Market Research Report : Solar Energy in China 2014 - Sample

Solar Energy – China

August 2014

2

Executive Summary

Market

Drivers & Challenges

Competition

China accounted for x% of the global PV cumulative installed capacity in 2012

Chinese cumulative solar PV installation base is expected to reach aa MW in 2017 growing with a CAGR of y% during 2013-17

Major Players

Player A Player B Player C Player D

Government Initiatives

China National Solar Policy

BIPV Program

Golden Sun Program

Drivers: Challenges:

Focus on CSP Technology

Steady IT Investments

Solar Power Plant Construction

Trends

Growing Energy Demand

Geographical Advantages

Solar Subsidies

Focus on Renewable Energy

Reduction in CO2 Emission

Oversupply Condition

Insufficient State of Power Grid

Low Per Capita Income

National Renewable Energy Law

Research and Development Investment Guidelines

SOLAR ENERGY IN CHINA 2014.PPT

3 SOLAR ENERGY IN CHINA 2014.PPT

•Introduction

•Market Overview

Global

China

•Value Chain

•Drivers & Challenges

•Government Initiatives

•Trends

•Mergers & Acquisitions

•Investment Scenario

•Competitive Landscape

•Strategic Recommendations

•Appendix

4

SAMPLE European region accounted for about xx% of the world’s cumulative PV capacity in 2012

Note: Policy Driven: The European market would stabilize first around 16-17 GW in 2013 before growing slowly again to around 25-28 GW five years from now; Business – as – usual: Refers to the normal conduct of business regardless of current circumstances

Business – as – usual Policy Driven


Global PV cumulative installed Capacity

Evolution of global PV annual installations

250

200

150

100

50

0

300

f4

f3

f2

f1

2016e

E

e4

e3

e2 e1

2015e

D

d4

d3

d2 d1

2014e

C

c4

c3

2017e

GW F

c2 c1

2013e

B

b4

b3

b2 b1

2012

A

a4

a3

a2 a1 100

500

400

300

200

0

F

f4

f3

f2

f1

2016e

E

e4

e3

e2 e1

2015e

D

d4

d3

d2 d1

2014e

C

c4

c3 c2

c1

2013e

B

b4

GW

b2 b1

2012

A

b3 a3 a2 a1

2017e

a4

Others Europe Americas China Others Europe Americas China

50

40

30

20

10

0

c1

2013e

B

b4

b3

b2 b1

2012

A

a4

E

e4

e3

e2

e1

2015e

D

d4

d3

d2

d1

2014e

C

GW

a3

a2 a1

c4

c3

c2

2017e

F

f4

f3

f2

f1

2016e

20

100

80

60

40

0

2017e

F

f4

f3

f2

f1

2016e

E

e4

e3

e2

2013e

B

b4

b3 b2

b1

2012

A

a4 a3

a2 a1

e1

2015e

D

GW

d3

d2 d1

2014e

d4 c4

c3

c2 c1

C

Others Europe Americas China Others Americas Europe China


5

SAMPLE PV Technology has grown over the past decade at a remarkable rate in China…


Historical Cumulative PV Installed Capacity Trend

Forecasted Cumulative PV Installed Capacity

0

5,000

10,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

MW

x13

x12

x11 x10 x9 x8 x7 x6 x5 x4 x3 x2 x1

0

20,000

40,000

60,000

MW

A

2017e

a15

2016e

a14

2015e

a13

2014e

a12

2013e

a11

0

20,000

40,000

60,000

80,000

b13

2015e 2014e

B

2016e

b14

MW

2017e

b15

b12

2013e

b11


Note: Policy Driven: The changes witnessed in China solar energy market is primarily due to the stabilization in the European market

6

SAMPLE In 2012 rooftop segments represented around y1 GW of the total installations in the country


Rooftop PV Development Scenario

Utility - Scale PV Development Scenario


30

20

10

0

GW

2017e

y6

x6

2016e

y5

x5

2015e

y4

x4

2014e

y3

x3

2013e

y2

x2

2012

y1

x1

China World 50

40

30

20

10

0

GW

2017e

y6

x6

2016e

y5

x5

2015e

y4

x4

2014e

y3

x3

2013e

y2

x2

2012e

y1

x1

China World

25

20

15

10

5

0

GW

2017e

b6

a6

2016e

b5

a5

2015e

b4

a4

2014e

b3

a3

2013e

b2

a2

2012

b1

a1

China World

0

40

10

30

20

2017e

b6

a6

2016e

b5

a5

2015e

b4

a4

2014e

b3

a3

2013e

b2

a2

2012

b1

a1

GW China World


Note: Policy Driven: The changes witnessed in China solar energy market is primarily due to the stabilization in the European market

