Research On The Implementation Effect Of The Whole Industry Chain Strategy Of Photovoltaic Industry From The Perspective Of Financial Performance

Since entering the new normal of economy,various industries are realizing business transformation by accelerating transformation and upgrading,integrating industrial chain,strengthening innovation drive,and actively carrying out "supply side reform" of production.Among them,the new energy photovoltaic industry,as a key development area in the national strategic planning,carries a unique development mission.Photovoltaic industry depends on the national support policy to grow up,which has the characteristics of unstable policy environment.The "531 New Deal" in 2018 is the most stringent regulatory policy in the history of the photovoltaic industry,causing a huge shock to the photovoltaic industry.It marks the advent of the era of "affordable access to the Internet",promoting the whole photovoltaic industry to save the good and eliminate the bad,and improving quality and efficiency.The "fourteenth five year plan" in 2020 indicates that the photovoltaic industry will usher in a state of benign competition.Facing the gradual tightening of photovoltaic policy,the coping strategies for the photovoltaic industry are worth studying.With the development of photovoltaic industry,the trend of industry chain centralization is obvious,and the competition among enterprises is gradually increasing.Facing the decline of policy subsidies,how to maximize cost reduction and efficiency,and obtain sustainable core competitiveness has become the common pursuit of photovoltaic enterprises.Strategy plays a powerful role for enterprises to be in a dominant position in the market.At present,most of the leading enterprises in the photovoltaic industry have basically realized the vertical integration extension of the industrial chain,and the industrial chain integration has become the mainstream strategic direction.Therefore,this paper focuses on the whole industry chain strategy of photovoltaic industry,studies its mechanism in the industry,and then judges whether the strategy fits the current development trend of photovoltaic industry.Longji Co.,Ltd.is the absolute leader in the single crystal field of photovoltaic industry.For many years,it has focused on the single crystal silicon industry chain.With forward-looking strategic vision,based on the expansion of product application scope,Longji Co.,Ltd.embarked on the whole industry chain strategic layout,and then developed rapidly.At present,it is the enterprise with the largest market value in photovoltaic industry,and its mature whole industry chain strategic layout has become a learning point for photovoltaic enterprises in the industry It’s a good model.Based on this,this paper chooses Longji’s whole industry chain strategy as a case study,trying to analyze the implementation effect of the whole industry chain strategy from the perspective of financial performance,in order to explore the industry wide development mode of the whole industry chain strategy.Firstly,this paper defines the related concepts,summarizes the domestic and foreign research on the industry chain,the whole industry chain strategy and its relationship with the financial performance of enterprises,and introduces the relevant theoretical basis based on the mechanism of the whole industry chain strategy and the financial performance of enterprises.Then,it introduces the development status of China’s photovoltaic industry and its industry chain,respectively from the market perspective This paper analyzes the current situation of the industry and its industrial chain from the perspectives of technology,policy and strategy,and summarizes the overall development trend of China’s photovoltaic industry.After that,taking Longji as an example,this paper introduces the general situation and business development process of Longji,and then analyzes the background and motivation of its whole industry chain strategy implementation,and then based on the financial performance analysis This paper further analyzes the implementation effect of Longji’s whole industry chain strategy.On the one hand,this paper selects the relevant financial data and indicators from 2010 to 2019 before and after Longji’s implementation of the whole industry strategy,and makes a vertical analysis based on the company’s performance in four aspects: profitability,debt repayment,operation and growth,taking 2014 as the boundary;on the other hand,it selects Tongwei and Zhonghuan,which are representative of the same industry in the implementation of the whole industry chain strategy This paper makes a comparative analysis of the horizontal financial performance between Longji and Longji.It selects the representative from the profitability,solvency and development ability to compare and analyze the common performance of the three financial performance.At the same time,it finds the different performance of Longji’s financial performance,and then analyzes its competitiveness in the industry.On the basis of the case analysis,we draw the relevant conclusions,and at the same time,we can enlighten other enterprises in the photovoltaic industry in the future in the direction of industrial chain strategic development.