SMM9 March 27th: on September 26th, Tongwei announced that it signed a "Cooperation Agreement" with Longji shares on September 25, 2020, "Sichuan Yongxiang New Energy Co., Ltd. Investment Agreement" and "Yunnan Tongwei High Pure Crystal Silicon Co., Ltd. Investment agreement". The two sides intend to increase the registered capital of Yongxiang New Energy from 1.2 billion yuan to 2.8 billion yuan, and the designed annual production capacity is 75000 tons after production expansion. The two sides agreed to invest in Yunnan Tongwei High Pure Crystal Silicon Co., Ltd. (Yunnan Baoshan 40, 000 tons of high purity crystal silicon project) with a registered capital of 1.6 billion yuan. The two sides aim at an annual trading volume of 101800 tons of polysilicon materials.
It is reported that Tongwei shares and Longji Green Energy Technology signed a strategic cooperation agreement on June 3, 2019. Tongwei shares strategically bought a stake in Ningxia Yinchuan 15GW single crystal silicon rod and slicing project, and held a 30% stake in the project. Longji shares bought a stake in Baotou 50, 000 tons of high-purity silicon project in accordance with a strategy of equal amount, and held a 30% stake in the project after buying shares. Longji shares encourage and support Tongwei shares to continue to become stronger and bigger in the field of high purity silicon; Tongwei shares encourage and support Longji shares to continue to become stronger and bigger in the field of monocrystalline silicon rods. In addition, in the field of components and batteries, the two sides maintain close communication and jointly explore cooperation opportunities to jointly promote the healthy development of the industry.
As the two leading photovoltaic manufacturing enterprises, Longji shares and Tongwei shares of the further deepening of the cooperation will greatly consolidate its strategic position in the market. Half-yearly report data show that Longji shares of silicon wafers, battery module shipments increased significantly, capacity construction steadily. Among them, 3.958 billion monocrystalline silicon wafers were shipped and 2.469 billion were sold in the first half of the year, and battery module shipments exceeded 7.1GW, a substantial increase compared with the same period last year. In the first half of the year, Tongwei achieved sales of 45000 tons of high-purity silicon, an increase of 97.04% over the same period last year. While the average price of single crystal material and polycrystal material decreased by 14.4% and 41.2% respectively over the same period last year, the company's average gross profit margin of high-purity silicon products reached 27.70%, maintaining a good competitiveness. The solar cell and module business achieved sales of 7.75GW, an increase of 33.75% over the same period last year, and sales revenue of 5.843 billion yuan, an increase of 0.22% over the same period last year.
At present, the photovoltaic industry presents a new pattern of strong and strong. According to the summary of Western Securities for the photovoltaic wind power industry in 2020, shipments in all links of the 2020H1 photovoltaic industry chain have increased significantly, but the growth rate of income is less than the growth rate of sales, due to the decline in photovoltaic demand and product prices as a result of the global epidemic. From a sub-point of view, component, optical and integrated manufacturers benefit from capacity expansion and lower raw material costs, higher gross profit margin and better performance growth. From all aspects of the industrial chain, silicon wafer and glass links have formed a relatively obvious Matthew effect, and the competitiveness of the existing leading enterprises continues to strengthen. Therefore, the leading enterprises in the industrial chain have a better demand and supply pattern.
The deep cooperation between Tongwei shares and Longji shares will also become a market signal to stimulate other giants to form strategic alliances. According to Tongwei shares in the announcement, the cooperation will help to ensure the stable sales of the company's high-purity silicon products, in line with the company's future business development plan. According to the current market price of high-purity silicon, the supply chain cooperation company with Longji will achieve sales revenue of about 9 billion yuan per year.