A total investment of 14 billion Tongwei shares plans to build a high-purity crystalline silicon project with an annual output of 200,000 tons

On June 30, Tongwei Co.
, Ltd.
issued a semi-annual performance increase announcement.
At the same time, it also disclosed an investment of 14 billion yuan to build a high-purity crystalline silicon project with an annual output of 200,000 tons
.


The performance forecast shows that Tongwei shares are expected to achieve a net profit of 2.
8-30 billion yuan in the first half of 2021, an increase of 1.
79-19.
9 billion yuan, or a year-on-year increase of 177% to 197%; deducting non-net profits of 2.
83 billion yuan, The year-on-year decrease increased by 1.
841~2.
041 billion yuan, a year-on-year increase of 192%-213%
.


Regarding the reasons for the performance growth, Tongwei said that the high-purity crystalline silicon business benefited from the growth of downstream demand in the first half of this year, and the supply of products was in short supply.
The market price increased significantly year-on-year
.
At the same time, under the special circumstances of unbalanced supply and demand in the industrial chain, the company's cell business still maintained full production and sales, and both volume and profit achieved substantial year-on-year growth
.


While the high-purity crystalline silicon business is growing rapidly, Tongwei is also stepping up its production expansion
.


Another announcement disclosed on June 30 disclosed that Tongwei Co.
, Ltd.
intends to sign the "Investment Agreement" with the People's Government of Leshan City (Party A) and the People's Government of Wutongqiao District, Leshan City (Party B).
Invest in the construction of a high-purity crystalline silicon project with an annual output of 200,000 tons, which is mainly engaged in the R&D, production and sales of high-purity crystalline silicon.
The total investment of the project is estimated to be 14 billion yuan.
The project will be implemented in two phases based on 100,000 tons per phase
.


Among them, the first phase of investment is expected to be 7 billion yuan, and it is planned to be put into operation before the end of December 2022; the second phase of the project will start at an opportunity based on the market and the development of the photovoltaic industry
.


Up to now, Tongwei has an annual production capacity of 50,000 tons of high-purity crystalline silicon in Leshan, and another 50,000 tons of high-purity crystalline silicon project is under construction.
It is expected that the production capacity will reach 100,000 tons by the end of 2021
.
If the agreement stipulates that after the project is fully put into production, Tongwei's production capacity in Leshan will reach 300,000 tons
.


  Based on this calculation, according to Tongwei's annual production capacity of 80,000 tons of high-purity crystalline silicon and the progress of the project with an annual output of 150,000 tons of high-purity crystalline silicon under construction, the first phase of the project (with an annual production capacity of 100,000 tons of high-purity crystalline silicon) is as planned After commissioning, Tongwei's annual production capacity of high-purity crystalline silicon will reach 330,000 tons by the end of 2022.
After the two phases of the project are fully put into production, the company's high-purity crystalline silicon production capacity will reach 430,000 tons
.


  At the same time, Tongwei Co.
, Ltd.
also issued a risk warning that the photovoltaic market is greatly affected by factors such as policies, power station owners’ financing, grid consumption, land nature and other factors, as well as force majeure and other factors such as the epidemic, which may lead to changes in market demand and product prices.
Large fluctuations occurred, causing the project's revenue to fall short of expectations
.


  In addition, just over half a month ago, Tongwei Co.
, Ltd.
received a supervisory work letter from the Shanghai Stock Exchange.
The reason for handling in the work letter was to "clarify supervisory requirements on media reports
.
"

  It is understood that this incident was caused by a public report letter from Aixu
.
Prior to this, on June 10, the "Reporting Materials on the Symposium on Hot and Difficult Issues in the Photovoltaic Industry" published by Aixu at the Symposium on Hot and Difficult Issues in the Photovoltaic Industry circulated on the Internet
.


  Aishu said in it that the current polysilicon prices continue to rise because some companies are deliberately creating shortages of polysilicon and silicon wafers, hoarding them, and driving up prices
.
It also pointed out that Yongxiang, a subsidiary of Tongwei Group, felt that the "monthly pricing" had risen too slowly and demanded to be changed to "weekly pricing", causing the price of polysilicon to soar by 37.
2% and the price of silicon wafers by 23.
5%, which seriously affected Industry development
.


  In this regard, Tongwei also responded through the media, and did not ship to any intermediate traders, and there was no situation of driving up prices and hoarding
.
Regardless of the industry, product price is a manifestation of the relationship between supply and demand, and it is a question of whether the industrial layout structure is reasonable
.