Miao Liansheng: Seeking a share of the volatile PV market

“In the large-scale PV boat, the state of chaos and disorder will change with the drowning of a group of people. At the same time, due to the high ticket prices and difficult journeys, people under the boat will not rush to buy tickets to board.” This is Miao Lian. Students' judgment of the current PV industry situation. Product differentiation, marketing differentiation, light asset expansion and increased economies of scale are the “strategies” of Yingli's response to the cold winter of photovoltaics, and also the profit growth points under the new industry situation.

Those who want to earn photovoltaic "quick money" will be out. Reporter: When the entire photovoltaic industry entered the winter, you said, "Let's wait for this day." Why? Will Yingli take this expansion of mergers and acquisitions?

Miao Liansheng: Photovoltaic industry has developed rapidly with numerous opportunities. There is a phased surplus in production capacity. The crux of the problem lies in companies rather than industries. Enterprises should reflect on their own team building and their ability to resist risks. The industry's trough is more testable to companies. The ability to resist risks.

Photovoltaic industry is a very long-term industry with strong sustainability and growing popularity. It cannot be regarded as an industry that earns “quick money” and excessively pursues excessive profits. To be affordable for the people, companies with low cost and high quality can survive in the fierce market competition.

Yingli will maintain a steady development strategy and will not take outbound acquisitions. Ying Li believes in its own team and will not expand blindly. In the future, we will not rule out cooperation in the form of standard output and management output.

Reporter: What are the constraints of the Chinese PV industry? What impact does the United States' "double anti-" investigation have on China's photovoltaic industry?

Miao Liansheng: China's PV industry currently faces the biggest challenge from foreign trade barriers. Recently, the United States has proposed a "double reaction", which has a great impact on the entire industry. China's photovoltaic industry is low in cost and rapid in development. Key technical indicators even lead the United States and Europe. Each country wants to develop its own industry. The United States does not want to give up. It also competes with Chinese products and can only set up political trade barriers. Once the U.S. "double reverse" succeeds, Europe and other countries will follow suit. This has a huge impact on China's photovoltaic industry. Therefore, we must jointly respond positively. Yingli is also the initiator of China's response to the U.S. "double anti-" alliance.

The current focus is on cost and process reengineering. Reporter: The PV industry has entered a downturn. What impact will this have on the development of China's PV industry? When is it expected to usher in the spring of the photovoltaic industry?

Miao Liansheng: The downturn of the industry is the experience of photovoltaic companies, which activates the vitality of companies from management innovation, technology innovation, and marketing innovation. It also forces many companies to calm down and think about their own development strategies, not just blind expansion. 2012 is not yet a deep integration period, and individual companies may be tempted to withdraw. Real industry consolidation may take place after 2013. This process may take several years.

Reporter: 2011 was the year when solar PV entered the trough. What are the reasons for Yingli’s loss in the second quarter?

Miao Liansheng: In 2011, due to the impact of price decline, Yingli’s profitability in the first two quarters was the best in the industry. In the third quarter, there was a loss of more than US$20 million, which was actually an “accruation of losses”. For example, the price of silicon material coming in on the 1st is 100 US dollars, and on the 30th, when it fell to 50 US dollars, there will be a book “float”, which is not a business problem. In 2011, Yingli’s sales volume and sales revenue of components reached a record high. Although the gross profit margin decreased by nearly half from 20 points to more than 10 points, it also maintained a leading level in the industry.

Reporter: When the entire industry is busy dealing with the industry crisis, what is Yingli doing now? What is the strategic focus?

Miao Liansheng: After a few years of rapid development, Yingli’s industrial scale and number of employees have been increasing geometrically. It is necessary to upgrade skills and management, and it is possible to use this period of time to implement cost recovery and process reconstruction. Basics, improve the quality of employees, optimize production processes and processes, further promote the decline in the cost of photovoltaic power generation, and welcome the spring after the severe winter.

At the level of enterprise development, third-rate companies do products, second-rate companies do brands, and first-rate companies do the standard, seize this "winter break", and complete the transformation from scale expansion to brand promotion.

Reporter: Why Yingli can grasp the pulse of the industry, advance the layout and take a coping strategy?

Miao Liansheng: From past experience, we have a better grasp of the market. Yingli took the initiative to launch a price offensive and also made decisions based on various factors. It was not an isolated incident.

The gross profit rate of processing and manufacturing enterprises is between 8% and 15%, and the profits from the photovoltaic industry are abnormal. The company has some profitable space, but also allows the people to use it to make this industry lasting. We will never lower product standards and quality by reducing costs.

Reporter: Many companies in the crisis of the photovoltaic industry are facing difficulties due to over-emphasis on immediate interests. How do you deal with the relationship between long-term interests and immediate interests?

Miao Liansheng: Many people in the industry had criticized Yingli’s low bid for the “Golden Sun Project”. In fact, the solar photovoltaic industry is strong in sustainability, and it is impossible to substitute too many products. It is important to make this cake bigger. Just as if you were opening a restaurant, only dozens of people would eat it, and perhaps it would be a good day. But after being transformed to form standards and processes, there could be tens of thousands of people to eat. The situation is completely different. This requires a process. Do not overestimate the immediate interests. Doing business can't be eager for quick success. Making more money now does not mean long-term development. It is a long process for enterprises to calm down and work slowly and slowly, not to be overly impetuous, especially for dry industries, not to be able to complete in one day or two.

Bring a good team to "fight"

Reporter: The management team of many companies will lose management at different stages of the development of the company. Why does Yingli maintain relative stability?

Miao Liansheng: Team construction is the most important factor that we can successfully respond to the bottom of the industry. Photovoltaic companies have developed rapidly in recent years. They began to develop from two to three hundred people to two to three thousand people 10 years ago. With unlimited capacity expansion, what kind of management model is suitable for their own enterprises? How to bring an increasingly large team? Which management structure does the company apply to? Strategy, quality, workshop management, capital, and processes all depend on people. Even better projects, if there are inconsistencies in paces, mutual constraints, and inaccurate judgments on the situation, there will be problems.

Reporter: You have started implementing the "succession plan" now. What are the successors? What experiences can be shared with other entrepreneurs?

Miao Liansheng: The successor plan has been going on for two years. The progress has been very smooth. The five candidate candidates have all the basic conditions for succession. The biggest question is whether it can bring troops, make strategic judgments, and whether the risk can be better controlled.

The cadre team assessment must not only pay attention to the system, but also pay attention to the emotional contact. Everyone comes together to make a fate and to extend the initial affection and passion. From the initial entrepreneurial team to the newly-trained young vice presidents, we have formed an atmosphere of mutual help and assistance. There are people who have problems or problems, and some people are on top of each other to make up for each other and help each other.