In 2019, the PV industry is changing. Externally, the PV products have experienced the “double anti” in the United States, and the export is facing great challenges. Domestically, the PV policy is changing, the subsidy policy is declining, and the PV industry is facing great challenges. As for the polysilicon upstream products, it is naturally not optimistic. With the continuous expansion and production of enterprises, the domestic production capacity is released intensively, and the production pressure is released Double, but the demand stalls, the domestic operating rate also drops again and again, the price also shows a one-sided trend of concussion and downward, the enterprise profits are seriously compressed, it can be said that 2019 is the winter. Now our business club makes an inventory of some major events in polysilicon and photovoltaic industry in 2019:
1. One successful trial run of the world’s largest single set polysilicon project
On December 8, it was learned that the annual output of 120000 tons of polysilicon project (30000t in the first phase) of Xinjiang Dongfang hope new energy Co., Ltd., the world’s largest single polysilicon project contracted by China Chemical Engineering Co., Ltd., has successfully produced qualified trichlorosilane products on December 1 after comprehensive commissioning and combined transportation. Among them, the trichlorosilane conversion rate of the cold hydrogenation device is more than 20%, and the rectification rate is more than 20% The purity of trichlorosilane after distillation and purification of the unit has reached 99.9999%, which indicates that Xinjiang Dongfang hopes to achieve the full process connection of 120000 T / a polycrystalline silicon project (30000 T / A in the first phase), and the project is successfully put into operation once and enters the stage of full production and operation.
2. Phase I of Yongxiang new energy Sichuan Leshan high purity crystalline silicon project with an annual output of 50000 tons under Tongwei
At the end of 2018, Tongwei announced that the first phase of Yongxiang new energy Sichuan Leshan high purity crystalline silicon project with an annual output of 50000 tons was put into operation successfully. After the completion of the project, and after the completion of Baotou high-purity crystalline silicon project, the annual output of 60000 tons of high-purity polysilicon can be provided, which can meet the demand of more than 70% high-quality p-type and n-type single crystals, and alleviate the current situation of China’s high-purity polysilicon dependence on imports.
3. The United States will continue to impose double anti tax on China’s photovoltaic cells and modules
On February 8, the United States International Trade Commission (USITC) decided that the existing anti-dumping and countervailing duty orders on crystal silicon and photovoltaic module products imported from China would continue to exist. The U.S. International Trade Commission believes that once the existing anti-dumping and countervailing duty orders are revoked, significant material damage will continue to be caused in the foreseeable future. David S. Johanson, chairman of the committee, and Irving A. Williamson, Meredith M. Broadbent, Rhonda K. schtlein and Jason E. Kearns, members of the committee, affirmed this.
4. Daquan and Jingke signed a 10000 ton polysilicon supply agreement and obtained a loan of 450 million yuan for the polysilicon expansion project
On February 21, Daquan New Energy announced that it has signed a one-year polysilicon supply agreement with the photovoltaic module manufacturer, Jingke energy. According to the terms of the supply agreement, Daquan new energy will supply 10350 tons of polysilicon to Jingke energy in 2019, and the price will be determined on a monthly basis according to the market price.
In addition, Daquan new energy has recently been approved by the Bank of China and will receive a loan of about 450 million yuan (about 66.5 million US dollars). Bank of China will provide a five-year fixed asset loan worth 400 million yuan, which Daquan new energy plans to use to further expand the capacity of its polysilicon production base in Xinjiang. The Bank of China will also provide a working capital loan of RMB 50 million to support Daquan’s daily operation. Last December, Daquan completed its 3B project ahead of schedule, which increased Daquan’s capacity to 30000 tons. At present, the company is working on its 4A project, which can further increase the production capacity to 70000 tons.
5. U.S. postpones tariff on Chinese products on March 1. Photovoltaic inverter will maintain 10% tariff
On the afternoon of February 24 local time, the seventh round of China US high level economic and trade consultation ended in Washington, D.C. U.S. President trump said substantive progress has been made in the negotiations, and the United States will postpone the measures originally scheduled to impose tariffs on Chinese products on March 1.
6. Wacker: falling polysilicon prices will reduce profits by 10-20%
Wacker chemical AG said it expects revenue to grow in the middle single digits, with sales of 4.98 billion euros last year due to increased polysilicon and chemicals sales this year. However, wacker’s board yesterday released its 2019 forecast, saying it expects EBITDA to fall 10-20% this year, mainly because the average price of polysilicon is lower than expected.
