The industrial development environment has undergone fundamental changes
Price reduction of the entire photovoltaic industry chain
Enter a downward phase
The cyclical law of the photovoltaic industry seems to have not changed. Time has passed, and today's photovoltaic industry is booming again.
In the context of surplus production capacity and price involution, the share price of LONGi Green Energy, the former first brother of photovoltaics, has been falling in the past three years, and its market value has fallen from a peak of 560 billion yuan in 2021 to 141.1 billion yuan today, evaporating more than 400 billion yuan.
The price of the whole photovoltaic industry chain has been reduced, and the performance of the silicon wafer leader has also been "cold". According to statistics, in the past six months, TCL Zhonghuan has a total loss of about 3.652 billion yuan, and a loss of 2.772 billion yuan and 880 million yuan in the fourth quarter of last year and the first quarter of this year respectively.
Affected by the downward adjustment of the future photovoltaic market expectations, photovoltaic listed companies have recently controlled the pace of upstream technology production and downstream project investment and construction.
Sungrow's 100GW new energy project has been postponed for 14 months
Jolywood: Termination of 14 billion yuan silicon-based project,
Power Investment Energy plans to terminate residential PV projects of more than 100MW;
Jolywood: terminated the 14 billion yuan silicon-based project
Jolywood announced the termination of the silicon-based project, after the company announced that it plans 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 of 14 billion yuan. After signing the investment agreement, the company actively promoted the preparatory work for the investment of the polysilicon project with the Gujiao Municipal People's Government and the Taiyuan Municipal People's Government, 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, and 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. Combined 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 March 2022, Jolywood announced that it had signed a Strategic Cooperation and Investment Agreement with the People's Government of Taiyuan Municipality and the People's Government of Gujiao City, under which the Company intends to invest in a project with an annual output of 200,000 tons of industrial silicon and an annual output of 100,000 tons of high-purity polysilicon in Gujiao City, Shanxi Province, with a total investment amount of RMB 14 billion. According to the plan disclosed at the 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.
Screenshot from Jolywood's announcement
The termination of the silicon-based project is a prudent decision made by the company in combination with various factors such as the industry and the market, as well as the actual operation of the company, which can reduce investment risks. As of the disclosure date of this announcement, the project investment is still in the preliminary stage of approval procedures, there is uncertainty in the approval, no substantial investment and construction has begun, the company's termination of the project investment will not have a significant adverse impact on the company's financial condition and operating conditions, and there is no damage to the interests of the company and shareholders.
The announcement is as follows:
Sungrow's 100GW new energy project has been postponed for 14 months
On April 22, Sungrow Power Supply Co., Ltd. held the seventh meeting of the fifth board of directors and the sixth meeting of the fifth board of supervisors, deliberated and passed the "Proposal on the Extension of Part of the Raised Funds Investment Project", and agreed to postpone the date of the "annual output of 100GW new energy power generation equipment manufacturing base project" to reach the scheduled usable state from the original April 30, 2024 to June 30, 2025. The total investment scale of the project is 2.452 billion yuan.
Regarding the reasons for the postponement of the project, Sungrow said that the company actively promoted the "annual output of 100GW new energy power generation equipment manufacturing base project", and the current investment progress has reached 63.95%, but due to factors such as planning adjustment, environment, equipment commissioning and government licensing progress, part of the construction has not yet been completed. In order to ensure the steady implementation of the project, reduce risks and ensure the safety of funds, the company decided to extend the original completion date of the project.
In addition, the company also said that the postponement of the fundraising project is a decision made based on the actual implementation situation, and does not involve changes in the implementation entity, investment purpose and scale, and will not have a significant adverse impact on the company's operation.
The announcement is as follows:
According to the announcement, the investment cost of household photovoltaic has risen, the economy of the project has declined, and the rising land lease fee has directly affected the project's yield, and the continued construction of the project cannot meet the company's yield requirements. Some farmers are not willing to cooperate in the development of household photovoltaics. In summary, due to factors such as policy changes, market conditions and construction conditions, the termination of the implementation of the project is conducive to avoiding the investment risk of the company's infrastructure projects.
The announcement is as follows:
I believe that enterprises with competitiveness in technology, market and product portfolio will be able to pass through this round of photovoltaic adjustment period, ride the wind and waves, and become stronger and stronger.
Source: Photovoltaic Energy Circle