Polysilicon prices have fallen in an avalanche, which has led to an increasingly wait-and-see sentiment among downstream module makers and a decrease in their enthusiasm for scheduling production. As a result, since April, the price of photovoltaic film has begun to decline.
文 / NE-SALON新能荟小编团
On January 27, Haiyou New Materials released a performance forecast, which is expected to achieve operating income of 48 to 5 billion yuan in 2023, and the net profit attributable to the owners of the parent company will be -2.4 to -220 million yuan, a year-on-year decrease of 539.18% to 579.11%.
You must know that Haiyou New Materials is one of the photovoltaic film giants, although it is slightly inferior to the leading Foster, but its strength should not be underestimated. In the first three quarters of 2023, Foster's shipments reached 1.595 billion square meters, while Haiyou's new material shipments reached 450 million square meters, about 1/4 of Foster's.
Even the industry giants are losing money, what happened this year?
EVA胶膜价格暴跌，原料与硅料难辞其咎
This year, polysilicon prices have fallen in an avalanche, triggering price turmoil in the upstream of the entire PV industry chain. Although there was a brief rebound in the first quarter, after entering the second quarter, the price once again entered a downward channel, and there is no sign of stopping the decline. As a result, downstream module manufacturers are increasingly on the look-and-see mood, and their enthusiasm for production scheduling has decreased. As a result, since April,
The direct material cost of Haiyou New Materials accounts for 92.16% of the total cost, which makes the company extremely vulnerable in the face of market fluctuations. After entering the third quarter, due to the rebound of the price of raw materials EVA particles, and the low price of EVA film for too long, in August and September, the price of EVA film rebounded, but in November, the price of EVA film fell to 7.5 yuan / square.
What's more serious is that not only EVA film, but also the price of POE is also declining, making it difficult for the company to maintain performance growth by adjusting its sales structure. In the first half of the year, the company's gross margin was -2.25%, and although it improved in the third quarter, the gross margin in the first three quarters was still negative at -0.99%.
As for the leading Foster, although it occupies half of the global market. However, Foster has never used its scale advantage to raise prices. Over the past few years, the company's gross profit margin has been maintained at a fairly restrained level. Even in the context of the previous explosion of the photovoltaic industry, when production capacity was in shortage, its gross profit margin was only slightly more than 20%.
In fact, the unit price of Haiyou New Material's products has always been slightly higher than that of Foster, but in the current bleak market environment, this makes Foster's market share rise against the trend, and then further compresses costs by virtue of its scale advantage, thereby maintaining profitability. Although Foster also faces many challenges, relatively speaking, its situation is much better than that of Haiyou New Materials.
In addition, the leading photovoltaic enterprises have adopted the strategy of industrial chain integration, which has reduced the number of orders. At the same time, petrochemical companies such as Dongfang Shenghong and Lvkang Biochemical have also laid out in the field of photovoltaic film. This undoubtedly brings a lot of challenges to the photovoltaic film market with low technical barriers.
Considered the company with the most ruthless money?
In January 2021, the company raised $1.47 billion through an initial public offering (IPO), and just a year and a half later, in July 2022, the company raised $694 million through the issuance of convertible bonds. Just one year later, in November 2023, the company once again threw out the prospectus for private placement, planning to raise 1.136 billion yuan.
From 2020 to 2022, Haiyou New Material's net cash flow from operating activities continued to be negative, with -166 million yuan, -1.402 billion yuan and -2.915 billion yuan respectively as of the end of September 2023, although it is undoubtedly facing huge financial pressure.
Nowadays, the expansion of production capacity still needs funds, and this year it is still suffering losses, and the cold winter period of the industry is becoming more and more difficult. Source: NE-SALON LY