LDK was not the only company that suffered huge debt; most of China’s first-tier solar energy industries have also faced this predicament. Canadian Solar, Yingli Solar, Jinko, and ReneSola all have a debt ratio of over 0.8 (Suntech also announced in their 2012 financial report that their Q1 debt to asset ratio was 0.82). When the solar power industry was flourishing, many companies with government support conducted large-scale expansions; during the market downturn, these huge investments have become heavy burdens. Today, scale economy is not the key to success in the solar market. Instead, how to improve the company’s financial structure has become the common issue among Chinese solar energy manufacturers.
