On July 6, TBEA announced its plan to invest 7.207 billion yuan to build a polysilicon construction project in Xinjiang. On the same day, another domestic photovoltaic industry giant Tianwei Baobian published a public offering of corporate bond prospectus announcement, officially issued 1.6 billion corporate bonds to promote the development of new energy business of one of the two main businesses.
Since the beginning of this year, the prices of polysilicon international and domestic markets have been falling all the time, and the over-capacity warnings and market access conditions have been restricted. The entire PV market has entered the “winter†period that many insiders call. In this context, why is the enthusiasm of domestic companies investing in this field not reduced? Analysts pointed out that the industry's "cold winter" is only a short-term phenomenon. The leading enterprises are investing heavily at this time, focusing on the early development of the domestic market that has not yet fully started, and taking the opportunity to integrate the industrial chain to strengthen cost and quality control.
Early layout of the domestic market
Despite the gloom of the photovoltaic market this year, the government’s preliminary target of 10 million kWh for photovoltaic installations in the “Twelfth Five-Year Plan†still gives the industry a “strong shotâ€. This target figure means that it is currently 20 times on the basis.
In this context, many companies have actively sought to get rid of the highly dependent overseas market and began to actively plan for the early deployment of the domestic market. The goal of the TBEA's huge investment plan is to expand the production of its Xinjiang Silicon Company from the current 1,500 tons to 3,000 tons by the end of this year. Prior to this, major companies including GCL-Poly, Tianwei Baobian and CSG A also announced their respective financing expansion plans. In terms of battery components, China Yingli and LDK have received loan support from various trusts. Yingli expects the company's production capacity to expand to 1700 MW by the end of 2011.
Wang Haisheng, chief analyst of Huatai United Securities' new energy industry, said that in general, 1 megawatt of photovoltaic cells need 8-10 tons of polysilicon, and 10 million kilowatts of polysilicon demand will reach 80,000-100,000 tons. In the calculation of the price of USD/kg, the PV industry chain will only have a market size of 30 billion yuan in the next five years, and the scale of PV modules and systems will be even larger.
He further pointed out that the impact of the "polysilicon industry access conditions" currently being implemented on the industrial sector is mainly in small and medium-sized enterprises, and this is precisely the time for large enterprises to accelerate the expansion. The TBEA's lock-in output of 3,000 tons is intended. The performance of leading the industry.
In fact, an important reason for many companies, including TBEA and Tianwei Baobian, to accelerate the layout of the PV industry is that the contribution of the PV sector to its overall company performance has been outstanding. According to the 2010 annual report of TBEA and Tianwei Baobian, the revenue growth rate of the new energy business of the two companies including PV last year was 81% and 138% respectively.
"Vertical integration" into an industrial trend
Wang Haisheng pointed out that TBEA has its own photovoltaic cell production business. This large-scale entry into the polysilicon industry highlights the company's strategy of building a “vertical integration†model for photovoltaics and expanding the entire industry chain. This is an inevitable trend for companies to strengthen cost and quality control as the profitability of the entire photovoltaic industry continues to decline.
Recently, Wuxi Suntech, a traditional PV module manufacturer, has terminated the hot-selling agreement with the US MEMC company for a 10-year wafer supply contract with a compensation of US$200 million. Although the surface reason is that the price of silicon material has been falling all the time, the company’s purchase price difference has increased. Many analyses agree that its long-term consideration is to improve the self-sufficiency rate of silicon materials and expand to the upstream of the industrial chain.
Yingli Green Energy has been pursuing “vertical integration†in China, and its “Jiusix†silicon industry, which has been heavily invested and invested, has gradually reached production, which makes the comprehensive gross profit margin of its battery components products double the industry average. Above, up to 20%. Li Zongxi, the company's chief financial officer, said that the current profit of all aspects of the photovoltaic industry is not reasonable, resulting in high cost of end products. He believes that only by creating a "vertical integration" model can we achieve reasonable control of the profit of the entire industrial chain, and thus promote a reasonable decline in product costs.
