After signing 42 with Xiexin Technology in AprilPlayrealrouletteonline. after the purchase contract of 50,000 tonsPlayrealrouletteonlineOn May 10th, Longji Green Energy signed a contract with Tongwei Co., Ltd. for the sale of high purity silicon products, with an estimated total amount of about 39.1 billion yuan. With the disclosure of the 2023 annual report and the first quarterly report of 2024, the entire photovoltaic industry is no longer the previous high demeanor, performance pressure, stock price decline seems to be a common situation. In the first quarter of this year, industry giants Tongwei shares and Longji Green were losing net profit while their revenues declined, and the two giants chose to stay warm together.

The two photovoltaic giants hold hands again

On the evening of May 10, Tongwei shares announced that six of the company's subsidiaries (hereinafter referred to as "the seller") recently signed a contract for the sale of high purity silicon products with Longji Green Energy and its nine subsidiaries (referred to as "the buyer"). It is agreed that during the period from 2024 to 2026, the total buyer and seller shall not be less than 86.Playrealrouletteonline. 240000 tons of high purity silicon products, the purchase price is determined through monthly negotiation, and the total contract transaction amount is subject to the final transaction amount.

Based on the domestic average transaction price of 45300 yuan / ton announced by the Silicon Branch of China Nonferrous Metals Industry Association (May 8, 2024), the total amount of this contract is expected to be about 39.1 billion yuan (including tax).

In 2023, the price of high-purity silicon products declined sharply. According to the statistics of the Ministry of Industry and Information Technology, the domestic output of high-purity silicon exceeded 1.43 million tons in 2023, an increase of 66.9% over the same period last year. According to Antaike statistics, the average price of single crystal densifier dropped from 176200 yuan / ton at the beginning of the year to 58300 yuan / ton at the end of the year, a decrease of 66.91 percent.

Price fluctuations are bound to affect performance. Tongwei shares said that this contract is a long single sales contract, and the signing is conducive to the stable sales of the company's high-purity silicon products and has a positive impact on business performance.

As a "silicon + battery" double-leading enterprise in the industry, Tongwei shares have continued to promote the construction of high-purity crystal silicon production capacity in recent years.

In 2023, Tongwei Yongxiang Energy Technology 120000 tons of high purity crystal silicon project fully reached the production standard in the fourth quarter. At the same time, the construction of 200000 tons of high-purity crystal silicon in Yunnan and 200000 tons of high-purity crystal silicon in Inner Mongolia is expected to be put into production in the second and third quarters of 2024 respectively, when Tongwei's high-purity crystal silicon production capacity will reach 850000 tons. In addition, Tongwei shares have also planned supporting industrial silicon projects in Inner Mongolia and Sichuan.

Counterparty Fang Longji Green Energy, as the world's largest manufacturer of monocrystalline silicon products, its alliance with Tongwei shares has also attracted market attention. In a word, Longji and Yongxiang, a subsidiary of Tongwei, signed cooperation agreements in January and March 2017 respectively to carry out project cooperation in the field of monocrystalline silicon rods and high purity silicon.

In January 2017, Yongxiang, a subsidiary of Tongwei, together with Longji Green Energy and Trina Solar, jointly invested in the Lijiang annual 5GW single crystal silicon rod project by way of a joint venture, with a registered capital of 800 million yuan, with contributions of 120 million yuan, 480 million yuan and 200 million yuan respectively. In March of the same year, Yongxiang shares and Longji Green Energy jointly established a joint venture company as the main investor in the 50, 000-ton high-purity polysilicon project with a registered capital of 1.2 billion yuan, with shares of 85% and 15% respectively.

Then in 2018, three companies of Tongwei and four companies of Longji Green Energy proposed to sign a cooperation agreement on the sales and procurement of polysilicon products, selling a total of about 55000 tons of polysilicon.

In June 2019, Tongwei and Longji reached a cooperation intention on the cooperation of high purity silicon and silicon wafers, and the two sides signed a strategic cooperation agreement. In September 2020, the two sides made adjustments based on the strategic agreement signed. In addition to increasing the capital and shares of Yongxiang New Energy established in 2017, Longji plans to invest in Yunnan Tongwei (Yunnan Baoshan 40, 000 tons of high-purity silicon project), with a shareholding ratio of 49%. The two sides aim to have an annual trading volume of 101800 tons of polysilicon.

Since then, the two leading companies have signed relevant procurement contracts. In March 2022, Tongwei shares and Longji Green Energy signed a polysilicon procurement agreement for more than two years, with a total purchase volume of 203600 tons. According to the market price estimate at that time, the contract value was as high as 44.2 billion yuan.

This time, the two sides once again signed a large-scale "long order" for the purchase of high-purity silicon, which is also considered to be a continuation of previous cooperation. In recent years, Longji Green has made a new breakthrough in the field of BC cells and has a large demand for raw materials, so it needs to further support the development of its related business of crystalline silicon photovoltaic cells by purchasing silicon materials in large quantities. Prior to April 3, Longji Green Energy also signed a long-term procurement contract of about 425000 tons of granular silicon with Jiangsu Zhongneng, a wholly-owned subsidiary of Xiexin Technology.

Behind the warming of the newspaper group, the performance has declined.

The background in which the two photovoltaic leaders have signed large orders is precisely the structural adjustment being carried out in the photovoltaic industry.

According to the latest silicon price released by the Silicon Branch of China Nonferrous Metals Industry Association on May 8, the transaction price of N-type bar silicon ranges from 43000 yuan / ton to 48000 yuan / ton, and the average transaction price is 45300 yuan / ton, down 7.93% from the previous month. P-type compact material transaction price range is 38000 yuan / ton to 43000 yuan / ton, the average transaction price is 39000 yuan / ton, down 8.88%.

Obviously, the price of silicon is still falling, compared with the high of more than 300000 yuan / ton in 2022, the price of silicon has fallen by nearly 90%. Judging from the current situation, the current silicon price may have fallen below the cost of non-head enterprises, or even close to the leading cost. Tongwei shares also said in the 2023 annual report that the overall operation of enterprises in the industry is under pressure, significant differentiation, some enterprises have unsalable products, operating losses, investment projects have to be postponed or cancelled.

Affected by the downward price of silicon, the performance of Tongwei shares, the boss of silicon, has also been affected. In 2023, the revenue growth rate of Tongwei shares declined again after 7 years, and the return net profit plummeted by 50% again after 11 years. Last year, the revenue of Tongwei shares was 139.104 billion yuan, down 2.33% from the same period last year; the net profit of returning to the mother was 13.574 billion yuan, down 47.25% from the same period last year.

In the first quarter of this year, the performance of Tongwei shares did not pick up. In the first quarter of 2024, the company's revenue was 19.57 billion yuan, down 41.13% from the same period last year; its net profit was 787 million yuan, down 109.15% from the same period last year, compared with 8.601 billion yuan in the first quarter of 2023.

The profitability of the old man Longji is not good either. Last year, Longji Green Energy's net profit decreased by nearly 30% while its revenue increased slightly by 0.39%. Similarly, Longji Green Energy also reported a loss this year, with revenue of 17.674 billion yuan, down 37.59% from the same period last year, and net profit loss of 2.35 billion yuan, down 165.03% from the same period last year.

(article sourcePlayrealrouletteonline: blue Whale Finance)