Analysis On The Financing Development Of China's New Energy Industry In 2020

- Mar 30, 2020-

The financing scale of domestic new energy industry has entered a downward trend since 2018




From the perspective of the number of investment events in the new energy industry, the overall growth trend was seen in 2005-2017. In 2018, the number of financing events in the new energy industry decreased from 121 in 2017 to 68. There are 70 financing events in the new energy industry in 2019, and 9 financing events in the new energy industry from January to mid March 2020.




From the perspective of the investment scale of new energy industry, the investment amount of new energy industry in 2005-2019 is inverted U-shaped, reaching a peak of 25.425 billion yuan in 2017, and the investment amount of new energy industry in 2019 is 17.627 billion yuan, a year-on-year decrease of 14.78%, and the investment amount of new energy industry from January to mid March 2020 reaches 3.434 billion yuan.

In 2019, there were 11 financing events in domestic solar energy industry, with the amount reaching 2.107 billion yuan




From the perspective of the number of investment events in the solar energy industry, 2009-2019 presents a fluctuating trend. In 2018, the number of financing events in the solar energy industry dropped from 23 in 2017 to 9. There are 11 financing events in the new energy industry in 2019, and 1 financing event in the new energy industry from January to mid March 2020.




From the perspective of the investment scale of the solar energy industry, the investment amount of the new energy industry in 2009-2019 fluctuated, reaching a peak of 3.428 billion yuan in 2017, and the investment amount of the solar energy industry in 2019 was 2.107 billion yuan, a year-on-year increase of 384.37%. The investment amount of the solar energy industry in January March 2020 reached 12 million yuan.

Financing prospect of China's new energy industry




New energy enterprises are generally small and medium-sized private enterprises, which have difficulties in financing in China. First of all, banks are reluctant to lend to small and medium-sized enterprises with uncertain prospects; second, it is difficult for Chinese venture capital or private equity funds to conduct long-term in-depth research on an industry, do not understand key issues such as technology maturity, and take a wait-and-see attitude towards investment in new energy. Third, there are relatively many variables in China's market, and it is difficult to accurately calculate key data such as P / E ratio.




At present, the domestic power station is in the process of shuffling. In the process of shuffling, the choices of state-owned enterprises and private enterprises are quite different. Under the pressure of development, state-owned enterprises must focus on large-scale base projects in the fields of wind power and photovoltaic. However, private enterprises are gradually selling the original ground projects, one of the reasons is that subsidies are in arrears, but the core problem is that some private enterprises have too high leverage and cost. A large part of the non-performing loans in banks come from the new energy sector. The record of these non-performing loans directly affects the bank's attitude towards new energy enterprises and project loans. The future financing prospect of new energy industry is still grim.