Before the trading session on January 14, Poly Xiexin Energy (03800-HK) announced that it would place 3.9 billion new shares at HK $1.08 each, a discount of about 12.2 per cent to the previous day's closing price of HK $1.23, and the placing shares accounted for about 15.57 per cent of the company's expanded share capital. Investors in the capital markets responded positively and were oversubscribed several times. This placement is expected to raise HK $4.212 billion to build a capital "reservoir" for the expansion and incremental high-quality development of granular silicon.
Continue to reduce liabilities, Poly Xiexin light: the company through the sale of power plant assets, non-main business equity and other measures to further adjust the debt structure, gradually remove operational and cash flow risks, put aside the burden and start all over again. At the same time, Xiexin New Energy, a subsidiary of Poly Xiexin, will fully sell and deliver more than 85% of the existing power plant assets by the end of 2021, making the parent company Poly Xiexin light.
The injection of new funds will help Poly Xiexin cultivate a new engine focusing on the main business of silicon materials, and add wings for the sustained and healthy development of the company: the success of this placement will help the company to further optimize and adjust its financial structure. high-quality development and construction of granular silicon main business, expand production scale, technical advantages, talent team, etc., effectively support the healthy and sustainable development of the enterprise.
Tens of thousands of tons of production capacity is about to hit the ground, and granular silicon technology has achieved a major breakthrough: it is understood that in terms of granular silicon production capacity, Poly Xiexin reached 10, 000 tons by the end of 2020, will achieve mass production of 30, 000 tons by the end of the third quarter of 2021, and reach full production of 54000 tons in the first half of 2022. At the same time, the 100,000-ton granular silicon production base in Leshan, Sichuan, is currently making every effort to accelerate the construction of the project and strive to put into production as soon as possible. According to the previous announcement, Poly Xiexin has fully mastered the mature replicable granular silicon large-scale intelligent manufacturing technology and advanced technology, after mass customer experience, its granular silicon products in the market acceptance has been widely verified and fully recognized by customers. In addition, the existing granular silicon production capacity has achieved continuous and stable production, commercial mass production and market-oriented sales, product quality, manufacturing cost, conversion efficiency and other main parameters have also been quantitative optimization and heavyweight improvement. In the future, the company will further promote the overall realization of affordable Internet access and the steady development of the industry through scientific and technological innovation, higher product quality and customer-centered purpose.
After ten years of grinding, granular silicon has achieved completely independent, commercial mass production and market-oriented application, and the dominant pattern of Poly Xiexin silicon material will be reshaped: the raising scale of Poly Xiexin shows Poly Xiexin's deep focus on the confidence, perseverance and determination of the main silicon material, while the strong support behind it is granular silicon's leading technology, mature process and extensive market recognition and acceptance. As early as ten years ago, Poly Xiexin took the lead, opening a long way to explore the research and development of silane vulcanization bed technology. During this period, numerous independent attempts, experiments, practical operations, coupled with the acquisition of SunEdison patent team and equipment in 2017, and after years of quenching, internalization of large-scale exploration, the company finally ushered in outstanding scientific and technological progress, and gladly announced in 2019, Poly Xiexin can achieve long-cycle, high-quality, low-cost commercial mass production of granular silicon, and enter the pace of accelerating production expansion in 2020. The successful mass production of granular silicon is regarded as the seed of revolution in silicon industry by photovoltaic market, which lays a solid foundation for silicon material pattern reshaping under the background of cheap access to the Internet.
The supply and demand of silicon continues to be tightly balanced, and the comprehensive advantages of granular silicon technology and cost are even more prominent: under the unstable factors of the post-epidemic era, the growth of terminal demand in 2021 will continue to ensure that the demand for silicon will climb steadily, and the whole year will maintain a tight balance between supply and demand. At the same time, there is a time gap in the release of new production capacity between silicon material and silicon wafer link from 2020 to 2021, which makes the silicon material market as a whole to maintain a relatively tight state, and price expectations continue to improve. With the increase of silicon market concentration and domestic production rate, the low-cost silicon production capacity will continue to have an advantage, while the granular silicon with lower cost than Siemens silicon will be enlarged more effectively and have a unique advantage. Based on this, it can be fully predicted that the release of granular silicon will bring explosive growth to Poly Xiexin's performance.
The whole process of granular silicon manufacturing is fully in line with the national strategic direction of "low carbon emission reduction, energy saving and green smart building". It will become a new growth pole leading the photovoltaic industry to help countries achieve the goal of carbon neutralization: the green environmental protection characteristics and advantages of Poly Xiexin granular silicon with low cost, low energy consumption, low emission and long life, high quality and high conversion rate have become a consensus in the industry. It is calculated that the production of granular silicon per kilogram saves about 45 degrees of electricity and 2/3 heat energy compared with the traditional Siemens method. Therefore, granular silicon products not only have excellent performance-to-price advantages in the era of cheap Internet access, but also meet the domestic and international policy needs of carbon reduction, neutralization and low carbon emissions. After 10 years of science and technology honed granular silicon products will become the main force leading China's photovoltaic industry to actively integrate into the carbon emission reduction matrix.
Granular silicon accelerated N-type era is coming: it is reported that the company's downstream customers have empirical data to show that granular silicon can perfectly match N-shaped silicon wafers. With the gradual expansion of tens of thousands of tons of silicon grain production capacity of Poly Xiexin, it will effectively promote the rapid advent of the N-type era, lead the photovoltaic industry into an efficient era, and achieve the development from the parity era to the low-price era.