Poly Xiexin made a profit of 2.5 billion granular silicon in-hand order of nearly 600000 tons in the first half of the year.

On the evening of October 25th, Poly Xiexin Energy (03800) released its "late" annual report for 2020 and semi-annual report for 2021, turning losses into profits in the first half of the year. Poly Xiexin highlighted in the China News that the company's granular silicon products will become the next generation of low-carbon silicon-based materials, has distributed production capacity in many places, and has obtained nearly 600000 tons of purchase orders.

Poly Xiexin's failure to reach an agreement with Deloitte, a former accounting firm, led to several delays in announcing its 2020 results. As a result, Poly Xiexin also issued a relevant announcement saying that the latest findings of forensic accountants have fully addressed the concerns raised by Deloitte, a former accountant, and now the audit process for the 2020 financial statements has been completed. Has obtained the preliminary consent of the current accounting firm Crowe Horwath. But Poly Xiexin's resumption time is still unknown.

Poly Xiexin Energy has been suspended from trading on the Hong Kong Stock Exchange since April 1, 2021.

According to the annual report, as of December 31, 2020, the company's revenue was 14.621 billion yuan, down 24% from the same period last year, with a loss of 6.271 billion yuan. According to the semi-annual report, as of June 30, 2021, the company's revenue was 8.78 billion yuan, an increase of 22.3% over the same period last year, and a profit of about 2.526 billion yuan.

Multi-site layout of granular silicon

The upstream material end of the photovoltaic industry is a typical high energy consumption manufacturing industry. Under the background of carbon neutralization, deep decarbonization at the supply end has become a new technological innovation point in the photovoltaic industry. At present, Poly Xiexin's polysilicon material has a monthly output of more than 9000 tons, ranking first in the world.

Poly Xiexin focuses on its granular silicon products in the report: the granular silicon developed by the company is the new generation of silicon-based raw materials that best meet the dual-carbon target energy consumption standards, which can help the photovoltaic industry to achieve the goal of "low cost, low energy consumption and low emission".

On May 29, 2021, China quality Certification Center issued the first carbon footprint certificate for Poly Xiexin granular silicon. The certificate shows that the carbon footprint of granular silicon per functional unit is only 20.74kg of carbon dioxide equivalent, breaking the previous record of 57.559 kg of carbon dioxide equivalent per functional unit in the world. and far lower than the rod silicon currently used in the photovoltaic industry about 70,000kg carbon dioxide equivalent. This is the first carbon footprint ID card and authoritative identification certificate obtained by the granular silicon industry since the Ministry of Ecology and Environment issued the article on May 17.

It is reported that the lead of granular silicon-carbon footprint data is mainly due to its low power consumption in production. At present, the power consumption per kilogram of Poly Xiexin's granular silicon is about 2/3 lower than that of the modified Siemens method. The improved Siemens method is the most mature and widely used production technology of polysilicon in the photovoltaic industry. In addition, in terms of unit investment intensity, floor space and labor costs, granular silicon has decreased, and the comprehensive production cost has decreased by about 30% compared with rod silicon. At the same time, there is still room for a substantial decline in the case of continuous technological updates.

According to the announcement, the company's silane fluidized bed granular silicon technology has also officially realized the production and operation of 10,000 tons of capacity at the beginning of 2021, and the production capacity is expected to reach 30,000 tons / year by the end of the year. The company has been distributed in Xuzhou, Jiangsu, Leshan, Sichuan, and Baotou, Inner Mongolia, and has formed a number of 100, 000-ton capacity bases, of which 54000 tons of Xuzhou base will be released next year.

On the demand side, in May, the company signed the first long purchase order of pure granular silicon with Jingao, with a total purchase volume of 145800 tons. At present, the cumulative order volume on hand has reached nearly 600000 tons.

Zheshang Machinery Defense team previously reported that Poly Xiexin currently plans a total of 500000 tons of granular silicon production in Xuzhou, Leshan and Inner Mongolia. It is estimated that China's granular silicon production capacity will reach 10-200000 tons in 2022, and the release will be accelerated in the future.

The company says the audit problem has been solved.

Poly Xiexin Energy (03800) shares have been suspended for legal verification due to concerns raised by Deloitte, a former auditor, about the termination of a project contract worth 510 million yuan.

Poly Xiexin Energy released a supplementary report on forensic verification on the evening of the 25th, saying that the board of directors believes that the supplementary report and its findings have fully addressed the concerns raised by the former auditor in the auditor's letter.

Previously, Deloitte focused on a project contract signed by Jiangsu Zhongneng, a subsidiary of Poly Xiexin, which had paid 510 million yuan, but the contract was terminated on April 6, 2021, and the company only received a refund of 495 million yuan, or 97%. The balance is the contract fee and is non-refundable.

The legal verification report shows that Jiangsu Zhongneng has no fault in supervising the work, but the procurement and construction contract has not been specifically submitted to the board of directors of Poly Xiexin.

The important scope of supplementary legal verification is as follows: 1. Whether the general contractor of the state-owned enterprise has transferred the 510 million yuan advance payment received from Jiangsu Zhongneng to the subcontractor; 2. Whether the company properly supervises the implementation of the procurement and construction contract by the general contractor of the state-owned enterprise; 3. Whether the company and the board of directors are aware of Jiangsu Zhongneng to conclude the purchase and construction contract and pay the advance payment at the relevant time. The legal report explains all three issues.

Poly Xiexin Energy added that with the exception of Jiang Wenwu, general manager of Jiangsu Zhongneng, the company's directors did not know the details of the industrial construction contract and the advance payment. Then, around the end of November 2019 or early December 2019, Jiang Wenwu reported on the procurement and construction of the project after Zhu Gongshan, chairman of Poly Xiexin, and Zhu Zhanjun, CEO, asked about the progress of increasing production.