Opportunites to improve protsCHINA SSOLARPVVALUECHAINSpring 2011MAJOR PARTNERSPantone: 286UR:45 G:88 B:167C:90 M:73 Y:1 K:0STRATEGIC PARTNERGENERAL PARTNERSCOMPOSITETECHNOLOGYC O R P O R A T I O NADVISORS www.cbloo-qteeotecb.com | !"#$ &'$#( )*)(+ ,-..3 12*/3 3#0 "#$%& 4,00%305# 6%$3$&3$70 loundedln2008,LheChlnaCreenLechlnlLlaLlve(CC1l)arLnerrogramhasrapldlygrownLobecome LheonlyChlna-lnLernaLlonalcollaboraLlonplaLformof100+organlzaLlons,focusedonldenLlfylng, developlng and promoLlng green Lechnology soluLlons ln Chlna. arLnerlng organlzaLlons are Lechnology buyersandsellers,servlceprovlders,lnvesLors,pollcymakersandlnfluencers.SecLorLracksaddressed durlng Lhe 2011 CC1l arLner rogram lnclude Cleaner ConvenLlonal Lnergy, 8enewable Lnergy, LlecLrlc ower lnfrasLrucLure, Creen 8ulldlng, Cleaner 1ransporLaLlon and Clean WaLer.8ullLonLwocornersLones,sLraLeglcmarkeLresearchandacommunlLyof300+lndusLryexperLs,CC1l provldesparLlclpaLlngorganlzaLlonswlLhLhreecorebeneflLs:worldclassmarkeLlnslghLsLhaLenable beLLerdeclslons,meanlngfulrelaLlonshlpsLhaLleadLobuslnessopporLunlLles,andLhoughLleadershlp and educaLlon LhaL poslLlon parLlclpanLs as leaders ln Chlna's greenLech markeLs.lnaddlLlonLoLhearLnerrogram,CC1loffersAdvlsoryServlces,conducLsbrleflngsandpubllshes publlcconLenL,lncludlngWhlLeapersandLheannualcblooCteeotecbkepott.1heflagshlpcbloo Cteeotecbkepott,releasedaLLheWorldLconomlclorum,LogeLherwlLhLhecblooCteeotecbkepott 2011, have more Lhan 60,000 coples ln use globally and have helped esLabllsh CC1l as Lhe auLhorlLy on Chlna's ever evolvlng greenLech markeLs. kenewab|e Lnergy Sector Def|n|t|on 1he Ch|na Greentech In|t|at|ve deflnes 8enewable Lnergy as energy produced from sources LhaL are naLurally replenlshlng, such as sunllghL, wlnd, waves, underground heaL, surface waLer flows and blomass. Cf Lhese, CC1l focuses on Lhe markeLs and Lechnology for wlnd power, solar energy and bloenergy (lncludlng power, coollng and heaLlng). www.cbloo-qteeotecb.com | !"#$ &'$#( )*)(+ ,-..4 8905/3$70 )/::&,; G|vencurrentcha||enges|nwor|dso|armarkets,Ch|na'sso|arphotovo|ta|c(V)producersseek opportun|t|estoreducecostsandpreservegrossmarg|nsthroughvert|ca||ntegrat|onand|ndustry conso||dat|on.Solar producers face uncerLaln Llmes: Whlle global solar v markeLs may conLlnue Lo grow, rapldly falllng prlces, unsLable subsldy schemes and module oversupply resulL ln falllng marglns across Lhe value chaln. Low-cosL Chlnese producers are ralslng producLlon capaclLy Lo new records, ln Lurn drlvlng down selllngprlcesandmarglns.ALLhesameLlme,asdomesLlccompeLlLlonlncreases,LhepressureLo lncreaseproflLsandmarkeLsharehaslnLenslfled.Chlna'shlsLorlcallyfragmenLedsolarlndusLry,wlLh hundredsofsmallplayersacrossLhevaluechaln,arelooklngforsLraLeglesLosLrengLhenflnanclal performance,lncludlngverLlcallnLegraLlonandcapaclLyexpanslon,whlchlsalreadywldespread,and