Longji shares sign a contract for the purchase of photovoltaic glass for about 4.25 billion yuan-Shanghai Metals Market

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Longji shares sign a contract for the purchase of photovoltaic glass for about 4.25 billion yuan

Translation 10:22:19AM May 16, 2019 Source:Sina Finance and Economics
The content below was translated by Tencent automatically for reference.

SMM News: 4.25 billion purchase order! Longji shares expanded production and stable photovoltaic glass supply, Fullette thickened performance

Longji Green Energy Technology Co., Ltd. (601012.SH), the world's largest single crystal manufacturer, sparks with photovoltaic glass giant Fuller Glass Group Co., Ltd. (601865.SH).

On May 15, the two sides announced the signing of a major procurement contract-from July 1, 2019 to December 31, 2021, that is, over the next two and a half years, Longji shares will purchase 161.6 million square meters of photovoltaic glass from Fuller on a monthly basis. According to Zhuo Chuang Consulting on May 9 announced the average price calculation, the total amount of the contract is expected to reach 4.25 billion yuan.

This 4.25 billion yuan order is bound to have a certain impact on the two giant companies.

First of all, for Follette, the leading photovoltaic enterprise has officially acquired Longji shares as a major customer. The two-and-a-half-year contract has also thickened Forlette's future performance. In particular, in the second half of this year, Fulet will need to supply photovoltaic glass to Longji shares in accordance with the contract. This means that the contract, which begins in 2019, will have an impact on Fuller's performance.

According to financial data, Fulet's operating income in 2018 was 3.064 billion yuan, an increase of 2.42 percent over the same period last year, and the net profit attributable to shareholders of listed companies was 408 million yuan, down 4.50 percent from the same period last year.

In fact, in the last two fiscal years, Follette's net profit has fallen, which is closely related to the price fluctuation of photovoltaic glass.

About 70% of Follette's revenue comes from photovoltaic glass. After the introduction of the 531 photovoltaic policy in 2018, photovoltaic glass began to fall under the influence of cooling demand and hit a full-year low in the third quarter. Subsequently, although the rebound in photovoltaic prices filled a certain vacancy, but the average price for the whole year still fell, so it squeezed the profit space of Fulet for the whole year.

Fortunately, by 2019, the average price of photovoltaic glass has benefited from the improvement in the margin of supply and demand. At the same time, Fulet low-cost photovoltaic glass production capacity will also be in the second half of 2019 and 2020 will be put into production one after another.

Under the expectation of rising volume and price, the contract signed with Longji shares will undoubtedly become a guarantee for the future performance growth of Forlette.

So, for Longji shares, what does this $4.25 billion purchase contract mean?

Photovoltaic glass is an important auxiliary material for component production, and it is the operating cost of Longji shares.

Longji, the world's largest single crystal manufacturer, announced a production capacity plan for the next three years from 2019 to 2021 at the end of April.

The capacity plan clearly defines the company's production targets for single crystal battery chips and components from 2019 to 2021. Among them, in the next three years, Longji shares of the single crystal component capacity will reach 16GW, 25GW, 30GW.

The expansion of production at the end of the component has become the focus of Longji shares in the future. Therefore, photovoltaic glass has become a necessity for Longji shares to ensure the expansion of production in the future. As a result, a procurement agreement was reached with Fulet to find a stable photovoltaic glass supplier.

As of the end of the first quarter of this year, Longji shares currency fund balance of 8.439 billion yuan, in hand more abundant funds, does not seem to need to worry about the above procurement costs.

However, it is worth noting that at present Longji shares are still in arrears to Forlette. Follette's 2018 financial report showed that as of the end of the reporting period, the balance of accounts receivable and notes receivable from Longji AG was 160 million yuan. Among them, the balance of credit loss provision at the end of the year is about 2.61 million yuan.

Key Words:  Longji shares  Follette  Photovoltaic  Glass  Battery 

Longji shares sign a contract for the purchase of photovoltaic glass for about 4.25 billion yuan

Translation 10:22:19AM May 16, 2019 Source:Sina Finance and Economics
The content below was translated by Tencent automatically for reference.

SMM News: 4.25 billion purchase order! Longji shares expanded production and stable photovoltaic glass supply, Fullette thickened performance

Longji Green Energy Technology Co., Ltd. (601012.SH), the world's largest single crystal manufacturer, sparks with photovoltaic glass giant Fuller Glass Group Co., Ltd. (601865.SH).

On May 15, the two sides announced the signing of a major procurement contract-from July 1, 2019 to December 31, 2021, that is, over the next two and a half years, Longji shares will purchase 161.6 million square meters of photovoltaic glass from Fuller on a monthly basis. According to Zhuo Chuang Consulting on May 9 announced the average price calculation, the total amount of the contract is expected to reach 4.25 billion yuan.

This 4.25 billion yuan order is bound to have a certain impact on the two giant companies.

First of all, for Follette, the leading photovoltaic enterprise has officially acquired Longji shares as a major customer. The two-and-a-half-year contract has also thickened Forlette's future performance. In particular, in the second half of this year, Fulet will need to supply photovoltaic glass to Longji shares in accordance with the contract. This means that the contract, which begins in 2019, will have an impact on Fuller's performance.

According to financial data, Fulet's operating income in 2018 was 3.064 billion yuan, an increase of 2.42 percent over the same period last year, and the net profit attributable to shareholders of listed companies was 408 million yuan, down 4.50 percent from the same period last year.

In fact, in the last two fiscal years, Follette's net profit has fallen, which is closely related to the price fluctuation of photovoltaic glass.

About 70% of Follette's revenue comes from photovoltaic glass. After the introduction of the 531 photovoltaic policy in 2018, photovoltaic glass began to fall under the influence of cooling demand and hit a full-year low in the third quarter. Subsequently, although the rebound in photovoltaic prices filled a certain vacancy, but the average price for the whole year still fell, so it squeezed the profit space of Fulet for the whole year.

Fortunately, by 2019, the average price of photovoltaic glass has benefited from the improvement in the margin of supply and demand. At the same time, Fulet low-cost photovoltaic glass production capacity will also be in the second half of 2019 and 2020 will be put into production one after another.

Under the expectation of rising volume and price, the contract signed with Longji shares will undoubtedly become a guarantee for the future performance growth of Forlette.

So, for Longji shares, what does this $4.25 billion purchase contract mean?

Photovoltaic glass is an important auxiliary material for component production, and it is the operating cost of Longji shares.

Longji, the world's largest single crystal manufacturer, announced a production capacity plan for the next three years from 2019 to 2021 at the end of April.

The capacity plan clearly defines the company's production targets for single crystal battery chips and components from 2019 to 2021. Among them, in the next three years, Longji shares of the single crystal component capacity will reach 16GW, 25GW, 30GW.

The expansion of production at the end of the component has become the focus of Longji shares in the future. Therefore, photovoltaic glass has become a necessity for Longji shares to ensure the expansion of production in the future. As a result, a procurement agreement was reached with Fulet to find a stable photovoltaic glass supplier.

As of the end of the first quarter of this year, Longji shares currency fund balance of 8.439 billion yuan, in hand more abundant funds, does not seem to need to worry about the above procurement costs.

However, it is worth noting that at present Longji shares are still in arrears to Forlette. Follette's 2018 financial report showed that as of the end of the reporting period, the balance of accounts receivable and notes receivable from Longji AG was 160 million yuan. Among them, the balance of credit loss provision at the end of the year is about 2.61 million yuan.

Key Words:  Longji shares  Follette  Photovoltaic  Glass  Battery