Tongwei’s 6 Billion Yuan to Expand 210 Technology Routes, Net Profit Increased by 30% Last Year

Recently, Tongwei released a fixed increase announcement and performance report.

On the evening of April 20th, Tongwei issued a fixed increase plan, with a planned funding of no more than 6 billion yuan, for projects with an annual output of 7.5GW high-efficiency crystalline silicon solar cell smart factory (Meishan Phase II) and other projects.

Tongwei ’s additional funds raised this time are mainly used to invest in the Meishan Phase II and Jintang Phase I annual production of 7.5GW high-efficiency crystalline silicon solar cell smart projects. The proposed investment funds are 2 billion yuan and 2.2 billion yuan respectively; It is intended to be used to supplement working capital.

The above two major projects are planned to be implemented by Tongwei Solar (Meishan) Co., Ltd. and a newly established subsidiary respectively. The project adopts 210 large-size PERC solar cell technology routes. Upon completion, it will form an annual production capacity of 7.5GW of high-efficiency crystalline silicon solar cells . According to estimates, the construction period of the project is 1 year, and the production capacity will reach 90% in the first year of production, and 100% in subsequent years.

The implementation of this fundraising project will further expand the company’s solar cell production capacity, enhance and consolidate the company’s leading position in the global solar cell field.

  Manufacturer of Custom Solar Panel – WSL Solar

Since this year, Tongwei has announced its capacity expansion plan several times, with a total planned investment of 30 billion yuan.

In February, Tongwei threw out the largest single investment in history, planning to build an annual output of 30GW high-efficiency solar cells and supporting projects in Chengdu Jintang at 20 billion yuan. In March, the company announced that it plans to invest in a 40,000-ton high-purity crystalline silicon project in Baoshan City, Yunnan Province, with a total investment of 4 billion yuan.

Tongwei takes agriculture and solar photovoltaic as its main business, and has formed a business model of “agriculture (fishery) + photovoltaic” resource integration and coordinated development. As of the end of 2019, Tongwei has formed a high-purity crystalline silicon production capacity of 80,000 tons, of which monocrystalline materials account for about 90%; solar cell production capacity is 20GW, of which high-efficiency monocrystalline solar cells are 17GW.

According to the development plan previously released by the company, by 2023, the cumulative production capacity of high-purity crystalline silicon will reach 220,000 to 290,000 tons, and the cumulative production capacity of solar cells will reach 80 to 100GW.

In 2019, Tongwei achieved net profit growth.

Tongwei disclosed its annual report on the evening of the 20th. In 2019, it achieved operating income of 37.555 billion yuan, an increase of 36.39% year-on-year; net profit of 2.635 billion yuan, an increase of 30.51% year-on-year.

The overall photovoltaic business revenue was 17.8 billion yuan, an increase of 74.52% year-on-year. Among them, the operating income of solar cells and solar modules reached 12.27 billion yuan, an increase of 60.56 year-on-year; the gross profit margin was 20.21%, an increase of 1.52% year-on-year; the operating income of high-purity crystalline silicon and chemicals was 5.17 billion yuan An increase of 56.11% year-on-year.

In terms of high-purity crystalline silicon: Tongwei has formed a high-purity crystalline silicon production capacity of 80,000 tons and an ongoing capacity of 75,000 tons. With single crystal materials accounting for about 90%, various consumption indicators and costs continue to decrease. The total production cost of the first-phase project and the first-phase project of Baotou is 60,000 tons and the production cost is less than 40,000 yuan / ton.

For solar cells: The current solar cell production capacity is 20GW, of which the high-efficiency monocrystalline solar cell is 17GW, ranking first in the world.

However, Tongwei’s first quarter results released at the same time are not optimistic. In the first quarter, Tongwei’s net profit attributable to shareholders of listed companies was 344 million yuan, a year-on-year decrease of 29.79%.

Tongwei’s net profit fell in the first quarter. According to analysis, there may be two reasons:

First, Tongwei’s business is not only photovoltaics, but agriculture and solar photovoltaics as the main business, “agriculture (fishery) + solar photovoltaic” resource integration, collaborative development business model, although the photovoltaic industry in the first quarter The impact is limited, but the negative factors of agricultural fisheries will also have a certain impact on its profitability.

Second, in Tongwei’s business, overseas orders account for a relatively small amount. According to the annual report, the operating income of overseas regions only accounts for 5.42% of the total operating income. In contrast, in the first quarter of the domestic epidemic, when overseas epidemics had not yet fully erupted, Tongwei, which had a large domestic sales volume, was severely damaged.

Posted by Carrie Wong | WSL Solar

WSL Solar has been a quality and professional manufacturer of custom solar panel and solar solution provider in China since 2006.


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