| Summary: | 碩士 === 國立臺灣科技大學 === 財務金融研究所 === 98 === The global photovoltaic(PV) industry truly attracted a dramatic amount of new-entry investments from the second half of year 2004 due to a fast growing demand from government subsidy programs. Most of the existing solar cell manufacturers aggressively enlarged their manufacturing facilities, thus resulting a shortage of polysilicon supply, which is the raw material of silicon-based solar cells. In order to secure polysilicon supply, the manufacturers of solar cells started to sign polysilicon procurement contracts with polysilicon suppliers. According to the contract, the manufacturers usually needed to prepaid a great amount of down payment to the suppliers. Therefore, the manufactures needed to seek funds for the down payments even before their production. For instance, Motech was the ninth largest solar cell manufacturer in the world then, and its financial requirement for the polysilicon down payment along with solar cell manufacturing facilities were several times higher than its capital in April, 2006.
This is written in the way of Harvard business cases. This probes into the financing strategy of Motech through several directions such as capital market condition, such as the stock price of Motech; industry analysis, such as the risks of photovoltaic industry; the financial structures of main competitors; operation, such as the growth of profitability of Motech; the financial structure, such as the target capital structure of Motech; interest expenses; effects of taxes shield; the pecking order theory and other empirical studies.
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