Tongwei H1 2021 Net Profit Increased by 194%

PVTIME – Tongwei Co., Ltd. (hereinafer referred to as “Tongwei” or the “Company”)has released its 2021 semi-annual report. During the reporting period, the company achieved an operating income of 26.562 billion yuan, a year-on-year increase of 41.75%. Net profit attributable to shareholders of listed companies was 2.966 billion yuan, a year-on-year increase of 193.50%, and net profit after deducting non-recurring gains and losses was 2.995 billion yuan, a year-on-year increase of 212.24%.

The main photovoltaic business segment of Tongwei mainly operates in the development of polysilicon, production of solar cells and integrated solar fishery power stations. As of the end of June, Tongwei has established an annual production capacity of 80,000MT of high-purity crystalline silicon and an annual production capacity of 35GW for solar cells.

In the polysilicon segment, in the first half of the year, due to the imbalance between supply and demand in the industrial chain, the supply of high-purity crystalline silicon products exceeded demand, and market prices continued to rise. During this period, Tongwei’s polysilicon business continued to reach full production and sales, with a capacity utilization rate of 126.50%, achieving an output of 50,600MT. Tongwei’s average production cost during the reporting period was 36,500 yuan/MT (the average production cost of Leshan Phase I and Baotou Phase I projects was 33,700 yuan/MT), the average gross profit margin of the product is 69.39%.

According to Tongwei’s high-purity crystalline silicon business development plan, during the reporting period, the company steadily promoted the construction of new projects, and the project progress is in line with its expectations. Another 100,000MT will be put into production in 2022. At the same time, Tongwei’s board of directors has recently deliberated and approved the “Proposal on Investing in Leshan City with an Annual Output of 200,000MT of High-purity Crystalline Silicon Project”. 100,000MT of which is planned to be completed and put into production by the end of 2022. It is estimated that the company’s high-purity crystalline silicon production capacity will reach 330,000MT by the end of 2022.

In the cell segment, in the first half of the year, Tongwei secured a stable supply of silicon wafers through its long-term strategic cooperation with upstream suppliers. With its excellent product quality and cost advantages, it continued to maintain full production and sales. During the reporting period, the company’s cell and module sales were 14.93GW, a year-on-year increase of 92.68%, and the gross profit margin of monocrystalline cells was 11.65%. In terms of product structure, large-size shipments of 166mm cells and above accounted for 65%. Shipments of 210mm products accounted for 37% in June. In terms of new project construction, considering that the supply and demand discrepancy of the industrial chain cannot be effectively alleviated within this year, the company plans to build a 15GW cell project in cooperation with Trina Solar in two phases, of which the first phase of 7.5GW will be completed within this year, and the second phase 7.5GW will be completed in the first half of 2022. It is estimated that the total cell production capacity of the company will exceed 55GW in 2022, of which the capacity of 210mm large-size cells will exceed 35GW.

In addition, Tongwei reported that as of the end of June, it built 46 solar fisheries with a cumulative installed capacity of more than 2.4GW and a power generation capability of 1.524 billion kWh in the first half of the year.

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