7

SAMPLE Electricity demand projected to grow at x% CAGR during 2008-35 is poised to drive solar energy growth in China

Growing Energy Demand (2/2)

Note: Mtoe – Mn tonnes of oil equivalent; Production in TWh (Tera Watt Hours); Power Capacity in GW; HP: Hydro Power; WP: Wind Power; CFP: Coal Fire Power

Electricity Demand

0

20,000

40,000

2025

y4

x4

2020

y3

x3

2015

y2

x2

2008

y1

x1

Twh

x

2035

y6

x6

2030

y5

x5

China World

Expected PV Role (2050)

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

a3 a4 a5

Production B b1 b2 b3 b4 b5

Power Capacity A a1 a2

Nuclear Wind Power PV Others Hydro Power


8

SAMPLE Growing emphasis on renewable energy to act as a major growth driver for the solar energy market in China

• China aims to source more than x% of its energy requirement from renewable sources by 2020

• The country intends to replace around aa mn tons of standard coal equivalents of fossil energy with renewable energy by 2015

• Investments required to meet the renewable energy target of x mn tons of standard coal equivalents by 2020 is estimated at around USD y bn During 12th plan solar power has an estimated investment potential of around USD a bn

• In 2013, The National Energy Administration (NEA) of China has been planning to set up distributed solar PV demonstration power plants across the country

• Increasing investments in solar projects with a view to meet the renewable energy targets is expected to have a favorable impact on the growth of the solar energy market

Focus on Renewable Energy Impact

Category 2011 – 2015

(USD bn)

Solar Water Heater and Surface Geothermal Energy x

Biomass y

Solar Power z

Wind Power a

Others b

Investment Potential (12th Plan) Renewable Energy Targets by 2015

100%

80%

60%

40%

20%

0%

GW

2020e

B

b4

b3 b2 b1

2009

A

a4

a3 a2 a1

Solar PV Biomass Power

Wind Power Hydro Power


9

SAMPLE Insufficient state of Power Grid act as a greatest hindrance to the development

• Currently, China is facing serious grid connection problem in integrating solar power to the grid

• In 2012, around 1 GW of capacity was newly installed in the province of Qinghai, but only x % of it was connected to the grid in good time

• Despite of all, the country does not have enough transformers for the mn kilovolt (kV) transmission lines

• In Tibet, the construction of a aa kV line to connect additional solar power plants has been delayed due to grid connection problems

Insufficient State of Power Grid Impact

Only x% of total capacity was connected to the grid

Connection Status

0

200

400

600

800

1,000

MW a

Connected To Grid

b

Newly Installed Capacity


10

SAMPLE

Note: Changed according to May 2014 exchange rate

BIPV Program Vs. Golden Sun Program

Subject BIPV Program Golden Sun Program

Applications • XX1 • YY1

System Size • XX2 • YY2

Subsidy • XX3 • YY3

Other Terms • XX4 • YY4

Comparative Analysis (BIPV/Golden Sun)


11

SAMPLE CSP technology is gaining immense popularity in Chinese solar energy market

• In 2013, China announced its plan to build aa GW Concentrating Solar Power(CSP) installations by 2015, more than the current cumulative world total CSP installation

• 12th Five-Year Plan has clearly recognized the potential of CSP in China, with the target being raised to x1 GW of commercial-scale activity by 2020

The x2 GW of CSP installations by 2020 would be located mainly in Tibet, Inner Mongolia, Gansu, Ningxia, Xinjiang, Qinghai, and Yunnan, all provinces with high levels of insolation

• China will emerge as the world’s leading CSP proponent if the country met its target of installing x3 GW of CSP solar

Focus on CSP Technology

Players are focusing on CSP

technology

CSP Solar Target (2015)

0

10

20

30

2011

mn kw

A

2020e

a2

a1

China announced in 2011 a goal of a GW for solar power by 2015,

including a1 GW for CSP, and then raising the goal in 2012 to b GW for

PV and c GW for CSP


12

SAMPLE Chinese solar players are mainly focusing on semiconductors and semiconductor equipment investments

