On the same day, Tongwei announced its plan of investing 14 billion yuan to construct a 200,000MT annual capacity high-purity crystalline silicon project in Leshan
PVTIME – According to Tongwei’s performance forecast issued on the evening of June 30, the group is expecting net profit attributable to shareholders of listed companies in the first half of 2021 to increase by 1.79-1.99 billion yuan compared with the same period of the previous year, which is a year-on-year increase of 177% to 197%. Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses will increase by 1.841 to 2.041 billion yuan compared with the same period of the previous year, a year-on-year increase of 192% to 213%.
Tongwei stated that the significant growth in the company’s performance during the second quarter was mainly due to the increase in silicon material prices. It is estimated that the average sales price of silicon materials in the second quarter increased by about 50% compared with the first quarter. At the same time, the company’s cell business maintained full production and sales, and both volume and profit achieved substantial year-on-year growth.
On the same day, Tongwei issued an announcement stating that based on the global energy transition and green development needs, the company has signed an investment agreement and plans to construct a 200,000MT high-purity crystalline silicon project in Wutongqiao District, Leshan City. The total investment is estimated to be 14 billion yuan, and the project will be implemented in two phases at 100,000MT per phase. Phase I is planned to be put into production before the end of December 2022 and Phase II of the project will begin construction at a later time based on the development of the market and the photovoltaic industry.
Tongwei said that based on the broad development prospects of the photovoltaic industry under the background of global carbon neutrality and the company’s leading advantages in the field of high-purity crystalline silicon, the signing of this investment agreement is in line with the company’s business strategy needs and high-purity crystalline silicon business development plan.
Currently, Tongwei’s annual production capacity of high-purity crystalline silicon is 80,000MT and construction arrangements are being made on 150,000MT worth of projects. By the end of 2022, Tongwei’s annual production capacity will reach 330,000MT as Phase I of the aforementioned project finishes construction and 430,000MT once Phase II of the Leshan project is completed.
In the second half of the year, the profitability of silicon materials may further improve as the new supply of silicon materials will be limited. With the arrival of the peak demand season, the demand for silicon materials will continue to be tight, and the price of silicon materials is expected to remain high. If the price of silicon materials in the third quarter remains at the current level of 210,000 yuan/MT, Tongwei expects its net profit contributed by the silicon materials business in the third quarter to increase by about 1 billion yuan compared with the second quarter.