Chinese Companies in a Bind

choi

Diane Cardwell, Soured Deal Another Blow for Chinese Solar Company; Suntech says bonds used as collateral for loans it backed might not exist. New York Times, July 31, 2012
http://www.nytimes.com/2012/07/3 ... power-holdings.html
("The company already must repay about $540 million in debt next year, and if it had to make good on all of the loan guarantees, it would owe nearly $680 million more. * * * But Suntech’s situation may be worse than the other major manufacturers [in China], analysts said, because of its high debt, which they put at about $2.3 billion")

Note:
(a) Suntech Power Holdings Co, Ltd  尚德 (based in Wuxi, Jiangsu province, world's largest producer of solar panels)
Zhengrong SHI  施 正荣
CFO David KING  金 纬
(b) The report says, "On Monday, Trina Solar, another major Chinese manufacturer, said its shipments for the second quarter would be about 20 percent lower than expected. And this month, the city of Xinyu said it would pay the debt of LDK Solar, a manufacturer based there that has also been reeling from losses."

(i) Trina Solar  (based in Changzhou 常州 市, Jiangsu)
(ii) Xinju  新余 市, Jiangsu
(iii) LDK Solar  江西赛维LDK太阳能高科技有限公司 (based in 合肥, with various plants (one in Xinyu)


(2) Tom Orlik, In China, Ups and Downs of Profits. Wall Street Journal, July 31, 2012 (in the half page Heard on the Street)
http://online.wsj.com/article/SB ... 58571725574412.html
("What fuels such hypercyclicality? Chinese firms anticipated continued strength in demand and invested to boost capacity. * * * But in a downturn, weak demand alongside excess supply hit prices. * * * Capacity additions also mean higher fixed costs and loans to be repaid")

Note: Anhui Conch Cement Company  安徽海螺水泥股份 (based in Wuhu 芜湖 市, Anhui; state owned)

(3) Chinese companies in US:

Bruce Eihorn, China Is Really Big. Its Brands, Not So Much. Bloomberg BusinessWeek, July 30, 2012
http://www.businessweek.com/arti ... raise-their-profile
(summary in print: "Mainland giants aim to develop products that can thrive in the US and fetch higher prices")

Note:
(a) TCL  TCL集团股份有限公司/ HuiZhou 惠州 市, Guangdong

TCL简介
http://www.tcl.com/News/about/id/143.html
("TCL 即 The Creative Life 三个英文单词首字母的缩写，意为创意感动生活")
(b) Peak Sport Products  匹克体育用品有限公司 (based in Quanzhou, Fujian)