Yingli Energy Development Co., Ltd. (“Yingli Solar”) and China Export & Credit Insurance Corporation, Hebei Branch (“Sinosure Hebei”) concluded a Comprehensive Strategic Cooperation Agreement on April 18, 2023. This year marks the 14th year of partnership between the two sides. Since 2009, Yingli Solar has declared an aggregate amount of 10 billion US dollars with Sinosure Hebei, the only enterprise breaking the record of 10 billion US dollars with the insurer.
Yingli Solar is the world’s largest solar cell panel manufacturer and the first Chinese sponsor of the World Cup. Yingli Solar, an AAA customer of Sinosure Hebei, has established and maintained sound and steady ties with China Export & Credit Insurance Corporation (Sinosure), covering a wide range of products, including short-term export credit insurance, medium and long-term project insurance. Sinosure has always been generously supporting Yingli Solar’s overseas business, and helped Yingli Solar go back to the international market after the restructuring.
- Credit Secures Accurate Decisions and Integration and Optimization of Market Resources
With the gradual rebound of the overseas market, Yingli Solar is seeing increasing shipments to the international market, so its demand for credit insurance services is also growing. When Yingli Solar attempts to explore a new market, Sinosure lends a helping hand to collect information about the PV sector in some oversea markets, which is then used by Yingli Solar to analyze market space, determine any potential for cooperation, identify possible risks, and figure out promising markets. When Yingli Solar works with customers, it resorts to Sinosure’s professional global channels of credit information to timely obtain a buyer’s basic information, its payment strength and credit rating, before making a targeted decision based on the adequate knowledge about itself and the buyer. In 2022, Yingli Solar’s international customers increased by 43.65%, and its loyal clients also took up a much larger share.
- Leverage Risk Protection to Promote Stable Export Growth
Thanks to the risk protection from Sinosure, Yingli Solar made its way back into Tier 1 rank in 2022, with its market share in most regions increased to various extents in 2022. The shipments to international markets in the year were 300% higher than that of the previous year, 2021. In view that Sinosure imposes an expenditure limit on major customers and on countries of emerging markets, Yingli Solar seizes every opportunity to take orders and strives for steady progress in exports to traditional markets while making more and more presence in emerging markets. In 2022, Yingli Solar’s market coverage grew by 27% compared to 2021 and its products sold to 79 countries, and its ties with customers were constantly consolidated.
- Continuously Deepening Cooperation to Promote Diversified Development
During the cooperation between Yingli Solar and Sinosure, both parties have reinforced each other and have already established a large scale of cooperation under trade insurance. Sinosure is Yingli Solar’s preferred partner in risk prevention and control. Yingli Solar has made full use of the safe-haven function of short-term export credit insurance to accept diverse forms of payment under the premise of protecting its fundamental interests, from LC, DP to sale on credit, so Yingli Solar has won the market opportunity, strengthened the cooperation with customers, and laid a solid foundation for flourishing its business in the overseas market. Looking ahead, Sinosure, as a consultant for Yingli Solar’s “going global” strategy, will provide risk assessment services and diversified financing solutions for Yingli Solar’s global layout of overseas projects, helping Yingli Solar achieve diversified development.
As time went by, both sides have developed a win-win partnership of mutual learning and common development, from a simple business relationship as the insurer and the insured. In the process of friendly cooperation, Sinosure shares Yingli Solar’s export risks, secures the latter’s foreign exchange collection, and has improved its competitiveness in the international market. Yingli Solar, in turn, has provided data and experience necessary for Sinosure to improve its service level in the field of new energy and photovoltaic module exports.
“The year 2023 marks the 10th anniversary of the proposal of the Belt and Road Initiative. Now, the momentous changes of a like not seen in a century are accelerating across the world and a new round of scientific and technological revolution and industrial transformation is well under way, Yingli Solar, as an enterprise of “going global”, will work with Sinosure to jointly build the the Belt and Road Initiative international cooperation platform as the highlight, in a bid to open a new chapter in Yingli Solar’s overseas development”, Yin Xulong, Chairman of Yingli Solar said.
What’s past is prologue. The contracting with Sinosure coincides with an historic moment of Yingli Solar’s return to the international market. Yingli Solar will continue to work together with Sinosure to set sail for a long voyage in the ocean of international trade.