Saudi Arabian "local tyrants" visit! A-share photovoltaic faucet swipe

Securities Times E Company

2024-05-23 22:54Published on the official account of "Company E" under Guangdong Securities Times

The trillion-level super project, the NEOM Future City Project in Saudi Arabia, suddenly intersected with A-share photovoltaic companies.

According to Jinko 688223 Solar's official WeChat, on May 23, 2024, NEOM-Oxagon CEO Vishal Wanchoo and his delegation visited JinkoSolar's Shanghai headquarters for a visit.

JinkoSolar CEO Chen Kangping attended the meeting, and the two sides had an in-depth discussion on the cooperation opportunities to jointly explore NEOM's future city projects.

The meeting further discussed the cooperation between JinkoSolar and NEOM projects, focusing on photovoltaics, energy storage, hydrogen energy and other fields, to jointly build a future smart city powered by 100% renewable energy.

(Source: JinkoSolar's official WeChat)

What is the NEOM Future City Project? Saudi Arabia's crown prince Mohammed bin Salman announced a US$500 billion (3.3 trillion yuan) plan to build the city, Xinhua reported in October 2017.

He said the modern new city will become "the land of global dreamers". By 2030, NEOM's contribution to Saudi Arabia's gross domestic product (GDP) is expected to reach at least US$100 billion (664.2 billion yuan).

Named NEOM, the new city is located in northwestern Saudi Arabia and is estimated to cover an area of 26,500 square kilometers, bordering the Red Sea and the Gulf of Aqaba, and close to the maritime trade route via the Suez Canal. The new city will focus on nine major industries, including energy and water, biotechnology, food, advanced manufacturing and entertainment, and will be powered entirely by new energy sources in the future.

Judging from NEOM's urban positioning, it seems understandable that its senior management team visited JinkoSolar.

JinkoSolar is a well-known player in the global photovoltaic industry, taking the lead in establishing a "vertically integrated" production capacity from wafer, cell to module production, with a total of 14 global production bases in China, Malaysia, Vietnam and the United States. It is estimated that by the end of 2024, the company's monocrystalline silicon wafer, cell and module production capacity will reach 120GW, 110GW and 130GW respectively, and the N-type production capacity will exceed 100GW, leading the industry in scale.

In 2023, JinkoSolar will achieve operating income of 118.682 billion yuan, a year-on-year increase of 43.55%; The net profit attributable to the parent company was 7.44 billion yuan, a year-on-year increase of 69.04%. As of the first quarter of 2024, the company has ranked first in global module shipments for five consecutive years, with cumulative module shipments exceeding 230GW. The products serve more than 3,000 customers in more than 190 countries and regions around the world.

In terms of the progress of the construction of NEOM's future city project, Xinhua News Agency also quoted Reuters as reporting at the time that the funds for the construction of the city would come from the Saudi Public Investment Fund, the Saudi government and private investors at home and abroad. The Saudi government is now in contact with potential investors, and the first phase of NEOM is expected to be completed by 2025.

However, the actual construction of NEOM's future urban project has not progressed for a long time.

In April 2024, the Global Times reported that in order to raise funds for the "New Future City" (NEOM) mega project in the desert of Saudi Arabia, a delegation from Saudi Arabia recently visited China for a roadshow for the project. At that time, the Global Times also quoted Al-Arabiya TV as reporting that before coming to China, the NEOM project had held performances in international markets such as Seoul, Tokyo, Washington, Paris, Berlin and London in order to attract investors, but had not made significant progress in raising funds.

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