7. Another polycrystalline enterprise shut down
In March, Danone, Taiwan’s polysilicon manufacturer, announced that due to the downturn in the photovoltaic market in 2018, the price of the company’s main product polysilicon chips fell by 60%, and the market price is far lower than the production and manufacturing cash cost. Even though the price has stabilized slightly since 2019, the company has been committed to reducing various costs, and still can’t avoid the dilemma of more profits and more losses. As a result, the board of directors decided to shut down factories that were not economically efficient.
8. GCL poly and four customers signed a 6-gwa single crystal supply cooperation agreement
On the afternoon of June 4, during the SNEC exhibition in Shanghai, GCL poly signed a 6-gw single crystal supply cooperation agreement with atlas, Chint solar, daycare photovoltaic, Aikang photoelectric and other four customers.
In 2019, with the rapid development of photovoltaic industry, more cost-effective products have become the common goal of the whole industry chain, among which the related technologies and products based on ingot single crystal silicon wafer have attracted wide attention. In the theme report before the signing ceremony, Dr. Wan yuepeng said that the mass production efficiency and component output power of poly-gcl ingot single crystal “Xin single crystal G3″ perc battery are basically the same as that of Czochralski single crystal, such as considering the advantages of light attenuation, realizing the same watt output with Czochralski single crystal module; Xin single crystal has a narrower resistivity distribution, which is conducive to the improvement of perc battery efficiency and n-type silicon chip; all square Silicon wafer has no chamfering, which is suitable for laminating and patching components, with better appearance; the carbon footprint is lower, which is a more green product, with obvious advantages in some overseas markets.
9. Poly GCL transfers 31.5% equity of Xinjiang polysilicon project
In September, recently, poly GCL (03800. HK) announced that its shareholders voted 99.99% to approve the transfer of 31.5% of its subsidiary, Jiangsu Zhongneng Silicon Technology Development Co., Ltd. (hereinafter referred to as “Jiangsu Zhongneng”), to Xuzhou Zhongping GCL industrial upgrading equity investment fund (hereinafter referred to as “Xuzhou Industrial Fund”) Equity. The transaction consideration is RMB 2.49 billion (the same below), and the funds will be used to repay the company’s debts and general operation.
10. Daquan new energy Q3 turned loss into profit on a year-on-year basis, with adjusted net profit increasing by 313% month on month
DQ. Us, a maker of high-purity polysilicon for the solar photovoltaic industry, released its financial report after trading in US stocks on Tuesday, with earnings from continuing operations of US $83.9 million, up 27% on a month on month basis. Gross profit was $18.1 million, up 110% month on month, and $8.6 million in the second quarter. The gross margin was 21.5%, 13% in the second quarter, up 65% month on month. Non GAAP EBITDA was $19.7 million, up 93% month on month; EBITDA margin was 23.5%, compared with 15.5% in the previous quarter.
The net profit from continuing operations was $4.9 million, with a net loss of $2.7 million in the previous quarter and a net profit of $4.2 million in the same period of the previous year. The net profit attributable to shareholders is 5 million US dollars, and the net loss of the same period of last year is 18.3 million US dollars. After adjustment, the net profit attributable to shareholders was US $9.5 million, compared with us $2.3 million in the previous quarter, and US $4.3 million in the same period of the previous year, with an increase of 313% on a month on month basis and 120% on a year-on-year basis. Earnings per share was $0.37, compared with a loss of $0.16 in the previous quarter and $1.39 in the same period last year. According to the non GAAP, the adjusted earnings per share was US $0.69, compared with us $0.17 in the previous quarter and US $0.33 in the same period of last year, an increase of 305% on a month on month basis and 109% on a year-on-year basis. Polysilicon production was 9437 tons, compared with 7151 tons in the second quarter of 2019, an increase of 31%. The sales volume of polysilicon was 9238 tons, 7130 tons in the second quarter, an increase of nearly 30% on a month on month basis.
11. Longji subsidiary’s further production expansion will invest in the construction of 10GW / a monocrystalline silicon wafer project
On November 25, Yunnan Provincial Development and Reform Commission issued the review opinions on the energy saving report of the construction project of Chuxiong Longji silicon material Co., Ltd. with an annual output of 10GW in phase II, indicating that the energy saving report of the construction project of the company with an annual output of 10GW in phase II has been approved.
The construction content and scale of the second phase of the 10GW / a monocrystalline silicon chip construction project of Chuxiong Longji silicon material Co., Ltd.: Leasing customized workshops and supporting production and living building facilities (to be constructed by the government), purchasing production equipment, testing instruments, tools and instruments such as diamond wire slicer, degumming machine, inserting and cleaning machine, sorting machine, etc. after the project is completed and put into operation, the annual output of 10GW will be realized, about 20 Production capacity of 100 million monocrystalline silicon wafers. The project is a new project in Longji, Chuxiong. The plant, production equipment and auxiliary production equipment used in the project are not shared with phase I project.
