, continuously increasing its investment in research and development. By building up its technical capabilities, it has managed to improve quality and optimize its cost structure. To this day, Phoenix Photovoltaic continues to adhere to its brand strategy and does not produce OEM products. Before entering the photovoltaic industry, we conducted thorough research and analysis on the development patterns and approaches of this sector, and found that each reduction in the cost of photovoltaic power generation has been closely linked to technological advancements. Every technological innovation leads to a significant reduction in costs, thereby promoting the large-scale and industrial development of photovoltaics. It follows that the photovoltaic industry must rely on technological innovation to drive its development. Since its establishment, Phoenix Photovoltaic has adopted the fundamental principle that \"research and development is the lifeblood of a company.\" We have always been supportive in terms of building a strong R&D team, selecting appropriate R&D projects, and providing the necessary funding. Although we have purchased advanced equipment, the technological innovation in this process is brought about by the equipment itself. How to rely on our own technical capabilities to optimize and modify equipment in order to maximize its value has always been a top priority in our R&D efforts. Although since the first quarter of this year, changes in the European market – particularly Italy’s decision to reduce subsidies for photovoltaic systems – have imposed significant pressure on the entire industry chain, ranging from components and cells to silicon wafers and raw silicon materials, leading to a shortage of liquidity and a pervasive sense of pessimism and helplessness within the photovoltaic sector, we remain optimistic about this industry. Polysilicon wafers have gradually become the mainstream product in the solar photovoltaic industry. In 2010, the global annual installation volume was 13 GW; it is expected that in 2011 this figure will increase by 20% compared to 2010, reaching 17 GW – a level that has never been seen before in the history of photovoltaic development. It is anticipated that by 2015, the global annual installation volume will reach 55 GW. I have two basic assessments regarding the future development of the market: in the long term (over the next 5 years), the photovoltaic industry is likely to see overall improvement. Looking at the policy orientations of various countries, there have been profound changes in their energy priorities following the Great ** disaster. There is continuous advocacy for the vigorous development of photovoltaic technology, and this green, pollution-free form of energy generation is once again facing new opportunities for growth ； From a market perspective, although growth in the European market has slowed down, Germany – a key hub for the photovoltaic industry – **announced its complete abandonment of nuclear energy, which has provided a boost to the future development of this market. Furthermore, emerging markets such as the United States, India, and Africa all possess the demand, capacity, and conditions to build large-scale photovoltaic power plants, all of which indicate great potential for the future development of the photovoltaic industry. Inevitable short-term market corrections mean that the development of the photovoltaic industry will inevitably involve continuous reshuffling. Through continuous technological innovation, eliminating outdated production capacity and reducing costs, it gradually approaches and achieves grid parity. Therefore, this market adjustment is highly necessary. In my opinion, such adjustments help Chinese companies that pursue rapid expansion blindly to become more rational and mature, thereby making the photovoltaic industry healthier; there is nothing wrong with such adjustments. The entire industrial chain is particularly important. By Lee Hee-kun: In 2006, when I was elected president of the New Energy Chamber of the Federation of Industry and Commerce, I didn’t know much about solar energy; it was friends from the chamber who specialized in solar cell manufacturing who told me that the cost of generating electricity using solar energy was three to four yuan per unit. At that time, everyone thought it would take 30 to 40 years for the cost of solar energy to drop to one yuan, but by 2009, the cost of generating electricity from solar power had already fallen to around one yuan – in fact, it only took three years. I believe that when the cost of solar energy drops to 0.5 yuan per kilowatt-hour in the near future, making it comparable to the costs of nuclear, coal, and oil power, it will represent a major turning point in the history of energy. From 2006 to 2009, Hanergy spent three years conducting industry research before entering the thin-film solar industry. The reason for choosing thin-film solar cells is that, as part of the second generation of solar cell technologies, they offer advantages over the first-generation crystalline silicon solar cells, such as being environmentally friendly, pollution-free, having low costs, the ability to generate electricity in low-light conditions, and high average power output ； On the other hand, Hanergy possesses advanced proprietary technology in thin-film solar cells, which is what gives it the confidence to enter the thin-film solar industry. The characteristics of the solar energy industry can be summarized in three words: