| With the depletion of traditional energy sources and the increasing environmental protection problems,more and more countries regard the exploration and utilization of new energy as the key point of national development in recent years.Hareon Solar funded in 2004,the company belongs to the photovoltaic manufacturing industry.It is a listed company with a complete industrial chain from upstream products such as silicon rods(silicon ingots),silicon wafers to intermediate product such as solar cells and solar modules production and finally to downstream photovoltaic power plants investment and construction.It has built a complete industry chain,a sales network covering most of the world’s PV demand countries and a team with experienced and skilled employees,which creates cost advantages and management benefits for the company compared with other competitors in the same industry.But in recent years,HareonSolar is facing losses and its stock name change to ST Hareon.In order to explore the reasons for the continued deterioration of ST Hareon’s financial performance and help its performance turn to healthy development,this paper explores the implementation of vertical integration by performing PEST and SWOT analysis on the internal and external environment in which ST Hareon performs its vertical integration.This paper explores Hareon’s strategic motivation and vertical integration implementation status,it also analyses Hareon’s short-term and long-term financial performance trend and comparison with industry data,and then it identifies the negative influence of vertical integration to Hareon and suggest solutions against these influences.The study found that due to strong dependence on the market and industry,insufficient ability of enterprise to manage the integration,large amount of funds to be occupied,and blind expansion of the scale of integration,its business risk and financial risk have greatly increased.There are also problems with the ability to operate and repay the debts.ST Hareon can overcome these shortcomings by changing the direction of integration,strengthening evaluation of business companies to be integrated into group,strengthen the ability to improve capital operation,and improving information sharing platform,reducing its operational and financial risks,and helping enterprises turn losses into profits.Additionally,bringing it to great prosperity. |
