Cash flow from operating activities: Due
to there are a large demand for credit in the construction of PV power plants,
debt and stable cash will be needed to rapidly expand the scale in order to achieve
balance. If the net cash generated from operating activities is too low, you
will not have enough cash to increase capacity.
Plant utilization hour: some areas in
mainland, especially in the western region, they will be implemented power
rationing, leading to a plenty of power plants and power generation but cannot profitable,
the investors should be aware that if the power plant utilization rate are less
than 1000 hours, that’s too low.
Price subsidies receivable: for the PV
company, in addition to get access electricity, it will also get the subsidies
from the nation, but the electric subsidies we get is too long, investors
should pay attention to it whether the company's accounts and the number of
days too long, and the impact of the current scale of operations and plans.
Financing costs: Due to there are a large
demand for financing in the construction of off grid
solar system, so investors should pay special attention to the
lending rate in the company, especially the interest rate bridge loans.
Debt ratio: as usual, the construction loans
for PV station would be eight percent of the all construction cost. The let two
percent came from it’s own funds, if investors notice that the debt ratio
significantly higher than 80%, we should pay attention to the company's use of
the loans.
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