high (technology), large (scale), and comprehensive (entire industrial chain). The solar energy industry has a huge potential, and I define it as high-tech energy. Solar energy is both high technology and an energy source. With these two promising industries combined, 1+1 is not equal to 2; rather, it’s 1+1=11. According to authoritative forecasts, by 2020, the global solar energy industry will have a capacity of 300GW to 500GW, with total investment amountsing to 3 trillion to 5 trillion yuan. Therefore, working in the new energy industry is different from other industries, as it requires substantial investment. To truly achieve scale, investments in the order of hundreds of billions are required. In the past, many small and medium-sized enterprises that tried to produce thin-film solar cells failed, as they lacked scale, suffered from high production costs, and had no market for their products. Furthermore, the solar energy industry is a technology-driven sector; it is not sufficient to operate only in the midstream segment, as the strategic risks are very high. Many companies that produce solar panels operate only at the bottom end of the \"smile curve\": they import the equipment and export their products. Hanergy is different; we manufacture our own equipment, and we possess the core technologies for our products, holding independent intellectual property rights – this is a major advantage of Hanergy. Furthermore, Hanergy focuses on solar energy not just by producing batteries, but by integrating the entire industry chain: high-end equipment manufacturing in the upstream stage, module production in the midstream stage, and power generation in the downstream stage. Hanergy does not merely produce thin-film solar cells; it has also developed a complete clean energy industry chain centered around solar cells. To lead the new energy revolution, there is one more essential factor for companies: soft power. In the solar energy and new energy industries, no single company can succeed on its own; it requires the trust and support of ** and partners. **At the end of 2010, the development bank provided Hanergy with a loan of 4.3 billion yuan for thin-film solar technology. Why was it willing to enter the solar industry together with Hanergy? It is based on trust in Hanergy, and on support for the new energy industry – this really touches my heart. It is true that in the new energy industry, the people at Hanergy face not only opportunities but also challenges from various aspects such as technology and the market. However, years of experience in the business world have taught me that we often overestimate changes that occur over one or two years, while underestimating those that occur over 5 to 10 years. We may be disappointed by changes over one to two years, but surprised by those over 5 to 10 years. I believe that in the next 10 years, **'s development and strength will exceed our imagination. We can’t follow the old path of pure manufacturing. By Su Weili: Six years ago, when I left Tianwei Yingli, the vast majority of domestic photovoltaic companies were manufacturers; I wanted a company that could build on its existing manufacturing strengths to provide customers with more sophisticated, professional photovoltaic services. Thus, Tianhua Sunshine Company was born. In the early stages, Tianhua Sunshine was primarily engaged in the investment, financing, development, technology research and development, engineering design, construction, and operation management of photovoltaic power plants in Europe and the United States. If we use the construction industry as a metaphor, photovoltaic manufacturing companies are akin to building material suppliers, while Tianhua Sunshine functions like a real estate developer in the photovoltaic industry. Through years of operations in the European and American markets, Tianhua Sunshine has accumulated extensive experience in terminal operation and management. Although a sustainable and mature business model has not yet been established in the investment sector of the domestic photovoltaic market, we are optimistic about the future development of China’s new energy market. We hope to return to China and contribute to the development of photovoltaic technology there, applying Tianhua Sunshine’s experience and expertise to serve China’s photovoltaic industry. The Chinese photovoltaic market is expected to experience significant growth within the next 23 years; until then, **all participants in various sectors of this industry chain will go through a process of continuous exploration and adjustment. In photovoltaic concession bidding projects, **Team almost secures all the opportunities for investment in photovoltaic projects. The private enterprises that participate in the bidding either fail to qualify due to technical shortcomings or lose all their advantages in the price competition; it seems that private enterprises have to find alternative ways if they want to invest in photovoltaic power plants. We have different understandings of this. On the path of development for the photovoltaic industry, large state-owned enterprises may need to take the lead as pioneers. From a technical perspective, aspects such as internet access, applications, and basic data all require a process of improvement and enhancement. At present, China does not yet have accurate photovoltaic meteorological data; whether in Yunnan, Gansu, Heilongjiang, or in Tibet and Xinjiang where there is abundant solar energy, there are no precise data available