Since the beginning of this year, the prices of polysilicon international and domestic markets have been falling all the time, and the over-capacity warnings and market access conditions have been restricted. The entire PV market has entered the “winter†period that many insiders call. In this context, why is the enthusiasm of domestic companies investing in this field not reduced? Analysts pointed out that the industry's "cold winter" is only a short-term phenomenon. The leading enterprises are investing heavily at this time, focusing on the early development of the domestic market that has not yet fully started, and taking the opportunity to integrate the industrial chain to strengthen cost and quality control.
Early layout of the domestic market
Despite the gloom of the photovoltaic market this year, the government’s preliminary target of 10 million kWh for photovoltaic installations in the “Twelfth Five-Year Plan†still gives the industry a “strong shotâ€. This target figure means that it is currently 20 times on the basis.
In this context, many companies have actively sought to get rid of the highly dependent overseas market and began to actively plan for the early deployment of the domestic market. The goal of the TBEA's huge investment plan is to expand the production of its Xinjiang Silicon Company from the current 1,500 tons to 3,000 tons by the end of this year. Prior to this, major companies including GCL-Poly, Tianwei Baobian and CSG A also announced their respective financing expansion plans. In terms of battery components, China Yingli and LDK have received loan support from various trusts. Yingli expects the company's production capacity to expand to 1700 MW by the end of 2011.
Wang Haisheng, chief analyst of Huatai United Securities' new energy industry, said that in general, 1 megawatt of photovoltaic cells need 8-10 tons of polysilicon, and 10 million kilowatts of polysilicon demand will reach 80,000-100,000 tons. In the calculation of the price of USD/kg, the PV industry chain will only have a market size of 30 billion yuan in the next five years, and the scale of PV modules and systems will be even larger.
He further pointed out that the impact of the "polysilicon industry access conditions" currently being implemented on the industrial sector is mainly in small and medium-sized enterprises, and this is precisely the time for large enterprises to accelerate the expansion. The TBEA's lock-in output of 3,000 tons is intended. The performance of leading the industry.
In fact, an important reason for many companies, including TBEA and Tianwei Baobian, to accelerate the layout of the PV industry is that the contribution of the PV sector to its overall company performance has been outstanding. According to the 2010 annual report of TBEA and Tianwei Baobian, the revenue growth rate of the new energy business of the two companies including PV last year was 81% and 138% respectively.
"Vertical integration" into an industrial trend
Wang Haisheng pointed out that TBEA has its own photovoltaic cell production business. This large-scale entry into the polysilicon industry highlights the company's strategy of building a “vertical integration†model for photovoltaics and expanding the entire industry chain. This is an inevitable trend for companies to strengthen cost and quality control as the profitability of the entire photovoltaic industry continues to decline.
Recently, Wuxi Suntech, a traditional PV module manufacturer, has terminated the hot-selling agreement with the US MEMC company for a 10-year wafer supply contract with a compensation of US$200 million. Although the surface reason is that the price of silicon material has been falling all the time, the company’s purchase price difference has increased. Many analyses agree that its long-term consideration is to improve the self-sufficiency rate of silicon materials and expand to the upstream of the industrial chain.
Yingli Green Energy has been pursuing “vertical integration†in China, and its “Jiusix†silicon industry, which has been heavily invested and invested, has gradually reached production, which makes the comprehensive gross profit margin of its battery components products double the industry average. Above, up to 20%. Li Zongxi, the company's chief financial officer, said that the current profit of all aspects of the photovoltaic industry is not reasonable, resulting in high cost of end products. He believes that only by creating a "vertical integration" model can we achieve reasonable control of the profit of the entire industrial chain, and thus promote a reasonable decline in product costs.
Zhejiang Nanhua Electronic Technology Co., Ltd , https://www.nhloadcell.com