Intensified Competition in the Downstream Solar Cell Sector: Juhe Materials' Revenue Growth Without Profit Increase in 2024

On February 24, Juhe Materials released its 2024 annual performance report. In 2024, Juhe Materials achieved revenue of 12.514 billion yuan, up 21.61% YoY, and net profit attributable to shareholders of 419 million yuan, down 5.24% YoY, falling short of the forecast values of multiple institutions. On a single-quarter basis, Juhe Materials recorded a net loss of 2.1746 million yuan in Q4 2024, down 269.98% YoY and approximately 101.78% MoM. Juhe Materials is a company primarily engaged in the R&D, production, and sales of new-type electronic pastes, focusing on new materials and new energy industries. Currently, its main product is front-side silver paste for solar cells. Regarding its 2024 performance, Juhe Materials stated that during the reporting period, due to intensified competition in the downstream solar cell segment and the PV industry entering a reshuffling phase, some customers' payments were below expectations. The company prudently assessed the recovery risks of accounts receivable and made provisions for related bad debt losses, which impacted part of its profits. Amid the bottoming-out trend in the PV market, Juhe Materials announced in January this year a delay in its fundraising projects. It mentioned that the "Jiangsu Deli Ju New Materials Co., Ltd. High-End PV Electronic Materials Base Project" would postpone its expected operational date from February 2025 to June 2025. The "Special Electronic Functional Materials and Metal Powder Materials R&D Center Construction Project" would postpone its expected operational date from December 2024 to June 2025. In terms of new business, Juhe Materials mentioned during an institutional survey in October 2024 that it had incubated businesses such as silver powder, semiconductor electronic pastes, and adhesives based on its conductive paste technology platform and industry chain demand, aiming to make them new growth drivers. Currently, silver paste accounts for over 50% of the non-silicon cost in the solar cell segment, and silver reduction has become a key focus for R&D breakthroughs in the PV field. Several top-tier PV enterprises are advancing the implementation of related technologies. It is understood that Juhe Materials' silver-coated copper powder has completed basic physical and chemical experiments and entered the pilot testing phase. MLCC silver powder has entered the external testing phase at client sites, while ruthenium powder and copper powder have entered small-scale trial production. On the other hand, the company has invested in the R&D and industrialisation of silver-free pastes, starting early with silver-free powders and their processing, as well as silver-free pastes and their curing technologies. In the field of new technologies, regarding 0BB glue, Juhe Materials stated that it had conducted targeted designs for modules with different structures and achieved large-scale deliveries to key leading customers. With the scaling up of 0BB module technology in the future, glue demand is expected to increase significantly. For BC insulation glue, Juhe Materials mentioned during the October 2024 institutional survey that it had successfully extended its adhesive technology route, previously accumulated in the consumer electronics and ESS industries, to BC insulation glue technology. It achieved good results in testing with leading customers, and the introduction progress is in line with expectations and relatively smooth.