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Latest: Li Zhenguo talks about wafer price, size, production capacity, market competition and strategic layout - January 04, 2022 (Google Translated)
On the evening of January 4, 2022, Longi issued an announcement stating that the company’s public offering of 7 billion yuan of convertible corporate bonds (hereinafter referred to as "Long 22 Convertible Bonds", code "113053") has obtained the China Securities Regulatory Commission’s "Securities Regulatory License [" 2021] No. 3561" document approved. The original shareholder priority placement date of the convertible bond issuance and the online subscription date are the same on January 5, 2022.
This is LONGi's third issuance of convertible bonds, and the credit rating of the convertible corporate bonds is AAA.
According to the previously disclosed information, LONGi’s funds raised this time will be used for "15GW high-efficiency monocrystalline battery project", "3GW monocrystalline battery manufacturing project" and supplementary working capital, including "15GW high-efficiency monocrystalline battery project" And "Monocrystalline Cell Manufacturing Project with Annual Production of 3GW" is an expansion project of LONGi's existing core manufacturing business monocrystalline cell business, with good profitability.
After the completion of the project, it will effectively enhance the company's production capacity and product technology level, and enhance the level of coordinated development between the industrial chain, thereby enhancing the company's comprehensive competitiveness, and further consolidating and enhancing the company's strategic position as a global monocrystalline leader.
Li Zhenguo, Director and General Manager of Longi, said that for a long time, Longi has always adhered to the principles of "first principles" and "based on the future", has in-depth insights into the nature of the development of the photovoltaic industry, continues to increase R&D investment, and continues to lead the industry with technological innovation. High-quality development.
The company’s convertible bond raised funds will be used to build new high-efficiency monocrystalline battery production capacity, accelerate the large-scale industrialization of advanced technologies, promote the continuous decline of photovoltaic power costs, and provide global customers with clean, low-carbon, efficient and economical photovoltaics Products and energy solutions.
On the same day, in the online roadshow for the issuance of convertible bonds of LONGi, Li Zhenguo, director and general manager of LONGi, exchanged views with investors on 182 size, production capacity, wafer prices, research and development, market layout and other aspects. The following are the highlights.
Q: In the past, there was a battle between monocrystalline silicon and polysilicon. Longi won. Now there is a battle between 180 and 210. Is Longi confident that it will continue to win?
Li Zhenguo: Longi has always regarded maximizing customer value as an important factor in product design, and continues to pursue product solutions with the lowest cost per kilowatt-hour. We believe that product 182 is the size that maximizes customer value.
Q: Some friends said that photovoltaic silicon wafers will begin to develop in large size and thinning in 2022, and silicon wafers of 166 and below will be quickly eliminated in 2022. What is Mr. Li's opinion on this? If the above is true, how will Longi's 166 production line deal with it?
Li Zhenguo: Over 95% of Longji's production line can produce 182 and above size products.
Q: What is the capacity utilization rate in 2021?
Li Zhenguo: Due to the shortage of raw materials and other factors, the overall utilization rate of LONGi's capacity in 2021 will be around 70%. Thanks!
Q: Does the company have plans to reduce the price of silicon wafers in the future?
Li Zhenguo: The company will formulate silicon wafer price policies based on changes in market supply and demand and changes in silicon material prices.
Q: Mr. Zhen Guo, after what state will the industry chain reach before the company will end the price reduction of silicon wafers?
Li Zhenguo: The photovoltaic industry chain has been developing unevenly with all links, and the price depends on the relationship between supply and demand in each link.
Q: Chairman Li, is there any relationship between your company's frequent price reduction of silicon wafers and the circulated online information about your company's destocking and the problem of overcapacity of silicon wafers in 2022? Chairman Li, what do you think about the follow-up development of large silicon wafers, the development of TOPCON batteries and HJT batteries, and whether there will be overcapacity of silicon wafers in 2022. Thank you so much!
Li Zhenguo: Hello! The unbalanced development of the industrial chain is a long-term existence, and the price depends on the relationship between supply and demand in each link. There may be a phased surplus in some links, but in the long run, it is not an absolute surplus. At the same time, due to technological changes and excess production capacity, advanced production capacity will not be excessive at all stages.
Q: How do you see the future penetration rate of the three different technical routes of ibc/hit/topcon? Will these three technical routes coexist in the future, or will there be a winner?
Li Zhenguo: Hello! The above three technologies have the potential to achieve the 26%-27% limit mass production efficiency of single crystal silicon cells. The key is to achieve the above efficiency at low cost.
International trade and market competition
Q: Can the components sent to the US be sold normally? Has the seizure issue been resolved?
Li Zhenguo: The company is taking active countermeasures and has submitted relevant certification materials. It is currently waiting for comments from the U.S. Customs.
Q: Due to the inadequate prevention and control of foreign epidemics, it is inevitable that the company's overseas revenue will be impacted in 2021. Will the source of overseas customers be stable in the future?
Li Zhenguo: Now we can see that the photovoltaic application market has been extensively developed globally. There are more than 20 countries with installed capacity exceeding the GW level. Some countries have short-term impacts due to the epidemic. We will promptly coordinate market sales. Manage and arrange overseas shipments reasonably to meet customer needs and match project schedules.
Q: Hello, Mr. Li! Photovoltaic enters the era of parity, will the power of companies in the industry to conduct research and development decline? Will it affect the speed of industry technology iteration? Does Longi continue to lead its peers in technology?
Li Zhenguo: Hello! The company will continue to increase R&D investment in the main photovoltaic industry chain, with better photovoltaic conversion efficiency and lower power generation costs. thanks.
Q: There are many new entrants in the photovoltaic industry this year. How does Zhen Guo think about the future competition pattern of the photovoltaic industry? Will there be vicious competition in the industry?
Li Zhenguo: In the context of carbon neutrality, the photovoltaic track is wide and long, and the prospects are broad. However, each company also needs to rely on its own core competitiveness to participate in the competition. The company needs to build its own brand, channel, technology, and product all-round leadership in order to win in the competition.
Q: We all know that carbon will reach its peak in 2030, and that it will be carbon neutral in 2060. Photovoltaic power generation has a bright future. President Zhen Guo also publicly predicts that the annual global installed photovoltaic capacity will reach or exceed 1,000GW in 2030. My question is that the installed capacity of photovoltaics has increased, but the price has also come down, will the profit margin of the enterprise be small? Thanks!
Li Zhenguo: Decreasing the cost and selling price of photovoltaics is a characteristic of the development of the industry and also a goal pursued by enterprises. We hope that the rate of cost reduction will be greater than the rate of price decline, while at the same time increasing the company's business volume to form better profits.
(Editor in charge: Xiao Bei)
Take away: A similar message in cost reduction is articulated by ACU.V