https://www.pv-tech.cn/editors_blog/LONGi_has_signed_a_new_silicon_wafer_order_of_7_billion_yuan?
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Longi signed a new wafer order of 7 billion yuan, and the production capacity of Top10 wafer fabs will exceed 350GW by the end of 2021
Nowadays, the prefix of Longi shares has begun to be crowned with the definition of “veteran leader and veteran”. The solar wafer track has become more and more crowded under the agitation of new entrants, and the battle for the silicon wafer market is about to start.
On the evening of November 23, Longi (601012) issued an announcement stating that it had reached a silicon wafer sales framework contract with a new energy source, and it is expected to sell 1.158 billion silicon wafers to the latter in 2022-2023.
According to the average price of photovoltaic products announced by PV InfoLink on November 17, the price of monocrystalline silicon wafer 182mm is 6.87 yuan/piece, and the total contract amount is expected to be about 7.04 billion yuan, accounting for LONGi's 2020 audited operating income. 12.9%.
Yiyi New Energy is a cutting-edge company in the industry, mainly engaged in the research and development, production and sales of high-efficiency solar crystalline silicon cells and components; research and development, manufacturing, sales and technical services of photovoltaic application systems and related products. The company has established large-scale photovoltaic production bases in Quzhou, Zhejiang, Taizhou, Jiangsu, Suzhou, and Shuozhou, Shanxi.
It is reported that a new energy and Longji shares have previously had business dealings. In 2019, One New Energy purchased silicon wafers from Longji shares for 7.27 million yuan; in 2020, it purchased silicon wafers worth 59.07 million yuan from Longji, and at the same time sold 14.54 million yuan of solar cells to Longji in the form of entrusted processing..
Longji shares stated that the performance period of the long-term sales framework contract is from 2022 to 2023. The signing of this contract will have a positive impact on the company's future operating performance, and will have no impact on the company's current performance.
On the same day that Longji shares and a new energy company signed a silicon wafer contract, another new player in silicon wafers-Shuangliang Energy Conservation announced the purchase of silicon materials.
According to the announcement, Shuangliang Energy Conservation and Asia Silicon Industry (Qinghai) Co., Ltd. (hereinafter referred to as "Asia Silicon Industry") signed the "Long Purchase and Sales Contract", intending to purchase polysilicon from the latter from December 2021 to November 2026. It is expected to be about 25,2110,000 tons, and the estimated purchase amount is about 6.804 billion yuan.
Just a few days ago, CNCC purchased 97,500 tons of raw material polysilicon materials and FBR granular silicon from Jiangsu Zhongneng Silicon Industry, a subsidiary of GCL-Poly. The large orders of various silicon wafer companies continued to move frequently.
The rising cost of upstream silicon materials, the popularity of rushing for materials, and the "massive" capacity input of new silicon wafer players are sharing the profits and market space of LONGi's shares.
The three quarterly reports previously disclosed by Longi Group show that in the first three quarters of this year, the company achieved revenue of 56.206 billion yuan, a year-on-year increase of 54.17%; realized net profit attributable to shareholders of listed companies to 7.556 billion yuan, a year-on-year increase of 18.87%; realized attributable to listed companies Non-net profit deducted by shareholders was 7.399 billion yuan, a year-on-year increase of 23.02%.
In the first three quarters of 2020, Longi achieved year-on-year growth rates of 49.08%, 82.44%, and 76.35% in revenue, net profit attributable to the parent, and non-net profit deducted respectively. Compared with the same period last year, Longi's performance growth indicators have declined, showing a trend of "increasing revenue but not profit".
The slowdown in Longi's performance growth has been obvious, and it has also raised relevant questions. Has this photovoltaic leader reached its top? The profit is too good to be jealous, and the profit decline is criticized by others, which is exactly what the saying "the leader of the industry is not good to be". Under the new competitive situation next year, can the veteran silicon chip leader succeed in defending it?
It is clear that, with the influx of many new forces such as Shanghai Computer CNC, Gaojing Solar, Shuangliang Energy Saving, and Jingyuntong into the silicon wafer track, it will increase the uncertainty of the price trend of silicon wafer next year.
The new players are unambiguous in terms of capacity expansion. According to incomplete statistics, the capacity of silicon wafers will reach about 400GW by the end of 2021, and the capacity of the top ten silicon wafer manufacturers in the industry will exceed 350GW.
"Overcapacity" has become a common concern in the industry, and the survival of the fittest by new and old players will be staged at any time.
https://www.pv-tech.org/new-solar-wafer-player-gaojing-secures-daqo-polysilicon-supply-deal/