The rise of silicon material causes Aixu shares to change from profit to loss, and the risk of breaking the promise of annual performance increases.

Silicon material rose continuously in the first half of the year, and the middle reaches of the photovoltaic industry chain was the most hurt. On the evening of July 22nd, Aixu shares (600732.SH), which had previously "angrily tore" upstream silicon material, issued a semi-annual forecast of net profit from profit to loss, with an estimated loss of 20 million-30 million yuan, and a loss of 1.3-120 million yuan after deducting non-profit. It is extremely difficult to fulfill its previous performance promise. An industry analyst told reporters that since the beginning of this year, the shortage of silicon material has led to a continuous rise in the price of silicon wafers, the profits of battery chip enterprises have been continuously squeezed, and the overall operating rate is relatively low, generally facing greater operating pressure.

Aixu Co., Ltd. is one of the major solar cell manufacturers in China, and its main products are single crystal PERC solar cells, which is in the middle reaches of the photovoltaic industry chain. The company, formerly known as ST Xinmei, made a performance promise during its backdoor listing in 2019 that the net profit of deducting non-returning mother in the next three years would not be less than 475 million yuan, 668 million yuan and 800 million yuan respectively. In 2020, Aixu shares deducted non-net profit of 556 million yuan, failed to achieve the target.

In response, the company decided to partially extend its performance commitment and raise its performance target for 2021 from 800 million yuan to 930 million yuan. However, the pre-loss of up to 130 million yuan in the first half of the year increases the uncertainty of the company's achievement of its annual performance target.

It is worth mentioning that in June this year, a public report letter from Aixu shares circulated on the Internet, pointing out that some enterprises deliberately created a shortage of polysilicon and silicon wafers, hoarding and driving up prices. The company revealed that since April this year, due to the insufficient supply of upstream raw materials and the high frequency and sharp rise in the price of silicon materials and wafers, the company's operating rate has dropped sharply to about 60%.

From the performance pre-loss announcement, we can find the situation under pressure at both ends: upstream, the purchasing cost of the company's main raw material silicon wafer has increased significantly due to the rapid rise in silicon prices in the industry, especially since the beginning of the second quarter. The rising rate of silicon wafer prices has accelerated, while the cost pressure of the battery wafer link has been transmitted slowly to downstream customers, resulting in a sharp decline in the gross profit margin of the main business.

At the same time, because of the imbalance between short-term supply and demand of silicon material, the supply of silicon wafer is relatively tight, which in turn affects the company's capacity utilization. Driven by the rising price of silicon material in the upstream, the price of each link of the photovoltaic industry chain generally shows an upward trend, the wait-and-see mood of downstream customers increases, and the pick-up speed of component customers slows down, resulting in lower-than-expected production and sales.

Some people in the industry said that, however, in the second half of the year, especially in the rush to install in the fourth quarter, its business performance is expected to have an inflection point.

In addition, in July, the price of silicon has fallen three times in a row. Silicon industry branch data show that this week's domestic single crystal re-feeding price range in 200211yuan / kg, transaction average price is 208.1 yuan / kg; single crystal compact material price range in 198- 209yuan / kg, transaction average price is 206yuan / kg; single crystal cauliflower price range in 196207yuan / kg, transaction average price is 203.5 yuan / kg.