• Text 1

• Text 2

• Text 3

• Text 4

• Text 5

Steady IT Investments

Players are focusing on IT

Investment

IT Investments

Hanwha Solarone Co. Ltd. – IT Investments

Note: Investment data for 2013 - 14; *(% of Total Investments); **Semiconductor and Semiconductor Equipment; *** IT Investments include semiconductor investments

0

20

40

60

80

100

D

Canadian Solar

C

Trina Solar

B

JA Solar

A %*

Yingli Green

G

GT Advanced

F

Renesola

E

Hanwha Solarone

a1

a2

Industrials

IT

C

Semiconductor Equipment**


13

SAMPLE Mergers & Acquisitions (M&A)/Private Placement (1/x)

Announced Date

Closed Date Transaction

Type Target Buyer/Investors Sellers

Deal Size (USD mn)

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

-- -- -- -- -- -- --

Note: Data for 2013 and 2014


14

SAMPLE Investment Overview (x/x)

Player 1 – Point A

Player 2 – Point B

Note: Data for 2013 – 14 ; * 100% investments in Renewable electricity

D

A

B

C

IT

Utilities

Energy

Industrials

a1

Independent Power and Renewable Electricty*

x

y

Electric Power by Wind Energy

Electric Power By Solar Energy

a1

IT

a2

Semiconductors and Semiconductor equipment


15

SAMPLE Market Competition – Porter’s Five Forces Analysis

• Text 3

• Text 1 • Text 4

• Text 5

• Text 2

Bargaining Power of Suppliers

Threat of New Entrants

Competitive Rivalry Bargaining Power of Buyers

Threat of Substitutes

Impact Medium

Impact Low

Impact Medium Impact

Medium

Impact High


16

SAMPLE Competitive Benchmarking (1/5)

Public Trading Comparables (FY 20--)

Player 1 Player 2 Player 3

Market Capitalization (INR mn) x1 y1 z1

Share Price (INR) x2 y2 z2

EV/EBITDA (x) x3 y3 z3

EV/Revenue (x) x4 y4 z4

PE Ratio x5 y5 z5

Note: Top 4 Public companies based on the Market Capitalization; Market Capitalization is as on 22/05/20--, Share Price is as on 21/05/20-- and PE ratio is as on 22/05/20--


17

SAMPLE Key Ratios of Major 3 Companies – Operational Basis (FY 20--) (x/x)

Competitive Benchmarking (x/x)

• xxx

0

5

10

15

20

25

xx

Player 2

xx xx xx

Player 1

xx

xx

xx

xx

Player 3 Player 4

Debtors Turnover Ratio Inventory Turnover Ratio

CLOUD COMPUTING MARKET IN CHINA 2014.PPT

18

SAMPLE Public: Domestic Company – Player 1 (x/x)

Key People

Products and Services

Company Information Locations – China

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Name Designation

Headquarters


Category Products/Services

Products

19

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of USD xx mn in FY 20--, as compared to a net profit of USD xx mn in FY 20--

• The company reported total Income of USD xx mn in FY 20--, registering an increase of xx % over FY 20--

• The company earned an operating margin of xx% in FY 20-- an increase of xx percentage points over FY 20--

• The company reported debt to equity ratio of xx in FY 20--, an increase of xx % over FY 20--

Financial Summary

Total Income Net Profit/Loss

c b

b

0 0

a a

y

x

20--

y y

Profit USD mn

x

Total Income USD mn

x

20--

y

x

20-- 20--

Indicators Value (12/05/2014) Market Capitalization (USD) xx

Total Enterprise Value (USD) xx

EPS (USD) xx

PE Ratio (Absolute) xx

Improved Decline

Particulars y-o-y change

(20--) 20-- 20-- 20-- 20--

Profitability Ratios

Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover


Public: Domestic Company – Player 1 (x/x)

20

SAMPLE

A%

B%

0% Z%

Y%

20--

x

Z%

Y%

20--

x

0%

A%

B%

20--

x x

20--

Y% Y%

20--

x

Y%

Industry1 Region 1 Region 2

Key Business Segments Key Geographic Segments

Key Recent Developments

Description News

Overview

Joint Ventures

New Business



21

SAMPLE

• Text • Text

• Text

• Text

T O

W S Strength Weakness

Opportunity

Threat



22

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Market Research Report : Solar Energy in China 2014 - Sample

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