On March 13th, Longji (601012) announced that according to the strategic development needs, the company signed the Investment Cooperation Agreement with the people's Government of Ordos City and the people's Government of Yijinhuoluo Banner on March 12th. The company reached a cooperation intention on the investment and construction of annual 20GW single crystal silicon rod and chip project, 30GW high efficiency single crystal cell project and 5GW high efficiency photovoltaic module project in Mengsu Economic Development Zone of Yijinhuoluo Banner, Ordos City, Inner Mongolia Autonomous region.

According to reports, the above investment projects by Longji shares project subsidiary investment of about 19.5 billion yuan (including working capital). Specifically, the annual production of 20GW single crystal silicon rods and chips is expected to invest 7.6 billion yuan, the annual production of 30GW high-efficiency single crystal battery project is expected to invest 10.3 billion yuan, and the annual production of 5GW high-efficiency photovoltaic module project is expected to invest 1.6 billion yuan. In terms of the construction cycle, the agreement requires that from the transfer of the plant, warehouse and ancillary facilities to Longji Project Company, the time for the above-mentioned projects to be put into production shall not exceed 6 months, and the time to reach production shall not exceed 24 months.

With regard to the newly signed investment agreement with Inner Mongolia, Longji said that this is in line with the company's future production capacity planning, and will help the company to give full play to its technology and product leadership, seize opportunities for the development of the photovoltaic market, and further enhance the company's capacity scale. continue to improve market competitiveness.

According to the data, Longji has long been focused on providing efficient single crystal solar power generation solutions to customers around the world, mainly engaged in the research, development, production and sales of monocrystalline silicon rods, wafers, batteries and modules, as well as photovoltaic power plant development, construction and operation business.

On the eve of the two sessions this year, Li Zhenguo, founder and president of Longji Co., Ltd., called on the photovoltaic industry to pay attention to the reliability of new energy assets that have been in operation for more than 25 years to ensure that they are guaranteed in the whole life cycle. it is suggested that the industry return to the main track to improve battery efficiency, strengthen research and development investment in new battery materials and technologies, and reduce costs and increase efficiency through scientific and technological innovation.

It is worth mentioning that on December 31, 2021, Longji issued a convertible bond offering letter, and the company plans to raise 7 billion yuan to invest in the annual production of 15GW high-efficiency single crystal battery project, annual 3GW single crystal battery manufacturing project and supplementary liquidity. The announcement shows that the mature technology of the next-generation N-type high-efficiency single crystal battery independently developed by the company will be fully introduced, which will effectively help the company to fully grasp the technological change trend of the next-generation high-efficiency battery.

In addition to focusing on the improvement of battery conversion efficiency, Longji also issued an announcement on March 7 this year, changing the investment scale of Qujing (Phase II) single crystal silicon wafer project from annual 20GW to 30GW. According to open source securities statistics, the company's wafer production capacity is 110GW at the end of 2021. With this expansion, the company's wafer production capacity is expected to reach 140GW by the end of 2022.

From the perspective of the industry as a whole, according to the open source securities research report, in 2021, China's photovoltaic installed capacity will be 53GW, and distributed photovoltaic will be 29GW, accounting for more than 50% for the first time, and the cumulative share has steadily increased from 13.3% in 2016 to 35.1%.

Longji shares also analyzed at the same time in the recent research activities, in the case of a very clear long-term energy development policy, with the continuous progress of photovoltaic technology and the continuous release of new production capacity of upstream raw materials, the supply and demand pattern of the industry will be further improved to promote the continuous decline of photovoltaic power generation costs, so it is expected that the global photovoltaic market demand will exceed 200GW in 2022, maintaining a high economic development trend. Combined with the photovoltaic installed forecast data of China Photovoltaic Industry Association, IHS Markit and other international authorities, as well as the company's analysis of the supply and demand of the industrial chain, the neutral forecast is expected to reach 220GW in 2022, a year-on-year growth rate of more than 35%.