China Fund News reporter Yishan
Two years after the official announcement of the silicon-based project, on the evening of April 24, Jolywood, a leading enterprise in the photovoltaic backsheet industry, suddenly issued an announcement announcing the termination of this 14 billion yuan project.
It is worth noting that 2024 should have been the time when the first phase of the project was completed and put into operation, but as of now, the project is still in the preliminary stage of approval procedures. Since no substantial investment and construction has begun, Jolywood stressed that the termination of the project will not have a material adverse impact on the company's financial condition and operating conditions.
Terminate the 14 billion yuan silicon-based project
According to the announcement, Jolywood held the 13th meeting of the 5th board of directors and the 10th meeting of the 5th board of supervisors on April 24, and deliberated and passed the "Proposal on Terminating Silicon-based Projects".
It is understood that as early as March 2022, Jolywood announced that the company signed the "Strategic Cooperation and Investment Agreement" with the People's Government of Taiyuan Municipality and the People's Government of Gujiao City, which stipulates that the company intends to invest in an annual output of 200,000 tons of industrial silicon and an annual output of 100,000 tons of high-purity polysilicon projects in Gujiao City, Shanxi Province, with a total investment amount of RMB 14 billion.
According to the plan disclosed at that time, the construction of the project was planned to be constructed in two phases, with a total construction period of about 5 years. Among them, the first phase of the construction of an annual output of 200,000 tons of industrial silicon and an annual output of 10,000 tons of high-purity polysilicon projects, with an investment of about 4.3 billion yuan, plans to start construction after the agreement takes effect, and strive to complete and put into operation in 2024.
However, in the latest announcement on April 24, 2024, Jolywood bluntly stated that as of now, the project investment is still in the preliminary stage of approval and has not started substantial investment and construction.
Regarding the reason for the termination of the project, Jolywood said that after the signing of the investment agreement, the company actively promoted the preparatory work for the investment of the polysilicon project, but there was no feasible plan for the project to land in the chemical park, and the investment agreement failed to meet the conditions for taking effect. At the same time, the market environment of the photovoltaic industry has undergone major changes, and the feasibility of silicon-based projects has undergone major changes. Based on this, it is expected that the continuation of the project will not achieve the expected investment results.
Jolywood said that in combination with the company's overall development plan and market conditions, in order to optimize the company's resource allocation, reduce investment risks, and effectively safeguard the interests of the company and all shareholders, the company decided to terminate the investment in silicon-based projects after careful research.
In addition, since no substantial investment and construction has begun, Jolywood emphasizes that the company's termination of the project investment will not have a material adverse impact on the company's financial condition and operating conditions, and there is no harm to the interests of the company and shareholders.
In 2023, the operation will hit a new high, and the performance in the first quarter of this year will change face
On the same day, Jolywood also disclosed two "mixed" financial reports.
Among them, the 2023 financial report data shows that during the reporting period, the company's revenue and net profit both hit a record high, with annual revenue of 12.259 billion yuan, a year-on-year increase of 28.01%, and a net profit attributable to the parent company of about 527 million yuan, a year-on-year increase of 31.18%.
As for the reasons for the growth of performance, Jolywood said that it is mainly due to the continuous increase in the overall global demand for photovoltaic products and services in 2023, and with the acceleration of the iteration of p-type and n-type technologies, the demand for n-type high-efficiency products is rising.
At the same time, Jolywood also announced the profit distribution plan for 2023, planning to distribute a cash dividend of 1.38 yuan (tax included) to all shareholders for every 10 shares, with a total cash dividend of about 150 million yuan (tax included), accounting for 28.56% of the net profit attributable to the parent company in 2023.
On the other hand, the first quarter report of 2024 shows that during the reporting period, the company achieved revenue of 1.288 billion yuan, a year-on-year decrease of 52.43%, a net loss attributable to the parent company of 172 million yuan, a year-on-year decrease of 268.11%, and a loss of 193 million yuan, a year-on-year decrease of 253.67%.
In this regard, many investors in the stock bar left messages saying that they did not expect the company to lose so much in the first quarter.
According to the data, Jolywood has continued to deepen the photovoltaic industry since its establishment in 2008, gradually extending from a single photovoltaic backsheet business, and is currently mainly engaged in photovoltaic auxiliary materials, high-efficiency cells, high-efficiency modules, and photovoltaic application related businesses.
Wind data shows that as of the end of the first quarter of this year, the total number of shareholders of the company was about 66,000.
As of the close of trading on April 24, Jolywood shares were quoted at 8.06 yuan per share, down more than 22% during the year, and the company's latest market value was 8.8 billion yuan.
Editor: Joey
Review: Xu Wen