On October 19, 2021, Jolywood (300393) issued an announcement that Guosheng Securities Yang Runsi, Jia Jiayu, Guotai Junan Zhou Miaoshun, Ningben Investment Li Weifeng, Huaan Securities Yang Zongxing, Shanghai Life Gui Zhiyuan, Oak Asset Wang Lili, Yueyi Asset Gu Yihua, Changxin Fund Wang Junyang, Oriental Strait Wang Ganyi, Xitai Investment Liu Zihao investigated our company on October 15, 2021, this survey was conducted by Li Na, secretary of the board of directors of the company, Xie Jianjun, deputy general manager of the company and chairman of Jolywood Optoelectronics, Chen Jia, assistant general manager of Jolywood Optoelectronics, is responsible for the reception.
The main contents of this survey are:
The investor relations event consisted of two parts: interactive communication and battery workshop visit.
1. Interactive communication
1. Please briefly introduce the company's CURRENT TOPCon battery process, research and development, and production capacity under construction. Reply: The company's N-type mono high-efficiency cell process has been upgraded from TOPCon 1.0 to TOPCon2.0, with fewer processes (close to the number of PERC processes), lower costs, higher yields, and greater potential for improved cell conversion efficiency. In the future, the company will continue to upgrade and transform on the basis of the 2.0 process, and strive to be more competitive with PERC batteries. In September 2021, the company passed the application of innovative technologies and advanced materials such as the passivation contact of the new generation of tunnel-through oxide layer and in-situ doped amorphous silicon deposition without wrapping plating, and the conversion efficiency of TOPCon2.0 battery based on 182mm*182mm size silicon wafer and POPPAD technology reached 25.4%, and passed the third-party testing and certification of the Chinese Academy of Metrology, which is the laboratory research and development efficiency, and it takes time to achieve mass production with this efficiency. The company's current TOPCon battery production capacity is under construction in Taizhou 1.5GW, Shanxi 16GW and so on.
2. What is the progress of the 1.5GW projects in Taizhou and 16GW in Shanxi? Reply: The Taizhou 1.5GW battery project will be gradually put into production starting in October this year. Shanxi 16GW battery project is currently in the stage of plant construction and equipment procurement, and the first phase of the project, 8GW, is expected to start gradual production next year.
3. What is the company's current single GW investment amount of TOPCon batteries? What are the measures for the high consumption and high cost of silver pulp? Reply: Based on the J-TOPCon2.0 process, the company's single GW equipment investment in TOPCon batteries is expected to be about 200 million yuan. In response to the problem of silver paste, on the one hand, the company will reduce the amount of silver paste used as much as possible, on the other hand, the company will also develop alternative technologies through other metals, but these will take time.
4. Does the company's battery and module production capacity match? Reply: The company's battery and module production capacity will not be completely matched in the future, with the gradual expansion of the company's battery and module production capacity, the future battery capacity will exceed the production capacity of the module, and the excess battery is mainly used for export.
5. Does the "dual energy control" policy affect the company's production? Reply: Jolywood has actively communicated and coordinated with the local government, and can ensure the normal supply of production power in October, and at present, the impact of the "dual control of energy" policy is generally controllable and will not have a significant adverse impact on the company's production and operation.
6. What is the progress of the company's major shareholder Jiangyan Daode's plan to reduce its holdings? Will the reduction be further reduced until it is completely withdrawn? Reply: The company will disclose the progress of Jiangyan Daode's reduction in a timely manner after receiving the notice of the progress of Jiangyan Daode's reduction in accordance with the requirements of relevant laws, regulations and normative documents. In addition to the announced reduction plan, the Company has not received notification of jiangyan Daode's further reduction plan.
7. What is the production and sales, production capacity and gross profit of the company's backplane business? Has the rise in raw materials affected the backplane business? Reply: The company's backplane business is currently in full production and sales, with an annual production capacity of 170 million square meters, and a gross profit margin of 18.58% in the first half of this year. In the first half of this year, the raw materials of backplane products have risen significantly, resulting in a significant increase in the cost of backplane products. Among them, affected by the rising price of raw material PVDF resin, the price of K film backplate products has risen sharply, while the company's main FFC coated back plate products do not need to use PVDF, which is more cost-effective in comparison.
8. What is the progress of the company's fixed increase project? What are the follow-up plans? Reply: The company received the first audit inquiry letter issued by the Shenzhen Stock Exchange on the evening of September 30, and is currently actively coordinating the intermediary agencies to prepare a reply letter and strive to reply as soon as possible, while the company will update the financial data of the declaration documents in a timely manner after disclosing the third quarter report on October 27, and will continue to follow the review progress of the Shenzhen Stock Exchange and the registration process of the China Securities Regulatory Commission, and the specific time node is uncertain.
Second, the battery workshop visit.
The main business of Jolywood Co., Ltd.: development, production and sales of solar energy materials (plastic soft film); Sales of solar materials; Solar technology services, consulting; Engaged in the import and export of goods and technology (projects that require approval according to law can only carry out business activities after approval by the relevant departments). General projects: photovoltaic equipment and components manufacturing; Sales of photovoltaic equipment and components; Solar power generation technical services; Technology extension services; Technical services, technology development, technical consultation, technical exchanges, technology transfer, technology promotion; Engineering and technology research and experimental development; Contract energy management (except for projects that require approval according to law, independent business activities are carried out according to law with a business license).
Jolywood's 2021 interim report shows that the company's main revenue was 2.373 billion yuan, up 16.7% year-on-year; net profit attributable to the mother was 31.0831 million yuan, down 71.87% year-on-year; deduction of non-net profit was 4.774 million yuan, down 96.55% year-on-year; among them, in the second quarter of 2021, the company's single-quarter main revenue was 1.242 billion yuan, down 20.97%; single-quarter net profit attributable to the mother was 19.2206 million yuan, down 85.2% year-on-year. In a single quarter, the non-net profit was 11.2335 million yuan, down 91.88% year-on-year; the debt ratio was 57.63%, the investment income was -27.839 million yuan, the financial expense was -33.8973 million yuan, and the gross profit margin was 10.47%.