to guide investments in photovoltaic systems. Lacking foundational data, current investments are akin to trying to cross a river by feeling the stones beneath one’s feet; they are not considered mature forms of business investment. State-owned enterprises take the lead in making these attempts, laying the groundwork for the healthy development of the photovoltaic industry in the future. Only through market investment, technological progress, and cost reduction can a sustainable path of photovoltaic development leading to grid-parity electricity be achieved. When dealing with domestic enterprises, Tianhua Sunshine is willing to leverage its strengths to cooperate fully with ** and various enterprises along the industry chain, working together to promote the development of photovoltaic technology in China. On the one hand, it continues to explore the domestic photovoltaic market, bringing in mature technologies and extensive experience ； On the other hand, it takes advantage of Tianhua Sunshine’s global network to supply high-quality domestic products to Tianhua Sunshine’s high-return new energy projects around the world. At the same time, by working together with strategic partners from various sectors, we strive to enhance China’s photovoltaic brands, deliver high-quality photovoltaic services worldwide, and channel Chinese capital into overseas end markets, thereby achieving profits through services and capital investment. Technological innovation must be given top priority. By Sun Zhi’an. Anyang Phoenix Photovoltaic Technology Co., Ltd. is located in Huaixian County, Henan Province. It was established in April 2009, with a registered capital of 150 million yuan and assets worth 780 million yuan. In just two years, Phoenix Photovoltaic’s assets reached 1.5 billion yuan, with sales revenue amounting to 1.8 billion yuan. However, Phoenix Photovoltaic also faces challenges on its path of development. The development of the domestic photovoltaic market is primarily driven by policy subsidies. Domestic photovoltaic companies suffer from the disadvantage of relying on external factors for three key aspects: technology and equipment, markets, and raw materials, which means that market fluctuations have a significant impact on their daily operations. In 2011, the international solar market entered an era of homogeneous competition, and Chinese photovoltaic companies that relied solely on equipment and production capacity to drive their development faced tremendous challenges. In response to this, Phoenix Photovoltaic has achieved rapid growth through technological innovation, continuously increasing its investment in research and development. By building up its technical capabilities, it has managed to improve quality and optimize its cost structure. To this day, Phoenix Photovoltaic continues to adhere to its brand strategy and does not produce OEM products. Before entering the photovoltaic industry, we conducted thorough research and analysis on the development patterns and approaches of this sector, and found that each reduction in the cost of photovoltaic power generation has been closely linked to technological advancements. Every technological innovation leads to a significant reduction in costs, thereby promoting the large-scale and industrial development of photovoltaics. It follows that the photovoltaic industry must rely on technological innovation to drive its development. Since its establishment, Phoenix Photovoltaic has adopted the fundamental principle that \"research and development is the lifeblood of a company.\" We have always been supportive in terms of building a strong R&D team, selecting appropriate R&D projects, and providing the necessary funding. Although we have purchased advanced equipment, the technological innovation in this process is brought about by the equipment itself. How to rely on our own technical capabilities to optimize and modify equipment in order to maximize its value has always been a top priority in our R&D efforts. Although since the first quarter of this year, changes in the European market – particularly Italy’s decision to reduce subsidies for photovoltaic systems – have imposed significant pressure on the entire industry chain, ranging from components and cells to silicon wafers and raw silicon materials, leading to a shortage of liquidity and a pervasive sense of pessimism and helplessness within the photovoltaic sector, we remain optimistic about this industry. Polysilicon wafers have gradually become the mainstream product in the solar photovoltaic industry. In 2010, the global annual installation volume was 13 GW; it is expected that in 2011 this figure will increase by 20% compared to 2010, reaching 17 GW – a level that has never been seen before in the history of photovoltaic development. It is anticipated that by 2015, the global annual installation volume will reach 55 GW. I have two basic assessments regarding the future development of the market: in the long term (over the next 5 years), the photovoltaic industry is likely to see overall improvement. Looking at the policy orientations of various countries, there have been profound changes in their energy priorities following the Great ** disaster. There is continuous advocacy for the vigorous development of photovoltaic technology, and this green, pollution-free form of energy generation is once again facing new opportunities for growth ； From a market perspective, although growth in the European market has slowed down, Germany – a key hub for the