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Foxconn counter-attacks photovoltaic experts say low-cost competition can't get through
Opportunity
It’s no coincidence that Foxconn chose this moment to take a contrarian position in the PV industry.
Looking at the current state of the photovoltaic sector, it's clear that many companies are struggling under heavy debt. As of April 15, the average debt ratio among A-share PV-related firms that have released their annual reports stands at 48.39%. Some companies, like Leshan Power and Hairun Photovoltaic, have debt ratios exceeding 70%, which is a major red flag.
Moreover, this year has brought tighter credit conditions for the industry, with banks increasingly cautious about lending to PV companies. There have even been rumors of a "fire, anti-theft, and anti-PV" trend, further complicating matters for solar enterprises. These challenges have made it harder for many players to sustain operations, especially in a market that’s already saturated and highly competitive.
Despite these difficulties, Foxconn’s move suggests that they see potential in the long-term growth of the sector. By entering during a period of distress, they may be positioning themselves to capitalize on future recovery and technological advancements in the renewable energy space.