Liu Hanyuan, Chairman of the Board of Directors of Tongwei: The photovoltaic industry will regain its balance and hand it over to the market office as much as possible

"There is no need to worry too much, the market affairs should be handled by the market as much as possible, and the government should guide it appropriately."

On November 14, Liu Hanyuan, chairman of the board of directors of Tongwei Group, expressed his views on the current problems in the photovoltaic industry in an interview with Jiemian News and other media.

On the same day, the 6th China International Photovoltaic Industry Conference 2023 opened in Chengdu, with a total amount of more than 50 billion yuan of signed projects during the conference, involving the entire photovoltaic industry chain such as silicon materials, silicon wafers, cells, and modules, which means that the market heat of clean energy is still continuing.

However, in recent years, the industry has also exposed many hidden dangers, such as the crisis of overcapacity, the fierce competition of enterprise homogeneity, etc.

Since the beginning of this year, polysilicon prices have continued to fall, and the average transaction price of mono-Si dense polysilicon has fallen below 70,000 yuan/mt.It is nearly 80% lower than last year's highThis has also driven wafers, cells, and modules into a downward channel.

Liu Hanyuan believes that the 30-year energy transition needs the support of the photovoltaic industry, and the industrial potential is huge. In this context, all investment and demand behaviors under market conditions are a cyclical and spiraling forward movement such as continuous rebalancing and re-excess. The essence of the market economy is to discover demand, balance demand, reduce investment, expand investment, and so on, so the current development trend of the industry is very normal.

"In the industry, enterprises in all links increase their support for each other, differ from each other, focus on each other, fulfill each other, and take care of each other, which is the best ecology. Instead of simple repetition and involution, it will be difficult to maintain the industry ecology. Liu Hanyuan said to interface news and other media.

As one of the proofs, Trina Solar (688599.SH) and Tongwei Co., Ltd. (600438.SH) signed a strategic cooperation signing ceremony on the same day. The two parties plan to further carry out in-depth cooperation in 2024 in joint ventures and cooperation in the photovoltaic module, silicon material and cell industry chain.

PV manufacturing can be broadly divided into polysilicon, cells, wafers and modules. Tongwei is currently the world's largest polysilicon and cell company, and Trina Solar is a leading long-established module company, and the two complement each other.

In addition to the domestic PV market, the topic of trade barriers related to overseas markets has been very popular in recent years.

Liu Hanyuan said that the European Union, the United States and other regions want to leave or refuse to use Chinese-made modules under the time pressure of energy transition and carbon neutrality, which is a double harm to them and China.

In the face of the risks that may be encountered in the overseas sales of products, the most direct way is to set up local factories to promote the global layout of the supply chain. At present, a number of China's leading photovoltaic companies have "gone global", such as TCL Zhonghuan (002129.SZ), LONGi Green Energy (601012.SH), JA Solar (002459.SZ), Trina Solar and other enterprises have invested and set up factories in countries along the "Belt and Road"; The top five module manufacturers in China also have a presence in Europe and the United States.

Liu Hanyuan said that many domestic photovoltaic companies are continuing to study the construction of overseas factories. At present, the global energy transition still mainly relies on Made in China, which accounts for 80%-95% of the world's share of the industry in different links.

"In this process, all enterprises go out at an appropriate pace and in the form of production, production and use in places where the world's conditions are advantageous, which is a better ecology from a global perspective, and can also enable China's capital, technology and industry to truly participate in a more balanced global energy transition process." Liu Hanyuan said.