Polysilicon prices plummeted, and Tongwei's net profit fell by more than 20% in the first three quarters
In the first three quarters of this year, Tongwei (600438.SH) revenue still achieved a year-on-year increase and exceeded 100 billion yuan, but net profit declined.
On the evening of October 25, Tongwei Co., Ltd. announced that its operating income in the first three quarters was about 111.421 billion yuan, a year-on-year increase of 9.15%, and the net profit attributable to shareholders of listed companies was about 16.302 billion yuan, a year-on-year decrease of 24.98%.
This performance growth rate narrowed sharply year-on-year. Tongwei's revenue increased by 118.6% in the first three quarters of last year, and its net profit was 21.73 billion yuan, a year-on-year increase of 2.7 times. This is also the first time since September 2020 that its net profit in the reporting period has declined year-on-year.
In a single quarter, Tongwei's revenue in the third quarter of this year was 37.352 billion yuan, down 10.52% year-on-year, and its net profit was 3.031 billion yuan, down 68.11% year-on-year.In the first half of this yearTongwei's revenue and net profit both increased, but the performance in the second quarter has declined by 45.7% quarter-on-quarter.
Tongwei Co., Ltd. said in the third quarterly report that the decline in net profit was mainly due to the year-on-year decline in the price of the photovoltaic industry chain during the reporting period. Tongwei is the world's leading polysilicon and battery leader.
In the first three quarters of last year, photovoltaic silicon materials were running at a high level, and until October and early November of that year, polysilicon remained at a high point of more than 300,000 yuan/ton, which helped the performance of polysilicon companies soar. Tongwei Group thereforeBe the only one on the listFortune Global 500 photovoltaic enterprises.
Since December last year, polysilicon prices have reached an inflection point. Since the beginning of this year, polysilicon prices have continued their downward trend. According to the data of the Silicon Industry Branch, the average transaction price of monocrystalline dense material in the week of October 18 was 80,100 yuan/ton, which was more than 73% lower than the high point of last year's price.
The price reduction of polysilicon has also brought down the price of the entire photovoltaic industry chain. In the recent bid opening quotation of the third batch of photovoltaic modules of Huadian Group in 2023, the lowest bid price of P-type has fallen below 1 yuan/W to only 0.993 yuan/W, which is almost lower than the cost quotation, which shows that the photovoltaic industry chain is moving towards a price war, and the competition will become more and more intense.
Tongwei Co., Ltd., which has moved towards an integrated industrial layout, has also suffered a great impact on its performance.
It can be seen in the financial statements that Tongwei's asset impairment loss in the first three quarters was 2.015 billion yuan, a year-on-year increase of 499.29%. This was mainly due to the provision for impairment of fixed assets and the provision for depreciation of inventories. In addition, due to project investment, Tongwei's investment in projects under construction increased by 328.81%.
Tongwei also disclosed the progress of major foreign investment matters since the beginning of this year in the third quarterly report. In February this year, Tongwei decided to invest in the construction of high-purity crystalline silicon and supporting projects with an annual output of 120,000 tons in Wutongqiao District, Leshan City. The total investment of the project is expected to be about 6 billion yuan, and it will strive to be put into operation in 2024.
In June, Tongwei Co., Ltd. plans to invest in the construction of a 25 GW solar cell and 20 GW photovoltaic module project in Shuangliu District, Chengdu, which will be constructed in two phases.
The first phase of the 25 GW cell project is expected to be completed and put into operation in 2024 with an annual output of about 7.5 billion yuan, and the second phase is a 20 GW module project with an estimated fixed asset investment of about 3 billion yuan, which will be completed and put into operation in 2025.
In August, the company announced that it plans to invest in the construction of rod, slice and cell projects with an annual output of 16 GW in Wutongqiao District of Leshan City and Economic Development Zone of Emeishan City respectively, with an estimated investment of 10 billion yuan for a single project, and the projects are expected to be completed and put into operation by the end of 2024。
In April this year, Tongwei Co., Ltd. originally planned to issue shares to no more than 35 specific investors to raise 16 billion yuan for the 200,000-ton high-purity crystalline silicon project in Inner Mongolia and the high-purity crystalline silicon green energy project of Yunnan Tongwei Hydropower Silicon Materials.
However, in September, Tongwei announced that due to changes in the capital market, the company's value was significantly undervalued, and the above-mentioned fixed increase was finally terminated, and it would use its own funds, loans from financial institutions and other financing methods to make overall funding arrangements.
According to the original plan, by the end of 2023, Tongwei's high-purity crystalline silicon production capacity will exceed 380,000 tons, solar cell production capacity will reach 80-100 GW, and module production capacity will reach 80 GW.
According to the previous semi-annual report, Tongwei has formed an annual production capacity of more than 420,000 tons of high-purity crystalline silicon, 90 GW of solar cells and 55 GW of modules.
As of the close of trading on October 25, Tongwei shares fell slightly by 0.03% to close at 28.96 yuan per share, with a total market value of about 130.4 billion yuan.