lndusLry consolldaLlon. Whlle Lhe number of manufacLurers ln Chlna may noL decllne ln Lhe shorL-Lerm, sLakeholders should expecL Lhe Lop-Ller players, wlLh sLrong cosL advanLages, Lo conLlnue Lo grow ln slze andmarkeLshare.1husfar,however,verLlcallnLegraLlonandexpandlngproducLloncapaclLydonoL appearLoguaranLeeproflLablllLy.CompanlesmusLalsoseeklnnovaLlvesLraLeglesandparLnershlpsLo sLay ahead of Lhe markeL. Def|n|t|on and Scope 1hls WhlLe aper focuses on opporLunlLles for companles Lo reduce cosLs and lmprove proflLablllLy along Lhe solar v value chaln ln Chlna. 1he value chaln lncludes seven segmenLs: 1heWhlLeaperdoesnoLcoverLhlnfllmvorconcenLraLedvdueLoLhelrrelaLlvelysmallcurrenL markeL share ln Chlna. 1he WhlLe aper beglns wlLh an overvlew of global solar markeL condlLlons, and LhenexploresopporLunlLlesandLrendsforverLlcallnLegraLlonandlndusLryconsolldaLlon(horlzonLal lnLegraLlon). Industry Conso||dat|on (horlzonLal lnLegraLlon) occurs when Lhe number of companles lnvolved decllnes as successful companles grow ln slze and smaller companles are elLher boughL ouL or go ouL of buslness. ConsolldaLlonlsparLlcularlycommonforhlgh-LechlndusLrleswlLhhlghbarrlersLoenLry,whofocuson LhelmporLanceofreachlngeconomlesofscalelnproducLlon.ManyexperLsanLlclpaLeconsolldaLlonln Chlna'ssolarlndusLry,parLlcularlylnLhecommodlLlzedmodulesegmenLofLhevaluechaln,whlch currenLly has hundreds of compeLlLors.Vert|ca|Integrat|onoccurswhencompanlesacqulrenewproducLlonorservlcecapablllLlesalongLhe valuechaln,lnelLheranupsLreamordownsLreammannerrelaLlveLoLhelrcorecompeLency.lor example,acompanyLhaLproducessolarcellsmayverLlcallylnLegraLeupsLreambyproduclng polyslllcon, or lnLegraLe downsLream by produclng solar modules or sysLems. o|ys|||conIngotsWafersCe||sModu|esSystemsro[ects www.cbloo-qteeotecb.com | !"#$ &'$#( )*)(+ ,-..3 0:0%3( PundredsoflndlvldualsprovldelnpuLlnLoLheworkofCC1landLheconLenLofLhlsWhlLeaper, lncludlngleadersofma[orChlneseenLerprlses,forelgncompanles,enLrepreneurs,lnvesLors, governmenL, nCCs and pollcy advlsors. CC1l arLners and Advlsors LhaL supporL Lhe 8enewable Lnergy SecLor are presenLed on Lhe fronL cover of Lhls WhlLe aper. CC1l wlshes Lo acknowledge several organlzaLlons for Lhelr supporL of Lhls WhlLe aper, lncludlng 8ayer, 8, uow Cornlng, uuonL, Panwha SolarCne, ! CaplLal 8esearch, SunLech, 1alesun, 1rlna Solar and 1slng CaplLal.CC1lSenlor8esearchAnalysLsClalrenelson,Cllvlerlnconand!ackleWangledLhewrlLlngof LhlsWhlLeaperbasedonanCpporLunlLyAssessmenL,underLhedlrecLlonofManagerAndersPove and Managlng ulrecLor Alan 8eebe. Clna Loarle provlded copyedlLlng supporL and managed publlcaLlon of Lhe WhlLe aper. CC1l arLner 8elaLlons Leam members Mark Wehllng and ChlLra Pepburn supporLed Lhe CpporLunlLy AssessmenL, under Lhe dlrecLlon of Managlng ulrecLor Lllen Carberry.