photovoltaic industry – **announced its complete abandonment of nuclear energy, which has provided a boost to the future development of this market. Furthermore, emerging markets such as the United States, India, and Africa all possess the demand, capacity, and conditions to build large-scale photovoltaic power plants, all of which indicate great potential for the future development of the photovoltaic industry. Inevitable short-term market corrections mean that the development of the photovoltaic industry will inevitably involve continuous reshuffling. Through continuous technological innovation, eliminating outdated production capacity and reducing costs, it gradually approaches and achieves grid parity. Therefore, this market adjustment is highly necessary. In my opinion, such adjustments help Chinese companies that pursue rapid expansion blindly to become more rational and mature, thereby making the photovoltaic industry healthier; there is nothing wrong with such adjustments. The entire industrial chain is particularly important. By Lee Hee-kun: In 2006, when I was elected president of the New Energy Chamber of the Federation of Industry and Commerce, I didn’t know much about solar energy; it was friends from the chamber who specialized in solar cell manufacturing who told me that the cost of generating electricity using solar energy was three to four yuan per unit. At that time, everyone thought it would take 30 to 40 years for the cost of solar energy to drop to one yuan, but by 2009, the cost of generating electricity from solar power had already fallen to around one yuan – in fact, it only took three years. I believe that when the cost of solar energy drops to 0.5 yuan per kilowatt-hour in the near future, making it comparable to the costs of nuclear, coal, and oil power, it will represent a major turning point in the history of energy. From 2006 to 2009, Hanergy spent three years conducting industry research before entering the thin-film solar industry. The reason for choosing thin-film solar cells is that, as part of the second generation of solar cell technologies, they offer advantages over the first-generation crystalline silicon solar cells, such as being environmentally friendly, pollution-free, having low costs, the ability to generate electricity in low-light conditions, and high average power output ； On the other hand, Hanergy possesses advanced proprietary technology in thin-film solar cells, which is what gives it the confidence to enter the thin-film solar industry. The characteristics of the solar energy industry can be summarized in three words: high (technology), large (scale), and comprehensive (entire industrial chain). The solar energy industry has a huge potential, and I define it as high-tech energy. Solar energy is both high technology and an energy source. With these two promising industries combined, 1+1 is not equal to 2; rather, it’s 1+1=11. According to authoritative forecasts, by 2020, the global solar energy industry will have a capacity of 300GW to 500GW, with total investment amountsing to 3 trillion to 5 trillion yuan. Therefore, working in the new energy industry is different from other industries, as it requires substantial investment. To truly achieve scale, investments in the order of hundreds of billions are required. In the past, many small and medium-sized enterprises that tried to produce thin-film solar cells failed, as they lacked scale, suffered from high production costs, and had no market for their products. Furthermore, the solar energy industry is a technology-driven sector; it is not sufficient to operate only in the midstream segment, as the strategic risks are very high. Many companies that produce solar panels operate only at the bottom end of the \"smile curve\": they import the equipment and export their products. Hanergy is different; we manufacture our own equipment, and we possess the core technologies for our products, holding independent intellectual property rights – this is a major advantage of Hanergy. Furthermore, Hanergy focuses on solar energy not just by producing batteries, but by integrating the entire industry chain: high-end equipment manufacturing in the upstream stage, module production in the midstream stage, and power generation in the downstream stage. Hanergy does not merely produce thin-film solar cells; it has also developed a complete clean energy industry chain centered around solar cells. To lead the new energy revolution, there is one more essential factor for companies: soft power. In the solar energy and new energy industries, no single company can succeed on its own; it requires the trust and support of ** and partners. **At the end of 2010, the development bank provided Hanergy with a loan of 4.3 billion yuan for thin-film solar technology. Why was it willing to enter the solar industry together with Hanergy? It is based on trust in Hanergy, and on support for the new energy industry – this really touches my heart. It is true that in the new energy industry, the people at Hanergy face not only opportunities but also challenges from various aspects such as technology and the market. However, years of experience in the business world have taught me that we often overestimate changes that occur over one or two years, while underestimating those that occur over 5 to 10 years. We may be disappointed by changes over one to two years, but surprised by those over 5 to 10 years. I believe that in the next 10 years, **'s development and strength will exceed our imagination.